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tv   Bloomberg Technology  Bloomberg  March 2, 2022 5:00pm-6:00pm EST

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this is "bloomberg technology" with emily chang. emily: i am emily chang in san francisco. isolating putin and his allies. the doj task force will track the use of crypto to evade sanctions along with yachts and
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other luxury assets. our conversation with lisa monaco. salesforce co-ceo gives us his view on how the war in ukraine and the global economic uncertainty will impact global business, plus how the developer team in ukraine is very. finance says the exchange will not impose a blanket ban on russian users. a unilateral decision would be unethical according to its ceo. all of that in a moment. u.s. stocks rallying back. ed ludlow is here with more. ed: so much for investors to take. the real focus is the federal reserve and jay powell giving a testimony on capitol hill, saying he backs a quarter percentage point hike this month , and set out hints about policy going forward.
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the outlook for rates is front and center. that drove the equity rally, broad gains across the s&p 500. technology as well, the nasdaq up 1.7% even as yields continue to rise. the benchmark u.s. 10 year yield up 15 basis points, 1.87%. dramatic drop over the last four days, yields bouncing back. oil continues to be a story directly linked to the ukraine crisis and russian supply. i keep looking down the screen. $110. wti west texas intermediate, astonishing. i want to bring this back to ukraine and russia. that blue line. cybersecurity stocks. out performance, continuing to see gains on wednesday. this is clearly linked to what is happening in ukraine.
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investors betting that we will see gains in the sector going forward based on the tactics being used. a lot of corporate stories going on in north america. the big one, ford announcing it will split its company into two businesses. ev and legacy guest. the stock is up 8.4%. ford announcing on tuesday night they are holding -- halting operations in russia because of that country's action. apple up 2%. mark gurman telling us this could be the biggest year yet for new hardware out of yeah -- apple. apple halting sales in russia on tuesday. netflix says it is pausing future projects and acquisitions in russia due to the invasion in ukraine. that is reporting from a variety of sources.
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clearly this is still top of mind. emily: we're going to hear your interview with the ford ceo later this hour. the u.s. and allies stepping up pressure over the invasion of ukraine. the justice department has launched a task force to enforce sanctions that target wealthy citizens and seize assets from luxury yachts to crypto. i spoke with lisa monaco about how the task force plans to intercept russian oligarchs. lisa: what we are doing with this task force is bringing together experts from within the justice department and across the government to go after stolen and hidden assets of russian oligarchs. these are prudence cronies for bolstering the russian regime and trying to hide ill-gotten gains in luxury yachts, jets, apartments. the message with this task force
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is we are going to go after those proceeds, freeze them with sanctions that we are levying in an unprecedented way both here in the united states and with partners and allies, and where we can trace those assets and the money used to procure them, to criminal activity like sanctions evasion, money laundering. we're then going to seize those assets. while people are dying and bonds are dropping in ukraine because of russia's unprovoked aggression, this type of behavior and sanctions evasion by russian oligarchs cannot stand. that is the message with this task force. emily: how concerned are you these oligarchs are moving their assets out of reach? is that happening now, and if so how difficult does that make the job you are trying to do? lisa: we have authorities, tools, and we are putting them
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all to use. you are seeing this unprecedented level of focus and resources being put to this challenge. we have seen the effort of oligarchs trying to evade sanctions, this is happened in the past. what we have already sanctions, mortals, more capability to go after these games. what we are also doing, the message to the financial sector, two businesses out there, be on high alert. if individuals are using your businesses, your financial institutions to move that money, to do business, be on high alert and make sure you know your customer compliance, anti-money laundering compliance is in shape. the consequences of it not being is going to be severe, quite serious.
