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Speaker 1: From Marhard where Innovation of Money and Power Collie in

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Speaker 1: Silicon Valley, NBN.

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Speaker 2: This is Bloomberg Technology with Caroline Hyde and Ed Ludlove.

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Speaker 3: I'm Caroline Hyde a Bloomberg's World Headquarters in New York

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Speaker 3: and I met Ludlow in San Francisco.

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Speaker 4: This is Bloomberg Technology.

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Speaker 5: Coming up. We'll bring you the latest updates from the

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Speaker 5: Middle East.

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Speaker 3: That's after Iran launched missiles and roans over the weekend

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Speaker 3: into Israel, the US, and Europe.

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Speaker 5: They ramp up calls for Israeli restraint.

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Speaker 6: Full coverage ahead plus shares of Tesla slump amid the

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Speaker 6: company's plans to slash ten percent of its global workforce,

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Speaker 6: prompting senior executives to depart the company.

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Speaker 4: We had the details and Apple.

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Speaker 3: It faces its worst liphone slump since Covid as a

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Speaker 3: company faces increased.

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Speaker 5: Competition in China.

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Speaker 3: We'll discuss that and so much more throughout this hour,

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Speaker 3: but first we turn our attention to a complex geopolitical

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Speaker 3: and macroeconomic picture that's being painted today.

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Speaker 5: Now.

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Speaker 3: The pullerhead really is the fact that Naslak is currently

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Speaker 3: back in the red. We were managing to push higher

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Speaker 3: on stocks but certainly the bond market field or full

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Speaker 3: effect of actually a stronger, more resilient macroeconomic picture in

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Speaker 3: the United States coming from retail sales that were far

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Speaker 3: faster than had been anticipated. But on the flip side

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Speaker 3: is geopolitics is a concern about, of course, an unprecedented

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Speaker 3: attack coming from Iran to Israel and what that really

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Speaker 3: means in terms of actually dialing up or cooling of

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Speaker 3: some of those geopolitical anxieties, notably oil is on the

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Speaker 3: lower side that drags the Bloomerg commodity index down. But

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Speaker 3: remember there's actually added sanctions on Russian movement of metals

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Speaker 3: into the LME at the moment, and that's been moving

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Speaker 3: around aluminium and some other.

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Speaker 5: Key metals to be keeping it on.

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Speaker 3: So complex going on in the commodity space as well,

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Speaker 3: but let's move it on as we try to really

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Speaker 3: anticipate which way risk assets are going to be going.

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Speaker 3: One that was in full effect because ultimately it was

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Speaker 3: the when you ascasset that was really able to be

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Speaker 3: traded at the time of those initial reports, as many

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Speaker 3: had anticipated an attack coming from Iran into Israel. But

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Speaker 3: we see the volatility that was in display when it

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Speaker 3: came to bitcoin on Saturday afternoon plumbting.

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Speaker 5: We now recover some of that.

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Speaker 3: We're still off by more than four percent over the

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Speaker 3: course of a three day trading period ed. We're currently

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Speaker 3: at sixty three nine hundred of thereabouts.

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Speaker 6: But what are you watching on the micro Tesla? It's

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Speaker 6: a big one. I broke the story this morning that

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Speaker 6: Drew Baglino, who led powertrain and energy at Tesla, one

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Speaker 6: of only four named executive officers, has resigned and left

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Speaker 6: the company. The stock near session lows down three point

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Speaker 6: three percent. We also confirmed Elon Muskers told staff that

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Speaker 6: ten percent of the workforce will be cut in pursuit

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Speaker 6: of cost reduction, productivity, and what he called duplicate rolls.

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Speaker 6: We'll get all the details later from the Bloomberg team.

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Speaker 6: The other big one is Apple. IDC data showed shipments

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Speaker 6: of about fifty million iPhones in the first quarter, but

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Speaker 6: that's down ten percent year on year.

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Speaker 4: Now that's third.

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Speaker 6: Party data, and it's not just an Apple story. With

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Speaker 6: the stockdown eight tens of one percent, it's a story

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Speaker 6: about China's domestic smartphone makers having success growing market share

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Speaker 6: in a really key market. We will speak to bloom

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Speaker 6: those Mark German because it's complicated, but Apple is lower,

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Speaker 6: whether that's cause or not.

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Speaker 4: Who knows.

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Speaker 6: A lot going on in the world of technology this morning,

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Speaker 6: but also a lot of news around the world.

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Speaker 3: Yeah, and let's get back to it, ed, because Iran's

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Speaker 3: attack on Israel is what many are talking of. Israel

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Speaker 3: and its allies intercepted the overwhelming majority of more than

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Speaker 3: three hundred missiles drones fired by Iran. Joining US now

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Speaker 3: from Tel Aviv is Our Israel. You're O chief and

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Speaker 3: senior editor Ethan Rohner, and we thank you for your time.

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Speaker 5: Ethan.

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Speaker 3: Well, probably how is it being felt and digested in

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Speaker 3: Israel right now?

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Speaker 7: Yeah, that's a great question.

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Speaker 8: I mean, I think that the overall senses of relief because,

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Speaker 8: as you said, of three hundred and fifty projectiles, including

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Speaker 8: one hundred and twenty ballistic missiles that come here in

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Speaker 8: eight or ten minutes from around the vast majority, the

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Speaker 8: overwhelming majority, were stopped before they got here. They were

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Speaker 8: about half a dozen that got through to a military

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Speaker 8: base in Israel. They didn't do much damage, but they

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Speaker 8: did hit and so there's a kind of a mixed

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Speaker 8: feeling of well, we got them, we don't nobody was killed.

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Speaker 8: But but there's a seven year old girl fighting for

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Speaker 8: a live shrapnel that hit her in the south. But

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Speaker 8: the general senses this could have been much much worse.

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Speaker 8: So we can we Israel can take its time to decide.

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Speaker 5: What to do next.

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Speaker 8: But there is a a rubicon that's been crossed. I mean,

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Speaker 8: we we have for the very first time in nearly

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Speaker 8: four decades as Israel taken direct hits from missiles of

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Speaker 8: this kind, and the first time ever in Thish what

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Speaker 8: has been a shadow war between Israel and Iran emerged

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Speaker 8: from the shadows. So we're in a new era, and

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Speaker 8: it's not clear what that means.

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Speaker 6: Ething late to the program, we're going to talk a

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Speaker 6: little bit about the sort of coalition response. You know,

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Speaker 6: Israel made those interceptions in conjunction with the United States

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Speaker 6: and the United Kingdom. I'd also like to learn a

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Speaker 6: little bit about the kind of operational response on the

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Speaker 6: ground in Israel, what it is happening in the streets,

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Speaker 6: what the government is telling its citizens of where we stand.

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Speaker 8: So at the moment, in fact, there is a sense

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Speaker 8: of calm. The government issued a statement that they were

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Speaker 8: going to reopen the schools and the sort of day

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Speaker 8: camps that they had closed on Saturday night in anticipation

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Speaker 8: of this attack. So everything is back to normal, I

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Speaker 8: think it's fair to say. And by the way, the

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Speaker 8: Iranians also reopened their airspace, so there is no sense

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Speaker 8: that there's going to be a continuation of this war

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Speaker 8: in the coming three days. On the other hand, the

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Speaker 8: Israeli cabinet met last night and met again tonight in

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Speaker 8: order to discuss what kind of sponse it needs to have,

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Speaker 8: and those on the far right are urging a very

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Speaker 8: vigorous response, a crushing attack, as they put it. It's

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Speaker 8: not clear if they're going to have their way. It

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Speaker 8: doesn't seem so, because it does feel that the embrace

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Speaker 8: of the United States, the United Kingdom in France of

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Speaker 8: Israel at this point has been a warm bath for

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Speaker 8: Israelis after many weeks of hostility because of their war

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Speaker 8: in Gaza. At the same time, you see, the Israelis

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Speaker 8: have two audiences. They worry about these that we just

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Speaker 8: talked about, and then their enemies that it's just Balahamas

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Speaker 8: and Iran, and they fear that any lack of reaction

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Speaker 8: will be perceived as weakness, and so there is a

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Speaker 8: sense that they must react.

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Speaker 7: The question is when and.

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Speaker 6: How Bloomberg's even brunna on the ground until they're really

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Speaker 6: grateful for your time on the ground reporting as well,

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Speaker 6: and we have a big audience in this show in

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Speaker 6: Europe and the emir regionable broadly. I point out the

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Speaker 6: easy Jet, one of the airlines is an example, has

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Speaker 6: canceled flights to his through April twenty first, so there's

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Speaker 6: a kind of business impact.

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Speaker 4: There as well.

