Speaker 1: From Marhart where Innovation, Money and Power.
Speaker 2: Collie in Silicon Valley, NBN.
Speaker 3: This is Bloomberg Technology with Caroline Hyde and Ed Ludlove.
Speaker 4: I'm Caroline Heidel Bloomberg's world headquarters in New York, and
Speaker 4: I Med Ludlow in San Francisco.
Speaker 2: This is Bloomberg Technology.
Speaker 5: Coming up the PC slump.
Speaker 4: It continues HP fours by the most and at one
Speaker 4: point three years, calling its profit outlook. We're going to
Speaker 4: bring you the state of consumer Electronics, and.
Speaker 2: As Apple sets a date for the launch of the
Speaker 2: iPhone fifteen, Huawei unveils a sophisticated but mysterious new smartphone
Speaker 2: that's captivated China's tech industry. Full coverage on both those
Speaker 2: stories ahead, and.
Speaker 4: We're going to be hearing, of course from the CEO
Speaker 4: Grayscale sitting down also with the leaders of Ford, Prow
Speaker 4: and Bosh talking a state of evs, of semiconductors and
Speaker 4: so much more. The first limbag's Brodie Ford, who of
Speaker 4: course been all eyes on HP and interesting on the
Speaker 4: day that we also get HP that seems a little
Speaker 4: bit more optimistic about business spending. But is this all
Speaker 4: about more the corporate than the consumer?
Speaker 5: When it comes to HP.
Speaker 6: So it's been this PC apocalypse for a year now.
Speaker 6: You know, it's been a long time of companies saying
Speaker 6: it's bottoming out, people are gonna start buying computers again,
Speaker 6: and it just keeps getting pushed back. And you have
Speaker 6: this question about is the consumers the enterprise? For a while,
Speaker 6: I think people have assumed, Okay, consumers aren't buying computers
Speaker 6: as much, that's okay, but businesses still will. But what
Speaker 6: was really concerning in last night's report was that enterprise
Speaker 6: was continuing to get a little weaker. And the reasons
Speaker 6: for that is the kind of macro fears that every
Speaker 6: business feels, right aid, do we really want to spend
Speaker 6: some money right now?
Speaker 2: But also because of layoffs.
Speaker 6: Right you hire somebody new, you buy them a laptop
Speaker 6: very often, so you're less hiring people, you're less buying laptops.
Speaker 2: And I think, Bradie, this thing about this story is
Speaker 2: that HB basically said, like the PC demand picture is improving,
Speaker 2: it's just not improving as much or as quickly as
Speaker 2: we thought it was going to correct or that they
Speaker 2: said there was going to. Then there's the print business,
Speaker 2: which we never really talk about that actually was a
Speaker 2: big disappointment, right, that's correct.
Speaker 6: Yeah, the print business was hurt because I think, especially
Speaker 6: because of the weaker yen, some of the Japanese makers
Speaker 6: of printers were able to price better. And that's a
Speaker 6: big part of this story across computer and printer is
Speaker 6: that every single manufacturer is having this problem right now.
Speaker 6: Most of them are sitting on a bunch of inventory
Speaker 6: that it's you know, getting older every single day, and
Speaker 6: so prices are really coming down. So I mean, if
Speaker 6: you are looking to get a new laptop right now
Speaker 6: going into the holiday season, the general thought is they
Speaker 6: are going to be dumping a lot of material, a
Speaker 6: lot of inventory for lower prices, and good for consumer,
Speaker 6: not so good for a corporate earnings report.
Speaker 4: Look at that print to pictures that we have not
Speaker 4: using that nearly enough. Berdie, I like that you mentioned
Speaker 4: the yen, and I like therefore that it sort of
Speaker 4: takes us global. Yeah, because there is some weakness in China.
Speaker 4: How global a picture is HP trying to paint us
Speaker 4: here because we get very focused on the US, particularly
Speaker 4: with the GDP data today.
Speaker 6: Yeah, they said that's a big part of it is
Speaker 6: weakness in China. It's economic weakness, but I didn't get
Speaker 6: the sense that that was a really major factor. I
Speaker 6: think that was part of the main constellation of factors.
Speaker 6: I think the piece that was most concerning is that
Speaker 6: businesses aren't buying new computers in the way that they expected.
Speaker 6: I think earlier in the year it was that, hey,
Speaker 6: as we get to the back half of the year,
Speaker 6: the economic picture will improve. We got back to school sales,
Speaker 6: we got Christmas, life will be good. And it just
Speaker 6: hasn't quite panned out that way. And so, yeah, weakness
Speaker 6: in China is part of it. You know, cheaper printers
Speaker 6: in Japan because of the end is part of it.
Speaker 6: But that US consumer story, that US business story is
Speaker 6: pretty close to the heart of what is driving down
Speaker 6: that stuff.
Speaker 2: Bloombergs Brody Ford on the PC apocalypse. Thank you for
Speaker 2: thank you. Bring it back. All right, Let's move from
Speaker 2: PCs and turn to a slow down in the hedge
Speaker 2: fund industry, specifically funds run by Tiger Cubs, the name
Speaker 2: given to the proteges of Julian Robertson. Writing about this today,
Speaker 2: Bloomberg's Hemma Palmer joins us from New York. You have
Speaker 2: the PC apocalypse, and then we go to the cut
Speaker 2: of cash flow to a trickle, which I loved in
Speaker 2: your headline that the numbers are quite dramatic. What's happening here?
Speaker 7: Yes, So these are some of the hedge fund industries
Speaker 7: biggest names, most influential stock pickers. For years, investors were
Speaker 7: clamoring to get into these hedge funds. We're talking about
Speaker 7: the Tiger cubs. And what we're seeing now is, after
Speaker 7: last year's a very difficult year in terms of performance
Speaker 7: for so many of them, investors from the US appear
Speaker 7: to be less likely and sort of sorrowing on investing
Speaker 7: in these hedge funds. You're looking at a drop in
Speaker 7: the number of dollars that have come into these funds
Speaker 7: from US investors, a drop of like ninety nine percent,
Speaker 7: ninety eight percent, eighty one percent. Pretty dramatic numbers, dramatic.
