Speaker 1: I'm Caroline had a Bloomberg's World headquarters in New York
Speaker 1: and the d Ludlow in San Francisco. This is Bloomberg
Speaker 1: Technology coming up in the next hour. Uncertainties around China's
Speaker 1: COVID curbs, the human story and the technology story. What
Speaker 1: unrest means for Apple and iPhone production in the months ahead. Last,
Speaker 1: sticking with Apple, the tech giant is being called out
Speaker 1: by none other then Elon Musk, the tip Twitter chief,
Speaker 1: tweeting it's CEO Tim Cook asking if the company quote
Speaker 1: hates free speech, and another one bites the dust. Crypto
Speaker 1: lender block Fire has filed for bankruptcy in the aftermath
Speaker 1: of f t X, and the US government is among
Speaker 1: one of the key creditors. Will explain, but first head
Speaker 1: let's check in on those markets, because today was a
Speaker 1: day once again of Federal Reserve of Matt grow picture
Speaker 1: impacting the text dogs. We're seeing the SMP from hundreds
Speaker 1: off by one and a half percent, biggest sell off
Speaker 1: since November the ninth. Similar moves in terms of the
Speaker 1: NAZAC off by one point six percent. Big tech rolls
Speaker 1: over as once again fed speaks seems to irk the market.
Speaker 1: Federal reserve. The leaders over at New York FED, for example,
Speaker 1: John Williams, or you're looking over at Jim Bullard over
Speaker 1: at St. Louis FED, both talking about the need for
Speaker 1: further rate hikes. Rates go higher, the dollar goes higher,
Speaker 1: Crypto goes lower. Bitcoin, of course resets at this particular hour,
Speaker 1: but it has been trading lower versus the US dollar,
Speaker 1: and we're seeing that at sixteen thousand, two hundred and
Speaker 1: six down about two on the day of Monday today.
Speaker 1: It just resets and we're calling it flat. Let's move
Speaker 1: on to see what also was irking investors was also
Speaker 1: this dampening on sentiment about what is happening in China,
Speaker 1: the protests. What's interesting here, though, is that the Naza
Speaker 1: Golden Dragon China actually rallid. Why why when you see
Speaker 1: unprecedented levels of protest versus Yjing Ping versus of course
Speaker 1: the concerns of a COVID lockdown. Well maybe just maybe
Speaker 1: the Chinese stocks being traded here in the US were
Speaker 1: upside ed because something that actually that will mean a
Speaker 1: movement towards the reopening of the economy. We're up two
Speaker 1: point eight. Yeah. E commerce are really big driver in
Speaker 1: the markets. On individual names. I'm looking at Amazon, one
Speaker 1: of the through few stocks in the green on the
Speaker 1: NaSTA one on Monday, probably the biggest points gainer as well.
Speaker 1: There's optimism around the sales outlook from Black Friday going
Speaker 1: into Cyber Monday, which is ongoing. Of course, that stock
Speaker 1: higher by around six tenths of one percent. Pindo do
Speaker 1: really interesting, really strong earnings from a Chinese e commerce
Speaker 1: giant on the lower end, the discount end having its
Speaker 1: best days since August, the stock trading at its highest
Speaker 1: level in a year. Again that story as well. Caroline
Speaker 1: probably a factor that what we're seeing play out in
Speaker 1: China might result in a policy change which would be
Speaker 1: supportive for business and tech. Disney down three percent according
Speaker 1: to people listening into Bob Igner's first town hall, they're
Speaker 1: going to keep with it when it comes to the
Speaker 1: hiring freeze, and they're warning about a move from linear TV,
Speaker 1: saying activisions are stop. We' getting into later very quickly. Apple,
Speaker 1: We've got to talk about this stock, Caroline, because it's
Speaker 1: under pressure with what we're seeing play out in China
Speaker 1: and the impact to production as well. Yeah, I look
Speaker 1: at that over the last couple of days, Apple down
Speaker 1: four and a half percent. You've been driving that story home,
Speaker 1: ed and let's dive into a little bit more, because well,
Speaker 1: it's been gripping the entire world, China's growing process against
Speaker 1: COVID curbs and a record number of infections complicating the
Speaker 1: nations path to reopening. Here's what some Bloomberg TV guests
Speaker 1: had to say about the sense of uncertainty just sweeping
Speaker 1: through Chinese markets. As long as we're seeing the the
Speaker 1: ongoing COVID zero policy, we're not going to see um,
Speaker 1: you know, much of a stabilization in domestic demand unless
Speaker 1: the government really moves away from its targeted approach. At
Speaker 1: this point, it looks like that a rabbit or um
Speaker 1: a reckless opening of the economy will be worse for
Speaker 1: China's growth because the biggest problem now, of course, is
Speaker 1: in the labor market. For the time being, it seems
Speaker 1: that our performance that we have seen in the Greater
Speaker 1: China region UM could be kept in the very near term.