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Speaker 6: Let's go from Israel to Washington, DC and bring in

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Speaker 6: Bloomberg National security reporter Nick Wadhams. Nick I was talking

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Speaker 6: to Ethan about the kind of coalition response that United

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Speaker 6: States was involved. The United Kingdom was involved in part

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Speaker 6: because Iran had given heads up almost on their actions.

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Speaker 6: My understanding is Biden has been in touch with the

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Speaker 6: Israeli government quite frequently. What we know from the US

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Speaker 6: side at this stage.

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Speaker 9: Well, what we're hearing from the administration is essentially that

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Speaker 9: they want Israel to put the brakes on any sort

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Speaker 9: of response. So we've been told the view from the

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Speaker 9: White House is listen, Israel, take the win. Your air

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Speaker 9: defenses did an extraordinary job deflecting and rebuffing about ninety

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Speaker 9: nine percent of those incoming drones and missiles, and there

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Speaker 9: is no need for an immediate response. Obviously, as Ethan

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Speaker 9: just said, the pressure on Prime Minister Benjamin Netnya, who

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Speaker 9: is coming very much from the other direction as well.

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Speaker 9: So looking ahead for the next few days, what we're

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Speaker 9: really going to see here is a good reflection on

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Speaker 9: the limits of US leverage over Prime Minister Netnya, who

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Speaker 9: President Biden could not have been more clear about what

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Speaker 9: he wants.

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Speaker 4: To see next, which is de escalation.

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Speaker 9: The US does not want to be pulled in deeper

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Speaker 9: into this conflict. They don't want this to turn into

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Speaker 9: even a bigger conflagration, and they want Prime Minister Benjamin

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Speaker 9: Netnyah to hold fire. Whether he listens to that advice

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Speaker 9: is another thing entirely.

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Speaker 3: For now, rightly or wrongween the market, and that is

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Speaker 3: often what we focus in on here.

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Speaker 5: A Boomberg has.

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Speaker 3: Been deeming this to be something that's containable. As of

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Speaker 3: the moment, Nick, where do we have to align our

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Speaker 3: sites now? Is it thinking of the next statement that

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Speaker 3: we do get from Biden. We anticipate a conversation a

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Speaker 3: press conference as soon as twelve o'clock that's right.

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Speaker 9: So I mean, will really be looking at what the

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Speaker 9: tone is from the president and from other officials in

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Speaker 9: the administration. Are they projecting unity? Is there more sense

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Speaker 9: of those fractures that had emerged in recent weeks with Israel?

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Speaker 9: Do we have a sense that these two governments are

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Speaker 9: diverging in their perspectives on what the outcome will be here?

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Speaker 9: I mean, the attack by Iran could have been so

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Speaker 9: much worse. I think you're seeing in the market in

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Speaker 9: some ways a sense of relief that Israel repelled those

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Speaker 9: As Ethan mentioned, there had been no deaths and fairly

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Speaker 9: limited destruction. But what happens if Iran decides to respond

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Speaker 9: yet again in response to a potential Israeli retaliation. So

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Speaker 9: there's a lot of fear that there could be an

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Speaker 9: escalatory spiral that gets to a situation that neither side

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Speaker 9: can control.

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Speaker 3: N it Wardens, thank you for giving us the context

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Speaker 3: and keeping us up to speed.

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Speaker 4: Let's talk about Tesla.

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Speaker 6: The ev maker is going to cut ten percent of

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Speaker 6: its workforce after a slowdown in demand, Elon Musk preparing

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Speaker 6: the company for the next phase of growth.

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Speaker 4: We also reported this.

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Speaker 6: Morning that two key executives have left Tesla in the

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Speaker 6: last twenty four hours. Drew Baglino, who's been at Tesla

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Speaker 6: for eighteen years and led everything to do with powertrain

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Speaker 6: energy storage, resigned, is what I'm told by a source,

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Speaker 6: and he confirmed that later on in a post. Rowan

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Speaker 6: Betel is basically the public policy chief in many ways

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Speaker 6: the kind of devacta facto voice piece of Tesla on

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Speaker 6: social media. He has also left the company. Let's bring

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Speaker 6: in Bloombog's Global Autoza Craig Trudell.

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Speaker 4: Craig.

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Speaker 6: It was a bit of a long night or an

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Speaker 6: early morning, depending on where you were around the world,

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Speaker 6: but let's start with Drew Baglino, one of only four

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Speaker 6: named executive officers at Tesla. I thought this was a surprise,

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Speaker 6: and what sources told me is that he resigned. He

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Speaker 6: wasn't laid off off as part of the ten percent

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Speaker 6: KA What else do you unite?

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Speaker 10: Yeah, I know less than you, you know, but I

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Speaker 10: do have to sort of speculate about, you know, the

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Speaker 10: extent to which this may be about, you know, a

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Speaker 10: difference of opinion on the direction of the company. This

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Speaker 10: you know, this these this news comes shortly after reports

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Speaker 10: that the company is you know, maybe putting aside its

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Speaker 10: work on a cheaper vehicle and focusing efforts on a robotaxi.

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Speaker 10: I think Elon Musk, you know, at first called that

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Speaker 10: a report by Reuter's false, and then you know, seem

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Speaker 10: to sort of lend credence to it by scheduling an

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Speaker 10: introduction of a robotaxi months from now, which you know,

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Speaker 10: sort of suggests that you know, he's focused on that,

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Speaker 10: and you know that raises questions about whether whether Baglino

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Speaker 10: thought that's the right move, whether Rohan Patel thinks that's

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Speaker 10: the right move. After all, he's going to be the

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Speaker 10: person or would have been the person in Washington who

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Speaker 10: would have to sort of justify that to regulators, and

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Speaker 10: whether or not Tesla is really ready to put that

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Speaker 10: forward is a question after years and years of the

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Speaker 10: company talking about having robotaxis, or at least Musk talking

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Speaker 10: about having robotaxis yes, when they haven't.

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Speaker 3: All of this is sort of trying to be a

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Speaker 3: level of prioritization or anxiety that is among investors at

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Speaker 3: the moment. Many would say, Okay, cutting down on expenses,

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Speaker 3: on costs is something that is necessary in the context

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Speaker 3: of EV sales. More broadly, Craig. What could be therefore

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Speaker 3: be really unnerving the investor.

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Speaker 5: Base right now when you have SVPs leaving. Is it

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Speaker 5: more the.

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Speaker 3: Concern about the handing over of power ultimately any sort

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Speaker 3: of fact that Musk currently leads and has done since

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Speaker 3: two thousand and eight.

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Speaker 10: Yeah, I mean, I think it's this concern about, you know,

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Speaker 10: not knowing what the plan is, right, and this is

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Speaker 10: not just a store that has only surfaced lately.

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Speaker 11: You know.

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Speaker 10: We go back to the Walter Isaacson biography months ago,

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Speaker 10: and one of the more compelling bits within that book

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Speaker 10: was this idea that there was real difference at the

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Speaker 10: top of Tesla as to whether or not, you know,

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Speaker 10: they should design this next generation vehicle with or without

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Speaker 10: a steering wheel.

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Speaker 7: And you had.

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Speaker 10: Within that book, you know, this really compelling section of

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Speaker 10: you know, executives having to kind of talk Musk out

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Speaker 10: of this idea that they could just you know, design

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Speaker 10: the car without a steering wheel and count on the

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Speaker 10: idea that the technology was ready.

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Speaker 7: And I think that's something.

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Speaker 10: That you know, we've seen for for some time, This

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Speaker 10: idea that you know, Musk has has really sort of

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Speaker 10: been out on a limb in terms of how quickly,

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Speaker 10: this company will be able to put self driving cars

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Speaker 10: on the road. And what other executives have said, including

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Speaker 10: you know, engineers that have had to testify in lawsuits

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Speaker 10: related to people losing their lives because they too much

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Speaker 10: trust into Tesla's driver assistance system. So this is something

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Speaker 10: that's really tricky if you're an executive who has to

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Speaker 10: kind of, you know, square that circle.

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Speaker 6: Yeah, Craig, quickly, I think let's just re recap the basics.

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Speaker 6: Ten percent of the workforce to be cut. How many

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Speaker 6: people is that?

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Speaker 4: Where is it?

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Speaker 10: Yeah, So this is a company that ended last year

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Speaker 10: with over one hundred and forty thousand people. So assuming

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Speaker 10: this is company wide, we know it's a global according

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Speaker 10: to Musk's email to staff, that would be more than

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Speaker 10: fourteen thousand people. We're careful on that because Musk has

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Speaker 10: been a little bit all over the place with his

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Speaker 10: messaging in the past when he's made job cuts.

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Speaker 3: Craig Trudell, we thank you so much. It's just been

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Speaker 3: a phenomenal amount of reporting coming from both of you, gentlemen,

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Speaker 3: and so thank you very much for setting the context. Meanwhile,

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Speaker 3: coming up, Apple iPhone shipments falling ten percent in the

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Speaker 3: March quarter, making it the worst sales slump since COVID.