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the message to financial institutions and businesses here is be on high alert for oligarchs trying to evade sanctions, trying to continue to use our financial system to bolster the russian regime. emily: you are targeting cryptocurrency assets. are you focused on freezing existing assets or preventing fiat from moving into new assets? what kind of volume are we talking about? lisa: all of the above. we are at a crossroads for cryptocurrency. we need to focus on a new category of crime, that is the use of cryptocurrency to conduct criminal activity, to hide the proceeds of criminal activity. you have seen us go after this quite aggressively. a few weeks ago i announced the largest financial seizure ever, $3.6 billion seized in cryptocurrency, bitcoin. what we are seeing is criminal
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actors trying to use cryptocurrency to evade law enforcement, conduct criminal activity. what we are saying with this task force, the national cryptocurrency enforcement team that we launched last year, that we are putting new focus, unprecedented resources and intensity around this effort. emily: have crypto exchanges been helpful? if they are not helpful or complying, how soon can we see action? lisa: the team i announce last year is targeted at making sure we have got focused on the entire ecosystem that lets criminal activity floors, including criminal activity conducted with cryptocurrency. we need the cooperation of right-thinking and well behaving cryptocurrency exchanges, and other businesses. the seizure i mentioned happened
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in large part because there are cooperations. institutions that have anti-money laundering finely tuned, and they cooperate and alert us to unusual activity. that has to continue to happen, and if it doesn't, businesses are going to find themselves in our crosshairs. emily: does the administration feel squeezing these oligarchs will put pressure on president putin to withdraw his troops, to get out of office, and if not, could that galvanize greater russian aggression? lisa: i had another job in the past, i will leave the foreign policy strategy to others. the focus here in the justice
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department is to do our part along with the treasury department, along with our partners and allies. to continue to isolate putin, to isolate his cronies, oligarchs who seek to bolster his activity and support the activity, unprovoked aggression going on in ukraine. what we are doing with this task force is to send a clear and unmistakable message, if you seek to use this correctly gathered -- corruptly gathered money, and you seek to evade sanctions, we are coming for you. we are coming for your yacht, your check, your luxury apartment. that is the clear message. emily: the u.s. deputy attorney general, lisa monaco. coming up, how russia wields misinformation as one of its most powerful weapons, and how to fight it. we will talk about that with a harvard researcher, a ukrainian
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herself. that is next. this is bloomberg. ♪
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emily: the conflict in ukraine continuing to intensify, with a russian airstrike hitting radio and television towers, one thing remains clear. the war is one of control over information. let's talk about all of that and more with jane, a senior research fellow on media, politics and public policy. she is also a reporter and ukrainian herself. talk to us about the state of russian misinformation, and how it is being used as a weapon right now. jane: one thing to understand as
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russia has been sending false information about ukraine for years, and use some of that information as false justification to further invade the country during the war that has been going on for eight years. part of that is distorting ukrainian history, culture and people. on a more granular level, it also meant videos that purported to show something that it didn't actually show, justification for the war. emily: what you say president putin has been using this as a weapon? jane: absolutely. disinformation is a huge weapon for the russian government. we saw it in 2014 during the annexation of crimea, the occupation of eastern ukraine. we saw it during the downing of mh 17, nbc at now.
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it's a weapon putin has been using all around the world in an attempt to undermine democracy, which of course the u.s. feels intimately as well. emily: how long do you think big tech platforms are handling this now? we have seen some steps taken in the last couple of days, not nearly enough is my guess. jane: from the tracking we are doing, the steps have been good, but limited and scattershot. there has been a ban on rt and sputnik in europe, but we do not see that same ban worldwide which raises a serious question. why? rt and sputnik at huge audiences outside of europe, including america. we also see direct television
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providers attempt to thwart russian disinformation, but again, russians diss informers are very good getting around restrictions on social media. as a matter of fact, they are well-crafted around that. this is a war that spans social media platforms. it's not just about the big three in north america, it's also about tiktok, telegram. there is no social media network untouched by them. emily: talk to us about how everyday ukrainians are navigating this. do they see the difference? how do they try to separate fact from fiction? jane: there is a gargantuan effort to undermine disinformation, either as it comes in or before it comes in. there are a few different ways that both ukrainians and outside groups are doing this. the ukrainian television travel,
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-- channel ukraine 24 are debunking disinformation in real-time. there is also real information exchange happening between ukrainians who are filming scenes from the war and are trying to figure out where was the most recent attack, how many were hurt, and of course, you see an intelligence community. digital breadcrumbs, but those together for a bigger picture and undermine russia narratives. that is why the ukrainian voices we see online have been much more powerful than the russian disinformation. emily: we are in the middle of a crisis, a war. what can we do in this moment? i know you pioneered a message that swiftly and -- debunks. how do we do that? jane: the main thing is to
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understand this war is not going to be over tomorrow, and we will continue to see a big flood of videos, images all the time. we need to be prepared for that. one important thing to remember is there are reporters who are risking their lives on the ground, both ukrainian and international. i would also say it's important to be cautious with images and videos that don't have more than one angle, because of how many images and videos exist of different attacks, and decontextualized media in particular is something that has been very prevalent. it's an unsatisfying answer to say to go to official news sources, but at the moment, an individual will struggle with the idea of verifying a single video and whether it is accurate or not.
