WEBVTT - The PC Slump and Apple's iPhone Event 0:00:01.520 --> 0:00:04.680 From Marhart where Innovation, Money and Power. 0:00:04.400 --> 0:00:06.800 Collie in Silicon Valley, NBN. 0:00:07.120 --> 0:00:11.160 This is Bloomberg Technology with Caroline Hyde and Ed Ludlove. 0:00:24.680 --> 0:00:27.600 I'm Caroline Heidel Bloomberg's world headquarters in New York, and 0:00:27.680 --> 0:00:29.280 I Med Ludlow in San Francisco. 0:00:29.400 --> 0:00:31.600 This is Bloomberg Technology. 0:00:31.160 --> 0:00:32.520 Coming up the PC slump. 0:00:32.600 --> 0:00:35.040 It continues HP fours by the most and at one 0:00:35.040 --> 0:00:38.240 point three years, calling its profit outlook. We're going to 0:00:38.240 --> 0:00:42.239 bring you the state of consumer Electronics, and. 0:00:42.240 --> 0:00:44.239 As Apple sets a date for the launch of the 0:00:44.240 --> 0:00:49.600 iPhone fifteen, Huawei unveils a sophisticated but mysterious new smartphone 0:00:49.640 --> 0:00:52.839 that's captivated China's tech industry. Full coverage on both those 0:00:52.880 --> 0:00:54.000 stories ahead, and. 0:00:53.920 --> 0:00:55.480 We're going to be hearing, of course from the CEO 0:00:55.560 --> 0:00:58.840 Grayscale sitting down also with the leaders of Ford, Prow 0:00:59.040 --> 0:01:03.080 and Bosh talking a state of evs, of semiconductors and 0:01:03.160 --> 0:01:05.760 so much more. The first limbag's Brodie Ford, who of 0:01:05.840 --> 0:01:08.680 course been all eyes on HP and interesting on the 0:01:08.760 --> 0:01:10.920 day that we also get HP that seems a little 0:01:10.920 --> 0:01:14.280 bit more optimistic about business spending. But is this all 0:01:14.319 --> 0:01:16.080 about more the corporate than the consumer? 0:01:16.120 --> 0:01:17.360 When it comes to HP. 0:01:18.280 --> 0:01:21.000 So it's been this PC apocalypse for a year now. 0:01:21.160 --> 0:01:23.240 You know, it's been a long time of companies saying 0:01:23.920 --> 0:01:26.479 it's bottoming out, people are gonna start buying computers again, 0:01:26.520 --> 0:01:28.200 and it just keeps getting pushed back. And you have 0:01:28.280 --> 0:01:31.480 this question about is the consumers the enterprise? For a while, 0:01:31.520 --> 0:01:35.160 I think people have assumed, Okay, consumers aren't buying computers 0:01:35.200 --> 0:01:38.440 as much, that's okay, but businesses still will. But what 0:01:38.520 --> 0:01:41.440 was really concerning in last night's report was that enterprise 0:01:41.600 --> 0:01:44.319 was continuing to get a little weaker. And the reasons 0:01:44.360 --> 0:01:46.959 for that is the kind of macro fears that every 0:01:47.000 --> 0:01:49.200 business feels, right aid, do we really want to spend 0:01:49.280 --> 0:01:50.160 some money right now? 0:01:50.440 --> 0:01:51.920 But also because of layoffs. 0:01:52.000 --> 0:01:54.640 Right you hire somebody new, you buy them a laptop 0:01:54.800 --> 0:01:59.120 very often, so you're less hiring people, you're less buying laptops. 0:02:00.040 --> 0:02:02.200 And I think, Bradie, this thing about this story is 0:02:02.240 --> 0:02:06.920 that HB basically said, like the PC demand picture is improving, 0:02:07.520 --> 0:02:10.320 it's just not improving as much or as quickly as 0:02:10.360 --> 0:02:12.440 we thought it was going to correct or that they 0:02:12.480 --> 0:02:15.919 said there was going to. Then there's the print business, 0:02:16.000 --> 0:02:18.880 which we never really talk about that actually was a 0:02:18.880 --> 0:02:21.440 big disappointment, right, that's correct. 