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Speaker 3: We're going to bring you the details next. Another key

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Speaker 3: points drag on these benchmin Edward. You're watching on the

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Speaker 3: micro level.

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Speaker 4: Two little bit of MNA.

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Speaker 6: Monday, Bloomberg reported that sales forces, according sources, looking at

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Speaker 6: a deal for Informatica, and it's all about data capabilities.

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Speaker 6: The stock down more than five percent on it. The

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Speaker 6: street kind of likes it, but it's a deal. We're

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Speaker 6: waiting on confirmation on Bloomberg said it could be reached

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Speaker 6: this month, so let's stay tuned for that as we go.

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Speaker 6: This is Bloomberg Technology.

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Speaker 3: Apple, it's facing its worst iPhone slump since COVID as

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Speaker 3: competition in the Chinese market really does heat up now.

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Speaker 3: Third quarter shipments are apparently sliding worse than expected, almost

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Speaker 3: ten percent, as the tech giant delivered fifty point one

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Speaker 3: million phones, falling shy of Anna estemates of fifty one

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Speaker 3: point seven mins. And Bloomberg's Mark Gumman joins us now

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Speaker 3: with the context of who's providing us this data and

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Speaker 3: what it means about Apple versus the other competitors.

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Speaker 11: Yeah, so itc puts up their quarterly reports on smartphone shipments,

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Speaker 11: and of course these are their analysis based insights into

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Speaker 11: how many units for ships, so they don't know for sure.

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Speaker 11: We'll get a better idea on May second, when Apple

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Speaker 11: announces its earnings report, and then we'll get a better

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Speaker 11: idea from the other phonemakers when they announce their earnings reports.

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Speaker 11: But IDC is usually on target in terms of a

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Speaker 11: general range or in terms of the overall theme, and

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Speaker 11: the overall theme this time around is a nearly ten

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Speaker 11: percent shipment decline on an annual basis for Apple. It's

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Speaker 11: the most significant decline of any of the phonemakers they track.

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Speaker 11: It indicates that Samsung is back in the number one

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Speaker 11: global smartphone sales position, and it indicates that sales from

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Speaker 11: some Chinese brands, one called Transition into particular, within over

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Speaker 11: eighty percent year of a year sales increase, are really

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Speaker 11: taking steam from Apple at this point. So if I

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Speaker 11: were an Apple shareholder, it would be a little bit

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Speaker 11: concerning to see the slump going on right now for

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Speaker 11: the company, and it seems like most of it is

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Speaker 11: China based, so we'll have to wait until May two

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Speaker 11: to know for sure.

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Speaker 6: However, all right, I believe most Mark, German chief correspondent

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Speaker 6: covering Apple.

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Speaker 4: Thank you.

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Speaker 6: Let's keep the conversation going and bringing in Fionas and

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Speaker 6: Kotta now who's senior market analyst at City Index, for

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Speaker 6: her take on Apple, and Mark summed up the IDC

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Speaker 6: data very well. You either put emphasis on the Apple

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Speaker 6: specific data or you put emphasis on the market share

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Speaker 6: data coming from the Chinese handset makers and how they

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Speaker 6: had gains in sales. Where does your mind goes to first, Fiona, do.

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Speaker 4: You know what?

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Speaker 1: I think it's a really good idea to actually look

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Speaker 1: at these two bits of data together because if you've

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Speaker 1: got Apple falling and yet global smartphone shipments elsewhere increasing,

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Speaker 1: I think that makes it an even more dramatically difficult

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Speaker 1: position and picture for Apple. I mean, it really does

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Speaker 1: highlight I think the extent of the problems that the

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Speaker 1: Apple is facing, particularly surrounding the iPhone.

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Speaker 5: And I think I mean, obviously.

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Speaker 1: China here is a very big story. There is a

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Speaker 1: lot of competition that Apple is facing in China.

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Speaker 5: But I think there's also another side to this as well.

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Speaker 1: I just feel that Apple is really behind just as

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Speaker 1: Sara as Innovation is concerned, as Sarah's AI is concerned

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Speaker 1: and all that's also playing out in the share price,

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Speaker 1: which has really had a tough start to twenty twenty.

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Speaker 3: Four two point seven trillion dollar market cap still but

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Speaker 3: as along with Tesla are two key stories today, these

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Speaker 3: two names in this so called Magnificent seven have been

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Speaker 3: anything but magnificent. It feels like in the last month

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Speaker 3: or so, certainly beginning of this year, Fiona, can Apple

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Speaker 3: win back yours and other investors' hearts and minds if

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Speaker 3: they are going to be able to show, look, we've

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Speaker 3: got AI within the M four process, that we're going

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Speaker 3: to be able to have it and you know, sometimes

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Speaker 3: they're known to be a little bit slower but getting

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Speaker 3: it right.

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Speaker 5: Yeah, that's right.

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Speaker 1: I mean, definitely a little bit slower. They feel like

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Speaker 1: they're very slow to the AI party right now, and

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Speaker 1: that's been sort of you know, punished by They've been

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Speaker 1: punished by investors, and that I think, you know, has

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Speaker 1: been part of that sell off that we've seen. I

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Speaker 1: think there is a potential for this to turn around.

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Speaker 1: I don't think this is the end of the line

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Speaker 1: at all for Apple. I think, you know, we could

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Speaker 1: see a good turnaround as long as they get their

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Speaker 1: AI products really spot on. I think also sort of,

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Speaker 1: you know, the geographical diversification into India is an area

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Speaker 1: that again could be very interesting for Apple as it

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Speaker 1: moves away from China. But at the end of the day,

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Speaker 1: China is a massive in market and it's also a

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Speaker 1: very important market. So it's going to be very interesting

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Speaker 1: to see whether Apple can actually turn this around quickly

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Speaker 1: without any support from really from China.

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Speaker 6: Yeah, if you last night, Caroline and I regroup with

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Speaker 6: a team and we're like, you know, what's the story

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Speaker 6: going to be Monday? It looked like Apple, we had

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Speaker 6: the geopolitics of what's happening in the Middle East, and

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Speaker 6: then Tesla, and I'm trying to find a commonality between

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Speaker 6: all of them. I think that the commonality is should

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Speaker 6: we be talking more about the health of the global

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Speaker 6: economy right now, particularly for consumer facing technology?

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Speaker 5: Yes, exactly.

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Speaker 1: So that's a really really important point here as well.

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Speaker 1: I think the macro backdrop for these stocks is just

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Speaker 1: not ideal right now. You know, if we have a

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Speaker 1: look at where we are speaking as far as macro

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Speaker 1: picture is concerned, it's not smooth sailing at all.

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Speaker 5: For the consumer.

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Speaker 1: You know, we've got the prospect of the Federal Reserve

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Speaker 1: keeping interest rates high for longer after we've seen those

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Speaker 1: hotter than expected inflation figures last week. But then saying that,

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Speaker 1: we've also seen that the retail sales in the US

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Speaker 1: are holding up. But I think, you know, when you've

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Speaker 1: got financing costs so high in the US, that does

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Speaker 1: obviously impact those that are purchasing cars their ability to

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Speaker 1: be able to get financing or even desire to get financing.

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Speaker 1: But also when you've got squeeze on households, you know,

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Speaker 1: big expensive items such as the latest iPhones are going

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Speaker 1: to be perhaps items which aren't necessarily top of the list.

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Speaker 1: So you know, I do think the macro backdrop has

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Speaker 1: a lot to play here as well.

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Speaker 3: If you if a client cause right now, do you

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Speaker 3: say take risks off the table or do you say

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Speaker 3: stay in equities even though they're near records.

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Speaker 1: Oh, it's a good question, you know. I think there

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Speaker 1: is the potential for things to go higher if we

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Speaker 1: start to see that inflation starts to cool again, if

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Speaker 1: we start to see geographic geopolitical tensions start to calm again,

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Speaker 1: then I think there is a potential there. But you know,

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Speaker 1: we've got earning season. We're just ramping up earning season now,

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Speaker 1: and I think that's going to be a good distraction

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Speaker 1: for the market to be able to sort of have

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Speaker 1: a look what's actually going on, to see whether the

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Speaker 1: lofty valuations are actually supported by the fundamentals.

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Speaker 3: Gold and Sachs example, managing to be and talking up

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Speaker 3: AI City Index Senior market analyst Fiuna Sincota.

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Speaker 6: Welcome back to Bloomberg Technology. Ed Ludlow in San Francisco.

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Speaker 5: Karen Hid right here in New York.