Speaker 4: Just give us the context here any pushback that they
Speaker 4: might have as saying, look, they were closed funds. We
Speaker 4: were limiting the amount of cash that we're taking in.
Speaker 4: But is that a reality.
Speaker 5: So some of the funds were open.
Speaker 7: If we look at D one, CO two Loan Pine,
Speaker 7: two of the funds were closed, Viking and Tiger Global.
Speaker 7: The thing is when it comes to a fund being closed,
Speaker 7: we have seen a number of funds take in as
Speaker 7: much as a billion dollars when they've been.
Speaker 5: So called closed.
Speaker 7: They could be replacing redemptions, They could be making exceptions
Speaker 7: for influential investors or for big tickets. So a fund
Speaker 7: may be closed, and even if they are and they
Speaker 7: do see a sharp reduction in inflows, as one of
Speaker 7: the people we quote in our story said, it may
Speaker 7: be a sign that the wait list of investors has
Speaker 7: dried up. That said, you know, Tiger Global did turn
Speaker 7: down a couple investors who wanted to invest in their fund.
Speaker 7: So we are you know, it is a comprehensive, sort
Speaker 7: of holistic look that we're taking here. But a fact
Speaker 7: that a fund is closed doesn't necessarily mean that money
Speaker 7: still doesn't come into that vehicle.
Speaker 2: Hemm? Are you and the team have been trawling through
Speaker 2: the Form D filings now, Karen and I went through
Speaker 2: all the thirteen f you're going through the Form D filings?
Speaker 2: What are they and what did they kind of tell
Speaker 2: you about the fund raising environment right now?
Speaker 7: Yes? So the form ds are the filings that these
Speaker 7: hedge funds have to have to do and it shows
Speaker 7: how much these funds manage on an annual basis. And
Speaker 7: what we're seeing right now broader in the hedge fund
Speaker 7: fundraising environment is it's quite.
Speaker 5: Difficult and it's been quite difficult for some time.
Speaker 7: So you're seeing, you know, thirteen billion dollars in redemptions
Speaker 7: from the hedge fund space in general, and so investors
Speaker 7: are pulling back from the universe. You know, it's been
Speaker 7: tricky with performance, it's been tricky with rising interest rates.
Speaker 7: For new funds that are launching, it can be also
Speaker 7: quite difficult to raise fund So this is existing in
Speaker 7: all very difficult time to be raising new capital, given
Speaker 7: that the steep decline that we're seeing and inflows does
Speaker 7: seem to be even worse than just the environment itself.
Speaker 4: And the reason this is so important to our view
Speaker 4: as Hammer is because we'll just look at Tiger Global
Speaker 4: Zone website focused on public and private companies in the
Speaker 4: global Internet, in the software, in the financial technology industries.
Speaker 4: This hits home particularly in this show. So we thank
Speaker 4: you so much for all of that. When it comes
Speaker 4: to these Tiger cubs have a Palmer, brilliant reporting me
Speaker 4: while coming up, look, we're going to get another sense
Speaker 4: check on this macroeconomy on how much companies want to spend,
Speaker 4: particularly when it comes to the world of evs.
Speaker 5: The CEO of four pro is going to be joining.
Speaker 4: Us as a mveil new products to drive some strength
Speaker 4: from the pun in this commercial unit.
Speaker 5: Tech Cana is going to be joining us.
Speaker 2: At Yeah, I've got some breaking news actually in the
Speaker 2: last hour, this has moved very quickly. Bloomberg reported first
Speaker 2: that the Cyber Administration of China was going to pick
Speaker 2: Bydo is one of the first China tech companies authorized
Speaker 2: to issue a generative AI tool to the public. That happened,
Speaker 2: We reported that, and the shares the USA dr has
Speaker 2: really jumped in the last few minutes. Baidu's posted a
Speaker 2: blog saying it's actually already going to start rolling out
Speaker 2: that generative AI tool to the public straight away. You know,
Speaker 2: a bit of a spike there, but interesting and fast
Speaker 2: moving developments out of China. This is Bloomberg.
Speaker 5: Let's talk evs.
Speaker 4: Let's talk full Probe because it's a commercial division of
Speaker 4: Forward revealing new charging hardware for its array of in
Speaker 4: turn solutions to help make it basically easier for you,
Speaker 4: the commercial customer to transition your fleet to electric? How
Speaker 4: is that going in this macro environment. I'm really pleased
Speaker 4: to welcome for pro ceo Ted Cannis and Ted, wonderful
Speaker 4: to have you in the studio and.
Speaker 5: Just answer that. First we've got to go micro under
Speaker 5: the detailing business. But the macro picture today, when GDP
Speaker 5: isn't as strong.
Speaker 4: As expected, when jobs perhaps are not growing, it quite
Speaker 4: anticipated amount that we had seen. Are people wanting to update, electrify,
Speaker 4: invest in their businesses.
Speaker 3: Absolutely. What we're seeing, Caroline is what we said a
Speaker 3: second quarter is there is still three years of pent
Speaker 3: up demand for the vehicles internal combustion and battery electric
Speaker 3: doing all that supply chain problems that we had, and
Speaker 3: so we see customers for super duties and trans it's
Speaker 3: both North America and Europe looking for vehicles. My biggest
Speaker 3: challenge with most of my customers pay customers is can
Speaker 3: I get more?
Speaker 5: Oh? Interesting?
Speaker 4: Okay, So you'll try to marry up the supply demand
Speaker 4: equation at the moment I'm interested in into Ultimately, Therefore,
Speaker 4: how you're sending us out apart? What is it that
Speaker 4: makes them go yes for pro over anything else?
Speaker 3: Well, so we have this amazing backbone of the business
Speaker 3: that we have all these commercial work trucks that we
Speaker 3: do for North American Europe. We're at number one in
Speaker 3: Europe for eight years in a row. We have forty
Speaker 3: percent of the commercial and government share for full sized
Speaker 3: trucks and vans.
Speaker 2: We're the big guy.