Speaker 1: The next few months are clearly going to be challenging,
Speaker 1: but we still feel comfortable that in the second half,
Speaker 1: China is going to be a much better story from
Speaker 1: an investment perspective. Interestingly, the all that's doing well primarily
Speaker 1: because people can't travel. So we've seen seeing you know,
Speaker 1: a good spending and a good foot traffic in them
Speaker 1: are a macro perspective there. Let's dig into the technology
Speaker 1: impact as well. Blue Makes Debbie over in Washington, and
Speaker 1: of course there be you cover in particular Fox. Can
Speaker 1: you cover in particular Taiwanese companies as well as Chinese
Speaker 1: and just talk to us about whether or not this
Speaker 1: is an unprecedented in nature and what it really means
Speaker 1: for business for the economy in China right now. So
Speaker 1: what we have seen is u this is becoming a
Speaker 1: challenging situation for supply chin in China over world. White
Speaker 1: House set today that they don't see a major impact
Speaker 1: um supply Chinda. For more recent UH part protest aura
Speaker 1: undress in China over the weekend and in this instance,
Speaker 1: Foxang over the weekend actually is offering its sixteen staff
Speaker 1: a monthly bonus of as much as eighteen hundred UH
Speaker 1: yen to UH continue working for the company in Central
Speaker 1: China throughout December and January. And that means South Foksang
Speaker 1: is working very hard to return workers to make sure
Speaker 1: that the Apple will have far enough iPhones to offer
Speaker 1: its customers to the holiday quarter, and our coholique in
Speaker 1: Asia have reported UH earlier this week that Apple is
Speaker 1: UH and Baksang are actually a facing illustration that they
Speaker 1: could face a short full of as many as six
Speaker 1: millionaire units of iPhone pros, the most sought after models
Speaker 1: of new iPhones this year due to a reason memorial
Speaker 1: in it at the plant in central China. Debbie, do
Speaker 1: we have any sense of when things are going to
Speaker 1: normalize the Apple in terms of the production line you
Speaker 1: mentioned the six million unit short for I think the
Speaker 1: source also told Bloomberg that there was confidence they can
Speaker 1: make up ground in three uh. Yes, But at the
Speaker 1: same time, the situation remains fluids because we are not
Speaker 1: sure whether there's going to be a full of lockdowns
Speaker 1: in the region that could have an impact on this situation.
Speaker 1: So another person familiar with the situation has told Boomberg
Speaker 1: that the existing workers affected by ongoing luckdowns are being
Speaker 1: able to return to work at the Faxangsa plant in
Speaker 1: central China is a major factor affecting a production as well.