0:02:21.520 --> 0:02:25.279 Yeah, the print business was hurt because I think, especially 0:02:25.440 --> 0:02:28.080 because of the weaker yen, some of the Japanese makers 0:02:28.080 --> 0:02:30.760 of printers were able to price better. And that's a 0:02:30.760 --> 0:02:34.240 big part of this story across computer and printer is 0:02:34.280 --> 0:02:37.799 that every single manufacturer is having this problem right now. 0:02:37.919 --> 0:02:40.080 Most of them are sitting on a bunch of inventory 0:02:40.160 --> 0:02:42.800 that it's you know, getting older every single day, and 0:02:42.880 --> 0:02:45.000 so prices are really coming down. So I mean, if 0:02:45.040 --> 0:02:47.399 you are looking to get a new laptop right now 0:02:47.400 --> 0:02:50.280 going into the holiday season, the general thought is they 0:02:50.320 --> 0:02:52.680 are going to be dumping a lot of material, a 0:02:52.680 --> 0:02:56.560 lot of inventory for lower prices, and good for consumer, 0:02:56.840 --> 0:02:58.840 not so good for a corporate earnings report. 0:02:59.120 --> 0:03:02.200 Look at that print to pictures that we have not 0:03:02.280 --> 0:03:05.000 using that nearly enough. Berdie, I like that you mentioned 0:03:05.040 --> 0:03:06.480 the yen, and I like therefore that it sort of 0:03:06.480 --> 0:03:10.160 takes us global. Yeah, because there is some weakness in China. 0:03:10.320 --> 0:03:13.880 How global a picture is HP trying to paint us 0:03:13.919 --> 0:03:16.000 here because we get very focused on the US, particularly 0:03:16.040 --> 0:03:17.519 with the GDP data today. 0:03:17.880 --> 0:03:19.480 Yeah, they said that's a big part of it is 0:03:19.760 --> 0:03:23.639 weakness in China. It's economic weakness, but I didn't get 0:03:23.680 --> 0:03:27.079 the sense that that was a really major factor. I 0:03:27.120 --> 0:03:29.919 think that was part of the main constellation of factors. 0:03:30.280 --> 0:03:33.160 I think the piece that was most concerning is that 0:03:33.240 --> 0:03:36.119 businesses aren't buying new computers in the way that they expected. 0:03:36.160 --> 0:03:38.600 I think earlier in the year it was that, hey, 0:03:38.680 --> 0:03:40.200 as we get to the back half of the year, 0:03:40.320 --> 0:03:43.280 the economic picture will improve. We got back to school sales, 0:03:43.280 --> 0:03:46.280 we got Christmas, life will be good. And it just 0:03:46.320 --> 0:03:49.160 hasn't quite panned out that way. And so, yeah, weakness 0:03:49.160 --> 0:03:51.800 in China is part of it. You know, cheaper printers 0:03:51.800 --> 0:03:53.440 in Japan because of the end is part of it. 0:03:53.520 --> 0:03:57.480 But that US consumer story, that US business story is 0:03:57.520 --> 0:03:59.640 pretty close to the heart of what is driving down 0:03:59.680 --> 0:04:00.000 that stuff. 0:04:01.680 --> 0:04:04.920 Bloombergs Brody Ford on the PC apocalypse. Thank you for 0:04:05.840 --> 0:04:08.360 thank you. Bring it back. All right, Let's move from 0:04:08.400 --> 0:04:11.160 PCs and turn to a slow down in the hedge 0:04:11.160 --> 0:04:14.480 fund industry, specifically funds run by Tiger Cubs, the name 0:04:14.520 --> 0:04:18.160 given to the proteges of Julian Robertson. Writing about this today, 0:04:18.200 --> 0:04:21.240 Bloomberg's Hemma Palmer joins us from New York. You have 0:04:21.279 --> 0:04:24.240 the PC apocalypse, and then we go to the cut 0:04:24.360 --> 0:04:27.000 of cash flow to a trickle, which I loved in 0:04:27.040 --> 0:04:30.520 your headline that the numbers are quite dramatic. What's happening here? 0:04:30.720 --> 0:04:32.680 Yes, So these are some of the hedge fund industries 0:04:32.720 --> 0:04:36.720 biggest names, most influential stock pickers. For years, investors were 0:04:36.760 --> 0:04:39.440 clamoring to get into these hedge funds. We're talking about 0:04:39.440 --> 0:04:43.120 the Tiger cubs. And what we're seeing now is, after 0:04:43.480 --> 0:04:45.839 last year's a very difficult year in terms of performance 0:04:45.839 --> 0:04:49.840 for so many of them, investors from the US appear 0:04:49.920 --> 0:04:53.400 to be less likely and sort of sorrowing on investing 0:04:53.400 --> 0:04:56.320 in these hedge funds. You're looking at a drop in 0:04:56.560 --> 0:05:00.559 the number of dollars that have come into these funds 0:05:00.560 --> 0:05:03.360 from US investors, a drop of like ninety nine percent, 0:05:03.480 --> 0:05:07.400 ninety eight percent, eighty one percent. Pretty dramatic numbers, dramatic. 