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Speaker 3: Let's get you quick check on these markets, because there

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Speaker 3: is a complicated context to what's going on in the

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Speaker 3: markets right now. Whether it's a macro picture that shows

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Speaker 3: resiliency in a US economy, those retail sales still showing

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Speaker 3: real strength of a US consumer. And then the geopolitical

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Speaker 3: situation we currently find ourselves trying to understand get a

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Speaker 3: grips as to where we push forward with Israel and Iran,

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Speaker 3: an unprecedented attack coming from Iran on Israel. Over the

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Speaker 3: course of the weekend, NASDAK pushing back into the green.

443
00:22:43,800 --> 00:22:45,080
Speaker 3: We had been in the red a little bit on

444
00:22:45,080 --> 00:22:48,320
Speaker 3: the Nasdaq benchmark. More broadly, as some of the anxiety

445
00:22:48,440 --> 00:22:50,359
Speaker 3: was still there to be seen within the markets. But

446
00:22:50,440 --> 00:22:53,840
Speaker 3: Apple actually and indeed Tesla key points drags on the

447
00:22:53,880 --> 00:22:56,399
Speaker 3: Nasdaq one hundred. More broadly, Apple ORF by six ten percent.

448
00:22:56,440 --> 00:22:59,719
Speaker 3: We're worried about market share, particularly as competition builds up

449
00:22:59,720 --> 00:23:02,000
Speaker 3: over in China, and the IDC numbers show that Apple

450
00:23:02,040 --> 00:23:05,560
Speaker 3: has had its worth quarter in terms of sales since

451
00:23:05,760 --> 00:23:08,320
Speaker 3: back in the COVID days. Tesla off by two point

452
00:23:08,400 --> 00:23:11,280
Speaker 3: eight percent. This is down to your reporting ed more

453
00:23:11,280 --> 00:23:13,520
Speaker 3: broadly on the fact that executives are leaving an indeed

454
00:23:13,560 --> 00:23:16,360
Speaker 3: ten percent of the workforce looking to be removed as

455
00:23:16,359 --> 00:23:18,520
Speaker 3: they really try and focus on a market that has

456
00:23:18,560 --> 00:23:20,200
Speaker 3: been under pressure of late.

457
00:23:20,600 --> 00:23:21,920
Speaker 5: That's off by two point eight percent.

458
00:23:22,080 --> 00:23:23,680
Speaker 3: But we want to move on to what happened when

459
00:23:23,760 --> 00:23:25,840
Speaker 3: it comes to risk assets over the course of the weekend.

460
00:23:26,000 --> 00:23:28,119
Speaker 5: This is a geo political story that we need to

461
00:23:28,160 --> 00:23:28,480
Speaker 5: shine a.

462
00:23:28,480 --> 00:23:31,439
Speaker 3: Light on in terms of Bitcoin sold off hard on

463
00:23:31,520 --> 00:23:34,439
Speaker 3: Saturday afternoon. Why it's one of the only risk assets

464
00:23:34,440 --> 00:23:36,960
Speaker 3: that you were able to trade when you first learned that. Indeed,

465
00:23:37,000 --> 00:23:39,680
Speaker 3: Iran has lived up to it to what it had

466
00:23:39,720 --> 00:23:43,840
Speaker 3: been telling certain members of leaders across the world that

467
00:23:43,840 --> 00:23:46,919
Speaker 3: they would indeed be looking to attack Israel, and we

468
00:23:47,000 --> 00:23:49,959
Speaker 3: saw it hit some sixty one thousand dollars at one point.

469
00:23:50,160 --> 00:23:51,880
Speaker 3: We're off by three point six percent over the last

470
00:23:51,880 --> 00:23:54,120
Speaker 3: three trading days, and I think that's where we try

471
00:23:54,160 --> 00:23:57,800
Speaker 3: to dissect there is ongoing volatility in an asset like

472
00:23:57,880 --> 00:24:01,840
Speaker 3: crypto and bitcoin, But then where are the applications in

473
00:24:01,840 --> 00:24:04,560
Speaker 3: the here and the now fabian assets here drill down

474
00:24:04,600 --> 00:24:06,720
Speaker 3: on what he's seeing, is Managing director and global headed

475
00:24:06,720 --> 00:24:08,479
Speaker 3: Digital Economy over at Moody's Ratings.

476
00:24:08,600 --> 00:24:10,359
Speaker 5: You're someone who's been thinking about.

477
00:24:10,119 --> 00:24:12,560
Speaker 3: The harving the so called fundamentals of bitcoin, the way

478
00:24:12,600 --> 00:24:16,080
Speaker 3: in which we can adopt blockchain technology. But when you

479
00:24:16,160 --> 00:24:19,040
Speaker 3: look at the volatility as it it's still not a

480
00:24:19,080 --> 00:24:21,320
Speaker 3: store of value but ultimately a risk asset.

481
00:24:21,680 --> 00:24:23,359
Speaker 5: How does that make your conversations harder?

482
00:24:24,480 --> 00:24:29,399
Speaker 7: Well, it's actually very hard to guess the direction of

483
00:24:29,440 --> 00:24:33,080
Speaker 7: travel for bitcoin overall, because when you think about it,

484
00:24:33,080 --> 00:24:36,760
Speaker 7: it's the value of it is not driven by clear

485
00:24:36,920 --> 00:24:41,119
Speaker 7: economic drivers and like other assets, so trying to predict

486
00:24:41,320 --> 00:24:45,040
Speaker 7: the value of bitcoin is like trying to predict people's start.

487
00:24:45,480 --> 00:24:47,200
Speaker 7: So it can be a lot of things. It could

488
00:24:47,240 --> 00:24:50,840
Speaker 7: be the macro environment, could be the dro political environment,

489
00:24:50,880 --> 00:24:52,760
Speaker 7: that could be many other things, And it could be

490
00:24:52,960 --> 00:24:55,919
Speaker 7: the having that's coming up probably at the end of

491
00:24:55,920 --> 00:25:01,479
Speaker 7: this week, which affects behaviors in particular people right now

492
00:25:01,600 --> 00:25:04,920
Speaker 7: bidding up or down, and it creates more volatility, which

493
00:25:04,960 --> 00:25:07,239
Speaker 7: is to be expected, and it has nothing to do

494
00:25:07,320 --> 00:25:09,600
Speaker 7: with kind of the long term evolution of the price,

495
00:25:09,680 --> 00:25:12,159
Speaker 7: but at least as of now you're seeing volatility.

496
00:25:12,400 --> 00:25:14,240
Speaker 3: Yeah, many would say, look, if it's meant to be

497
00:25:14,240 --> 00:25:16,320
Speaker 3: a store of value, if it's meant to be in

498
00:25:16,359 --> 00:25:18,840
Speaker 3: some way fight against inflation, you would have thought, in

499
00:25:19,560 --> 00:25:22,280
Speaker 3: a risk averse worrying time and geopolitics, you will be

500
00:25:22,320 --> 00:25:24,440
Speaker 3: in bitcoin rather than setting off. But then people say, look,

501
00:25:24,480 --> 00:25:26,560
Speaker 3: this is a risk asset that you could say, show

502
00:25:26,600 --> 00:25:28,959
Speaker 3: your anxiety and for the course of the weekend. So

503
00:25:29,000 --> 00:25:30,840
Speaker 3: when you say that you shouldn't be predicting it on

504
00:25:30,920 --> 00:25:34,399
Speaker 3: a day to day basis, How then do you ensure

505
00:25:34,440 --> 00:25:37,280
Speaker 3: that people are thinking about digitization, about real world assets

506
00:25:37,320 --> 00:25:40,560
Speaker 3: becoming tokenized when people are still fundamentally trying to work

507
00:25:40,600 --> 00:25:42,680
Speaker 3: out whether they should even be having one or two

508
00:25:42,680 --> 00:25:44,720
Speaker 3: percent of their wealth in cryptocurrency.

509
00:25:45,200 --> 00:25:47,720
Speaker 7: So that's a great question, and those are very different things.

510
00:25:47,760 --> 00:25:52,840
Speaker 7: So I would say cryptocurrencies per se are essentially very speculative.

511
00:25:53,560 --> 00:25:57,360
Speaker 7: People are bedding up down, as I said, with probably

512
00:25:57,440 --> 00:26:00,760
Speaker 7: some upward pressure post having at least you believe that

513
00:26:01,440 --> 00:26:06,720
Speaker 7: the past is a good proxy for the future. But traditionally,

514
00:26:06,960 --> 00:26:09,520
Speaker 7: I would say it started with crypto. It started with

515
00:26:09,600 --> 00:26:13,840
Speaker 7: bitcoin and ether and others, and then what we observed

516
00:26:13,920 --> 00:26:18,080
Speaker 7: was that financial institutions and institual investors in general were

517
00:26:18,160 --> 00:26:22,280
Speaker 7: very cautious traditionally about cryptocurrencies per se. So you started

518
00:26:22,280 --> 00:26:25,119
Speaker 7: to see like a different segment of the digital finance ecosystem.