Speaker 3: And what we're doing now is expanding in not just
Speaker 3: vehicle in a connected.
Speaker 2: World, it's vehicles, software.
Speaker 3: Service, charging, financing, netting that all together so that we
Speaker 3: have this amazing business, a one stop shop for our customers.
Speaker 2: Just the easy button had said, it's good to catch up.
Speaker 2: You know, I actually find the commercial business fascinating because
Speaker 2: you're not just selling a vehicle that happens to be electric.
Speaker 2: You're kind of packaging it up. You mentioned your footprint
Speaker 2: in Europe. I just wondered if you had a better
Speaker 2: sense now of why that EV adoption is slower here
Speaker 2: in the US visa the Europe and indeed China well ed.
Speaker 3: When you and I were first talking electric vehicles years ago,
Speaker 3: and we're getting ready to hit the lightning and other
Speaker 3: products that we weren't even had launch at the time.
Speaker 3: You know, America was a bit further behind cost of
Speaker 3: fuel in Europe was very high and there was already
Speaker 3: a lot of pressure to look for other solutions. And
Speaker 3: what we're seeing now and actually in both regions, is
Speaker 3: it's just good business total cost of ownership, up time,
Speaker 3: productivity solutions. They can save money on few they can
Speaker 3: say money on repairs. It's a great solution for many
Speaker 3: customers in both regions. And that's what we're seeing, and
Speaker 3: that's why we upped a lot of our production demand
Speaker 3: for lightning here in North America. And it's getting the
Speaker 3: right tool for the job, whether that's a van or
Speaker 3: a pickup truck to do the work.
Speaker 2: Jim Farley, the Ford CEO, is talk it's about the consumer,
Speaker 2: you know, sort of rejecting higher prices for evs. Do
Speaker 2: you see that from your commercial and fleet customers as well?
Speaker 2: On the pricing issue.
Speaker 3: I'd say we will carefully managine the pricing as we
Speaker 3: increase the supply of vehicles now that we're going to
Speaker 3: the extra shifts that we put on and lightening and
Speaker 3: have the battery capacity. So a lot of it is
Speaker 3: just education. I think in the commercial space, the decision
Speaker 3: process is longer. In a company, this is a big investment,
Speaker 3: like in facilities, or equipment. They're used to making investments
Speaker 3: with making the equations, getting Excel spreadsheet out, and that
Speaker 3: learning process is taking longer, and then you would do
Speaker 3: stack on applying for incentives utility infrastrution that's required. This
Speaker 3: turns into a longer process than moves through the cycle,
Speaker 3: and that's what we're helping a lot of our customers
Speaker 3: and frankly our dealers as they work with so many
Speaker 3: new customers.
Speaker 2: You know, I've been out in some vineyards and wineries
Speaker 2: very near to where I am now ted, and they
Speaker 2: demonstrated to me not just that they run the F
Speaker 2: one fifty lightning between point A and point B, but
Speaker 2: they're using your data and software offering to kind of
Speaker 2: optimize that route everything from like getting down to the
Speaker 2: most efficient mile they can drive. Peter Stern's just joined Forward,
Speaker 2: longtime Apple exec. I just wondered if you could tell
Speaker 2: us why that move came and what kind of impact
Speaker 2: he will have on improving that software offering.
Speaker 3: I think this is corridor the whole Forward plus plan.
Speaker 3: I think we're all talking about electrification on all the time,
Speaker 3: but the real secret is the software defined vehicles and
Speaker 3: connected vehicles, digital on physical services. That is the big change.
Speaker 3: So when you have a vehicle that's signaling a repair
Speaker 3: that needs to be made, you can pre order the
Speaker 3: part schedule at the dealership. Link all that together. Like
Speaker 3: you're seeing so many cases where software can brive more convenient,
Speaker 3: more productive solutions for the customers. Peter is a specialist
Speaker 3: in that space. He's been doing subscription services at large
Speaker 3: volume at Apple with that kind of science that he's
Speaker 3: seen of where and how to change the experience for
Speaker 3: the customers in a very positive way. And he's going
Speaker 3: to come lend us that experience, both on the pro
Speaker 3: side but in our other software defined businesses, for example
Speaker 3: Blue Cruise, where you can have hands free driving on
Speaker 3: the highways in the blue crew zones, which also in
Speaker 3: the future will be appealing to commercial customers. Imagine a
Speaker 3: customer who can get his time back on the highway
Speaker 3: time is just a huge value. Oreor in traffic coming
Speaker 3: in the London on N twenty five, you're stuck in
Speaker 3: those miles and miles of ques. It's a great thing
Speaker 3: to not have to be hand in the hands on
Speaker 3: the wheel, you could.
Speaker 2: Do something else.
Speaker 4: You know, a couple of people you're talking to, you
Speaker 4: who understand the M twenty five trials and tribulations.
Speaker 5: I'm interested in those.
Speaker 4: You talked about the supply demand dynamic, the fact that
Speaker 4: sort of may your headache is getting enough vehicles into
Speaker 4: your client's hands.
Speaker 5: How much more of a.
Speaker 4: Headache is that when you're still trying to negotiate with workers,
Speaker 4: particularly with the United Auto Workers.
Speaker 5: I mean, how is that going to your bit of
Speaker 5: the business.
Speaker 3: Well, I think the main thing for us is, you know,
Speaker 3: the workers are our team. We're all one team. And
Speaker 3: you know, one of the things we're proud of is
Speaker 3: we build more vehicles in America than anybody else. We
Speaker 3: employ more hour league guys in than anybody else, we
Speaker 3: export more than anybody else. So it's a team that's
Speaker 3: doing these and we're happy to produce all these f
Speaker 3: series of vans and pickups in the US. So when
Speaker 3: we look at that, it's going to go through that process. Now,
Speaker 3: this is a normal negotiation. I'm not in the heads
Speaker 3: and throws, but I can say I was in Kansas
Speaker 3: City this week visiting our team there because we'd just
Speaker 3: gone to three shifts on trendsit earlier this year. Because
Speaker 3: the demand is so strong.
