TikTok Ban Update; Trump Eyes Paulson for Cabinet

Bloomberg Audio Studios, podcasts, radio news. Good morning, I'm Nathan 0:00:12.200 --> 0:00:15.160 Hager and I'm Karen Moscow. Here are the stories we're 0:00:15.160 --> 0:00:16.000 following today. 0:00:16.920 --> 0:00:19.840 We begin in Washington, where a bill aimed at forcing 0:00:19.880 --> 0:00:23.040 a sale of TikTok is moving forward on Capitol Hill. 0:00:23.120 --> 0:00:24.280 The House passed the. 0:00:24.320 --> 0:00:27.200 TikTok Divestment Bill by a vote of three point fifty 0:00:27.240 --> 0:00:31.400 two to sixty five. Republican Dan Crenshaw says there's a 0:00:31.480 --> 0:00:34.760 simple reason why he voted for it. TikTok is owned 0:00:34.840 --> 0:00:38.160 by Byte Dance. Byte Dance is in China, and when 0:00:38.159 --> 0:00:40.440 you're in China, you have to do whatever the Chinese 0:00:40.479 --> 0:00:42.839 Communist Party says you have to do. That's according to 0:00:42.920 --> 0:00:46.159 the National Intelligence Slot pass in twenty seventeen. But fellow 0:00:46.159 --> 0:00:48.920 Republican Thomas Massey says the bill could do more than 0:00:49.080 --> 0:00:50.199 just ban TikTok. 0:00:50.440 --> 0:00:54.960 It could also be named the Facebook Protection and Enhancement Act, 0:00:55.160 --> 0:00:57.360 because it's not the American people are going to benefit 0:00:57.440 --> 0:01:00.560 most from this. It will be Facebook. Talk is going 0:01:00.600 --> 0:01:03.320 to go up if this bill should pass the Senate. 0:01:03.440 --> 0:01:05.280 Now, the bill does now head to the Senate, where 0:01:05.280 --> 0:01:08.560 its prospects are less clear. Majority Leader Chuck Schumer has 0:01:08.560 --> 0:01:11.640 only said he'll review the bill. Democrat Marie Cantwell has 0:01:11.720 --> 0:01:14.200 not committed to taking up the legislation when it comes 0:01:14.240 --> 0:01:16.000 before her Commerce Committee. 0:01:16.160 --> 0:01:19.360 Well Nathan, the CEO of TikTok, says he is disappointed 0:01:19.400 --> 0:01:20.640 with the vote in the House. 0:01:20.720 --> 0:01:22.640 Showed Chu posted this video on. 0:01:22.920 --> 0:01:25.480 X Over the last few years, we have invested to 0:01:25.560 --> 0:01:29.800 keep your data safe, an all platform free from outside manipulation. 0:01:30.000 --> 0:01:32.280 We have committed that we will continue to do so. 0:01:32.360 --> 0:01:35.600 We will continue to do all we can, including exercising 0:01:35.600 --> 0:01:39.280 our legal rights to protect this amazing platform that we 0:01:39.319 --> 0:01:40.160 have built with you. 0:01:41.080 --> 0:01:44.040 And the memo seen by Bloomberg, TikTok reiterated its plan 0:01:44.160 --> 0:01:46.840 to lobby the Senate not to pass the legislation. 0:01:47.080 --> 0:01:50.320 Karrol Let's turn to presidential politics now. Donald Trump may 0:01:50.320 --> 0:01:53.200 be looking to Wall Street to fill some key cabinet 0:01:53.200 --> 0:01:55.920 positions if he wins the White House again. We get 0:01:55.960 --> 0:01:57.840 the story from Bloomberg's Jeff Bellinger. 