WEBVTT - Los Angeles Fires Rage as High Winds Set to Return This Week 0:00:02.520 --> 0:00:10.280 Bloomberg Audio Studios, Podcasts, radio news. This is Bloomberg Business 0:00:10.280 --> 0:00:13.440 Week Insight from the reporters and editors that bring you 0:00:13.480 --> 0:00:18.400 America's most trusted business magazine, plus global business, finance and 0:00:18.480 --> 0:00:22.840 tech news. The Bloomberg Business Week Podcast with Carol Masser 0:00:23.079 --> 0:00:25.880 and Tim Stenebeck on Bloomberg Radio. 0:00:26.920 --> 0:00:29.680 LA and the rest of Southern California facing a second 0:00:29.680 --> 0:00:33.599 week of fierce winds that are turning wildfires into blow torches, 0:00:33.720 --> 0:00:37.720 putting lives at risk, destroying homes, businesses, and cultural landmarks. 0:00:38.040 --> 0:00:40.199 Here with an update, we bring in Will Wade, He's 0:00:40.280 --> 0:00:42.440 Power and renewable Energy editor at Bloomberg News. 0:00:42.440 --> 0:00:44.720 He joins us here in the Bloomberg Business Week Studio. 0:00:45.320 --> 0:00:48.760 Will you're a Californian, You're from the southern California area. 0:00:48.880 --> 0:00:51.159 You have much family in Los Angeles. I know you 0:00:51.240 --> 0:00:53.280 spent a good portion of the weekend keeping in touch 0:00:53.320 --> 0:00:55.520 with them. Just give us your personal story, your personal 0:00:55.560 --> 0:00:56.440 connection to the area. 0:00:56.640 --> 0:00:59.520 Yes, certainly, this one's personal for me. I grew up 0:00:59.560 --> 0:01:02.760 partly in Pasadena. I remember, you know, in the fall, 0:01:02.840 --> 0:01:04.840 the Santa Ana winds would come in. They blow from 0:01:04.880 --> 0:01:08.200 the east, and there are plenty of times we'd watch 0:01:08.280 --> 0:01:11.720 those hills go up in fire and the air would 0:01:11.760 --> 0:01:14.960 be smoky, But it's nothing compared to what we're seeing now. 0:01:15.440 --> 0:01:19.119 These fires are intense and it's hitting close to home. 0:01:19.440 --> 0:01:23.880 My aunt lives in North Pasadena. Her house is about 0:01:24.240 --> 0:01:27.760 two blocks from the firefront lines. That's the Eton Fire, 0:01:28.280 --> 0:01:31.039 and she was evacuated a week ago. Last Tuesday night, 0:01:31.160 --> 0:01:34.920 she was allowed home briefly over the weekend to pick 0:01:35.000 --> 0:01:38.960 up some necessity. She said, air is bad, sood everywhere. 0:01:39.280 --> 0:01:41.360 We're just hoping that she gets to keep her house 0:01:41.480 --> 0:01:43.720 because so many people around there have lost everything. 0:01:43.840 --> 0:01:45.920 Yeah, no doubt about it. I was like blown away 0:01:45.920 --> 0:01:47.720 by some of the footage and just you know, the 0:01:47.760 --> 0:01:50.480 winds as you talk to picking up the embers that 0:01:50.560 --> 0:01:52.880 are just being spread like crazy, and you get an 0:01:52.920 --> 0:01:55.800 understanding of why it was so difficult to fight this fire, 0:01:55.920 --> 0:01:58.840 contain this fire and prevent the spread. Where are we 0:01:58.880 --> 0:02:01.240 in terms of containment and spread. 0:02:00.960 --> 0:02:04.160 At this point, Oh, we're not very far. The Palace 0:02:04.240 --> 0:02:07.520 Hades fire that's the biggest one, that's fourteen percent contained, 0:02:07.840 --> 0:02:10.840 the Eaton fire, and Pasadena the one threatening my aunt's 0:02:10.880 --> 0:02:14.360 house that's thirty three percent contained. I looked it up 0:02:14.360 --> 0:02:18.560 what that means is the firefighters have basically built a 0:02:18.560 --> 0:02:21.800 battle line around thirty percent of the you know, the fire. 0:02:22.000 --> 0:02:25.480 The rest of it is burning uncontrolled in other faces, 0:02:25.560 --> 0:02:28.560 so plenty of room for that thing to grow. And 0:02:28.680 --> 0:02:32.720 so far they're just huge. Together, all these fires in 0:02:32.840 --> 0:02:36.840 LA have burned about forty thousand acres, which and I 0:02:36.840 --> 0:02:38.440 look this one up too. You know how big that is. 0:02:38.600 --> 0:02:40.359 It's a little bit bigger than Staten Island. 