519
00:26:25,440 --> 00:26:29,720
Speaker 7: There was more about using the technology underlying bitcoin and

520
00:26:29,800 --> 00:26:34,800
Speaker 7: other assets and reusing the technology to repipe financial markets

521
00:26:34,800 --> 00:26:38,560
Speaker 7: and the global economy to make it potentially better, faster,

522
00:26:38,640 --> 00:26:43,520
Speaker 7: and more efficient. So crypto was mainly for retail investors,

523
00:26:43,600 --> 00:26:48,439
Speaker 7: and the rest of digital finance mainly for institual investors.

524
00:26:48,760 --> 00:26:52,040
Speaker 7: And that's really what we've been keeping an eye on

525
00:26:52,160 --> 00:26:56,680
Speaker 7: and what we'll probably reshape financial markets going forward. Now

526
00:26:57,680 --> 00:27:02,080
Speaker 7: what's interesting is recent the use of convergence in the

527
00:27:02,200 --> 00:27:06,399
Speaker 7: sense that institutional investors, again that were cautious, would say

528
00:27:06,400 --> 00:27:10,240
Speaker 7: instinctively it was not even regulation, even though it played

529
00:27:10,240 --> 00:27:14,359
Speaker 7: a part of it. This suddenly decided that it was

530
00:27:14,480 --> 00:27:18,119
Speaker 7: time to get into the crypto sphere as well, in

531
00:27:18,160 --> 00:27:21,760
Speaker 7: particular with the approval of bitcoin ETFs recently, and so

532
00:27:21,840 --> 00:27:24,639
Speaker 7: now you're seeing institutional investors in both that kind of

533
00:27:24,640 --> 00:27:28,280
Speaker 7: took anization space, which has many benefits, and also in

534
00:27:28,320 --> 00:27:34,800
Speaker 7: the crypto currency space where they were not involved for

535
00:27:35,160 --> 00:27:37,359
Speaker 7: a long time A Fabian.

536
00:27:37,520 --> 00:27:41,520
Speaker 6: I'm fascinated by the credit rating perspective on this. You

537
00:27:41,560 --> 00:27:44,320
Speaker 6: talk about harving and then you think about the limit

538
00:27:44,400 --> 00:27:49,320
Speaker 6: on supply long term infinitely of bitcoin, but in moments

539
00:27:49,359 --> 00:27:53,120
Speaker 6: like the weekend, in geopolitical crisis or risk of sentiment,

540
00:27:53,760 --> 00:27:57,000
Speaker 6: there's just clear evidence it's a liquid market. So if

541
00:27:57,000 --> 00:28:00,520
Speaker 6: you are approaching this from a credit rating, the effective

542
00:28:00,800 --> 00:28:02,240
Speaker 6: what is the conclusion you draw?

543
00:28:02,960 --> 00:28:05,120
Speaker 7: All right, So let me clary if at one point

544
00:28:05,119 --> 00:28:11,440
Speaker 7: here a cryptocurrency enough itself and become in particular, there's

545
00:28:11,480 --> 00:28:15,720
Speaker 7: no credit risk associated with it. There's no promise associated

546
00:28:15,840 --> 00:28:20,240
Speaker 7: with the cryptocurrency, so you can't really rate whether the

547
00:28:20,320 --> 00:28:24,600
Speaker 7: issue of a cryptocurrency will meet its promise and if

548
00:28:24,600 --> 00:28:26,640
Speaker 7: it doesn't, by how much you gould miss it, which

549
00:28:26,680 --> 00:28:30,720
Speaker 7: is what credit ratings are intended to do. So there's

550
00:28:30,760 --> 00:28:33,520
Speaker 7: no there's no credit risk persuit with the cryptocurrency. The

551
00:28:33,560 --> 00:28:36,000
Speaker 7: reason we're keeping an eye on them and on Becoming

552
00:28:36,000 --> 00:28:41,800
Speaker 7: in particular, is because you know that institutions out there, governments, corporations,

553
00:28:41,800 --> 00:28:45,400
Speaker 7: and others are invested in cryptocurrencies. So we want to

554
00:28:45,480 --> 00:28:48,240
Speaker 7: keep track of whether it could impact their credit risk

555
00:28:48,280 --> 00:28:51,360
Speaker 7: because they have that asset in their portfolio, for instance.

556
00:28:51,360 --> 00:28:53,400
Speaker 7: And we also want to keep track of things like

557
00:28:53,800 --> 00:28:57,160
Speaker 7: market contagion risk that could affect one way or the

558
00:28:57,240 --> 00:28:59,720
Speaker 7: other from the crypto world into traditional finance, or even

559
00:28:59,720 --> 00:29:03,240
Speaker 7: the other around, from traditional finance into a crypto currency.

560
00:29:03,280 --> 00:29:06,520
Speaker 7: So it is an asset class that is, you know,

561
00:29:07,040 --> 00:29:12,000
Speaker 7: that's been very resilient. It has no credit risk per se,

562
00:29:12,560 --> 00:29:17,320
Speaker 7: but indirectly others could see their credit risk profile affected

563
00:29:17,440 --> 00:29:20,200
Speaker 7: by the movements in the bitcoin market.

564
00:29:21,120 --> 00:29:23,960
Speaker 6: But there is a connection for secondary markets and the

565
00:29:24,040 --> 00:29:27,080
Speaker 6: underlying technology, which is blockchain. That's something you look at

566
00:29:27,200 --> 00:29:29,280
Speaker 6: very quickly. Explain your work.

567
00:29:29,000 --> 00:29:34,040
Speaker 7: There, correct, So the financial markets are likely being reshaped

568
00:29:34,080 --> 00:29:37,480
Speaker 7: by technologies that look like bitcoin, that look like that

569
00:29:37,560 --> 00:29:41,880
Speaker 7: looks technologies that look like blockchain. Sorry, And the reason

570
00:29:42,000 --> 00:29:45,800
Speaker 7: is that those technologies make processes a lot more efficient.

571
00:29:45,840 --> 00:29:47,840
Speaker 7: So I'm going to give you an example to illustrate

572
00:29:48,200 --> 00:29:52,160
Speaker 7: asset organization Caroline mentioned that a minute ago. It's really

573
00:29:52,160 --> 00:29:57,440
Speaker 7: the process of turning real world assets into a digital

574
00:29:58,720 --> 00:30:01,680
Speaker 7: stamp on a blockchain PLO. And because it's become a

575
00:30:01,760 --> 00:30:06,239
Speaker 7: digital step, it's very easy to manage to trade. And

576
00:30:06,280 --> 00:30:09,320
Speaker 7: those assets that are being tokenized could be anything from

577
00:30:09,600 --> 00:30:14,200
Speaker 7: a bond or stock, or real estate or art, and

578
00:30:14,280 --> 00:30:18,480
Speaker 7: so you transfer all the legal rights, in particular the

579
00:30:18,600 --> 00:30:21,760
Speaker 7: ownership rights that come with the assets. You push that

580
00:30:21,880 --> 00:30:24,840
Speaker 7: into that digital token that you can trade and manage efficiently.

581
00:30:25,120 --> 00:30:27,479
Speaker 7: So it makes it a lot more efficient to manage

582
00:30:27,480 --> 00:30:31,000
Speaker 7: and trade. In particular, you can settle super quickly, it

583
00:30:31,040 --> 00:30:34,120
Speaker 7: could be even just a immediate or fraction of a

584
00:30:34,160 --> 00:30:38,280
Speaker 7: second to settle payments on that blockchain. You can track

585
00:30:38,320 --> 00:30:41,080
Speaker 7: and control everything that's happening, So it makes it better

586
00:30:41,120 --> 00:30:45,720
Speaker 7: from a risk and complainants perspective, and also yes, really

587
00:30:45,760 --> 00:30:51,440
Speaker 7: creates extra liquidity and new opportunities to find funding and

588
00:30:51,520 --> 00:30:55,760
Speaker 7: to invest overalls. Think about a building, for instance, You

589
00:30:55,800 --> 00:30:58,240
Speaker 7: can be very hard to buy that building alone. But

590
00:30:58,360 --> 00:31:01,440
Speaker 7: if you can tokenize and cut these talkings into small

591
00:31:01,440 --> 00:31:04,400
Speaker 7: trunks that many people can invest in suddenly, right, and

592
00:31:04,400 --> 00:31:06,600
Speaker 7: it makes it as easier to access.

593
00:31:07,040 --> 00:31:10,640
Speaker 6: FABI anastic deep analysis Managing director and global headed Digital

594
00:31:10,640 --> 00:31:11,960
Speaker 6: Economy at Moeting's ratings.

595
00:31:12,000 --> 00:31:12,880
Speaker 4: We're grateful with your time.