0:01:58.080 --> 0:02:00.760 Bloomberg News has learned Trump as Tall talked about hedge 0:02:00.760 --> 0:02:04.240 fund titan John Paulson as Treasury Secretary if he wins 0:02:04.280 --> 0:02:08.959 the November presidential election. Sources say Paulson hosted a fundraiser 0:02:09.000 --> 0:02:12.080 for Trump's re election at his Palm Beach home last month, 0:02:12.360 --> 0:02:15.040 and he is scheduled to host another one for Trump 0:02:15.080 --> 0:02:18.880 in three weeks with Cantor Fitzgerald's Howard Lutnik. The sources 0:02:18.919 --> 0:02:22.160 say Paulson's name has come up in recent discussions, but 0:02:22.320 --> 0:02:26.359 the conversations were informal, and any discussions about a possible 0:02:26.440 --> 0:02:30.440 cabinet post are preliminary. Other potential names in the mix 0:02:30.520 --> 0:02:34.280 for the top Treasury post should Trump defeat incumbent President 0:02:34.320 --> 0:02:39.919 Biden include former Trade Representative Robert Leitthheiser and Susquehanna International 0:02:39.960 --> 0:02:43.960 Group founder Jeff Yass Jeff Bullinger Bloomberg. 0:02:43.520 --> 0:02:46.399 Radio, all right, Jeff, thank you well. Speculations for also 0:02:46.400 --> 0:02:49.480 about John Paulson taking a role in Treasury. The current 0:02:49.560 --> 0:02:53.000 secretary is speaking out about the economy. Jenny Yellen says 0:02:53.040 --> 0:02:56.760 it's quote unlikely that market interest rates return to levels 0:02:56.800 --> 0:02:59.639 that prevail before the COVID pandemic triggered a wave of 0:02:59.760 --> 0:03:03.280 floation and higher yields. Ten your US Treasury yields average 0:03:03.320 --> 0:03:06.280 two point three nine percent in the decade through twenty nineteen. 0:03:06.600 --> 0:03:09.519 They spiked about five percent last October after the Fed 0:03:09.639 --> 0:03:13.200 raised rates aggressively to combat inflation. The ten year now 0:03:13.280 --> 0:03:15.840 sits just below four point two percent and care in. 0:03:15.880 --> 0:03:18.480 The busy week for economic data continues this morning with 0:03:18.520 --> 0:03:21.560 the release of retail sales and producer prices for the 0:03:21.560 --> 0:03:25.239 month of February. Let's get a preview from Bloomberg's Michael McKee. 0:03:25.480 --> 0:03:28.320 Fed officials and investors will get two more key pieces 0:03:28.360 --> 0:03:31.000 of data before the Central Banks policy meeting next week. 0:03:31.200 --> 0:03:34.720 A strong rebound is forecast for February retail sales, which 0:03:34.760 --> 0:03:39.080 contracted in January. Private sector sources, including credit card systems, 0:03:39.320 --> 0:03:41.840 suggests spending picked up a lot in the last month. 0:03:42.240 --> 0:03:44.720 On the one hand, that would reassure Fed officials that 0:03:44.760 --> 0:03:47.800 the economy is not close to recession. On the other 0:03:48.160 --> 0:03:51.920 it may feed fears that a strengthening economy will feed inflation. 0:03:52.240 --> 0:03:55.800 The producer price index, also released today, may offer some clues. 0:03:56.240 --> 0:04:00.960 It's basically forecast to be stable after unexpectedly rising in January. 0:04:01.440 --> 0:04:04.560 The Fed and investors will be hoping economists are wrong 0:04:04.680 --> 0:04:08.040 and factory gate prices end up being softer than forecast. 0:04:08.240 --> 0:04:09.680 Michael McKee, Bloomberg Radio. 