0:02:40.680 --> 0:02:41.760 Wow, So it's massive. 0:02:41.840 --> 0:02:42.359 It's massive. 0:02:42.360 --> 0:02:42.880 It's massive. 0:02:43.000 --> 0:02:43.400 Yeah. 0:02:43.480 --> 0:02:45.440 The difference when you hear about that acreage, though, is 0:02:45.480 --> 0:02:48.240 oftentimes in the past, when we're talking about wildfires out west, 0:02:48.400 --> 0:02:50.959 we talked about acreage. These are areas that are uninhabited. 0:02:51.080 --> 0:02:53.760 They don't have they're not entire neighborhoods that have been leveled. 0:02:53.760 --> 0:02:56.320 They're not places where people are. That's what's different about 0:02:56.320 --> 0:02:57.040 this wildfire. 0:02:57.320 --> 0:03:02.120 Yeah, it's going through homes, it's going through communities. Wildfires, Yeah, 0:03:02.120 --> 0:03:04.320 there's several of them. There's three main ones now, there 0:03:04.360 --> 0:03:07.560 were I think as many as six over the past 0:03:07.600 --> 0:03:15.080 week now, and it's just decimating entire communities, really wealthy 0:03:15.120 --> 0:03:18.720 communities too. Some of these houses are multimillion dollar homes. 0:03:19.160 --> 0:03:20.919 I talked to my mom, she's on the central coast 0:03:20.960 --> 0:03:23.480 of California yesterday. She said, not a cloud in the 0:03:23.520 --> 0:03:26.079 sky in the forecast. We're not seeing rain for quite 0:03:26.080 --> 0:03:29.160 a while now. We know the Santa Ana win south 0:03:29.200 --> 0:03:31.840 of where she is and where my dad is is 0:03:31.880 --> 0:03:33.680 a huge issue this week. What else do we know 0:03:33.720 --> 0:03:35.400 about the weather and what it it'll do for the 0:03:35.400 --> 0:03:36.600 firefighters in the front lines. 0:03:36.720 --> 0:03:40.840 Yeah, no rain forecast anytime soon. We got a little 0:03:40.840 --> 0:03:44.040 break on the winds at the end of last week, 0:03:44.080 --> 0:03:46.960 but they've come right back up again. We're we're seeing 0:03:46.960 --> 0:03:51.520 gusts of like seventy seventy five miles an hour a lot. 0:03:51.600 --> 0:03:54.680 It wasn't as much as at the peak last week 0:03:54.720 --> 0:03:56.720 when I heard we had some gusts as high as 0:03:56.800 --> 0:03:59.600 ninety miles an hour. But all of these winds, they 0:03:59.720 --> 0:04:02.320 just fan the flames that make it hard for the 0:04:02.360 --> 0:04:05.480 firefighters to do their job, and they can blow sparks. 0:04:05.520 --> 0:04:06.960 That's why the fires keep spreading. 0:04:08.240 --> 0:04:11.080 You know, we talked so much about obviously, you know, 0:04:11.440 --> 0:04:14.880 the dry, dry conditions caused by climate change that have 0:04:15.560 --> 0:04:19.720 made it so difficult for these fires to be fought 0:04:20.160 --> 0:04:22.760 and just makes it right for their spread. Having said 0:04:22.760 --> 0:04:25.800 that we are also curious about what caused it. And 0:04:26.279 --> 0:04:27.839 I know it's early and on the game. Are we 0:04:27.880 --> 0:04:30.640 hearing anything. I know, I've seen people come up to 0:04:30.680 --> 0:04:32.640 me and say, well, they're hearing it's arson, or they're 0:04:32.680 --> 0:04:35.440 hearing it's you know, power companies or whatever. My reading 0:04:35.600 --> 0:04:37.240 is that they're still not sure. What do we know 0:04:37.320 --> 0:04:38.000 on that front. 0:04:38.360 --> 0:04:41.360 It's still too soon to tell, don't We don't know anything. 0:04:41.440 --> 0:04:45.720 But we do know that in the past power lines 0:04:45.960 --> 0:04:49.880 have been a significant culprit in wildfires out west. You 0:04:49.920 --> 0:04:54.640 know PGENI, the California's biggest utility, when bankrupt several years ago. 0:04:54.800 --> 0:05:01.359 Their power lines were tied to multiple wire wildfires, and it's. 0:05:01.200 --> 0:05:01.839 A real thing. 