Speaker 1: So I guess we just have to wait and see
Speaker 1: what happens over the next couple of weeks. Okay, Bloomberg, steady, Well,
Speaker 1: thank you very much. Let's continue the conversation now with
Speaker 1: Scott Muscovitz, Asia Pacific GEO political risk analyst for the
Speaker 1: Decision Intelligence Company. Morning Console, And I guess the question
Speaker 1: we go to now is is this a flashpoint, Scott,
Speaker 1: or is this going to be an extended period of
Speaker 1: political social disruption in China in response to what is
Speaker 1: essentially policy right from the Chinese government. Yeah, thanks for
Speaker 1: having me, Um. I think that's an excellent question. Uh, certainly,
Speaker 1: these protests are unprecedented there, unlike anything we've seen, the
Speaker 1: quickness with which they spiraled, in the fact that they
Speaker 1: are taking place across multiple cities, across multiple geographies, and
Speaker 1: that somehow people in one city seem to be aware
Speaker 1: of people in other cities were protesting, and we're you know,
Speaker 1: drawing inspiration from each other. That is something that rarely
Speaker 1: see in China, where the state is normally so good
Speaker 1: at atomizing these things and sort of swooping them under
Speaker 1: the rug. This is going to be much harder to
Speaker 1: put it back in the bottle, so to speak, Scott. Already,
Speaker 1: of course, many an international company has been worried about
Speaker 1: doing business in China, largely because of the COVID lockdowns,
Speaker 1: and also add that healthy dose of geo political tensions
Speaker 1: between for example, the U S and China antagonized in
Speaker 1: some way, perhaps over the course of the weekend the
Speaker 1: news that zt and and the likes of Huawei won't
Speaker 1: be able to sell their products into the US. How
Speaker 1: does this affect, for example, U S China relations going forward. Well,
Speaker 1: I don't know how much bearing this has specifically on
Speaker 1: US channel relations, but US officials have to tread really
Speaker 1: carefully here because they want to show their support and
Speaker 1: they want to express their support for any sort of
Speaker 1: you know, free and open protest, especially one that might
Speaker 1: signal a greater desire even for democracy some people have
Speaker 1: been talking about, which is very rare. But the second
Speaker 1: U S officials step in and start, you know, saying
Speaker 1: how much they support it, China can latch onto those
Speaker 1: sorts of narratives and start to spin it as this
Speaker 1: is something that you know was cooked up by the
Speaker 1: U S. Start going to this sort of conspiracy theory propaganda,
Speaker 1: and so that's something they have to tread very lately. Um,
Speaker 1: not just because they don't want to, you know, make
Speaker 1: the progesters look bad, but also because that could also
Speaker 1: you know, really harm us channelations which are just starting
Speaker 1: to recover after the recent t did in meeting Scott
Speaker 1: earlier today, I spoke to the CFO of in Finian,
Speaker 1: a chip maker that has a significant operational and sales
Speaker 1: footprint in China. This is what he had to say
Speaker 1: about the situation. We have really improved our resilience a
Speaker 1: lot over the over the past quarters, months and years,
Speaker 1: and therefore we are looking at with with concern. But
Speaker 1: up to now there is no direct implication visible on
Speaker 1: our operations in China or the region, and we have
Speaker 1: backup plans in case it becomes necessary to make adjustments.
Speaker 1: When I listened to Spend, he makes it seem like
Speaker 1: this is just the latest in a string of ongoing disruption.
Speaker 1: What is your assessment about the reality of life on
Speaker 1: the ground and operating in China right now? Well, I
Speaker 1: don't get this. It's that everything has ground to the
Speaker 1: halt to a halt, But I do get the sense
Speaker 1: that we're in sort of a weight and see moment.
Speaker 1: It doesn't seem like they've been able to dispurse these crowds.
Speaker 1: They sort of missed the window on you know, censoring
Speaker 1: and isolating it right away. And even as they start
Speaker 1: to do that, people know that these protests are going on,
Speaker 1: and they you know, are aware people are showing up
Speaker 1: with their blank pieces of paper. That's been the real
Speaker 1: prop of the protest um. Whether it's sort of grinding
Speaker 1: to a halt. We saw you talked about earlier those
Speaker 1: you know, protests in Jung Joe, but those were those
Speaker 1: were more isolated. I get the sense that these are
Speaker 1: more you know, urban middle class protests. We haven't seen
Speaker 1: so much labor protests outside of that. So it's a question, um.
Speaker 1: But there's a lot of uncertainty, and we know that
Speaker 1: sometimes COVID lockdowns have been used almost politically, and so
Speaker 1: you know, anything is sort of on the table, really
Speaker 1: waiting to see how this will unfold. Now. I know,
Speaker 1: in some ways what has occurred at Fox con iPhone cities,
Speaker 1: it's known it's somewhat different to what's happening now on
Speaker 1: the streets of Beijing or Shanghai. But they all really
Speaker 1: it did. And a lot of this is frustration about
Speaker 1: the way in which people survive amid these COVID lockdown Scott.