0:04:09.880 --> 0:04:12.200 All right, Mike, thanks well. In company news, the hunt 0:04:12.280 --> 0:04:14.600 is on for Disney to pick an eventual successor to 0:04:14.760 --> 0:04:18.640 CEO Bob Iger. We get the story from Bloomberg's John Tucker, John. 0:04:18.560 --> 0:04:21.800 And Karen Disney has struggled with its succession planning in 0:04:21.839 --> 0:04:24.479 the past, and now they're making a stronger push to 0:04:24.520 --> 0:04:29.039 find somebody to replace CEO Bob Iiger. Eventually, Disney's board 0:04:29.120 --> 0:04:33.239 focusing on four divisional heads that the TV chief Dana Walden, 0:04:33.600 --> 0:04:37.400 ESPN's Jimmy Peterro, the theme parks boss Josh Tomorrow, and 0:04:37.520 --> 0:04:41.080 Alan Bergman, who heads the film business. Igers spending time 0:04:41.120 --> 0:04:44.040 with all of the candidates to share his Disney magic. 0:04:44.440 --> 0:04:47.039 This is happening under the glare of dissident shareholders like 0:04:47.080 --> 0:04:50.320 Nelson Peltz, who are seeking board seats at Disney's April 0:04:50.360 --> 0:04:53.760 third annual meeting. Iger's contract runs through the end of 0:04:53.839 --> 0:04:57.599 twenty twenty six. No decision on a successor is expected 0:04:57.640 --> 0:05:00.480 this year. John Tucker, Bloomberg Radio, All right, John. 0:05:00.520 --> 0:05:03.239 Thanks to other C suite news this morning, under Armour 0:05:03.279 --> 0:05:07.600 says its founder executive chairman Kevin Plank is returning as CEO. 0:05:08.040 --> 0:05:09.880 That story from Bloomberg's Charlie Pellett. 0:05:10.279 --> 0:05:13.760 Stephanie Lenartz departs after she led just over a year 0:05:13.800 --> 0:05:18.240 of fitful efforts to reinvigorate the athletic brand. Plank will 0:05:18.320 --> 0:05:22.120 return to the CEO job on April first. Lennart's will 0:05:22.200 --> 0:05:25.760 remain an advisor to the company through April thirtieth. Lead 0:05:25.800 --> 0:05:29.720 director Mohammad al Aarian and economists and columnists from Bloomberg 0:05:29.760 --> 0:05:34.400 Opinion will succeed Plank as chairman in New York. Charlie 0:05:34.440 --> 0:05:36.160 Pellett Bloomberg Radio, all. 0:05:36.160 --> 0:05:39.480 Right, Charlie, thanks, We'll investors await the highly anticipated IPO 0:05:39.600 --> 0:05:42.479 from Reddit. The social media company is giving guidance on 0:05:42.520 --> 0:05:45.840 its expectations. Bloomberg News has learned Reddit as telling potential 0:05:45.920 --> 0:05:49.240 investors that it expects revenue in twenty twenty four to 0:05:49.279 --> 0:05:52.520 grow by more than twenty percent versus the previous year. 0:05:52.600 --> 0:05:55.400 According to a filing that the sec revenue in twenty 0:05:55.440 --> 0:05:58.840 twenty three crud just over eight hundred million dollars, and. 0:05:58.880 --> 0:06:01.520 Karina Saudi Arabia pushes ahead with one of the largest 0:06:01.560 --> 0:06:04.280 stock offerings in recent years. Bloomberg News has learned the 0:06:04.320 --> 0:06:06.960 Kingdoms and Tucks to add top Wall Street banks for 0:06:07.040 --> 0:06:10.920 a secondary share sale in oil giant a Ramco. Sources 0:06:10.960 --> 0:06:13.800 say Saudi plans to hire JP Morgan Chase as one 0:06:13.839 --> 0:06:16.520 of the main underwriters to the offering. Bank of America 0:06:16.560 --> 0:06:19.560 and Morgan Stanley are also contending for lead roles in 0:06:19.600 --> 0:06:23.280 the deal, which could raise as much as twenty billion dollars. 