0:05:02.279 --> 0:05:04.440 What we've seen in the past few years is when 0:05:04.440 --> 0:05:07.640 it gets really windy, the power companies will cut power 0:05:07.760 --> 0:05:11.800 to entire neighborhoods ahead of the winds, just so this 0:05:11.880 --> 0:05:15.560 doesn't happen. So we're still trying to track what lines 0:05:15.560 --> 0:05:17.840 were live at the time, which lines weren't live at 0:05:17.839 --> 0:05:21.840 the time. We know the big utility down there southern California, Edison, 0:05:22.240 --> 0:05:26.240 has been told preserve evidence if you see anything, But 0:05:26.360 --> 0:05:30.200 so far there's no sign that anything has been found, 0:05:30.200 --> 0:05:32.360 But that's because it's so early in the process. We're 0:05:32.400 --> 0:05:34.160 going to be looking at this really carefully. 0:05:34.600 --> 0:05:37.360 Well, I just keep thinking about rebuilding, and this is 0:05:37.400 --> 0:05:40.600 an area that's very densely populated. It's probably too early 0:05:40.640 --> 0:05:43.080 to even be talking about this. But what we know 0:05:43.160 --> 0:05:46.440 about areas that are impacted such as these, is that people. 0:05:46.240 --> 0:05:47.400 Want to go back home. 0:05:47.480 --> 0:05:51.960 They want to rebuild, regardless of potential fire danger. That's 0:05:52.120 --> 0:05:55.320 how it's been in Los Angeles and California for years. 0:05:55.760 --> 0:05:57.159 How should we be thinking about that. 0:05:58.360 --> 0:06:01.440 Well, sure, people feel connected to their homes, even if 0:06:01.480 --> 0:06:04.000 the home is destroyed, they feel connected to the place, 0:06:04.120 --> 0:06:06.600 and they feel, you know what, they feel connected to 0:06:06.640 --> 0:06:10.239 the life that they had. That's what people want to rebuild. 0:06:10.600 --> 0:06:13.560 And certainly we will see a lot of rebuilding. But 0:06:14.000 --> 0:06:16.560 the thing to keep in mind is the world is 0:06:16.680 --> 0:06:20.680 changing from climate change, and there are places that have 0:06:20.760 --> 0:06:25.400 been built up that are not necessarily a great place 0:06:25.400 --> 0:06:25.920 to live now. 0:06:25.960 --> 0:06:28.600 And we're not just talking about southern California. No, no, no, no, no, 0:06:28.720 --> 0:06:30.320 Florida comes to mind, for example. 0:06:30.440 --> 0:06:32.719 Oh yeah, and like I know, like on the Gulf Coast, 0:06:32.720 --> 0:06:36.600 there's like whole communities like low lying coastal communities, and 0:06:36.960 --> 0:06:40.839 like every year, at certain times, the roads flood, and 0:06:41.040 --> 0:06:43.799 some of them have been told by the local governments, 0:06:44.040 --> 0:06:46.640 we're not going to pay anymore to fix those roads 0:06:46.680 --> 0:06:48.560 because they flood every year. And they're like, well, but 0:06:48.640 --> 0:06:50.719 we live here, how are we supposed to live there? 0:06:50.800 --> 0:06:53.320 And they're like, you may have to rethink this. This 0:06:53.360 --> 0:06:55.160 is the world that is changing around us. 0:06:55.240 --> 0:06:57.880 This crazy part of what's going on to in California. 0:06:57.920 --> 0:07:00.040 They say the debris and scarred landscape also set the 0:07:00.040 --> 0:07:02.640 stage for a future disaster, since any rain that falls 0:07:02.640 --> 0:07:04.799 in the area threatens to trigger dangerous mud slides. 0:07:04.839 --> 0:07:05.960 Oh yeah, that's a thing too. 0:07:06.160 --> 0:07:09.520 It's right the next thing, which is something Californians are 0:07:09.640 --> 0:07:12.520 familiar with, but it's just kind of tragedy on top 0:07:12.560 --> 0:07:16.200 of tragedy. Meantime, the California Governor, Gavin Newsom says, let's 0:07:16.200 --> 0:07:18.760 clear the debris right and let's get ready for the rebuilds. 