596
00:31:12,960 --> 00:31:14,200
Speaker 6: Coming up on the show, we're going to be joined

597
00:31:14,200 --> 00:31:16,720
Speaker 6: by Google Clouds lean more on the company's new training

598
00:31:16,720 --> 00:31:21,160
Speaker 6: initiative in generative AI, cybersecurity and data analytics analytics. That's

599
00:31:21,200 --> 00:31:38,880
Speaker 6: coming right up. Stay tuned. This is Bluebird Technology. Okay,

600
00:31:38,960 --> 00:31:41,080
Speaker 6: quick talking tech. There's a lot going on in the news.

601
00:31:41,120 --> 00:31:44,680
Speaker 6: First start, the BIND Administration plans to award Samsum as

602
00:31:44,800 --> 00:31:48,000
Speaker 6: much as six point four billion dollars in grants.

603
00:31:47,720 --> 00:31:49,720
Speaker 4: To increase chip production in Texas.

604
00:31:49,760 --> 00:31:54,520
Speaker 6: This is part of US efforts to bolster domestic semiconductor manufacturing.

605
00:31:54,680 --> 00:31:57,440
Speaker 6: The southern Korean company plans to invest more than forty

606
00:31:57,520 --> 00:32:01,720
Speaker 6: billion dollars overall. Plus Entry and Horowitz close seven point

607
00:32:01,760 --> 00:32:04,760
Speaker 6: two billion dollars for its newest set of funds on Friday,

608
00:32:04,920 --> 00:32:07,200
Speaker 6: According to an Axios report, the firm beat its own

609
00:32:07,280 --> 00:32:10,840
Speaker 6: fundraising goal of six point nine billion, with that capital

610
00:32:10,880 --> 00:32:13,720
Speaker 6: aimed for its growth fund. And open Ai named the

611
00:32:13,760 --> 00:32:18,600
Speaker 6: former president of aws's Japan to Down Nagasaki to spearhead

612
00:32:18,680 --> 00:32:23,080
Speaker 6: its push to enterprise clients in the world's fourth largest economy.

613
00:32:23,080 --> 00:32:25,840
Speaker 6: Open Ai is opening an office in Tokyo, is it

614
00:32:25,880 --> 00:32:29,040
Speaker 6: releases a custom GPT form model.

615
00:32:28,960 --> 00:32:31,440
Speaker 4: Catering to Japanese language users.

616
00:32:31,480 --> 00:32:34,640
Speaker 3: Caroline, and let's get two more broadly in AI context

617
00:32:34,760 --> 00:32:37,360
Speaker 3: right now, because we're all thinking about how to reskill

618
00:32:37,520 --> 00:32:39,959
Speaker 3: and companies are thinking about how to reskal their own employees.

619
00:32:39,960 --> 00:32:42,520
Speaker 3: At the moment, it's also been the focus of Oh

620
00:32:42,600 --> 00:32:45,520
Speaker 3: Google Cloud, it's been thinking about its own role within this. Today,

621
00:32:45,560 --> 00:32:48,480
Speaker 3: the company is announcing a new tech training initiative is

622
00:32:48,520 --> 00:32:51,320
Speaker 3: in partnership with institutions like the US Department at the Treasury,

623
00:32:51,600 --> 00:32:54,000
Speaker 3: like rax Space as well to prepare the workforce with

624
00:32:54,120 --> 00:32:57,200
Speaker 3: generative AI skills and much more, a police to welcome

625
00:32:57,200 --> 00:33:03,000
Speaker 3: only more global Google Cloud Consulting Vice President Lee, I'm

626
00:33:03,040 --> 00:33:06,000
Speaker 3: really interested in this because you're working with the public sector,

627
00:33:06,120 --> 00:33:09,840
Speaker 3: think of the Treasury Department and thinking of educational foundations

628
00:33:09,840 --> 00:33:12,960
Speaker 3: and institutions as well as private companies.

629
00:33:13,600 --> 00:33:15,960
Speaker 5: You're offering this all for free. Are you going to

630
00:33:15,960 --> 00:33:18,280
Speaker 5: be charging? Where is the reward for you?

631
00:33:19,680 --> 00:33:22,120
Speaker 12: Well, for us, we see that we're really in this

632
00:33:22,360 --> 00:33:26,480
Speaker 12: enterprise AI era and we have the most amazing cloud technologies.

633
00:33:26,640 --> 00:33:29,040
Speaker 12: But it's beyond the technology. It's also about the people

634
00:33:29,480 --> 00:33:32,000
Speaker 12: and in my organization, we're responsible for skilling up the

635
00:33:32,040 --> 00:33:35,040
Speaker 12: workforce and skilling up our customers, and we see this

636
00:33:35,160 --> 00:33:38,360
Speaker 12: huge demand for skills and jobs. And if you look

637
00:33:38,360 --> 00:33:41,160
Speaker 12: at the job data out there, you can see there's

638
00:33:41,560 --> 00:33:44,640
Speaker 12: many hundreds of thousand, seven hundred thousand open roles for

639
00:33:44,840 --> 00:33:49,040
Speaker 12: cloud analysts, five hundred thousand roles open for cybersecurity, and

640
00:33:49,080 --> 00:33:51,920
Speaker 12: the World Economic Forum is quoting a million roles in

641
00:33:52,000 --> 00:33:54,920
Speaker 12: AI coming up. So it's a huge, huge opportunity for

642
00:33:54,960 --> 00:33:59,440
Speaker 12: individuals and we believe launching these programs we are today

643
00:33:59,480 --> 00:34:03,160
Speaker 12: both and the on ramps to further education and the

644
00:34:03,160 --> 00:34:06,040
Speaker 12: on remps to employment is our role in the middle

645
00:34:06,040 --> 00:34:07,760
Speaker 12: of that ecosystem.

646
00:34:08,160 --> 00:34:11,799
Speaker 6: Lead just mechanically. How does this work in simple terms?

647
00:34:11,800 --> 00:34:13,840
Speaker 6: If you're working with a Treasury department.

648
00:34:14,480 --> 00:34:17,920
Speaker 12: Yeah, So individuals can go over to Google Cloud Skills Boosts,

649
00:34:18,280 --> 00:34:21,839
Speaker 12: they can register and take these training programs in data analytics,

650
00:34:21,920 --> 00:34:26,800
Speaker 12: in cybersecurity, and in generative AI. When they pass those qualifications,

651
00:34:26,800 --> 00:34:30,239
Speaker 12: they're able to then jump start the first step in

652
00:34:30,280 --> 00:34:32,719
Speaker 12: the recruiting process for their partners. We've signed up with

653
00:34:32,840 --> 00:34:37,319
Speaker 12: so far so US Department of Treasury, Jack Henry and

654
00:34:37,400 --> 00:34:40,279
Speaker 12: rag Space. They enable them to get through that first

655
00:34:40,360 --> 00:34:43,440
Speaker 12: round of interviews in a kind of consolidated way and

656
00:34:43,520 --> 00:34:45,000
Speaker 12: move on through their process beyond that.

657
00:34:45,680 --> 00:34:48,520
Speaker 3: Lee, What's really interesting some of the statistics the data

658
00:34:48,640 --> 00:34:50,759
Speaker 3: showing that the C suite.

659
00:34:50,440 --> 00:34:51,799
Speaker 5: Has a lot of anxiety about this.

660
00:34:51,880 --> 00:34:53,799
Speaker 3: They're worried about the lack of talent that they can

661
00:34:53,800 --> 00:34:56,279
Speaker 3: get their hands on and the roles you just articulated

662
00:34:56,280 --> 00:34:58,560
Speaker 3: that still need to be filled. How much dare I

663
00:34:58,600 --> 00:35:01,760
Speaker 3: ask does a C suite have the AI skills necessary

664
00:35:01,760 --> 00:35:02,200
Speaker 3: at the moment?

665
00:35:02,239 --> 00:35:06,239
Speaker 12: You think, Yeah, very interesting question. We also run c

666
00:35:06,320 --> 00:35:08,839
Speaker 12: suite training programs here in Google Cloud, and we've been

667
00:35:09,160 --> 00:35:11,120
Speaker 12: the takeup of those has been immense in the past

668
00:35:11,120 --> 00:35:14,680
Speaker 12: six months. We're finding that is really progressing well. Now

669
00:35:15,160 --> 00:35:18,080
Speaker 12: this initiative is much more about a kind of grassroots

670
00:35:18,719 --> 00:35:22,239
Speaker 12: next generation of skills as people either coming into the

671
00:35:22,280 --> 00:35:26,200
Speaker 12: workforce or looking to transfer from their existing roles. So

672
00:35:26,480 --> 00:35:28,200
Speaker 12: we see a lot of people, you know, early in

673
00:35:28,239 --> 00:35:31,920
Speaker 12: their career looking to reskill. These programs are really, really, really,

674
00:35:32,000 --> 00:35:34,680
Speaker 12: really useful for that. The example I've got in my

675
00:35:34,760 --> 00:35:37,960
Speaker 12: head is one where you imagine Caroline, you're just exiting

676
00:35:38,000 --> 00:35:40,680
Speaker 12: the services, You're twenty five years old, you don't quite

677
00:35:40,680 --> 00:35:44,120
Speaker 12: know what you're really do you know you could if only, hey,

678
00:35:44,360 --> 00:35:47,200
Speaker 12: you could, you know, you could take these programs, you

679
00:35:47,239 --> 00:35:51,000
Speaker 12: could move into cybersecurity and these are really really good jobs.