Speaker 2: For pro CEO Take Cannis. We always talk about evs
Speaker 2: in the context of the consumer, and we don't talk
Speaker 2: as much about these small and large businesses buying out fleets.
Speaker 2: Thank you so much for your time.
Speaker 5: Time now for work shifting.
Speaker 4: Look, it's where we're going to have a look at
Speaker 4: the changing landscape of the labor market amid all of
Speaker 4: these vases and technology. And first up, after many layoffs
Speaker 4: tech employers, they're now beefing up staff with specialisties in AI.
Speaker 5: Of course, the.
Speaker 4: Bay Area is now quickly becoming the epicenter one for you.
Speaker 4: And meanwhile open ai is on track for one billion
Speaker 4: dollars of annual revenue. The businesses adopting the technology behind
Speaker 4: chatchpt and turning back to that court ruling canceling the
Speaker 4: SEC's order to reject Grace say at Scale's spot Bitcoin
Speaker 4: ETF application.
Speaker 5: Gray Scale CEO Michael Sunshine joined Bloomberg TV earlier. Let's
Speaker 5: taking listen.
Speaker 1: We will have to see upon the final operational procedures
Speaker 1: that come through that final mandate that the court will issue.
Speaker 5: So you don't know, but you may.
Speaker 1: We don't know what the final opinion will say until
Speaker 1: we reach the end of that period.
Speaker 2: Correct, is there.
Speaker 8: I've been reading at us from me yesterday too, that
Speaker 8: you know, you may have won this battle, but then
Speaker 8: lose the war, and that there's a bunch of other
Speaker 8: competitors now, so now you're not gonna be the only
Speaker 8: horse in town.
Speaker 1: Yes, So this is a topic we've talked about before, ladies.
Speaker 1: It's really a world in which there are multiple Spot
Speaker 1: products is a world that Greyscale has long been ready for.
Speaker 1: There are multiple bitcoin futures products. We believe that there
Speaker 1: will be a world in which there are multiple Spot
Speaker 1: bitcoin products. That being said, we want investors to have choice,
Speaker 1: and some of the things that we do think investors
Speaker 1: will look to when they are making those allocation decisions
Speaker 1: are the size of the fund, the liquidity of the fund,
Speaker 1: the track record of the fund. Right, Let's not forget
Speaker 1: that GBTC is the largest bitcoin fund in the world.
Speaker 2: It's owned by millions and millions.
Speaker 1: Of investors, it has three plus percent of the outstanding
Speaker 1: bitcoin supply, and really now has almost a ten year
Speaker 1: track record of operational success. Right, Whereas a lot of
Speaker 1: the other products coming to market are really making use
Speaker 1: of gbtc's operations, disclosures, reporting and GBTC is really paving
Speaker 1: the way to broaden out that market.
Speaker 7: There's another as of market question here, and it's not
Speaker 7: just about the pace in time. It's about the structure.
Speaker 5: And the fees.
Speaker 7: Because if you look at Blackrock investcal Fidelity, these are
Speaker 7: asset managers with a history of coming in low And
Speaker 7: if you look at the fees that you have offered
Speaker 7: and really has made a very profitable entity for a
Speaker 7: digital currency group and gray Scale, how much lower exactly
Speaker 7: can fees get for the grayscale product in the form
Speaker 7: of an ETF.
Speaker 1: Well, what I've committed to historically, and we'll say again
Speaker 1: to you today, is we are committed to lowering fees
Speaker 1: when GBTC converts to an ETF. We'll obviously have to
Speaker 1: come back on and talk to you about what the
Speaker 1: fees are when that conversion actually happens.
Speaker 7: So the other strangeness here is the discount that the
Speaker 7: GBTC is currently trading at. You had gone from twenty
Speaker 7: four yesterday to fifteen below net asset value back to
Speaker 7: twenty Can you answer to this market volatility here and
Speaker 7: the uncertainty that investors are grappling with as you head
Speaker 7: towards this process.
Speaker 1: Well, there's a couple of things in that dynamic. So
Speaker 1: number one, there certainly was increased trading volume yesterday in GBTC,
Speaker 1: a lot of excitement and enthusiasm based on the victory
Speaker 1: that GBTC shareholders had in the court yesterday. Now, as
Speaker 1: we eventually approach an ETF, you'd expect that eventually there
Speaker 1: will be an arbitrage mechanism through the ETF that will
Speaker 1: allow for any premiums or discounts to be eliminated. That's
Speaker 1: a really, really important function of why ETFs serve in
Speaker 1: the capacity that they do, and it's really the core
Speaker 1: of what we've been fighting for throughout this entire lawsuit.
Speaker 2: Let's got some more bloombogtion, Ali bask here. That was
Speaker 2: the interview that we wanted to get. You got it.
Speaker 2: What else did you learn from it?
Speaker 5: Some things are really important here.
Speaker 7: If you look at the way GBTC, the Greyscale Bitcoin
Speaker 7: Trust is trading. When I sat here with you yesterday, ed,
Speaker 7: it was at a fifteen percent discount to net asset value.
Speaker 7: That has gotten a little wider today to twenty one
Speaker 7: percent as I sit here with you today. Why because
Speaker 7: they're still on certain empty around the path forward to
Speaker 7: an ETF for GBTC. More around that timeline, especially one
Speaker 7: of those key concerns here, and you heard it from
Speaker 7: Michael Sun and Shining himself. They don't know yet whether
Speaker 7: they have to refile to convert to an ETF in
Speaker 7: the wake of this process. And remember there is a
Speaker 7: timeline here. We don't know whether the SEC will fight
Speaker 7: the decision. And Michael Son and Shine himself said that
Speaker 7: this is day one of a forty five day process
Speaker 7: in which the SEC can request potentially an unbanked hearing. Now,
Speaker 7: the ruling yesterday was three to zero, so this is
Speaker 7: not quite likely per se. It would definitely be going
Speaker 7: against what the court had said unanimously yesterday. However, it
Speaker 7: could certainly happen, and it would hold things up even further.