0:07:18.800 --> 0:07:21.720 So we'll see. And also the role of insurance companies 0:07:22.080 --> 0:07:24.320 and what they're going to help support going forward, because 0:07:24.320 --> 0:07:26.960 that increasingly is backing off. We'll wait. Thank you so 0:07:27.080 --> 0:07:29.400 much for the update. Power and Renewable Energy editor here 0:07:29.440 --> 0:07:32.720 at Bloomberg News with the latest on the wildfires. 0:07:33.520 --> 0:07:37.280 You're listening to Bloomberg Business Week with Carol Masser and 0:07:37.360 --> 0:07:40.440 Tim Steneveek on Bloomberg Radio and Television. 0:07:41.560 --> 0:07:43.200 All Right, everybody, it's a new year. I got to say, 0:07:43.200 --> 0:07:45.240 I'm already regretting that maybe I bought a new iPhone 0:07:45.320 --> 0:07:47.440 last fall. I mean, I needed it, And yet when 0:07:47.480 --> 0:07:50.360 I read Mark German's Power On newsletter, I'm reminded that 0:07:50.400 --> 0:07:53.880 an overhaul is coming for Apple's most important product, along 0:07:53.880 --> 0:07:56.000 with some other cool things from the world's largest market 0:07:56.000 --> 0:07:59.520 cap company, maybe starting soon. Also later this year, with 0:07:59.560 --> 0:08:01.920 more on that and news to that. Apple's iPhone sales 0:08:01.920 --> 0:08:04.400 declined about five percent globally in the final quarter of 0:08:04.440 --> 0:08:06.520 last year. A lot going on. We had to Bloomberg 0:08:06.560 --> 0:08:09.760 News chief technology correspondent markrom and he is in La, Mark, 0:08:09.800 --> 0:08:12.360 there is a lot we want to talk. Apple. Got 0:08:12.440 --> 0:08:15.040 to ask you the fires in La You grew up there, 0:08:15.280 --> 0:08:18.600 you have family there. How's everybody doing and how are 0:08:18.600 --> 0:08:20.000 you thinking about these fires? 0:08:21.320 --> 0:08:21.480 Oh? 0:08:21.520 --> 0:08:23.720 Thank you so much for having me. That's very kind 0:08:23.760 --> 0:08:29.640 of you to ask. Thankfully. I'm okay, only minor inconveniences here, 0:08:30.600 --> 0:08:33.880 but it just feels like everyone, including me, knows someone 0:08:33.960 --> 0:08:36.680 who's lost their home, right, And. 0:08:36.880 --> 0:08:39.400 I've seen the death toll now has topped twenty. 0:08:39.480 --> 0:08:42.960 Obviously one death is too much, but you know, twenty 0:08:43.040 --> 0:08:46.040 is a very big number, and my heart just goes 0:08:46.040 --> 0:08:50.280 out to everyone who has been impacted. It's the most 0:08:50.400 --> 0:08:55.920 horrific disaster that I've seen personally in my lifetime. In fact, 0:08:55.920 --> 0:09:00.120 it's the biggest disaster that we've had in LA. It's 0:09:00.120 --> 0:09:03.400 the ninety four earthquake that was between a six and 0:09:03.440 --> 0:09:05.440 a seven point zero. There were a lot of deaths, 0:09:05.440 --> 0:09:07.120 a lot of damage there. I happened to be born 0:09:07.200 --> 0:09:10.040 that day, so that's an interesting factoid. But this is 0:09:10.120 --> 0:09:14.760 just this is just a miserable situation. And unfortunately, while 0:09:15.200 --> 0:09:18.319 you know, the pollution and the actual disaster itself, it's 0:09:18.360 --> 0:09:20.840 going to dissipate in the coming days. 0:09:21.640 --> 0:09:23.400 The aftermath of this is going to. 0:09:25.000 --> 0:09:27.320 I wouldn't be surprised if it takes ten twenty years 0:09:27.320 --> 0:09:30.920 for these homes to be rebuilt. And obviously many lives 0:09:31.240 --> 0:09:34.640 changed forever. So just it's a terrible thing, and I'm 0:09:34.679 --> 0:09:38.040 glad I get this little distraction with technology to put 0:09:38.040 --> 0:09:39.360 my mind elsewhere for now, all. 0:09:39.320 --> 0:09:42.520 Right, So let's talk about that distraction that is Apple. 