0:06:23.160 --> 0:06:25.920 And Nathan a bullish forecash from the world's largest assembler 0:06:25.960 --> 0:06:29.640 of iPhones, Han High Precision Industry, reported its second straight 0:06:29.720 --> 0:06:33.480 quarter of strong profit growth. The company says lucrative AI 0:06:33.680 --> 0:06:37.520 hardware sales helped offset weakness an iPhone and electronics demand. 0:06:37.880 --> 0:06:40.960 It posted a thirty three percent rise in net income. 0:06:44.560 --> 0:06:45.359 That it is time nowf for. 0:06:45.360 --> 0:06:47.119 A look at some of the other stories making news 0:06:47.160 --> 0:06:49.080 in New York and around the world. For that, we're 0:06:49.120 --> 0:06:52.120 joined by Bloomberg's Michael Barr Michael, good Morning, Good. 0:06:51.880 --> 0:06:56.040 Morning, Caaron. Ukrainian drone attacks all the three oil refineries 0:06:56.320 --> 0:06:59.960 deep within Russian territory in an assault President Vladimir boo 0:07:00.040 --> 0:07:03.560 Uden said was aimed at disrupting his presidential election later 0:07:03.600 --> 0:07:06.880 this week. The aerial strike caused a fire at one 0:07:06.920 --> 0:07:10.840 of the country's biggest crude processing facilities near Moscow. It 0:07:10.920 --> 0:07:14.240 comes as the Biden administration says it's concerned about President 0:07:14.320 --> 0:07:18.520 Putin again threatening to use nuclear weapons if his country 0:07:18.560 --> 0:07:21.760 is threatened. White House Press Secretary of Karine Jean Vierre, 0:07:22.160 --> 0:07:25.760 speaking on Air Force one with President Biden heading to Milwaukee, 0:07:26.000 --> 0:07:28.800 says Putin has made similar nuclear threats. 0:07:29.120 --> 0:07:33.800 Russia's nuclear rhetoric has been reckless and irresponsible throughout this conflict. 0:07:33.920 --> 0:07:39.920 It is Russia that brutally invaded Ukraine without provocation or justification. 0:07:40.520 --> 0:07:43.600 The US has insisted it will not send American troops 0:07:43.640 --> 0:07:46.880 to fighting Ukraine. Add will Pe Goldberg to the list 0:07:46.880 --> 0:07:50.320 of vocal critics of congestion. Pricing in Manhattan meant to 0:07:50.360 --> 0:07:53.320 ease traffic. New York Governor Kathy Hokel went on the 0:07:53.400 --> 0:07:56.880 View yesterday, but when the show went to commercial break, 0:07:57.160 --> 0:07:58.400 the cameras kept rolling. 0:07:58.840 --> 0:08:01.880 What is the point Because New Yorkers didn't mess. 0:08:01.720 --> 0:08:03.600 Up the streets of New York. 0:08:03.680 --> 0:08:06.320 We have bike lanes and places that were not prepared for. 0:08:06.400 --> 0:08:07.880 We have trucks that are too big. 0:08:08.120 --> 0:08:11.360 Governor Hockle tried to explain that the tolls below sixtieth 0:08:11.400 --> 0:08:13.600 Street are intended to ease congestion. 0:08:14.040 --> 0:08:16.840 I can walk backwards and heels faster than most trucks 0:08:16.840 --> 0:08:18.240 can get down the streets right now. 0:08:18.400 --> 0:08:22.360 Congestion pricing is expected to take effect in June. Jury 0:08:22.400 --> 0:08:25.480 deliberations resumed this morning in the case of James Crumbley. 