Speaker 1: Many have been looking at Apple in this situation. Of course,
Speaker 1: key supply of being that a fox gone, their exposure
Speaker 1: being significant, that they just didn't build enough alternatives, They
Speaker 1: didn't focus enough. They were too heavily dependent as a
Speaker 1: supply chain on China and didn't do much to to
Speaker 1: really disperse that. Do you think companies are now significantly
Speaker 1: moving away from a Chinese supply chain or they look
Speaker 1: to just think that this is an episode. Oh, I
Speaker 1: think you're absolutely right, and I think it predates this.
Speaker 1: I think it was over the summer. Uh, you know,
Speaker 1: after how speaker Pelosity visited Taiwan and there was that
Speaker 1: deeply jinguistic military reaction. People got really stooped and they
Speaker 1: started for the first time to envision a future where
Speaker 1: China might become for a lot of multinational companies geo
Speaker 1: politically off limits. And they all started to scramble and started,
Speaker 1: I think, wow, we need to look at serious contingency planning.
Speaker 1: And things only seem to get worse from there. That's
Speaker 1: what we saw on our data. Um, you know, relations
Speaker 1: seem to get worse and worse. Bilateral negativity only got worse,
Speaker 1: and then it just really did seem to be affecting
Speaker 1: both China and the US. People were concerned. She and
Speaker 1: Biden met. It seemed to calm temperatures, not change anything.
Speaker 1: But really I could a four under relations and this happens,
Speaker 1: you know, right, Scott. We asked our audience what's top
Speaker 1: of mind for them and concerned about what's happening on
Speaker 1: the ground, specifically with Apple. Their answer very clear, working conditions.
Speaker 1: My question to you those working conditions, what we've seen
Speaker 1: on the streets. Do we see a policy pivot from
Speaker 1: the Chinese government. Yeah. I think one thing is that
Speaker 1: the government is sometimes more responsive than people realizing China
Speaker 1: because they don't have the release valve of elections like
Speaker 1: we have, So they're going to have to move in
Speaker 1: order to well dissent. But they have to be very
Speaker 1: careful because you know, if they open up too quickly,
Speaker 1: then it could really emboldened and enable these protests. So
Speaker 1: I think they're going to tread lately. But I don't
Speaker 1: see anything really terrible happening just yet. But we're waiting.
Speaker 1: It could be a victory for the broadesters. You don't know,
Speaker 1: there might be smart movements, you know, Okay, Scott Scott
Speaker 1: Musk of b It's Asia specific GEO political risk analyst
Speaker 1: for Morning Consult, Thank you. Let's stick with Apple, the
Speaker 1: company and it's CEO being called out by Elon Musk,
Speaker 1: who claims Apple has cut back its advertising on Twitter
Speaker 1: and even threatened to withhold the social network from its
Speaker 1: app store. Musk tweeting quote, do they hate free speech
Speaker 1: in America? Question, then posting again, this time including the
Speaker 1: Twitter account of Apple Chief executive Officer Tim Cook. No
Speaker 1: response from Tim Cook on Twitter. Will have more on
Speaker 1: that story later in the hour and coming up. Activision
Speaker 1: Blizzard is gaining some fans while some analysts are raising
Speaker 1: their recommendation despite concerns over Microsoft steel for a takeover
Speaker 1: the Cisplinberg. So Activision Blizzard has gained fans on Wall
Speaker 1: Street as a florry of analysts raised their recommendations on
Speaker 1: the stock, even as microsoft planned acquisition looks more and more.
Speaker 1: Dicey joining us now as being a Bloomberg's m and
Speaker 1: a reporter eachen Sen and Echun just talk to us
Speaker 1: about what you're reporting, showing first and foremost one of
Speaker 1: the odds that this deal actually goes through. Sure, Yeah,
Speaker 1: so I will say, I'm hearing from murder arch traders
Speaker 1: as they see the deal probably is having only roughly
Speaker 1: forty to fifty percent of going through, so it's pretty dicey.
Speaker 1: But it's interesting that we are seeing among the Wall
Speaker 1: Street analysts there brustings here reading on the active Exhibition
Speaker 1: the start itself mainly for two reasons I would say,
Speaker 1: first it's a strong fundamental value and second is it's
Speaker 1: a very attractive root forward profile given the Microsoft situation.
Speaker 1: Because remember Exhibition is in the process as of being
Speaker 1: acquired by Microsoft for sixty nine billions. That's a huge deal. Right.