680
00:35:51,080 --> 00:35:53,840
Speaker 12: The average, the median salary of a cybersecurity role in

681
00:35:53,880 --> 00:35:56,120
Speaker 12: the US is one hundred and thirty five thousand dollars.

682
00:35:56,440 --> 00:35:58,839
Speaker 12: You know, they are the sorts of roles that are

683
00:35:59,239 --> 00:36:03,160
Speaker 12: game changing for families and their ecosystem.

684
00:36:03,440 --> 00:36:08,400
Speaker 6: Lee, I get yours roots explanation, but public sector cloud

685
00:36:08,760 --> 00:36:12,440
Speaker 6: is such competitive marketplace for you guys, right, Aws and

686
00:36:12,480 --> 00:36:15,480
Speaker 6: Azure also putting a lot of emphasis on public sector

687
00:36:15,560 --> 00:36:20,279
Speaker 6: spend does kind of literally grassroots training help you grow

688
00:36:20,360 --> 00:36:23,319
Speaker 6: some market share there. Jensen one talks all the time

689
00:36:23,360 --> 00:36:26,799
Speaker 6: about sovereign AI, but I'm yet to see any evidence that,

690
00:36:27,160 --> 00:36:29,320
Speaker 6: you know, government departments know they've got to get the

691
00:36:29,400 --> 00:36:30,040
Speaker 6: checkbook out.

692
00:36:31,800 --> 00:36:32,000
Speaker 7: Well.

693
00:36:32,080 --> 00:36:35,120
Speaker 12: I think what we're seeing is demand across the commercial sector,

694
00:36:35,160 --> 00:36:38,839
Speaker 12: the public sector, and from individuals for skills. And you know,

695
00:36:38,880 --> 00:36:41,759
Speaker 12: when I'm recruiting, you know, I'm looking for people that

696
00:36:41,920 --> 00:36:44,080
Speaker 12: have energy and passion and googling this, but I'm also

697
00:36:44,160 --> 00:36:46,799
Speaker 12: looking that they have the fundamental skills in AI or

698
00:36:46,880 --> 00:36:51,040
Speaker 12: data or cybersecurity, whichever the role is. So these programs

699
00:36:51,120 --> 00:36:54,719
Speaker 12: are really geared for the individual, and then obviously every

700
00:36:55,080 --> 00:36:58,439
Speaker 12: organization needs to determine what skills they need in their group.

701
00:37:00,200 --> 00:37:04,640
Speaker 6: Energy more, passion, lean more, Google Cloud consulting. Vice President

702
00:37:04,840 --> 00:37:06,239
Speaker 6: appreciate the time of the conversation.

703
00:37:06,360 --> 00:37:06,719
Speaker 4: Thank you.

704
00:37:14,600 --> 00:37:20,240
Speaker 13: The President was very direct that this was a huge success,

705
00:37:20,960 --> 00:37:23,800
Speaker 13: that Israel can be proud that it doesn't stand alone

706
00:37:23,880 --> 00:37:27,280
Speaker 13: and that it has superior military capability. Iran utterly failed

707
00:37:27,480 --> 00:37:29,880
Speaker 13: in what they were trying to achieve, and that that

708
00:37:30,080 --> 00:37:33,000
Speaker 13: success alone sends a strong message to Iran and to

709
00:37:33,120 --> 00:37:35,480
Speaker 13: the region about Israel's place there.

710
00:37:37,080 --> 00:37:41,000
Speaker 6: That was US National Security Council Communications Advisor John Kirby,

711
00:37:41,000 --> 00:37:44,560
Speaker 6: speaking earlier on Bloomberg Television. Were waiting for more remarks

712
00:37:44,560 --> 00:37:47,799
Speaker 6: from the White House as President Biden holds a bilateral

713
00:37:47,840 --> 00:37:50,760
Speaker 6: meeting with the Iraq's Prime minister joining us from Washington.

714
00:37:50,800 --> 00:37:53,960
Speaker 6: Bloomberg's Balance of Power hosts Joe Matthew and Joe, I mean,

715
00:37:54,040 --> 00:37:58,319
Speaker 6: the messaging from the administration to Israel has been take

716
00:37:58,360 --> 00:37:58,719
Speaker 6: the win.

717
00:37:59,080 --> 00:38:01,759
Speaker 4: What else are we hearing? That's right?

718
00:38:01,800 --> 00:38:04,560
Speaker 2: Take the win, and if you do decide to do something,

719
00:38:04,640 --> 00:38:07,560
Speaker 2: particularly if you want to overreach and attack Iran directly,

720
00:38:07,640 --> 00:38:08,920
Speaker 2: the US may not.

721
00:38:08,960 --> 00:38:09,960
Speaker 4: Be there to support you.

722
00:38:10,040 --> 00:38:13,880
Speaker 2: Having seen the US provide concerted support over the weekend,

723
00:38:13,960 --> 00:38:17,440
Speaker 2: it was quite remarkable, and this does require perspective, and

724
00:38:17,600 --> 00:38:20,080
Speaker 2: on both sides of things. John Kirby is right, this

725
00:38:20,239 --> 00:38:23,040
Speaker 2: was an extraordinary success. I'm not sure that all the

726
00:38:23,080 --> 00:38:25,960
Speaker 2: parties involved. Even though it was capable to block ninety

727
00:38:26,040 --> 00:38:27,840
Speaker 2: nine percent of the hardware that was thrown up in

728
00:38:27,880 --> 00:38:30,600
Speaker 2: the air by Iran the other night, not a single

729
00:38:30,719 --> 00:38:34,320
Speaker 2: UAV managed to infiltrate Israel. Of the thirty Iranian cruise

730
00:38:34,360 --> 00:38:37,959
Speaker 2: missiles launched, none of them broke into their airspace. But look,

731
00:38:38,000 --> 00:38:42,040
Speaker 2: it also requires some perspective on the other side as well.

732
00:38:42,080 --> 00:38:44,760
Speaker 2: The people of Israel now know that Iran is willing

733
00:38:44,880 --> 00:38:48,239
Speaker 2: to attack Israel directly, and they do believe in many

734
00:38:48,320 --> 00:38:52,480
Speaker 2: quarters that that justifies a response. Certainly benjaminett Ya, who

735
00:38:52,520 --> 00:38:55,640
Speaker 2: is hearing that from the right domestically here, the question

736
00:38:55,760 --> 00:38:59,239
Speaker 2: is whether the White House can keep Benjaminettania, who in

737
00:38:59,239 --> 00:39:02,080
Speaker 2: his government, restrained in whatever response it does pursue.

738
00:39:02,440 --> 00:39:03,879
Speaker 5: Joe Matthew, we thank you so.

739
00:39:03,880 --> 00:39:06,680
Speaker 3: Much, really important ability to break down the story and

740
00:39:06,680 --> 00:39:08,680
Speaker 3: push it forward for us. Meanwhile, look, we're going to

741
00:39:08,760 --> 00:39:10,759
Speaker 3: turn on focus to what's actually currently underway in New

742
00:39:10,840 --> 00:39:13,160
Speaker 3: York because Donald Trump has arrived at the courthouse this

743
00:39:13,239 --> 00:39:16,600
Speaker 3: morning where his first criminal trial is underway. She's expected

744
00:39:16,640 --> 00:39:19,280
Speaker 3: to last six to eight weeks. Let's get the latest

745
00:39:19,280 --> 00:39:21,640
Speaker 3: on the ground with re Meg's Kaylee lines. And it

746
00:39:21,719 --> 00:39:22,960
Speaker 3: is another first for Trump.

747
00:39:26,200 --> 00:39:28,239
Speaker 14: Yeah, this is the first time in US history a

748
00:39:28,280 --> 00:39:32,520
Speaker 14: former president has been under criminal trial. These proceedings, of course,

749
00:39:32,560 --> 00:39:35,279
Speaker 14: begin today. He's charged with thirty four felon accounts of

750
00:39:35,320 --> 00:39:38,439
Speaker 14: falsifying business records related to alleged hush money payments made

751
00:39:38,440 --> 00:39:41,480
Speaker 14: to foreign star Stormy Daniels ahead of the twenty sixteen election.