0:08:25.800 --> 0:08:28.520 He is the father of the Michigan teen Ethan Crumbley, 0:08:28.800 --> 0:08:31.240 who opened fire at his high school in Oxford in 0:08:31.280 --> 0:08:34.560 twenty twenty one, killing four students. A jury will decide 0:08:34.559 --> 0:08:37.880 whether Ethan's father is responsible for enabling his son to 0:08:37.880 --> 0:08:41.240 carry out the deadly attack. The defense says argued James 0:08:41.280 --> 0:08:45.600 Crumley could not have foreseen his son's deadly shooting rampage. However, 0:08:45.800 --> 0:08:49.680 prosecutors say he was complicit in downplaying the troubles his 0:08:49.760 --> 0:08:52.520 son was going through and did not do enough to 0:08:52.559 --> 0:08:55.760 secure the firearm that Ethan eventually used in the shooting. 0:08:56.240 --> 0:09:00.480 Oakland County Prosecutor Karen McDonald there more than one cause 0:09:00.520 --> 0:09:00.880 of death. 0:09:01.800 --> 0:09:05.160 Jeez probably doesn't get a pass because somebody else also 0:09:05.720 --> 0:09:07.000 caused the death of. 0:09:06.920 --> 0:09:07.960 These four kids. 0:09:08.240 --> 0:09:12.400 James Crumbly's wife, Jennifer, was convicted last month of similar charges. 0:09:12.920 --> 0:09:16.640 Attorneys say Rudolph Giuliani's homes in New York and Florida 0:09:16.760 --> 0:09:19.079 may be put up for sale to help bring in 0:09:19.160 --> 0:09:22.200 cash as he works through his bankruptcy. The former New 0:09:22.280 --> 0:09:24.640 York mayor is facing nearly one hundred and fifty three 0:09:24.679 --> 0:09:27.640 million dollars in debt, the bulk of which stems from 0:09:27.720 --> 0:09:30.439 a one hundred and forty eight million dollar defamation judgment 0:09:30.800 --> 0:09:34.440 awarded to two Georgia poll workers he accused of rigging 0:09:34.520 --> 0:09:38.079 twenty twenty election results. Global news twenty four hours a 0:09:38.120 --> 0:09:40.920 day and whenever you want it with the Bloomberg News Now. 0:09:41.040 --> 0:09:41.880 I'm Michael Barr. 0:09:41.960 --> 0:09:44.400 This is Bloomberg here, Bray, Michaelburr. 0:09:44.480 --> 0:09:46.040 Thank you well. We do bring a news throughout the 0:09:46.080 --> 0:09:48.559 day right here on Bloomberg Radio. But now you can 0:09:48.559 --> 0:09:51.880 get the latest news on demand whenever you want it. 0:09:52.000 --> 0:09:54.679 Just subscribe to Bloomberg News Now to get the latest 0:09:54.720 --> 0:09:57.360 headlines right at the click of a button. Get informed 0:09:57.400 --> 0:09:59.880 on your schedule. You can listen and subscribe to Blue 0:10:00.000 --> 0:10:03.400 Bomberg News Now on the Bloomberg Business app, Bloomberg dot 0:10:03.400 --> 0:10:07.439 Com plus Apples, Spotify, and anywhere else you get your podcasts. 0:10:12.280 --> 0:10:14.679 It's time now for the Bloomberg Sports Update, brought to 0:10:14.720 --> 0:10:16.960 you by by Tri State OUDI. For that, we bring 0:10:16.960 --> 0:10:18.920 in John stash Hour. John, Good morning, all. 0:10:18.880 --> 0:10:20.680 Right, good morning care and the Yankees have had more 0:10:20.720 --> 0:10:22.760 than their share of injuries last couple of years, but 0:10:22.840 --> 0:10:25.240 Garrett Cole has been a mainstay as a Yank has 0:10:25.240 --> 0:10:27.959 not missed a single start due to injury. Now he's 0:10:28.480 --> 0:10:31.080 hurt an elbow injury that it has been reported, will 0:10:31.160 --> 0:10:34.240 sideline Cole one to two months. The good news is 0:10:34.280 --> 0:10:36.960 there's no indication of a tear that would require surgery. 