Speaker 1: But there was a report last week saying that the FTC,
Speaker 1: which as the u S regulator, is going to block
Speaker 1: and challenge the transaction. The sort the starts tumbled, right,
Speaker 1: but the endless points as they see, and they like
Speaker 1: the stock whist or without Microsoft transaction because their case
Speaker 1: has been as a stalear loan company active mission, it
Speaker 1: has strong fundamental, very solid growth outlook and its franchise
Speaker 1: including call of duty. Right, and they will get three
Speaker 1: billion break on fee to add on the balance sheet,
Speaker 1: right if the deal force apart. But on the flip side,
Speaker 1: if you know it goes through, then look at where
Speaker 1: the start is treating. It's like twenty percent below the
Speaker 1: takeover offer. So that's a huge upside to capture in
Speaker 1: that scenario. Ch And you've taught me so much about
Speaker 1: the twists and turns of deal making, you know. You
Speaker 1: and I followed the Twitter deal so closely for months
Speaker 1: for examp and Pool and the thing you taught me
Speaker 1: throughout that process not just to crunch the numbers from
Speaker 1: the murder ofs, but it's to look out for key
Speaker 1: inflection points, key decisions. So what's the big key decision
Speaker 1: or key moment we're looking for between Activision and Microsoft? Right?
Speaker 1: So I would say anti trust, anti trust progress has
Speaker 1: always been the focus. So Right now is waiting on
Speaker 1: the approval from FTC, but also it's facing the probe
Speaker 1: under u k C, m A and European Commission. So
Speaker 1: regulators have raised a concern you or if they're still
Speaker 1: combining the numbers three and number five largest player in
Speaker 1: the industry, will give Microsoft, you know, too much of
Speaker 1: advantage in a space, or if they well with whole
Speaker 1: popular titles against their competitors, and I will say another
Speaker 1: thing to watch, it's just more broadly um FTC or
Speaker 1: the buider administration has been helped this very aggressive narratives
Speaker 1: around big players all years of you know when it
Speaker 1: comes to antitrust issue. So that's particular of putting this
Speaker 1: mega tag deal under the spotline. What's interesting though today
Speaker 1: are great colleagues of Breenberg Intelligence put out a piece
Speaker 1: Jennifer for example, talking about how actually Microsoft snow uh
Speaker 1: new one trippony when it comes to M and A.
Speaker 1: They've been on this rodeo before and quite often they
Speaker 1: make concessions. Are we likely to see that when the
Speaker 1: obs are talking about this right right? I think that's
Speaker 1: definitely something people are watching, and people are watching. The
Speaker 1: next catalyst is UM. When FTC going to job um
Speaker 1: their final decision on a case on this deal. So
Speaker 1: I think media reports say that could come, you know,
Speaker 1: either later next month or earlier next year. So it
Speaker 1: will depend on if they offer so on the mergial
Speaker 1: party side, if they offer some behavior remedy. But if
Speaker 1: you know, the regulator accepts that, and if there's actually
Speaker 1: FTC decided to block the deal, then Microstofts do have
Speaker 1: the option too. It could appeal the case in the
Speaker 1: court and remembers there's a similar case between United House
Speaker 1: and chance Housecare Right. They got challenged from the o J,
Speaker 1: but eventually win the costs approval on it so that
Speaker 1: they are eventually close out. Okay, thanks to Bloom Bang
Speaker 1: Bloom Bags sen two and a half years ago, we
Speaker 1: lost eighty percent of our business. We laid off employees,
Speaker 1: and I said at that time that we are going
Speaker 1: to be now prepared for anything to come. We don't
Speaker 1: need to lay off half the workforce to achieve the
Speaker 1: efficiency levels that we want to achieve. We did announce
Speaker 1: a small restructuring. Ours is really about rebalancing the number
Speaker 1: of head count we had at the beginning of the
Speaker 1: year we had tonight. We're gonna have the same number
Speaker 1: of heads at the end of the year. We are
Speaker 1: not stepping on the brakes. In fact, we're stepping on
Speaker 1: the gas. We are still hiring. We're not freezing, we're
Speaker 1: not cutting, We're growing. That's what some of the biggest
Speaker 1: tech ceo has had to say about their own strategies
Speaker 1: surrounding layoffs, and in today's Talking Tech, we're taking a
Speaker 1: look at those companies that are not well so optimistic.