752
00:39:41,600 --> 00:39:45,160
Speaker 14: Trump has pleaded not guilty. He denies all of these allegations,

753
00:39:45,160 --> 00:39:47,840
Speaker 14: and he right now is sitting upstairs in the fifteenth

754
00:39:47,880 --> 00:39:51,080
Speaker 14: story courtroom at the defense table as there is a

755
00:39:51,160 --> 00:39:53,200
Speaker 14: number of motions that they are dealing with. And actually

756
00:39:53,200 --> 00:39:56,160
Speaker 14: the judge has denied several motions already, including a motion

757
00:39:56,239 --> 00:40:00,319
Speaker 14: for a refusal and also the defense's attempts to block

758
00:40:00,600 --> 00:40:03,560
Speaker 14: entering certain things related to Trump's alleged extra merit to

759
00:40:03,640 --> 00:40:04,600
Speaker 14: affairs into evidence.

760
00:40:04,600 --> 00:40:05,239
Speaker 5: The judge has.

761
00:40:05,200 --> 00:40:07,640
Speaker 14: Ruled that the jury will be able to hear a

762
00:40:07,640 --> 00:40:09,920
Speaker 14: lot of that evidence that said, the jury is not

763
00:40:09,960 --> 00:40:12,280
Speaker 14: assembled yet. Once they get the role of these motions,

764
00:40:12,320 --> 00:40:14,759
Speaker 14: that is when jury selection will begin, and they'll try

765
00:40:14,800 --> 00:40:17,560
Speaker 14: to find twelve jurors and six alternates who can be

766
00:40:18,280 --> 00:40:22,280
Speaker 14: impartial unbiased in assessing this case, which of course relates

767
00:40:22,280 --> 00:40:25,200
Speaker 14: not just to a former president but the current presumptive

768
00:40:25,480 --> 00:40:29,440
Speaker 14: Republican presidential nominee. So highly consequential what begins today, But

769
00:40:29,480 --> 00:40:31,919
Speaker 14: this is a process that could last six to eight

770
00:40:31,920 --> 00:40:34,319
Speaker 14: weeks in total. It could take about two months for

771
00:40:34,360 --> 00:40:34,920
Speaker 14: this trial to.

772
00:40:34,840 --> 00:40:35,640
Speaker 7: Reach a conclusion.

773
00:40:36,080 --> 00:40:39,480
Speaker 5: Haiti Nines outside the courthouse in Manhattan. We thank you.

774
00:40:39,600 --> 00:40:42,200
Speaker 3: And what's so interesting, Ed is almost as a proxy

775
00:40:42,280 --> 00:40:45,560
Speaker 3: for that betting on Trump potentially being the nominee and

776
00:40:45,640 --> 00:40:48,600
Speaker 3: indeed future president again in the United States, has been

777
00:40:48,640 --> 00:40:50,360
Speaker 3: his own social media company, which you are able to,

778
00:40:50,400 --> 00:40:52,640
Speaker 3: of course by shares and exposure to. But that social

779
00:40:52,680 --> 00:40:55,480
Speaker 3: media startup, Trump Media, has been down a lot today.

780
00:40:56,320 --> 00:40:56,560
Speaker 4: Yeah.

781
00:40:56,600 --> 00:40:58,520
Speaker 6: Part of that I think is partly due to an

782
00:40:58,600 --> 00:41:01,320
Speaker 6: offering in some markets. But I was listening to the

783
00:41:01,400 --> 00:41:04,400
Speaker 6: radio and Bloomberg Radio surveillance on the way in, and

784
00:41:04,440 --> 00:41:08,480
Speaker 6: it's like a proxy. I think you're right that whatever

785
00:41:08,520 --> 00:41:10,320
Speaker 6: happens in that trial and Kaylee will be on the

786
00:41:10,360 --> 00:41:14,080
Speaker 6: ground for us. You kind of infer your thinking about

787
00:41:14,120 --> 00:41:16,880
Speaker 6: President Trump from it in this race.

788
00:41:17,280 --> 00:41:19,560
Speaker 3: Yeah, parent are Truth Social, which is Trump Minia and

789
00:41:19,600 --> 00:41:23,080
Speaker 3: Technology Group filed to register shares we understand, so which

790
00:41:23,200 --> 00:41:25,520
Speaker 3: of course are including those link to warrants. That's why

791
00:41:25,560 --> 00:41:27,600
Speaker 3: you're getting a supply side pressure coming on in the

792
00:41:27,600 --> 00:41:30,080
Speaker 3: share price. But notably, it has been down about what

793
00:41:30,160 --> 00:41:32,879
Speaker 3: sixty percent from its highs after it did did des

794
00:41:33,000 --> 00:41:35,640
Speaker 3: back and has been publicly trading as Trump Media and

795
00:41:35,680 --> 00:41:36,399
Speaker 3: Technology Group.

796
00:41:36,480 --> 00:41:37,719
Speaker 5: Meanwhile, though, we've got to go back to.

797
00:41:37,760 --> 00:41:40,640
Speaker 3: Some key technology stories, and you're the person behind one

798
00:41:40,680 --> 00:41:42,640
Speaker 3: of the main ones, Tesla, just bringing us, as you

799
00:41:42,760 --> 00:41:45,000
Speaker 3: raced in this morning, the ability to report on what's

800
00:41:45,000 --> 00:41:46,680
Speaker 3: happening with executives leaving.

801
00:41:46,800 --> 00:41:49,520
Speaker 6: Yeah, it's hard to know if the downward pressure on

802
00:41:49,560 --> 00:41:51,719
Speaker 6: the stock is the ten percent layoffs. Actually I'm hearing

803
00:41:51,719 --> 00:41:54,680
Speaker 6: it's much deeper than ten percent, or Drew Baglino and

804
00:41:54,760 --> 00:41:58,280
Speaker 6: Rowan Beateel leaving. Think about the intellectual capital that's left

805
00:41:58,600 --> 00:42:02,399
Speaker 6: Zach kirk Cohn last August, the Chips leadership that left

806
00:42:02,440 --> 00:42:03,279
Speaker 6: earlier this year.

807
00:42:03,560 --> 00:42:05,080
Speaker 4: Musc's taking an X to talk about it.

808
00:42:05,160 --> 00:42:08,879
Speaker 6: Caro, you know that It's interesting why did they time

809
00:42:08,920 --> 00:42:10,840
Speaker 6: it this way, the executives if it wasn't linked to

810
00:42:10,840 --> 00:42:12,520
Speaker 6: the layoffs. I don't have the answer for that.

811
00:42:12,960 --> 00:42:16,440
Speaker 3: And this next phase of growth that everyone keeps harnessing

812
00:42:16,480 --> 00:42:17,600
Speaker 3: the idea that we are.

813
00:42:17,440 --> 00:42:19,560
Speaker 4: In between these new between two weeks.

814
00:42:19,640 --> 00:42:20,880
Speaker 5: Yeah, but then are.

815
00:42:20,760 --> 00:42:22,839
Speaker 3: We if we were likely to be pulling back from

816
00:42:22,840 --> 00:42:25,520
Speaker 3: a cheaper model and more focusing on robotaxis.

817
00:42:25,880 --> 00:42:28,640
Speaker 6: But what I did here is that whatever the reasons

818
00:42:28,640 --> 00:42:30,799
Speaker 6: for Baglino's departure, things are actually.

819
00:42:30,480 --> 00:42:33,120
Speaker 4: Going very well in planning for that next stage of growth.

820
00:42:33,120 --> 00:42:36,760
Speaker 6: I heard forty six eighty, for example, is really ramping nicely.

821
00:42:37,200 --> 00:42:41,200
Speaker 6: So again, people's reasons are their own, but clearly the

822
00:42:41,239 --> 00:42:43,320
Speaker 6: market and our readers are paying attention this morning.

823
00:42:43,840 --> 00:42:47,719
Speaker 3: There's also, of course, the ongoing ev context. That is

824
00:42:48,000 --> 00:42:50,400
Speaker 3: not a putty picture right now? That does it for

825
00:42:50,520 --> 00:42:51,840
Speaker 3: this edition of blueg Technology.

826
00:42:51,880 --> 00:42:52,800
Speaker 5: Boy, it was a big one.

827
00:42:53,200 --> 00:42:55,440
Speaker 4: Yeah, so much to recap on the podcast. You know

828
00:42:55,480 --> 00:42:58,520
Speaker 4: where to find it. We're publishing into Apple's Spotify and iHeart.

829
00:42:58,600 --> 00:43:01,680
Speaker 4: Of course the pod is all also on the Bloomberg platforms.

830
00:43:02,320 --> 00:43:03,759
Speaker 6: Day one of what is going to be a big

831
00:43:03,800 --> 00:43:06,000
Speaker 6: week from New York City and San Francisco.

832
00:43:06,600 --> 00:43:08,960
Speaker 4: This is Bloomberg Technology,