0:05:07.560 --> 0:05:09.839 Just give us the context here any pushback that they 0:05:09.920 --> 0:05:13.120 might have as saying, look, they were closed funds. We 0:05:13.120 --> 0:05:15.200 were limiting the amount of cash that we're taking in. 0:05:15.240 --> 0:05:16.520 But is that a reality. 0:05:17.120 --> 0:05:18.400 So some of the funds were open. 0:05:18.440 --> 0:05:20.960 If we look at D one, CO two Loan Pine, 0:05:21.279 --> 0:05:24.800 two of the funds were closed, Viking and Tiger Global. 0:05:25.000 --> 0:05:27.160 The thing is when it comes to a fund being closed, 0:05:27.800 --> 0:05:30.240 we have seen a number of funds take in as 0:05:30.279 --> 0:05:32.040 much as a billion dollars when they've been. 0:05:31.960 --> 0:05:32.960 So called closed. 0:05:33.160 --> 0:05:37.479 They could be replacing redemptions, They could be making exceptions 0:05:37.480 --> 0:05:41.400 for influential investors or for big tickets. So a fund 0:05:41.440 --> 0:05:43.640 may be closed, and even if they are and they 0:05:43.640 --> 0:05:47.160 do see a sharp reduction in inflows, as one of 0:05:47.200 --> 0:05:49.800 the people we quote in our story said, it may 0:05:49.839 --> 0:05:51.800 be a sign that the wait list of investors has 0:05:51.880 --> 0:05:55.000 dried up. That said, you know, Tiger Global did turn 0:05:55.120 --> 0:05:58.080 down a couple investors who wanted to invest in their fund. 0:05:58.640 --> 0:06:01.560 So we are you know, it is a comprehensive, sort 0:06:01.560 --> 0:06:04.520 of holistic look that we're taking here. But a fact 0:06:04.520 --> 0:06:07.159 that a fund is closed doesn't necessarily mean that money 0:06:07.320 --> 0:06:08.679 still doesn't come into that vehicle. 0:06:09.520 --> 0:06:11.880 Hemm? Are you and the team have been trawling through 0:06:11.920 --> 0:06:14.840 the Form D filings now, Karen and I went through 0:06:14.880 --> 0:06:17.720 all the thirteen f you're going through the Form D filings? 0:06:18.000 --> 0:06:19.680 What are they and what did they kind of tell 0:06:19.680 --> 0:06:22.880 you about the fund raising environment right now? 0:06:23.000 --> 0:06:25.520 Yes? So the form ds are the filings that these 0:06:25.520 --> 0:06:28.359 hedge funds have to have to do and it shows 0:06:28.920 --> 0:06:32.880 how much these funds manage on an annual basis. And 0:06:33.240 --> 0:06:36.200 what we're seeing right now broader in the hedge fund 0:06:36.520 --> 0:06:38.400 fundraising environment is it's quite. 0:06:38.279 --> 0:06:40.600 Difficult and it's been quite difficult for some time. 0:06:41.200 --> 0:06:44.280 So you're seeing, you know, thirteen billion dollars in redemptions 0:06:44.320 --> 0:06:47.520 from the hedge fund space in general, and so investors 0:06:47.520 --> 0:06:50.760 are pulling back from the universe. You know, it's been 0:06:50.800 --> 0:06:54.360 tricky with performance, it's been tricky with rising interest rates. 0:06:54.960 --> 0:06:56.880 For new funds that are launching, it can be also 0:06:56.960 --> 0:06:59.520 quite difficult to raise fund So this is existing in 0:06:59.560 --> 0:07:05.000 all very difficult time to be raising new capital, given 0:07:05.080 --> 0:07:08.640 that the steep decline that we're seeing and inflows does 0:07:08.680 --> 0:07:12.000 seem to be even worse than just the environment itself. 0:07:12.120 --> 0:07:14.040 And the reason this is so important to our view 0:07:14.040 --> 0:07:16.160 as Hammer is because we'll just look at Tiger Global 0:07:16.240 --> 0:07:19.320 Zone website focused on public and private companies in the 0:07:19.320 --> 0:07:22.960 global Internet, in the software, in the financial technology industries. 