0:10:37.280 --> 0:10:39.559 Cole's heeded the Los Angeles to see a specialist. So 0:10:39.600 --> 0:10:42.000 the question now is if the Yankees pursue a free 0:10:42.080 --> 0:10:45.079 agent pitcher in Blake Snell, last year's NLCY Young Winner, 0:10:45.120 --> 0:10:48.679 remains unsigned, as is the ex Yank Jordan Montgomery. Yanks 0:10:48.720 --> 0:10:51.400 were said to be interested in trading for Dylan Cease 0:10:51.760 --> 0:10:53.800 for the White Sox just traded him to San Diego. 0:10:53.920 --> 0:10:56.800 Joe Flacco was apparently retired at age thirty nine, came 0:10:56.800 --> 0:10:59.840 out of it, joined Cleveland quarterback the Browns of the playoffs. 0:10:59.840 --> 0:11:02.360 Was the NFL Comeback Player of the Year. Flaco has 0:11:02.400 --> 0:11:07.200 signed with Indianapolis. Another QB, Kirk Cousins introduced in Atlanta. 0:11:07.280 --> 0:11:09.760 And I really believe as I looked around at opportunities 0:11:09.760 --> 0:11:11.880 for me in free agency that when the coach told 0:11:11.880 --> 0:11:13.439 me this when I was a young player in the league. 0:11:13.520 --> 0:11:15.120 Coach I have a lot of respect for. He said. 0:11:15.200 --> 0:11:17.960 When the owner, general manager, head coach and quarterback are 0:11:18.000 --> 0:11:19.800 on the same page, that's when you really have a 0:11:19.880 --> 0:11:21.640 chance to go win a Super Bowl. And as I 0:11:21.679 --> 0:11:24.520 looked at the Atlanta Falcons, I believe strongly that the owner, 0:11:24.600 --> 0:11:26.719 head coach, general manager, and quarterback can all be on 0:11:26.760 --> 0:11:27.319 the same page. 0:11:27.400 --> 0:11:30.960 Falcons have not had even a winning record since twenty seventeen. 0:11:31.360 --> 0:11:34.280 Nets lost in Orlando one fourteen one oh six rematch 0:11:34.320 --> 0:11:37.600 of last year's NBA Finals Sam result Denver one in Miami. 0:11:37.760 --> 0:11:40.280 Nick start their road trip tonight in Portland. The Rangers 0:11:40.360 --> 0:11:43.840 visit Tampa Bay Capitol's lost seven to two in Edmonton. 0:11:44.040 --> 0:11:48.160 College basketball season ending losses for Rutgers, Fordham, and Iona 0:11:48.520 --> 0:11:51.160 Boston College and upset went over Clemson to advance at 0:11:51.160 --> 0:11:54.640 the acc Attorney At the PAC twelve, Stanford beat Callen overtime. 0:11:54.800 --> 0:11:56.640 Big game of the Big East today at Saint John's 0:11:56.640 --> 0:11:59.960 against Seaton Hall, Colgate won. The Patriot Red Raiders headed 0:12:00.120 --> 0:12:04.760 a fifth street NCAA tournament. John Stashower of Bloomberg Sports. 0:12:04.559 --> 0:12:06.800 What comes next in the effort to force a sale 0:12:06.840 --> 0:12:10.000 of TikTok by its Chinese owner Byte Dance. The divestment 0:12:10.040 --> 0:12:13.000 bill has sailed through the House, but its prospects in 0:12:13.040 --> 0:12:15.800 the Senate look quite a bit less certain. And Bloomberg's 0:12:15.840 --> 0:12:18.840 Alex Webb is here now with more on this Alex. 0:12:18.880 --> 0:12:21.640 There had seemed to be a fair bit of momentum 0:12:21.760 --> 0:12:23.960 for this bill, but it does really seem to have 0:12:24.080 --> 0:12:27.440 shifted in just a few days. Is this just about 0:12:27.480 --> 0:12:30.199 former President Trump changing his position or is there more 0:12:30.200 --> 0:12:31.679 behind