Speaker 4: These things that have a quick but Shanani mask is
Speaker 4: always quick with the information.
Speaker 5: We thank you so much. Welcome back to make tight
Speaker 5: on a jam.
Speaker 2: Countine hyjen Ne York and id Love in San Francisco.
Speaker 2: One name that's out performing on the megacat side Apple
Speaker 2: up one point eight percent. We know the story, Caro,
Speaker 2: I know what I'm doing. In a couple of weeks, time.
Speaker 2: This one's exciting.
Speaker 4: Yeah, it's twenty four hours ago that you got that
Speaker 4: invite for Wanderlust something travel and wonder what it means.
Speaker 4: That's what Apple is calling its next event anyway, set
Speaker 4: for September the twelfth, where the company will unveil the
Speaker 4: iPhone fifteen line. We understand it's next generation smart Watchers.
Speaker 4: Of course, all of that is according to our chief correspondent,
Speaker 4: Mark German, who always knows the news ahead of time.
Speaker 4: Mark Wanderlust, Just what exactly do you think they're hinting
Speaker 4: at there if it's not the iPhone fifteens and the
Speaker 4: smart Watchers.
Speaker 9: Yeah, I mean, I don't necessarily think the name of
Speaker 9: the event Wanderlust, is hinting at much. But if you
Speaker 9: look at the Apple logo in the invitation, the colors
Speaker 9: in there will be the colors of the next generation prophones.
Speaker 9: There's going to be a navy blue, there will be
Speaker 9: a new version of the space black. There's going to
Speaker 9: be a new gray, which is closer to the look
Speaker 9: of natural titanium, the material they're switching to for the
Speaker 9: iPhone fifteen pro in Promax. And then there's also going
Speaker 9: to be another new color silver, a new version of
Speaker 9: silver and white, so those colors are hinted at in
Speaker 9: the logo and then you see sort of a powdery substance,
Speaker 9: a powdered metal substance, And I'll have more on that soon,
Speaker 9: but definitely this is going to be around three products,
Speaker 9: the iPhone, the Apple Watch, and the AirPods, so the
Speaker 9: high end and low end iPhones, the Apple Watch Series
Speaker 9: nine and second generation Apple Watch Ultra and updated AirPods
Speaker 9: Pro with a new charging port USBC.
Speaker 2: You know, Mark, the color is important. My smartphone of
Speaker 2: choice is blue for Chelsea Football Club. But are we
Speaker 2: actually going to get any hardware updates in the fifteen
Speaker 2: relative to the fourteen? You know, you talk about this
Speaker 2: a lot, and you're reporting that generation's generations. Sometimes they're
Speaker 2: just very slight changes.
Speaker 9: There's going to be major changes across all four models
Speaker 9: this year. So the fourteen was a pretty small update
Speaker 9: on the non pro side, the fifteen, the regular fifteen,
Speaker 9: the Regular fifteen plus those are going to get a
Speaker 9: forty eight megapixel back camera, the A sixteen chip, and
Speaker 9: the Dynamic Island. So essentially the hardware upgrades in last
Speaker 9: year's fourteen Pro, the fifteen Pro and Pro Max will
Speaker 9: get that new titanium frame I mentioned the first three
Speaker 9: nanimeter Apple process or the A seventeen chip, much thinner
Speaker 9: bezels borders around the display, coming close to one point
Speaker 9: five millimeters thinness borders around a display in any mass
Speaker 9: produced smartphone. You're also on the biggest phone going to
Speaker 9: get a new camera. It's called a periscope camera, that's
Speaker 9: the technical term. It allows you to do much deeper
Speaker 9: optical zoom. So right now you can zoom in at
Speaker 9: a rate of three x. This will now double to
Speaker 9: six x without needing to use digital zoom. So you'll
Speaker 9: retain that clarity because it uses the actual hardware lens
Speaker 9: for the zoom rather than software and.
Speaker 4: The A The big change having its waymark with the charging.
Speaker 9: Yes, that's exactly what I was going to say. The
Speaker 9: big fuss, I think is going to be this USB
Speaker 9: C port. This is going to be the second time
Speaker 9: in the history of the iPhone that they've changed the
Speaker 9: charging port. In twenty twelve, they move from the iPod
Speaker 9: connector to the lightning connector. This time they're moving to USBC,
Speaker 9: slightly larger than the connector they use today, still reversible,
Speaker 9: but on the pro phones. It'll allow you to do
Speaker 9: very fast data transfers over the cable, so if you're
Speaker 9: taking high resolution video, you'll get those big transfer speeds there.
Speaker 9: The downside is if you've been using lightning connectors to
Speaker 9: charge your iPhone over the last decade, you're going to
Speaker 9: need a new cable. The good news is the new
Speaker 9: cable will come in the box. The bad news is
Speaker 9: that you may need to buy a new charging adapter,
Speaker 9: the brick that goes into the wall. Because you're moving
Speaker 9: from USBA right or USB B two as others call it,
Speaker 9: to USBC. It's a different sized connector, and so some
Speaker 9: people may need to make that change.
Speaker 2: All right, Apple up one point nine percent September twelfth,
Speaker 2: the dates watch our thanks to Bloomberg's Mark German. Okay,
Speaker 2: Apple isn't the only company breathing new life into the
Speaker 2: smartphone market. Huawei has unveiled a slim bezeled Mate sixty pro,
Speaker 2: sparking hopes that China tech firms are able to overcome
Speaker 2: US sanctions and curbs, giving life to that domestic smartphone market.
Speaker 2: Bloombozi and King is with me on set about what
Speaker 2: was a strange surprise overnight I'm going to say two things.
Speaker 2: I hand it over to you. The details of this
Speaker 2: phone were not registered with the Chinese regulator, which is unusual.
Speaker 2: But what happened was loads of local media, ATHLETs and
Speaker 2: fans in China did tear downs. They tore the thing apart,
Speaker 2: and that takes us to the processor, which they say
Speaker 2: was etched with five nanometer nodes over to you. Why
Speaker 2: is that surprising?
Speaker 10: Yeah, I mean we need to understand, Dana. You emphasiety correctly.