0:07:23.120 --> 0:07:25.880 This hits home particularly in this show. So we thank 0:07:25.920 --> 0:07:27.760 you so much for all of that. When it comes 0:07:27.760 --> 0:07:30.280 to these Tiger cubs have a Palmer, brilliant reporting me 0:07:30.360 --> 0:07:32.560 while coming up, look, we're going to get another sense 0:07:32.680 --> 0:07:36.880 check on this macroeconomy on how much companies want to spend, 0:07:36.920 --> 0:07:38.440 particularly when it comes to the world of evs. 0:07:38.520 --> 0:07:40.720 The CEO of four pro is going to be joining. 0:07:40.560 --> 0:07:43.720 Us as a mveil new products to drive some strength 0:07:43.760 --> 0:07:45.480 from the pun in this commercial unit. 0:07:45.560 --> 0:07:46.800 Tech Cana is going to be joining us. 0:07:46.760 --> 0:07:49.640 At Yeah, I've got some breaking news actually in the 0:07:49.680 --> 0:07:53.440 last hour, this has moved very quickly. Bloomberg reported first 0:07:53.800 --> 0:07:56.440 that the Cyber Administration of China was going to pick 0:07:56.520 --> 0:08:00.600 Bydo is one of the first China tech companies authorized 0:08:00.640 --> 0:08:03.880 to issue a generative AI tool to the public. That happened, 0:08:03.920 --> 0:08:06.280 We reported that, and the shares the USA dr has 0:08:06.640 --> 0:08:10.080 really jumped in the last few minutes. Baidu's posted a 0:08:10.120 --> 0:08:13.680 blog saying it's actually already going to start rolling out 0:08:13.400 --> 0:08:17.560 that generative AI tool to the public straight away. You know, 0:08:18.160 --> 0:08:20.440 a bit of a spike there, but interesting and fast 0:08:20.440 --> 0:08:23.680 moving developments out of China. This is Bloomberg. 0:08:33.160 --> 0:08:33.920 Let's talk evs. 0:08:33.960 --> 0:08:36.120 Let's talk full Probe because it's a commercial division of 0:08:36.160 --> 0:08:39.560 Forward revealing new charging hardware for its array of in 0:08:39.600 --> 0:08:42.520 turn solutions to help make it basically easier for you, 0:08:42.720 --> 0:08:46.040 the commercial customer to transition your fleet to electric? How 0:08:46.080 --> 0:08:47.880 is that going in this macro environment. I'm really pleased 0:08:47.880 --> 0:08:50.600 to welcome for pro ceo Ted Cannis and Ted, wonderful 0:08:50.600 --> 0:08:51.720 to have you in the studio and. 0:08:51.600 --> 0:08:53.839 Just answer that. First we've got to go micro under 0:08:53.840 --> 0:08:56.160 the detailing business. But the macro picture today, when GDP 0:08:56.240 --> 0:08:56.920 isn't as strong. 0:08:56.760 --> 0:08:59.240 As expected, when jobs perhaps are not growing, it quite 0:08:59.320 --> 0:09:04.319 anticipated amount that we had seen. Are people wanting to update, electrify, 0:09:04.520 --> 0:09:05.760 invest in their businesses. 0:09:06.640 --> 0:09:09.480 Absolutely. What we're seeing, Caroline is what we said a 0:09:09.480 --> 0:09:12.320 second quarter is there is still three years of pent 0:09:12.400 --> 0:09:16.720 up demand for the vehicles internal combustion and battery electric 0:09:17.280 --> 0:09:20.320 doing all that supply chain problems that we had, and 0:09:20.400 --> 0:09:23.439 so we see customers for super duties and trans it's 0:09:23.480 --> 0:09:27.440 both North America and Europe looking for vehicles. My biggest 0:09:27.520 --> 0:09:30.360 challenge with most of my customers pay customers is can 0:09:30.440 --> 0:09:31.080 I get more? 0:09:31.480 --> 0:09:32.079 Oh? Interesting? 0:09:32.120 --> 0:09:35.000 Okay, So you'll try to marry up the supply demand 0:09:35.000 --> 0:09:37.839 equation at the moment I'm interested in into Ultimately, Therefore, 0:09:37.840 --> 0:09:39.880 how you're sending us out apart? What is it that 0:09:40.080 --> 0:09:42.120 makes them go yes for pro over anything else? 0:09:42.679 --> 0:09:45.360 Well, so we have this amazing backbone of the business 0:09:45.440 --> 0:09:47.280 that we have all these commercial work trucks that we 0:09:47.320 --> 0:09:49.840 do for North American Europe. We're at number one in 0:09:49.840 --> 0:09:51.920 Europe for eight years in a row. We have forty 0:09:51.920 --> 0:09:54.280 percent of the commercial and government share for full sized 0:09:54.320 --> 0:09:55.040 trucks and vans. 0:09:55.360 --> 0:09:56.400 We're the big guy. 0:09:57.040 --> 0:09:59.640 And what we're doing now is expanding in not just 0:09:59.720 --> 0:10:02.000 vehicle in a connected. 