it? 0:12:31.920 --> 0:12:34.319 I mean, clearly that helps, but there are a lot 0:12:34.400 --> 0:12:37.280 of complicating factors here. As you say, is pass through 0:12:37.280 --> 0:12:39.840 the House with very big numbers three hundred and fifty 0:12:39.880 --> 0:12:43.559 two to sixty five. In the Senate. There are a 0:12:43.600 --> 0:12:45.800 number of concerns. Firstly, of course, we're heading into an 0:12:45.800 --> 0:12:51.840 election cycle. A lot of young people and including voters, 0:12:52.120 --> 0:12:55.880 use the app, and there's concern about alienating them. There 0:12:55.880 --> 0:13:00.559 are those within the particularly the Republican Party, who concerned 0:13:00.679 --> 0:13:04.560 that banning it somehow would be an infringement on free speech. 0:13:05.240 --> 0:13:07.760 And that's something actually some Democrats have agreed it's sort 0:13:07.760 --> 0:13:10.360 of aligned with two Particularly, they think it infringes on 0:13:10.400 --> 0:13:12.960 the free speech of younger people. That's where a lot 0:13:13.000 --> 0:13:16.600 of young people express themselves. And thirdly, you know they 0:13:16.679 --> 0:13:18.680 see it as a way of reaching those young voters too. 0:13:18.840 --> 0:13:21.680 So there are a number of different complicating factors. There is, 0:13:21.760 --> 0:13:24.559 of course, another big one that comes out of money, 0:13:24.600 --> 0:13:29.240 that there's a major Republican donor, Jeff Yass, who co 0:13:29.320 --> 0:13:32.960 found a Siscohanna group and he has a fifteen percent 0:13:33.000 --> 0:13:35.319 stake in BTE Dance as a suspicion that he might 0:13:35.360 --> 0:13:38.600 be doing some things behind the scenes because he is 0:13:38.679 --> 0:13:40.640 a considerable donor to the Republican Party. 0:13:40.880 --> 0:13:43.600 Interesting angle there, because we've got Bloomberg News reporting as 0:13:43.640 --> 0:13:47.560 well that former President Trump is considering yes among others, 0:13:47.600 --> 0:13:50.920 as a potential Treasury secretary pick as he wins the 0:13:50.920 --> 0:13:53.120 White House or if he does win the White House. 0:13:53.559 --> 0:13:56.760 But putting that aside, there's also this concern that's been 0:13:56.880 --> 0:14:01.720 raised by supporters of this bill that TikTok's data is 0:14:01.880 --> 0:14:05.280 beholden to the Chinese Communist Party. Is there clear evidence 0:14:05.360 --> 0:14:05.800 behind that? 0:14:06.960 --> 0:14:09.319 So there are two ways of considering this. There's the 0:14:10.320 --> 0:14:13.200 data about people's browsing patterns, what they look at, what 0:14:13.240 --> 0:14:18.480 they buy, and there's the way that the decisions on 0:14:18.559 --> 0:14:22.000 what content is served to people now, we don't have 0:14:22.280 --> 0:14:27.520 any proof or evidence that China is actually directly influencing that, 0:14:28.040 --> 0:14:31.400 but we can see some proof points. Namely, there was 0:14:31.440 --> 0:14:34.280 a study a few months ago which showed that if 0:14:34.320 --> 0:14:41.160 you search for, for instance, tiananmen on TikTok compared to Instagram, 0:14:42.000 --> 0:14:44.400 it serfaces far more results on Instagram than it does 0:14:44.400 --> 0:14:47.600 on TikTok. So we don't know if that's a conscious decision, 0:14:47.600 --> 0:14:49.760 if there are other factors at play, but we can 0:14:49.800 --> 0:14:54.400 see the end result of whatever content decisions might be 0:14:54.400 --> 0:14:57.480 being taken at TikTok, And those are the sort of 0:14:57.480 --> 0:14:58.760 things that get people a little worried. 