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emily: parts out to you. i know it has been a difficult several days. thank you. coming up, bret taylor on the back of salesforce' latest earnings report. that is next. this is bloomberg. ♪
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emily: salesforce beat estimates with revenue up 25% and a strong forecast ahead as the company works to integrate its integration of slack. brett taylor is with me now. great to have you back with us. it's an inflection point, and i have to ask you about what is going on in ukraine, and
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geopolitics. how concerned are you about what this means for humanity, and the global economy, and business? >> i want to start where you just started. humanity. our hearts go out to the people of ukraine. watching this suffering play out in real time in the media is just terrific, and while we don't have a presence, we are showing up as humanitarians to help people and refugees. speaking to the economic impact, there is a lot of uncertainty in the economy right now. this war in europe, the supply chain prices, despite all of that is the investment in human technology. it continues full speed ahead,
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you saw that in our record performance this past year, we are so grateful. we beat our q4 guidance, raised guidance for next year, and continue to keep momentum. emily: we have seen companies self sanctioning, apple, netflix, ford. is that something salesforce is considering? bret: we don't really have a presence in the region. we've never had an office there, no material business there. our focus is how can we use our business as a platform for change. we made a one million-dollar grant to help with the refugee crisis and ukrainian people. i have been heartened to see so many employees show up to help. we have a number of employees with families in the region. we are trying to help out all of the families and this time of global crisis. what can we do to emily: play our part. emily:i know you had a strong
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quarter, m&a has been a street -- key strategy. you were the chief architect of the slack acquisition. could the changing global dynamic change that strategy? bret: honestly, we are not interested in material, day in the near term because we are so excited about slack. we spent the past two years with this global pandemic, keeping people in home offices and away from offices. coming out of this pandemic as people reconnect, this idea that every company needs a digital headquarters to connect employees and partners, because we are going to work from anywhere. i think that is incredibly exciting. we saw incredible momentum of the slack business this past quarter. slack grew 46% year-over-year. we see such great momentum, that is my focus. emily: i know you were listening
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earlier, you are the chair of twitter's board. misinformation has been a big topic. how do you think twitter is handling russian misinformation? what more do you think platforms can do? bret: i want to express my confidence in the ceo of twitter. as your previous guest alluded to, these are some of the most complex and sophisticated problems any company is facing right now. it's also shown the important -- importance of twitter as a platform as so much of this plays out on the platform. there are incredibly complex issues, i really enjoyed the previous segment. i have faith in the management at twitter. emily: quick question. salesforce shares are down from a high in november. why is this disconnect between
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the optimism i hear from you and mark and the stock price? bret: we just put up the best year and our company's history, raised our guidance. i cannot be more excited about the future of our business. across all parts of our portfolio, we are 23 years old next week, $6 billion revenue. slack is doing well, organic investments have never been doing better. i think the stock price will follow. we show up for our customers, drive performance, show up for stakeholders. we believe the stock price will follow. emily: the salesforce co-ceo, thank you so much. coming up. ukraine is home to a massive developer community employed by companies around the world. how tech companies are managing the crisis and ties to russian investors, next.
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this is bloomberg. ♪
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emily: welcome back. as we watch the war in ukraine unfold, companies reevaluate business ties to russia. apple, ford, netflix to name a few. many tech companies rely on talent in ukraine itself. for more i am joined by a general partner atman hatton partners. -- men hatton partners. thank you so much for joining us. a lot of people don't know
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ukraine has a huge developer community. how many of your portfolio companies rely on developers in ukraine, how are they being impacted? >> thanks so much. overall, i would say if we look at those global landscapes around developer talent across the globe, over 70% of the activity in late stage company has some level of presence in ukraine, specifically engineering. when we look at the break further, the majority of the u.k. brings in engineering talent from ukraine. that's incredible to realize. with our teams that are focused on late stage pre-ipo companies, they have pockets of engineering product teams centralized in the ukraine, and that is nearly half of our larger portfolio companies in that late stage. several of them are based overseas and are very much boots
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on the ground. emily: how is this impacting the developer community in ukraine as far as we know, and how our founders thinking about this when they are trying to stay staffed and scale up businesses? andrea: what i am seeing is a global message, be helpful, be empathetic, but be pragmatic. overall with the founders, many are sending out a signal to their developers, to tech teams they have overseas, offering any level of support. i'm also seeing founders and board members are being asked to be realistic around the impact of what is going on. . not just in the near term, but over the next 12 months. how will it impact things like the product roadmap, financial projections, and plans of that
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business, and what that means to those teams that were centralized in ukraine, who are spearheading that initiative? the discussions that are happening -- emily: russia is a large source of venture capital in tech startups around the world. are you seeing companies reconsider their ties to russian investors? andrea: overall, i think the general consensus we are seeing amongst late and mid-stage venture communities are a lot of these relationships across the globe started long before there was ever the tension that has risen up to this level. really, it goes back to the grassroots of what the relationship looks like between a company and their investors. if that relationship was there prior, thus companies are still harvesting those relationships and realizing what that will look like going forward.