0:10:01.520 --> 0:10:04.200 World, it's vehicles, software. 0:10:03.840 --> 0:10:08.400 Service, charging, financing, netting that all together so that we 0:10:08.559 --> 0:10:11.760 have this amazing business, a one stop shop for our customers. 0:10:11.840 --> 0:10:15.240 Just the easy button had said, it's good to catch up. 0:10:15.280 --> 0:10:19.040 You know, I actually find the commercial business fascinating because 0:10:19.080 --> 0:10:22.760 you're not just selling a vehicle that happens to be electric. 0:10:22.800 --> 0:10:25.880 You're kind of packaging it up. You mentioned your footprint 0:10:25.880 --> 0:10:28.240 in Europe. I just wondered if you had a better 0:10:28.360 --> 0:10:31.800 sense now of why that EV adoption is slower here 0:10:31.840 --> 0:10:35.959 in the US visa the Europe and indeed China well ed. 0:10:36.000 --> 0:10:38.319 When you and I were first talking electric vehicles years ago, 0:10:38.440 --> 0:10:40.199 and we're getting ready to hit the lightning and other 0:10:40.240 --> 0:10:42.520 products that we weren't even had launch at the time. 0:10:43.080 --> 0:10:45.240 You know, America was a bit further behind cost of 0:10:45.280 --> 0:10:47.600 fuel in Europe was very high and there was already 0:10:47.640 --> 0:10:50.360 a lot of pressure to look for other solutions. And 0:10:50.600 --> 0:10:52.960 what we're seeing now and actually in both regions, is 0:10:53.080 --> 0:10:56.800 it's just good business total cost of ownership, up time, 0:10:57.080 --> 0:11:00.440 productivity solutions. They can save money on few they can 0:11:00.440 --> 0:11:03.840 say money on repairs. It's a great solution for many 0:11:03.880 --> 0:11:06.920 customers in both regions. And that's what we're seeing, and 0:11:07.000 --> 0:11:09.360 that's why we upped a lot of our production demand 0:11:09.440 --> 0:11:12.080 for lightning here in North America. And it's getting the 0:11:12.160 --> 0:11:14.480 right tool for the job, whether that's a van or 0:11:14.480 --> 0:11:15.840 a pickup truck to do the work. 0:11:17.520 --> 0:11:21.800 Jim Farley, the Ford CEO, is talk it's about the consumer, 0:11:22.720 --> 0:11:25.360 you know, sort of rejecting higher prices for evs. Do 0:11:25.440 --> 0:11:28.120 you see that from your commercial and fleet customers as well? 0:11:28.280 --> 0:11:30.840 On the pricing issue. 0:11:30.240 --> 0:11:32.920 I'd say we will carefully managine the pricing as we 0:11:33.280 --> 0:11:35.760 increase the supply of vehicles now that we're going to 0:11:35.840 --> 0:11:37.679 the extra shifts that we put on and lightening and 0:11:37.679 --> 0:11:40.520 have the battery capacity. So a lot of it is 0:11:40.640 --> 0:11:44.440 just education. I think in the commercial space, the decision 0:11:44.480 --> 0:11:47.400 process is longer. In a company, this is a big investment, 0:11:47.520 --> 0:11:50.360 like in facilities, or equipment. They're used to making investments 0:11:50.640 --> 0:11:54.280 with making the equations, getting Excel spreadsheet out, and that 0:11:54.400 --> 0:11:56.800 learning process is taking longer, and then you would do 0:11:56.840 --> 0:12:01.720 stack on applying for incentives utility infrastrution that's required. This 0:12:01.760 --> 0:12:05.160 turns into a longer process than moves through the cycle, 0:12:05.200 --> 0:12:07.160 and that's what we're helping a lot of our customers 0:12:07.160 --> 0:12:09.400 and frankly our dealers as they work with so many 0:12:09.440 --> 0:12:10.120 new customers. 