0:09:42.880 --> 0:09:44.840 That is something that's certainly when a story pops up 0:09:44.880 --> 0:09:46.959 done by you or your newsletter, we want to talk 0:09:47.000 --> 0:09:50.280 to you about it. Twenty twenty five. How big a 0:09:50.360 --> 0:09:53.000 year is this for the company, and why. 0:09:54.720 --> 0:09:57.240 Twenty twenty five is going to be an instrumental year 0:09:57.320 --> 0:09:59.719 for Apple. You're not going to see anything pop out 0:09:59.720 --> 0:10:03.760 of there that's revolutionary or particularly innovative. What you're going 0:10:03.800 --> 0:10:08.439 to see are some stepping stones towards the future. Let 0:10:08.440 --> 0:10:11.000 me give you a few examples. One, you're going to 0:10:11.000 --> 0:10:14.080 see the introduction of the company's first smart home hub. 0:10:14.679 --> 0:10:17.800 That's something that would compete with the Amazon Echo Show, 0:10:17.880 --> 0:10:20.480 the Google Nest Hub, and pub Max. This is a 0:10:20.520 --> 0:10:23.319 dedicated tablet like display in your home to control your 0:10:23.320 --> 0:10:27.559 smart home appliances. It's innovative in the sense that over 0:10:27.640 --> 0:10:32.000 time you'll see the smart home offerings from Apple expand 0:10:32.040 --> 0:10:34.240 so not this year, but probably next year, you'll see 0:10:34.280 --> 0:10:36.800 a really cool doorbell device from Apple. This would compete 0:10:36.800 --> 0:10:39.600 with Ring. It would use face ID, so when it 0:10:39.640 --> 0:10:41.880 sees you approach your door, it can automatically unlock it 0:10:41.920 --> 0:10:43.840 for you, right, But it also would have some of 0:10:43.840 --> 0:10:46.839 those traditional doorbell features. They're also working on a very 0:10:46.880 --> 0:10:49.840 privacy centric in home security camera. I like to load 0:10:49.880 --> 0:10:53.320 up my house different security cameras indoors and outdoors. But 0:10:53.760 --> 0:10:57.760 Apple has really created its name in privacy in recent years, right, 0:10:57.920 --> 0:11:00.480 So having an Apple made system some thing that would 0:11:00.480 --> 0:11:03.600 probably help put people's minds at ease. Always concerns about 0:11:03.600 --> 0:11:06.400 who's looking at this footage, how accessible is the footage. Well, 0:11:06.840 --> 0:11:09.000 people can probably really trust the Apple brand when it 0:11:09.000 --> 0:11:10.840 comes to storing their video footage. So I think those 0:11:10.880 --> 0:11:14.960 two smart home products are going to be successful. Later 0:11:15.000 --> 0:11:17.440 in the year, you're going to see a major iPhone overhaul. 0:11:17.480 --> 0:11:19.480 There are a lot of Apple employees excited about this. 0:11:19.960 --> 0:11:21.880 There's the iPhone Air that's going to come out later 0:11:21.920 --> 0:11:24.720 in the year. That's going to be the thinnest iPhone ever, 0:11:24.840 --> 0:11:26.880 probably going to be about twenty percent thinner than the 0:11:26.880 --> 0:11:30.560 current iPhone. So that's going to be interesting in terms 0:11:30.600 --> 0:11:34.440 of stepping stones making that thinner iPhone. Apple's process of 0:11:35.160 --> 0:11:38.360 miniaturizing components is going to open the gate eventually for 0:11:38.400 --> 0:11:41.800 foldable iPhone, so that's going to be quite interesting. The 0:11:41.840 --> 0:11:44.360 other thing you're going to get this year are a 0:11:44.400 --> 0:11:46.719 slew of new macs and iPads, you're going to get 0:11:46.720 --> 0:11:49.000 an M four MacBook Air here in a matter of weeks. 0:11:49.320 --> 0:11:51.880 You're going to get new low end iPads and iPad airs. 0:11:51.920 --> 0:11:54.080 In a matter of months, you're going to get a 0:11:54.120 --> 0:11:56.400 new low end iPhone. Right, they're going to replace the 0:11:56.400 --> 0:11:59.520 iPhone se finally with something that's a bit more up 0:11:59.520 --> 0:12:02.520 to speed with the modern iPhone design, probably come in 0:12:02.600 --> 0:12:04.840 around five hundred dollars. I think that's going to be 0:12:04.920 --> 0:12:08.080 a fairly successful device for them, especially and maybe some 0:12:08.120 --> 0:12:11.600 of the more emerging markets like India and other parts 0:12:11.640 --> 0:12:14.240 of Asia. But you know, the big thing for the 0:12:14.280 --> 0:12:15.679 year is obviously going to be the phones, and it's 0:12:15.720 --> 0:12:17.960 always the phones. And the big question is what comes 0:12:17.960 --> 0:12:20.600 after the phone. That's not something Apple's going to answer 0:12:20.600 --> 0:12:22.600 this year, and so I think investors are going to 0:12:22.640 --> 0:12:26.120 be very curious about what's Apple's future at this point. Right, 0:12:27.160 --> 0:12:29.760 the headset's been a dud, the car is dead. 0:12:30.559 --> 0:12:33.520 What's next? Right, they don't really have a major next 0:12:33.520 --> 0:12:33.880 big thing. 