Speaker 1: In Mexico used cars startup Cavac is the latest global
Speaker 1: tech name to cut jobs. Latin America's biggest startup is
Speaker 1: reducing headcount and firing managers due to higher interest rates
Speaker 1: and a slowing economy. That's according to a memo from
Speaker 1: the Unicorns CEO seen by Bloomberg News Now last week,
Speaker 1: HP said it would cut as many as six thousand
Speaker 1: jobs over the next three years, joining names like Amazon
Speaker 1: and Cisco who also planned layoffs right now. Employment historically
Speaker 1: strong globally. The jobless rate was at four point four
Speaker 1: percent in September across major developed economies, according to the
Speaker 1: o e c D. That's the lowest level since the
Speaker 1: nineteen eighties. But this time around, tech already has staffing
Speaker 1: numbers way above pre pandemic levels. Layoffs have already begune,
Speaker 1: so the sectors bray sing for more cuts to come.
Speaker 1: That's talking to really great global perspective. Let's get a
Speaker 1: little bit more global right now. Another story that's keeping
Speaker 1: our attention. The main privacy watchdog for Meta in the
Speaker 1: European Union has fined Facebook's parent company to want seventy
Speaker 1: seven million dollars from a massive data breach. Now Matter
Speaker 1: was penalized for failing to prevent the leak of the
Speaker 1: personal data of more than half a billion users. The
Speaker 1: fine was imposed by the Irish Data Protection Commission. Meanwhile,
Speaker 1: coming up, what retail data can reveal about the state
Speaker 1: of the supply chain in this holiday shopping season. All
Speaker 1: these insights and more. Next some Ari Trasda. He's the
Speaker 1: CEO and founder of the open data supply chain company.
Speaker 1: Chris this is Bloomberg. I think this intentionality actually is
Speaker 1: incredibly indicative of the state of the consumer. Consumers are
Speaker 1: really looking for a value right now. They're looking for quality.
Speaker 1: They want to buy from their favorite brands, but they
Speaker 1: want a good deal from their favorite brands, and they're
Speaker 1: willing to wait, whether it's Cyber Black Friday or ceremony
Speaker 1: to buy that. But that's part of it. The second
Speaker 1: piece of it. You mentioned this Alex in your in
Speaker 1: your opening, you talked about omni channel. This idea that
Speaker 1: consumers want to buy whatever in whatever means that is
Speaker 1: most communitied for them, whether that's online or offline on
Speaker 1: social media. That is now steady state. When you add
Speaker 1: that to direct to consumer as a business model, which
Speaker 1: really connects the merchant and the consumer directly. I think
Speaker 1: that's the current state of retail and it's exciting. Welcome
Speaker 1: back to Blue Big Technology. I'm Caroline Hide in New York.
Speaker 1: That was Shopify president Harley Finkst on Blue Bag Television
Speaker 1: a little earlier today. And you're taking a closer look
Speaker 1: at Shopify and other retailers post Black Friday. Just give
Speaker 1: us the big picture. Was it good? Yeah? Yeah, well,
Speaker 1: I mean the market seems to think it's been okay
Speaker 1: so far. Shopify gave some prelim numbers for Black Black Friday.
Speaker 1: The street seems bullish on those prelim numbers. There is
Speaker 1: evidence that the consumer is taking advantage of those deals.
Speaker 1: Some of the stocks that we've been watching are the
Speaker 1: names that in that econor space. Amazon had a good
Speaker 1: start Monday's session kind of fell away, but Shopify and outperformer.
Speaker 1: A lot of names on the cell side jumping on
Speaker 1: the early data coming out of them. Wayfair, another one
Speaker 1: Peloton interesting. According to Adobe Analytics, it really was a
Speaker 1: fit at home fitness equipment that did well at one
Speaker 1: point up eight point eight percent, but really paired those
Speaker 1: games to close up eight tenths and one percent. Adobe
Speaker 1: Analytics data is where I want to go. Actually, this
Speaker 1: is a third party measure of how things are going
Speaker 1: in this holiday shopping season. For me, the psychology about
Speaker 1: when which they carryed you get out your laptop or
Speaker 1: go on your smartphone and buy something. And according to
Speaker 1: the data from Adobe Analytics, it's very much cyber Monday.