0:12:10.960 --> 0:12:14.160 You know, I've been out in some vineyards and wineries 0:12:14.240 --> 0:12:15.920 very near to where I am now ted, and they 0:12:16.000 --> 0:12:18.400 demonstrated to me not just that they run the F 0:12:18.440 --> 0:12:21.640 one fifty lightning between point A and point B, but 0:12:21.920 --> 0:12:25.040 they're using your data and software offering to kind of 0:12:25.120 --> 0:12:28.800 optimize that route everything from like getting down to the 0:12:28.880 --> 0:12:33.400 most efficient mile they can drive. Peter Stern's just joined Forward, 0:12:33.480 --> 0:12:36.199 longtime Apple exec. I just wondered if you could tell 0:12:36.280 --> 0:12:39.240 us why that move came and what kind of impact 0:12:39.240 --> 0:12:42.040 he will have on improving that software offering. 0:12:42.800 --> 0:12:46.600 I think this is corridor the whole Forward plus plan. 0:12:46.880 --> 0:12:49.960 I think we're all talking about electrification on all the time, 0:12:50.040 --> 0:12:53.560 but the real secret is the software defined vehicles and 0:12:53.600 --> 0:12:58.320 connected vehicles, digital on physical services. That is the big change. 0:12:58.600 --> 0:13:01.400 So when you have a vehicle that's signaling a repair 0:13:01.440 --> 0:13:03.560 that needs to be made, you can pre order the 0:13:03.640 --> 0:13:06.920 part schedule at the dealership. Link all that together. Like 0:13:06.960 --> 0:13:10.760 you're seeing so many cases where software can brive more convenient, 0:13:11.120 --> 0:13:14.600 more productive solutions for the customers. Peter is a specialist 0:13:14.600 --> 0:13:17.960 in that space. He's been doing subscription services at large 0:13:18.040 --> 0:13:20.679 volume at Apple with that kind of science that he's 0:13:20.720 --> 0:13:23.640 seen of where and how to change the experience for 0:13:23.679 --> 0:13:26.600 the customers in a very positive way. And he's going 0:13:26.640 --> 0:13:28.559 to come lend us that experience, both on the pro 0:13:28.679 --> 0:13:31.600 side but in our other software defined businesses, for example 0:13:31.679 --> 0:13:34.480 Blue Cruise, where you can have hands free driving on 0:13:34.520 --> 0:13:37.520 the highways in the blue crew zones, which also in 0:13:37.559 --> 0:13:40.160 the future will be appealing to commercial customers. Imagine a 0:13:40.160 --> 0:13:43.120 customer who can get his time back on the highway 0:13:43.160 --> 0:13:46.000 time is just a huge value. Oreor in traffic coming 0:13:46.440 --> 0:13:48.760 in the London on N twenty five, you're stuck in 0:13:48.800 --> 0:13:51.480 those miles and miles of ques. It's a great thing 0:13:51.640 --> 0:13:53.280 to not have to be hand in the hands on 0:13:53.280 --> 0:13:53.920 the wheel, you could. 0:13:53.760 --> 0:13:54.280 Do something else. 0:13:54.360 --> 0:13:56.000 You know, a couple of people you're talking to, you 0:13:56.000 --> 0:13:58.280 who understand the M twenty five trials and tribulations. 0:13:58.400 --> 0:13:59.880 I'm interested in those. 0:14:00.040 --> 0:14:02.160 You talked about the supply demand dynamic, the fact that 0:14:02.360 --> 0:14:05.280 sort of may your headache is getting enough vehicles into 0:14:05.320 --> 0:14:06.800 your client's hands. 0:14:07.120 --> 0:14:07.839 How much more of a. 0:14:07.760 --> 0:14:10.280 Headache is that when you're still trying to negotiate with workers, 0:14:10.400 --> 0:14:12.120 particularly with the United Auto Workers. 0:14:12.120 --> 0:14:14.160 I mean, how is that going to your bit of 0:14:14.160 --> 0:14:14.640 the business. 