0:12:34.000 --> 0:12:36.320 Speaking of what's next, let's talk a little bit about Sonos, 0:12:36.360 --> 0:12:38.120 because you're out with this big story this morning that 0:12:38.240 --> 0:12:41.720 everybody is talking about. Some people saying finally, because of 0:12:41.760 --> 0:12:44.720 all the issues and challenges Sonos's face. Patrick Spence out 0:12:44.760 --> 0:12:49.280 after eight years at the company. Tom Conrad of Pandora Fame, 0:12:49.400 --> 0:12:52.200 Snap Fame coming in and he fixed the company just 0:12:52.240 --> 0:12:53.080 in thirty seconds. 0:12:54.320 --> 0:12:55.520 Look, Patrick's a great guy. 0:12:55.600 --> 0:12:59.080 I've I've met with him and spoke to him countless times. 0:12:59.320 --> 0:13:01.600 I thought he did great job, but there was really 0:13:01.679 --> 0:13:03.920 no coming back from this app disaster. The app is 0:13:03.960 --> 0:13:06.920 at the very heart of how people control their Sonos ecosystems. 0:13:07.280 --> 0:13:10.280 They lost the plot on the app, they lost consumer confidence. 0:13:10.679 --> 0:13:12.600 Someone had to take accountability if they're going to get 0:13:12.600 --> 0:13:14.720 those sales back. Sales are going to fall again this quarter, 0:13:14.720 --> 0:13:17.360 according to our estimates, so putting in a new CEO 0:13:17.440 --> 0:13:20.720 makes sense. This is an insturim CEO. I think he's 0:13:20.720 --> 0:13:22.960 gonna end up being the full time CEO. They won't 0:13:22.960 --> 0:13:25.160 probably find anyone better, so we'll see what happens. 0:13:25.240 --> 0:13:27.120 All right, listen, kit out, Thank you so much and 0:13:27.120 --> 0:13:30.440 stay safe. Safe us to your family and friends as well. 0:13:30.559 --> 0:13:33.280 Hey, he's already got a Sono's tattoo, Tom Conrad, so 0:13:33.520 --> 0:13:35.360 if he becomes full time CEO, it doesn't have to 0:13:35.640 --> 0:13:36.760 do anything about that tattoo. 0:13:36.840 --> 0:13:38.880 Sona shares We're down as much as ten percent. Today's 0:13:38.840 --> 0:13:41.040 session still a decline of about three point three percent. 0:13:41.080 --> 0:13:42.720 All right, that's going to do it. Our Mark German, 0:13:43.120 --> 0:13:45.439 Bloomberg News Chief Technology correspondent. 0:13:46.960 --> 0:13:50.640 You're listening to the Bloomberg Business Week Podcast. Catch us 0:13:50.720 --> 0:13:53.720 live weekday afternoons from two to five e's during Listen 0:13:53.760 --> 0:13:57.319 on Applecarplay and Android Auto with the Bloomberg Business app, 0:13:57.520 --> 0:13:59.800 or watch us live on YouTube. 0:14:00.160 --> 0:14:00.439 Carol. 0:14:00.440 --> 0:14:02.400 We talked a little earlier about the White House unveiling 0:14:02.440 --> 0:14:05.120 sweeping new limits on the sale of AI chips by 0:14:05.240 --> 0:14:08.839 Nvidia and its peers. Also in the news today, Microsoft 0:14:08.880 --> 0:14:12.640 they've named Jay Perrick, who previously helped keep Facebook's infrastructure humming, 0:14:12.960 --> 0:14:16.839 executive VP for a new AI engineering division. We've got 0:14:16.840 --> 0:14:20.680 with us Ln Gwan, chief AI officer over at Accenture. 0:14:20.760 --> 0:14:24.360 Lan joins us from Mountain View, California. Lon, good to 0:14:24.400 --> 0:14:27.440 have you with us this afternoon. You're just back from 0:14:27.520 --> 0:14:32.080 CES a big AI theme at ces Accenter out with 0:14:32.120 --> 0:14:35.680 a new report, their twenty twenty five Technology Vision Report. 