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for companies raising rounds of funding right now, they are having discussions with investors who might be located in russia, ukraine, and asking whether or not there will be imminent delays. i don't know if i'm seeing a complete shift in the relationship. there are plenty of phenomenal people in russia who had zero intent to see this happen. it's a scary signal around how the flow of funds work and funding going forward. emily: how is fundraising being impacted? it seems like fundraising announcements have slowed. do you think we will see a slowdown in venture capital invested because of the uncertain macroeconomic environment? andrea: i stick with the belief that tech is the new gold.
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the world is going to continue looking a lot like ready player one going forward, and it's not slowing down. with that in mind, i don't see a shift in mindset for a slowdown in venture capital dollars being deployed, but in terms of the realistic expectations for how companies should be value. maybe the desire to be a hypergrowth company will exist long after the turmoil seizes, but the realistic expectation around how we should value these businesses. emily: thanks for giving us your perspective. appreciate it. the conflict in ukraine and the impact on the global economy top of mind for ceos around the world. i spoke with the ceo of sophia -- sofi. he is playing close attention to
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rate hikes, inflation. we spoke with him and my colic. take a listen. >> sofi has a history of -- we started 2021 with a different economy and backdrop for the year. we just reported our third consecutive quarter of record revenue growth, up more than 50%. we had record product growth. it's a testament to our one-stop shop strategy and ability to meet our members needs, doing and more efficiently a full year profitability. the environment is volatile, rates are going to increase, that is reflected in our outlook. we are calling for $1.5 billion of revenue and $180 million of -- seeing strong growth in our member base in q1, in addition to the demand we have for galileo.
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we are benefiting from trends, we have to deal with the volatility and cyclicality of rates and inflation and monetary policy, but it's all part of the norm. emily: there are huge humanitarian concerns given was happening. i know you are a veteran yourself, and i'm curious what sort of perspective you bring to this about what this means for the world and for global business. >> it's a travesty that people have to live in fear. that threat of violence has become a reality. ultimately, we have a responsibility as a country, as a nation. the people of ukraine are putting up a heckuva fight, but they are under armed and under resourced relative to a power like russia, the former soviet union. ultimately, sanctions are the first step, inherently, there
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will be more actions down the road. we have to ensure they have the ability to be a sovereign nation , and live a life of freedom relative to the suppression of the russians. emily: i understand you hold some crypto, sofi offers crypto services. what do you read into this decoupling we have seen with bitcoin from global equities and why that is happening. >> the trend in cryptocurrency, it's an unproven asset, highly volatile. we offered for our members. we provide that education that they could lose all of their money and recommend they only allocate a small percentage of their assets to it. but, it is providing a unique value proposition for constituencies, and that is driving the volatility. the decoupling you are seeing could be driven by a number of different factors. i do not want to speculate, but
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it's an asset people are using to accomplish different objectives and that has driven volatility. we have been smart about making sure we give people selection, but we also give them the ability -- matt: the ability users have to invest across platforms, i talked with my coanchor on a regular basis, she sells a product like no other. how much of a lift did you get from the super bowl, introducing new customers to the things they can do? >> the super bowl occurred in first quarter which we have not recorded yet, -- reported yet, but our results yesterday had a big benefit from having the
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relationship with the rams and chargers. we benefited from having 12 home games at the stadium, five or on national prime time television, and we were able to reach unique households. the ability to reach that much of the united states helps drive brand awareness, helps us become a household name, which drives greater efficiency of promotions and marketing. we saw acceleration in member growth, a record of over 500,000, and an acceleration of new products added. emily: the sophia ceo. coming up, crypto and sanctions. we will dig deeper into how borderless crypto exchanges are complying or not. that is next. this is bloomberg. ♪ \
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>> whoever is on the sanction list will not be able to use the platform. we work closely with international regulators to apply sanctions. we do not have unilateral decision power. emily: the binance ceo. i want to dig into this with our
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crypto report. very significant, especially in the context of what the doj announced today. a task force to track money, assets including crypto. what are you making of how these exchanges are interpreting what laws they have to comply with? reporter: in addition to the doj, you have senators asking the u.s. treasury department to keep a close eye on crypto and sanctions across the world. if you look at some of the biggest changes, binance, coinbase. here is the problem. you have many exchanges across the world. the question is, are there exchanges out there that don't comply? to what extent are regulators