Speaker 10: This is speculation at this point. Yes, Well, the bottom
Speaker 10: line is if they have that kind of technology in
Speaker 10: their semi conductors, then it's almost impossible to have done
Speaker 10: that without circumventing direct US trade restrictions on supplying that
Speaker 10: company with technology. Something is going on here if all
Speaker 10: of these speculation is correct, and you know, I'm sure
Speaker 10: the US government is taking a long look at that
Speaker 10: coincidence that they announced this when Gina Ramando, the Secretary
Speaker 10: of Commerces visiting China.
Speaker 2: You'd be the judge.
Speaker 4: I mean, it's interesting because they almost well it was
Speaker 4: a very subtle announcement and it's mainly taken off on
Speaker 4: Wabo and people trying to piece together the pieces here,
Speaker 4: and really we understood, potentially thought that some stockpiling could
Speaker 4: have gone on prior to this, right with TSMC chips.
Speaker 5: Could it be that.
Speaker 4: Or is it more in line with a story that
Speaker 4: you brought us last week that there are these sort
Speaker 4: of shadow supply chains, shadow chip manufacturing going on across
Speaker 4: China at the moment by Huawei.
Speaker 7: Yeah.
Speaker 10: I mean again, there's a lot of speculation, there are
Speaker 10: a lot of moving parts going on, and you know
Speaker 10: a lot of that based upon our reporting and our
Speaker 10: understanding of what is going on. The bottom line is
Speaker 10: Huawei is not a major smartphone maker anymore, not even close.
Speaker 10: Remember they got rid of their smartphone division because of
Speaker 10: the weight of sanctions. So really what's going on here
Speaker 10: is kind of a symbolic or a concentrated effort to
Speaker 10: get technology to show that China, hey, we're not out
Speaker 10: of this yet. You're not hurting us as much as
Speaker 10: you think. Maybe we've got a future down our own past.
Speaker 10: That's how it's being interpreted. Who's doing it, how they're
Speaker 10: doing it. That's something that everybody is chasing, including us,
Speaker 10: right now, and that could have major implications for the
Speaker 10: relationship between the two countries.
Speaker 2: So The basics of it are that Huawei has been
Speaker 2: on the entity's list since twenty nineteen Trump era, and
Speaker 2: the reason US government did that was accusations that Huawei
Speaker 2: was helping the Chinese military with technology. But what was
Speaker 2: notable ever night is lots of Chinese suppliers saw their
Speaker 2: stocks jump. What did you make of that? Is the
Speaker 2: is the inference with drawing and again Bloomberg's not being
Speaker 2: able to verify many of these local media reports. But
Speaker 2: is it that actually China could stand on its own
Speaker 2: two feet in five G for example, which is not
Speaker 2: yet done.
Speaker 10: Yeah, I mean that's been the concern all along, that
Speaker 10: by basically pushing them into a corner, they would go
Speaker 10: in their own direction, develop their own native technologies, and
Speaker 10: be no longer dependent upon the West and no longer
Speaker 10: need to really interact with the West because they have
Speaker 10: such a huge of their own market. And you know,
Speaker 10: this development, even though it's relatively small, and even though
Speaker 10: it's probably only a relatively small number of devices. You've
Speaker 10: got to remember as well, from a technology perspective, anybody,
Speaker 10: well not anybody, but you can make a few chips right,
Speaker 10: very high quality, very low you know, nodes in terms
Speaker 10: of manufacturing mass producing them is an entirely different thing.
Speaker 10: But the military doesn't need hundreds of millions of these things.
Speaker 10: So all kinds of alarm bells ringing around this inky.
Speaker 4: Just such in depth reporting, thank you so much, as
Speaker 4: we peel back the onion of really what's happening over
Speaker 4: there with Huawei. Meanwhile, look, we're just going to go
Speaker 4: outside the world of tech for a moment.
Speaker 5: We want to.
Speaker 4: Quickly check in on some stocks that are really moving.
Speaker 5: Marijuana stocks.
Speaker 4: They're surging after the US Department of Health and Human
Speaker 4: Services has actually sent a letter to the Drug Informance
Speaker 4: Agency urging them to loosen rules when it.
Speaker 5: Comes to cannabis.
Speaker 4: A lot of these stocks are actually getting stoped on volatility.
Speaker 4: We're up eighteen percent, let's call it on tire. We're
Speaker 4: seeing some of the ets that are in lockstep really
Speaker 4: powering on highre So this is a focus of course.
Speaker 4: Last October, Biden rolled out some initiatives focused on marijuana,
Speaker 4: including the pardoning all prior federal offenses for simple possessions.
Speaker 4: So this looks like we could be taking another step
Speaker 4: in that direction. Meanwhile, coming up, look, Bosh is in
Speaker 4: the process of acquiring TSI Semiconductors.
Speaker 5: I'm very pleased to.
Speaker 4: Say we're going to be joined by Busha's CEO Sefn
Speaker 4: Harten to discuss the company's plans right there and in California.
Speaker 2: Yeah, and speaking of chips, I'm also taking a quick
Speaker 2: look at shares of Nvidia, and the market's slow down
Speaker 2: just has not stopped analysts from ratcheting up their share
Speaker 2: price targets. Rosenblack Securities has a target of eleven hundred
Speaker 2: dollars a share, which if Nvidia hit, that would give
Speaker 2: the company a market value of more than two point
Speaker 2: seven trillion dollars. By the way Apple's two point nine
Speaker 2: trillion valuation, they would become trillion ish rivals. Well, talk
Speaker 2: about more chip stuff. Next, this is Blombo Technology, all right.
Speaker 2: Global giant Bosch will close the acquisition of US chip
Speaker 2: maker TSI Semiconductors in the next week. The world's biggest
Speaker 2: auto part supplier plans to invest more than one point
Speaker 2: five billion dollars in its California foundry, expanding the German
Speaker 2: company's global bed on chips. To like to say that
Speaker 2: the chairman of Bosch's board, CEO Stefan Hartong, joins me
Speaker 2: here on set in San Francisco, so the deal will close.