0:14:15.280 --> 0:14:17.000 Well, I think the main thing for us is, you know, 0:14:17.280 --> 0:14:19.680 the workers are our team. We're all one team. And 0:14:19.920 --> 0:14:21.600 you know, one of the things we're proud of is 0:14:21.640 --> 0:14:24.240 we build more vehicles in America than anybody else. We 0:14:24.280 --> 0:14:26.880 employ more hour league guys in than anybody else, we 0:14:26.960 --> 0:14:29.400 export more than anybody else. So it's a team that's 0:14:29.440 --> 0:14:31.640 doing these and we're happy to produce all these f 0:14:31.720 --> 0:14:34.520 series of vans and pickups in the US. So when 0:14:34.520 --> 0:14:37.880 we look at that, it's going to go through that process. Now, 0:14:38.560 --> 0:14:40.640 this is a normal negotiation. I'm not in the heads 0:14:40.680 --> 0:14:42.600 and throws, but I can say I was in Kansas 0:14:42.600 --> 0:14:45.000 City this week visiting our team there because we'd just 0:14:45.000 --> 0:14:47.840 gone to three shifts on trendsit earlier this year. Because 0:14:47.880 --> 0:14:49.320 the demand is so strong. 0:14:50.760 --> 0:14:53.440 For pro CEO Take Cannis. We always talk about evs 0:14:53.440 --> 0:14:56.160 in the context of the consumer, and we don't talk 0:14:56.200 --> 0:14:59.600 as much about these small and large businesses buying out fleets. 0:14:59.600 --> 0:15:01.320 Thank you so much for your time. 0:15:10.040 --> 0:15:11.160 Time now for work shifting. 0:15:11.200 --> 0:15:12.400 Look, it's where we're going to have a look at 0:15:12.400 --> 0:15:14.720 the changing landscape of the labor market amid all of 0:15:14.720 --> 0:15:17.600 these vases and technology. And first up, after many layoffs 0:15:17.640 --> 0:15:22.040 tech employers, they're now beefing up staff with specialisties in AI. 0:15:22.240 --> 0:15:22.880 Of course, the. 0:15:22.840 --> 0:15:25.840 Bay Area is now quickly becoming the epicenter one for you. 0:15:26.000 --> 0:15:28.640 And meanwhile open ai is on track for one billion 0:15:28.680 --> 0:15:31.840 dollars of annual revenue. The businesses adopting the technology behind 0:15:31.920 --> 0:15:35.520 chatchpt and turning back to that court ruling canceling the 0:15:35.560 --> 0:15:38.760 SEC's order to reject Grace say at Scale's spot Bitcoin 0:15:38.840 --> 0:15:39.680 ETF application. 0:15:39.960 --> 0:15:43.360 Gray Scale CEO Michael Sunshine joined Bloomberg TV earlier. Let's 0:15:43.400 --> 0:15:43.960 taking listen. 0:15:45.320 --> 0:15:48.960 We will have to see upon the final operational procedures 0:15:48.960 --> 0:15:51.920 that come through that final mandate that the court will issue. 0:15:52.080 --> 0:15:53.800 So you don't know, but you may. 0:15:54.000 --> 0:15:56.520 We don't know what the final opinion will say until 0:15:56.520 --> 0:15:57.680 we reach the end of that period. 0:15:57.800 --> 0:15:59.120 Correct, is there. 0:15:59.120 --> 0:16:01.000 I've been reading at us from me yesterday too, that 0:16:01.320 --> 0:16:03.160 you know, you may have won this battle, but then 0:16:03.240 --> 0:16:04.960 lose the war, and that there's a bunch of other 0:16:05.000 --> 0:16:06.680 competitors now, so now you're not gonna be the only 0:16:06.760 --> 0:16:07.320 horse in town. 0:16:07.640 --> 0:16:10.600 Yes, So this is a topic we've talked about before, ladies. 0:16:10.760 --> 0:16:14.120 It's really a world in which there are multiple Spot 0:16:14.160 --> 0:16:16.600 products is a world that Greyscale has long been ready for. 0:16:16.680 --> 0:16:19.320 There are multiple bitcoin futures products. We believe that there 0:16:19.320 --> 0:16:21.000 will be a world in which there are multiple Spot 0:16:21.000 --> 0:16:24.920 bitcoin products. That being said, we want investors to have choice, 0:16:25.160 --> 0:16:27.120 and some of the things that we do think investors 0:16:27.120 --> 0:16:29.720 will look to when they are making those allocation decisions 0:16:29.760 --> 0:16:32.200 are the size of the fund, the liquidity of the fund, 0:16:32.280 --> 0:16:34.480 the track record of the fund. Right, Let's not forget 0:16:34.480 --> 0:16:37.240 that GBTC is the largest bitcoin fund in the world. 0:16:37.440 --> 0:16:40.400 It's owned by millions and millions. 