0:14:36.400 --> 0:14:39.240 Is this the most prominent that AI has been featured 0:14:39.800 --> 0:14:40.640 within your career? 0:14:43.400 --> 0:14:47.080 The short answer to that is absolutely. I would say 0:14:47.160 --> 0:14:52.360 that over the last twenty four months so I've being 0:14:52.360 --> 0:14:57.800 in this role for almost two years. Right, my life 0:14:57.840 --> 0:15:01.320 as a chief AI officer has can not be more exciting, 0:15:01.440 --> 0:15:03.800 even though I've been in this industry for more than 0:15:03.800 --> 0:15:08.840 twenty five years. And I think CS just one example 0:15:09.120 --> 0:15:13.440 of why we're excited to talk to you know, global clients, 0:15:13.480 --> 0:15:18.080 global companies about impact of AI, about what are the 0:15:18.120 --> 0:15:22.640 things that they should be thinking about to accelerate AI adoption, 0:15:23.080 --> 0:15:26.000 But then most importantly, what are there some potential risks, 0:15:26.160 --> 0:15:29.120 what are there some barriers, what are some you know, pitfalls? 0:15:29.240 --> 0:15:32.480 So that pretty much is some of my you know, 0:15:32.560 --> 0:15:36.640 three day experience at the CS. As you pointed out, 0:15:36.680 --> 0:15:39.080 it's all about AI. That's why we're so excited to 0:15:39.560 --> 0:15:44.720 you know, share our tech vision twenty twenty five. And Tim, 0:15:44.800 --> 0:15:48.000 you may not know this, this is actually our twenty 0:15:48.280 --> 0:15:54.880 fifth years of releasing technology trends. So, as you can imagine, 0:15:54.920 --> 0:15:59.040 AI is the main thing of the report, but I 0:15:59.080 --> 0:16:01.680 think the team has on a really good job and 0:16:01.840 --> 0:16:06.160 also taking to consideration a lot of fast moving technology 0:16:06.520 --> 0:16:10.400 that you just read it off earlier, and also some 0:16:10.480 --> 0:16:14.760 of the market dynamics right that we are we are 0:16:14.760 --> 0:16:16.400 addressing in a report. 0:16:16.200 --> 0:16:18.840 Ron along these lines, our Surveillance Team caught up with 0:16:18.920 --> 0:16:21.800 Jack Hitory. He's the CEO of AI and quantum technology 0:16:21.800 --> 0:16:25.480 company Sandbox AQ. He has collaborated with MIT on a 0:16:25.520 --> 0:16:28.080 series of papers focused on AI and deep learning and 0:16:28.160 --> 0:16:31.480 had some interesting perspectives on kind of where we focus next. 0:16:31.560 --> 0:16:33.480 Let's share it with everybody. 0:16:33.560 --> 0:16:40.280 At the core is numbers quantitative financial equations. Again, that 0:16:40.400 --> 0:16:44.240 AI is now hitting us this year, So I think 0:16:44.240 --> 0:16:47.040 we're going to start seeing the beef this year next 0:16:47.080 --> 0:16:50.240 year as we start seeing he to B applications using 0:16:50.840 --> 0:16:56.720 quant AI, quantitative AI l QMS large quantitative models versus 0:16:56.840 --> 0:16:59.520 just l LMS large language models. 0:16:59.640 --> 0:17:02.760 That again was Jack Henry earlier on surveillance lnguan. You 0:17:02.800 --> 0:17:05.240 know your chief AI officer over at AC Center. You 0:17:05.280 --> 0:17:07.800 said you've been doing this for like twenty years. Is 0:17:07.840 --> 0:17:09.800 that the next focus? I'm curious if you could weigh 0:17:09.840 --> 0:17:11.640 on and on this that so much of what we've 0:17:11.640 --> 0:17:13.359 talked about the last year and a half has been 0:17:13.480 --> 0:17:17.160 consumer AI, chat, GPTs and so on. Now we're talking 0:17:17.160 --> 0:17:20.160 about quant AI. Tell us a little bit about what 0:17:20.240 --> 0:17:21.919 you think about that perspective. 0:17:23.240 --> 0:17:23.440 Yeah. 0:17:23.560 --> 0:17:28.120 Sure, we actually worked with Jacks team closely. 