Speaker 2: This is something you and I have discussed in the past.
Speaker 2: The the question is how quickly you operationalize it and
Speaker 2: get that silicon carbe into your supply chain.
Speaker 8: Yeah, that's obviously a story of a bit more work.
Speaker 8: Because we have got a great asset here with a
Speaker 8: great base and also about two hundred and fifty specialists.
Speaker 8: This is the most important thing to it. But there's
Speaker 8: a lot of construction to happen. We have to upgrade
Speaker 8: the site. We have to bring new machines, we have
Speaker 8: to bring equipment, and then the process chain which we
Speaker 8: have developed has to be in place here. So we
Speaker 8: take some years, but we will get it speeded up
Speaker 8: as much as we can, so I would say in
Speaker 8: two or three years we will see results.
Speaker 2: We learned from the pandemic era it's very tricky to
Speaker 2: plan capacity on the foundry side, and lots of people
Speaker 2: got it wrong. You already have two fabs in Europe,
Speaker 2: you add this third in California. Will you continue buying
Speaker 2: up these smaller fab operations based on your capacity forecast?
Speaker 8: Well, right now with this set, we're working on so
Speaker 8: extending off app andresen and also extending our app and routling,
Speaker 8: and plus the partnership we have just joined with TSMC
Speaker 8: on the fab and germ they built, plus the fat
Speaker 8: we have now here with TSI in the States, which
Speaker 8: is great. That's a good portfolio, and let's say, a
Speaker 8: whole bunch of workload for us, which I think will
Speaker 8: first have to pull through. So don't expect too many
Speaker 8: further steps where we go ahead, but this work will
Speaker 8: be very busy for.
Speaker 2: Us in the next years.
Speaker 4: Silicon carbide Stephan, Now, what is the ultimate end total
Speaker 4: addressable market as you see it right now? Because there
Speaker 4: were some reports that maybe tests trying to downshift the.
Speaker 5: Amount that uses within it well lower priced vehicles.
Speaker 4: Is that a concern in any way or do you
Speaker 4: think just the ultimate market is still there and huge.
Speaker 11: Now?
Speaker 8: Silicon carbon has great benefits for the vehicles, right You
Speaker 8: can better charge the vehicle, reduce the losses in charging
Speaker 8: by fifty percent. You can extend the length of run
Speaker 8: of the vehicle by six percent so you can run
Speaker 8: the vehicle longer, reduce the battery size. So especially also
Speaker 8: for let's say more price sensitive vehicles, this is also
Speaker 8: a great technology. The question right now obviously is it's
Speaker 8: not deployed massively in all vehicles because just the capacity
Speaker 8: on the world is not there, and it's ramped up
Speaker 8: a massive speed by multiple players. So I think it
Speaker 8: will have a massive impact on the electrification, but the electrification.
Speaker 2: Itself also is ramping up.
Speaker 8: So I would still see it as a as a
Speaker 8: great ingredient for all electrified actilications, not only cars, by
Speaker 8: the way.
Speaker 4: And interestingly of course not just cars, but all the
Speaker 4: other products in which this is going to be useful.
Speaker 4: What about the ultimate consumer demand as you see it?
Speaker 4: We just had of course food pro on and Ted
Speaker 4: really talking us through how he still sees really demand
Speaker 4: not paying a problem.
Speaker 5: It's more supply side at the moment.
Speaker 4: Do you feel even with the us GDP dating we
Speaker 4: get today, you still confident in and demand for the
Speaker 4: sorts of products right now now.
Speaker 8: For a product like secret Car, but it and also
Speaker 8: for electrification of vehicles in total, we have to get
Speaker 8: a bit longer. You the current situation where we have
Speaker 8: also risk in the demand side, are absolutely clear that
Speaker 8: it's globally and we still see inflation, which is it
Speaker 8: has been reported in Germany at six point one percent
Speaker 8: for example, as a contrast to also the US. So
Speaker 8: the fight against inflation will go on and that will
Speaker 8: also soften demand in many products. But for the long run,
Speaker 8: and we talk here three to five years, demand especially
Speaker 8: for electrified vehicles, will grow massively and there's more a
Speaker 8: problem to have the supply ready for that demand in
Speaker 8: the future.
Speaker 2: You know, doctor Hart and Bosch is a truly global company.
Speaker 2: Thank you for mentioning the European economic data as well
Speaker 2: as the US. But China really interests both Caroline and I.
Speaker 2: It's a daily discussion. You grew revenues there three percent
Speaker 2: in twenty twenty two. What does twenty twenty three look
Speaker 2: like based on your experience of doing business in the
Speaker 2: Chinese economy.
Speaker 8: Well, the Chinese economy is much softer in the recovery
Speaker 8: as we expected it. We all see that. Plus we
Speaker 8: also see that the Chinese currency is much softer than
Speaker 8: we all anticipated it. That's the fact that obviously against
Speaker 8: the global growth and as obviously also thinks that even
Speaker 8: if China will report something out the GDP growth of
Speaker 8: about five percent, that's still areas for the global economy
Speaker 8: growth in China contributing a third of the growth. That
Speaker 8: was kind of the story on the beginning of the
Speaker 8: year that may not be happening this year, but still
Speaker 8: Bosh sticks to its targets. We want to grow at
Speaker 8: six to nine percent this year, and we go for
Speaker 8: it on the global platforms, obviously before currency effects, because
Speaker 8: we don't know yet what the current effects we play out,
Speaker 8: and with the soft Chinese one, there is obviously work
Speaker 8: on the currency side.
Speaker 4: Can you just go into the geopolitical side as well, so,
Speaker 4: farm because that must be a fascinating thing for you
Speaker 4: to have to navigate not just the effects risk, but ultimately
Speaker 4: supply chain risk. How are you navigating the headwinds when
Speaker 4: we see Gina Ramondo over in China at the moment,
Speaker 4: But still the Huawei issue that we just reported on, well.