0:14:59.280 --> 0:15:02.920 What's the potent shall impact Alex if this bill were 0:15:02.960 --> 0:15:07.760 to pass and TikTok were to divest. Are there potential 0:15:07.800 --> 0:15:10.920 buyers out there for TikTok if by Dance were forced 0:15:10.920 --> 0:15:11.520 to sell. 0:15:11.520 --> 0:15:13.080 Yeah, because that's the key thing here. It's like is 0:15:13.080 --> 0:15:14.480 it going to be shut down or is it going 0:15:14.480 --> 0:15:17.600 to be divested. Don't forget that this did come up 0:15:18.240 --> 0:15:24.680 five six years ago when Trump was the president. There 0:15:24.680 --> 0:15:26.880 were lots of potential buyers in the US. We had 0:15:27.000 --> 0:15:30.240 names like Oracle, we had Microsoft, and lots of big 0:15:30.280 --> 0:15:34.520 tech companies in particular who don't necessarily have a social 0:15:34.560 --> 0:15:37.440 media armed. The thing that a lot of people find 0:15:37.520 --> 0:15:40.440 hyper compelling about TikTok is the ability to plug it 0:15:40.480 --> 0:15:45.800 onto the front of actually an advertising or e commerce 0:15:45.880 --> 0:15:49.760 business that you can use it to drive that alternative revenue. 0:15:49.800 --> 0:15:53.200 Like TikTok has an advertising business, it is still far 0:15:53.360 --> 0:15:58.080 early in its evolution than that of Google or alphabet 0:15:58.120 --> 0:16:02.320 that is, or of Meta, but that also provides a 0:16:02.400 --> 0:16:04.600 huge amount of upside if you're able to plug a 0:16:04.640 --> 0:16:08.200 sophisticated existing advertising business into the back of it, and 0:16:08.240 --> 0:16:10.360 so that's where people might spin opportunity. 0:16:13.600 --> 0:16:16.680 This is Bloomberg Daybreak Today, your morning brief on the 0:16:16.720 --> 0:16:20.120 stories making news from Wall Street to Washington and beyond. 0:16:20.400 --> 0:16:23.160 Look for us on your podcast feed at six am 0:16:23.240 --> 0:16:26.920 Eastern each morning, on Apple, Spotify, and anywhere else you 0:16:26.960 --> 0:16:28.160 get your podcasts. 0:16:28.280 --> 0:16:30.960 You can also listen live each morning starting at five 0:16:31.000 --> 0:16:33.600 am Wall Street time, on Bloomberg eleven three to zero 0:16:33.680 --> 0:16:36.560 in New York, Bloomberg ninety nine to one in Washington, 0:16:36.600 --> 0:16:39.840 Bloomberg one oh sixty one in Boston, and Bloomberg ninety 0:16:39.840 --> 0:16:41.240 sixty in San Francisco. 0:16:41.600 --> 0:16:44.760 Our flagship New York station is also available on your 0:16:44.840 --> 0:16:50.280 Amazon Alexa devices, Just say Alexa Play Bloomberg eleven thirty plus. 0:16:50.280 --> 0:16:53.760 Listen coast to coast on the Bloomberg Business app, SERRIUSXM, 0:16:53.840 --> 0:16:56.920 the iHeartRadio app, and on Bloomberg dot Com. 0:16:56.920 --> 0:16:58.080 I'm Nathan Hager. 0:16:57.880 --> 0:17:01.000 And I'm Karen Moscow. Join us again tomorrow morning for 0:17:01.120 --> 0:17:03.640 all the news you need to start your day right 0:17:03.680 --> 0:17:13.200 here on Bloomberg Daybreak