0:16:40.000 --> 0:16:43.360 Of investors, it has three plus percent of the outstanding 0:16:43.360 --> 0:16:46.440 bitcoin supply, and really now has almost a ten year 0:16:46.800 --> 0:16:50.120 track record of operational success. Right, Whereas a lot of 0:16:50.120 --> 0:16:52.720 the other products coming to market are really making use 0:16:52.760 --> 0:16:57.440 of gbtc's operations, disclosures, reporting and GBTC is really paving 0:16:57.480 --> 0:16:59.200 the way to broaden out that market. 0:16:59.280 --> 0:17:01.880 There's another as of market question here, and it's not 0:17:01.960 --> 0:17:05.560 just about the pace in time. It's about the structure. 0:17:05.119 --> 0:17:05.960 And the fees. 0:17:06.200 --> 0:17:09.280 Because if you look at Blackrock investcal Fidelity, these are 0:17:09.359 --> 0:17:12.639 asset managers with a history of coming in low And 0:17:12.720 --> 0:17:14.440 if you look at the fees that you have offered 0:17:14.520 --> 0:17:17.879 and really has made a very profitable entity for a 0:17:17.920 --> 0:17:22.400 digital currency group and gray Scale, how much lower exactly 0:17:22.840 --> 0:17:25.600 can fees get for the grayscale product in the form 0:17:25.640 --> 0:17:26.360 of an ETF. 0:17:26.720 --> 0:17:29.280 Well, what I've committed to historically, and we'll say again 0:17:29.320 --> 0:17:32.120 to you today, is we are committed to lowering fees 0:17:32.280 --> 0:17:35.720 when GBTC converts to an ETF. We'll obviously have to 0:17:35.720 --> 0:17:37.879 come back on and talk to you about what the 0:17:37.880 --> 0:17:39.840 fees are when that conversion actually happens. 0:17:40.800 --> 0:17:44.600 So the other strangeness here is the discount that the 0:17:44.680 --> 0:17:47.560 GBTC is currently trading at. You had gone from twenty 0:17:47.640 --> 0:17:50.720 four yesterday to fifteen below net asset value back to 0:17:50.760 --> 0:17:54.320 twenty Can you answer to this market volatility here and 0:17:54.359 --> 0:17:57.280 the uncertainty that investors are grappling with as you head 0:17:57.280 --> 0:17:58.200 towards this process. 0:17:58.560 --> 0:18:00.960 Well, there's a couple of things in that dynamic. So 0:18:01.119 --> 0:18:05.120 number one, there certainly was increased trading volume yesterday in GBTC, 0:18:05.480 --> 0:18:08.600 a lot of excitement and enthusiasm based on the victory 0:18:08.720 --> 0:18:12.800 that GBTC shareholders had in the court yesterday. Now, as 0:18:12.840 --> 0:18:16.960 we eventually approach an ETF, you'd expect that eventually there 0:18:17.000 --> 0:18:20.120 will be an arbitrage mechanism through the ETF that will 0:18:20.119 --> 0:18:24.000 allow for any premiums or discounts to be eliminated. That's 0:18:24.040 --> 0:18:27.760 a really, really important function of why ETFs serve in 0:18:27.840 --> 0:18:30.160 the capacity that they do, and it's really the core 0:18:30.200 --> 0:18:33.440 of what we've been fighting for throughout this entire lawsuit. 0:18:35.600 --> 0:18:38.320 Let's got some more bloombogtion, Ali bask here. That was 0:18:38.359 --> 0:18:40.680 the interview that we wanted to get. You got it. 0:18:41.000 --> 0:18:42.239 What else did you learn from it? 0:18:42.680 --> 0:18:44.040 Some things are really important here. 0:18:44.040 --> 0:18:47.120 If you look at the way GBTC, the Greyscale Bitcoin 0:18:47.160 --> 0:18:50.919 Trust is trading. When I sat here with you yesterday, ed, 0:18:51.040 --> 0:18:53.600 it was at a fifteen percent discount to net asset value. 0:18:53.920 --> 0:18:57.120 That has gotten a little wider today to twenty one 0:18:57.160 --> 0:18:59.200 percent as I sit here with you today. Why because 0:18:59.200 --> 0:19:01.919 they're still on certain empty around the path forward to 0:19:01.960 --> 0:19:06.520 an ETF for GBTC. More around that timeline, especially one 0:19:06.560 --> 0:19:08.719 of those key concerns here, and you heard it from 0:19:08.760 --> 0:19:11.480 Michael Sun and Shining himself. They don't know yet whether 0:19:11.520 --> 0:19:15.439 they have to refile to convert to an ETF in 0:19:15.480 --> 0:19:17.679