Speaker 8: The supply chain risk we had, especially on semiconductor obviously
Speaker 8: much less and also some other supply chain risks are
Speaker 8: much fewer of those currently because of the soft demand
Speaker 8: in China and though if you are export we have
Speaker 8: in China, that means a lot of materials are much
Speaker 8: easier available for the global supply, which is leading to
Speaker 8: the better fulfillment of current demand. But still we shouldn't
Speaker 8: feel too safe about all of this, right, because if
Speaker 8: demand picks up, if China comes back with a bit
Speaker 8: speedier pace, right, and also the demand in the US
Speaker 8: goes back up in a higher pace, plus the European
Speaker 8: demand which is very low at the current size, then
Speaker 8: we could also see against supply chain issues. So we're
Speaker 8: always on the watch and we are working with our
Speaker 8: factories and our sourcings and our partner heavily on getting
Speaker 8: these supply questions into shape for the next wave of demand.
Speaker 4: Absolutely fascinating birds eye perspective, not only in the consumer
Speaker 4: but of course more broadly on geopolitics and global economies.
Speaker 5: Bosh CEO Stephan Harten.
Speaker 12: Music event Yes Again Investment event Welcome to invest Best,
Speaker 12: where twenty thousand people gathered in Atlanta, Georgia to boost
Speaker 12: their financial literacy and have a good time, all thanks
Speaker 12: to the platform and your leisure. You want here to
Speaker 12: learn about entrepreneurship, about investing, how to build wealth, how
Speaker 12: to build a network. They came to hear from the
Speaker 12: wealthiest black Americans, from cultural icons like Diddy, and from
Speaker 12: money managers like Mike Novogratz and Kathy Wood. So what
Speaker 12: are some of the biggest money mistakes that a lot
Speaker 12: of these millionaires and billionaires are they've been making.
Speaker 11: My biggest money mistake was waiting until I was fifty
Speaker 11: seven years.
Speaker 5: Old to start my business.
Speaker 11: It was a seat investor in Peloton, and I put
Speaker 11: three hundred thousand dollars in and at what point it
Speaker 11: was worth seven million at a billion dollar evaluation And
Speaker 11: to all my friends were on the board and they're like, dude,
Speaker 11: it's now scaling, don't sell. But I had never had
Speaker 11: a venture win, and so I was just so ready
Speaker 11: to bring the bell and I took profits. Still a
Speaker 11: great investment, and that seven million would have been worth
Speaker 11: threw one hundred million at the high the more.
Speaker 4: And he might be blocking out some of his mistakes,
Speaker 4: but where he puts his money out real estate.
Speaker 5: He likes his land.
Speaker 4: But also remember he's got an e commerce platform particularly
Speaker 4: focused on black creators, on black companies, So he's focusing
Speaker 4: on the tech angle there of really his future and wealth.
Speaker 4: But also speaking about some of the best advice that
Speaker 4: they're giving at the moment, might novelgrats.
Speaker 5: Are saying have a stop loss.
Speaker 4: Like basically, no matter how convinced you are of particular technology,
Speaker 4: there I say, crypto, make sure that you have some
Speaker 4: sort of way of ensuring you don't well lose.
Speaker 5: Too much money in that.
Speaker 2: You know, it was so interesting to hear that that
Speaker 2: Peloton story form novograts that you should we should get
Speaker 2: that out there more. But what was interesting to me
Speaker 2: Kara a new city for you? What was it like
Speaker 2: being there in that particular city. One we don't talk
Speaker 2: about as much.
Speaker 5: And actually we should talk about it more.
Speaker 4: The amount of content creation because remember Amazon studios are
Speaker 4: over in Atlanta. There are some enormous companies that are
Speaker 4: investing in technology I think is based there. Becaucacola is
Speaker 4: over there, but really this is an Atlanta.
Speaker 5: I have to say.
Speaker 4: Everyone was so well dressed, like it was the funnest
Speaker 4: conference of EMBMENTU. But as a city, beautiful, hot, but
Speaker 4: everyone is so on point when it comes to how
Speaker 4: they're approaching life and delivering themselves.
Speaker 2: Yes, all right, check carry's piece out on Reels, on
Speaker 2: TikTok and of course on X as well. Okay, rethinking
Speaker 2: things in what venture capitalists do, but it's not always
Speaker 2: easy to do that within existing cities. So today we
Speaker 2: take a look at the trend of vcs wanting to
Speaker 2: build the ultimate tech dream, better cities Bloomberg Cerah McBride
Speaker 2: here with the Tech Daily news letter. This was really
Speaker 2: interesting one because San Francisco often thinks of itself in
Speaker 2: that way. Right we are tech, We have built this
Speaker 2: cit the other way, and we have a load of problems.
Speaker 2: Just give us the overview of your Tech Daily.
Speaker 13: Every couple of years, somebody in tech decides they can
Speaker 13: build a better city. They give it a go, and
Speaker 13: then it just kind of fizzles out. And then somebody
Speaker 13: else comes along, seemingly unaware of all the previous efforts.
Speaker 5: And tries it again.
Speaker 13: And this seems to be what's happening right now with
Speaker 13: these efforts in Solano County, just northeast of San Francisco,
Speaker 13: to build a better city, Sarah. Many names that we
Speaker 13: know that are behind big, big VC, names like Mike Moritz,
Speaker 13: who is one of the vcs from Sequoia Capital Mark
Speaker 13: and Jason Lorraine Powell Jobs who has Emerson Collective. So
Speaker 13: smart people who've accomplished a lot and have a ton
Speaker 13: of money. So if anybody can do it, they can,
Speaker 13: But many, many people just like them have thought the
Speaker 13: same thing previously and unfortunately failed.
Speaker 4: Wilson Keynes even gets a shout out in your story.
Speaker 4: Absolutely love that bit, Sarah McBride. We thank you well.
Speaker 4: That is for this dedition of bloom back technology.
Speaker 2: And yeah, please recap on the podcast. We're on iHeart,
Speaker 2: we're on Spotify, and we're on our Bloomberg platforms. From
Speaker 2: over here in San Francis, going out on the East Coast,
Speaker 2: New York. This is Bloomberg Technology.