0:17:28.880 --> 0:17:29.120 Uh. 0:17:29.200 --> 0:17:31.720 I think for the for many many areas, right, But 0:17:31.800 --> 0:17:36.520 the enterprise AI, quantitative AI is absolutely what I see 0:17:36.560 --> 0:17:39.360 as the next frontier. I wouldn't even say next frontier, 0:17:39.440 --> 0:17:42.800 it's it's the frontier today. It's the uh you know, 0:17:43.000 --> 0:17:47.840 uh very massive mulket potential in front of companies like Essentric, 0:17:48.440 --> 0:17:51.280 more importantly, in front of the you know, global business, 0:17:51.320 --> 0:17:52.600 global organizations. 0:17:53.160 --> 0:17:53.400 Uh. 0:17:53.440 --> 0:17:55.439 I think the you know, just like what you pointed 0:17:55.480 --> 0:17:58.960 out right, the you know, the initially uh you know, 0:17:59.080 --> 0:18:03.520 business leaders jump on the bandwagon, you know, try out chat, 0:18:03.600 --> 0:18:07.879 GPT or you know, different kinds of models with a 0:18:07.920 --> 0:18:12.120 consumer mindset, right, because this is the first time that they, 0:18:12.280 --> 0:18:15.440 as a regular consumers, they were able to touch and 0:18:15.480 --> 0:18:18.800 feel right, the impact of AI on their daily life. 0:18:19.240 --> 0:18:22.320 But I will tell you, Carol, very quickly, my clients, 0:18:22.359 --> 0:18:26.320 they did not wait, even like as early as January 0:18:26.640 --> 0:18:29.840 twenty twenty three, some of them came to us and 0:18:29.880 --> 0:18:32.960 basically said, Okay, what I experienced in the consumer world 0:18:33.040 --> 0:18:36.520 is amazing. You know, now what do I do with 0:18:37.240 --> 0:18:39.640 this kind of technology within my enterprise? 0:18:40.600 --> 0:18:40.840 You know? 0:18:40.920 --> 0:18:44.080 But enterprise world is very complex. I have all kinds 0:18:44.119 --> 0:18:48.520 of systems, I have invested in all kinds of technologies. 0:18:48.920 --> 0:18:51.879 So can you come in to help me invite some 0:18:51.960 --> 0:18:55.040 kind of II strategy And now you know, ten months later, 0:18:55.080 --> 0:18:57.240 twelve months later they're like, can I go faster? 0:18:58.000 --> 0:18:59.720 I love it right, it's like setting it up and 0:18:59.760 --> 0:19:02.600 then right it's all about to be going forward. Lon Gowan, 0:19:02.720 --> 0:19:05.960 thank you so much. Really appreciate it. Important perspective, Chief 0:19:06.000 --> 0:19:09.320 AI officer over at Accenture on their latest AI report. 0:19:09.520 --> 0:19:10.760 This is Bloomberg. 0:19:13.760 --> 0:19:16.159 Brother macle I about you. 0:19:16.200 --> 0:19:18.720 Let me drive. Oh no, no, no no, this is not 0:19:18.800 --> 0:19:19.400 a toy. 0:19:20.119 --> 0:19:24.440 Jug honey, please, I'll do the gravels. 0:19:24.240 --> 0:19:25.640 Let's wat I want to drive. 0:19:25.640 --> 0:19:31.040 It's a good question that try. 0:19:32.640 --> 0:19:34.840 This is the drive to the clothes that. 0:19:35.040 --> 0:19:35.880 Songs for me to think. 0:19:35.960 --> 0:19:36.120 Well. 0:19:36.200 --> 0:19:39.040 Drivin Don on Bloomberg Radio. 0:19:39.200 --> 0:19:41.520 All right, TikTok, everybody, we've got about eighteen minutes left 0:19:41.560 --> 0:19:44.639 in today's trading session. Uh, it's been an interesting one. 0:19:44.640 --> 0:19:46.439 We're definitely off our worst levels of the session. You 0:19:46.480 --> 0:19:48.879 heard Charlie and Bill Maloney just breaking it down the 0:19:49.000 --> 0:19:52.719 doubt in the green, but the S and P call 0:19:52.800 --> 0:19:55.639 it flat on the day, and the Nasdaq one hundred 0:19:55.640 --> 0:19:57.679 down about six tensven percent, but much better than what 0:19:57.720 --> 0:19:58.800 it was earlier in the session. 0:19:58.840 --> 0:20:00.440 I mean, it's honestly one of those days is where 0:20:00.520 --> 0:20:03.560 I was locked into my decliners early on. 0:20:03.760 --> 0:20:04.480 I know that has it. 0:20:05.359 --> 0:20:07.760 We're getting close on one of them to the green Carol. 0:20:07.520 --> 0:20:09.840 All right, okay, so welcome to my world. 0:20:10.119 --> 0:20:10.520 Yeah, I know. 0:20:10.760 --> 0:20:13.200