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able to get a hold on those exchanges? in addition to recognizing that some of these exchanges may not have the capabilities. emily: i did ask lisa monaco about this earlier. how exchanges are working with the administration and the department of justice to not just get these luxury yachts and jets and apartments, but tracked down cryptocurrency. take a quick listen. lisa: we need to cooperation -- cooperation of well behaving exchanges and other businesses. if it doesn't, people are going to find themselves in our crosshairs. emily: are these exchanges in a difficult position? how easy is it to tell if your users are russian oligarchs or
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not? reporter: that's an interesting question. there is the pure instant in which you may have a sanctioned individual who theoretically sets up an entity somewhere else, puts it in somebody else's name. tracking the end-user is going to be what is difficult across those exchanges, with the staff they are bringing on. we know these exchanges are bringing on staff at a greater degree, but do they have the tools they need to track end-users? emily: the sec is scrutinizing nft's over the legal token offerings. reporter: something that is so interesting our projects raising money through nft's or other
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means, the sec trying to take a look at what projects replicate traditional securities offerings. we have seen so many renditions of this. the reason this is so interesting is not only the sec trying to liken what happening in the nft market to the ipo market, this is a market where there have been -- investors getting duped. two things going on at the same time. emily: thank you for your reporting. coming up. ford is reorganizing, separating ev from its legacy business. how the carmaker plans to become a world changing company yet again. that is next. this is bloomberg. ♪
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emily: more than one billion people around the world visit tiktok every month, and that growth has the company facing scrutiny. the ceo talked about managing u.s. and chinese regulators on the latest episode of the "david rubenstein show", take a listen. >> i would approach all of the governments and regulators to be collaborative, transparent, be available, answer any questions. that is the approach we have taken. that approach has been an approach that has been beneficial for us. emily: you can watch more of that interview with the ceo of tiktok tonight at 9:00 p.m. on bloomberg television. meantime, ford will separate its
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ev operations from its legacy combustion engine business in a historic reorganization. ed ludlow spoke with jim farley about that. jim: the most important thing is our core automotive business. it's profitable, made $10 billion last year. in these to be a lot more profitable. we think we will take $3 billion out of our structure cost to make that business fully competitive on a return basis. some of that is quality, a lot of that is waste in the system. we can't stop there. we have to grow, too. that is why we are committing to 2 million vehicles on the battery electric side. the last thing is, we need to get our build material down for ev. we got $2000 out of the marquis, there is a lot of opportunity to continue to get the build material because down for ev's,
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and that will contribute to the more profitable business. we can use that profit and cash flow to reinvest in growth. ed: you have an opportunity to get smart with this. could we see a spinoff of the battery business or autonomous vehicle business, or even green bonds? what kind of tools are at your disposal? jim: we did one of the first green bonds in our industry, it went really well. we tied it to actual green energy vehicles. zero and missions in the vehicles. we like that direction. emily: jim farley, you can check more of that interview at i want to bring in ed ludlow. you wrote that story a couple of weeks ago that ford was considering this. at the time, they denied it. ed: ford is going to do what he can, manage the existing legacy
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business, bring profit out of it, use that money to fund ev growth. they want to be tesla. you are right, they did consider a spinoff, and farley explained at the news conference earlier on wednesday morning that they looked at it carefully, that is his quote. in the end, they did not go for it because they wanted the businesses to be able to share strengths, have a symbiotic relationship. emily: meantime, ford is one of the biggest companies self sanctioning in russia. what did he have to say about their decision, how long that will stand? ed: he was very sympathetic with the ukrainian people. he talks to me about ukrainian employees ford has. he reiterated action that ford
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has paused operations in russia. ford has been pulling out of that market 2017. the other impact is supply chain. ford got hit by rising input costs around commodities. that is not getting any better. oil, industrial metals. farley said they will continue to feel that pain, at least in the short term. emily: facing all of these challenges, ford is far behind tesla when it comes to ev's. what is the assessment on whether they can become a world changing company? ed: farley believes in this plan. take profit from the pickup truck. the other part of the news was they up their commitments to $50 billion, and want to do 2 million ev's annually. that is a rapid acceleration of their plan, a bigger commitment, and a greater proportion of their overall cars. he admitted this is going to be
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hard. they have to execute, not just to be tesla, but be general motors. emily: ed ludlow, excellent reporting. excellent interview. you can check that out at that does it for this edition of bloomberg technology. much more on the developments in ukraine tomorrow, the impact on technology and developer community, right here on bloomberg technology. i am emily chang, this is bloomberg. ♪
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haidi: good morning, we are counting down the major market opens. shery: welcome. jay powell backs a quarter-point rate hike this month despite ukraine uncertainty while leaving the door open for a bigger height. >> to the extent the rate -- inflation comes in higher, we
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