Speaker 1: That is when across that holiday shopping period as an
Speaker 1: individual day, they expect eleven point two billion dollars to
Speaker 1: be spent. You look for example of Thanksgiving days comparison
Speaker 1: Black Friday as a comparison, it seems like consumers eat
Speaker 1: a few days to get over their Turkey trip and
Speaker 1: get out there online to buy some deals. Now this
Speaker 1: year related to other is let's look at two and
Speaker 1: where we're headed. We do expect growth across that holiday
Speaker 1: season e commerce spending in the United States. We're on
Speaker 1: track for billion dollars. That represents two point five percent
Speaker 1: game on the holiday season here in the United States.
Speaker 1: But I find that fascinating carry because it's still growth
Speaker 1: at a time where we're really worried about a slowdown
Speaker 1: in the economy. We're worried about the strength of the consumer.
Speaker 1: And what I'm reading in the data is actually discounting
Speaker 1: and deals seems to be doing the trick, albeit not
Speaker 1: in the same way it's done in previous years. Is
Speaker 1: it inflation adjusted? That's my key question. Let's put it
Speaker 1: to our transdell at a great setup, and we've now
Speaker 1: got the CEO and founder of christ with Us who
Speaker 1: can enlighten us as to the supply chain data the
Speaker 1: platform that he brings for brands, for distributors, for retailers,
Speaker 1: you really give them an inside track on what's happening
Speaker 1: in terms of their own supply chain how to make
Speaker 1: a more efficientary. But just go back to that data.
Speaker 1: The growth are we seeing on an inflation adjusted basis
Speaker 1: growth in terms of spending? Does it look healthy? It
Speaker 1: looks healthier, but I think it was. At the same time,
Speaker 1: have a lot of supply chain challenges still looming, so
Speaker 1: you're seeing it's kind of a paradox because you're seeing
Speaker 1: on one hand, you're seeing that retailers are reporting that
Speaker 1: they have too much inventory and at the same time
Speaker 1: they're reporting that they're out of stock. Um So retail
Speaker 1: is highly seasonal, as you know, and retailers are still
Speaker 1: struggling with getting the last season and the season before
Speaker 1: that sold, and at the same time they have a
Speaker 1: lot of supply chain challenges getting the seasonal products in
Speaker 1: for for this upcoming upcoming period. Aria hear you a
Speaker 1: lot on the supply chain challenge side, and when we
Speaker 1: talk about supply chains for Caroline and I over the
Speaker 1: last eighteen months, that's meant difficulty in moving goods from
Speaker 1: A to B. But the other issue we hear about
Speaker 1: is inventories. What roller inventories playing for some of these
Speaker 1: online retailers this holiday season. Yeah, they it's the same,
Speaker 1: it's the same challenge. Really, you kind of have a
Speaker 1: very long supply chain to get get get get the
Speaker 1: inventory to the consumer. So you have retailers, you have distributors, wholesalers,
Speaker 1: your manufacturers, imports, exporters, etcetera. And it takes a very
Speaker 1: long time for this inventory to actually get through this
Speaker 1: entire supply chain. So the numbers that we've got a
Speaker 1: few days ago here is that of the retailers say
Speaker 1: that they have too much inventory, and at the same time,
Speaker 1: the eight percent say that they're already starting to run
Speaker 1: out of inventory for key items. So historically it's been
Speaker 1: very easy to plan, a much easier to plan, but
Speaker 1: everything that's going on now with with with the inflation,
Speaker 1: consumer change, a huge shift to to to online for instance,
Speaker 1: it's made it really hard to plan because of very
Speaker 1: long lead times in the supply chains. So so that
Speaker 1: makes it hard when everything is not real time. Sorry,
Speaker 1: I'm going to ask you to talk your book here
Speaker 1: so it don't go too much when you're talking about it.
Speaker 1: But let's think about the companies that have managed them
Speaker 1: interventories pretty well. Macy's is one of them. And actually, again,
Speaker 1: this is a company that's invested a lot in technology,
Speaker 1: in the ability to ensure that they've got the right
Speaker 1: thing in the right time and be able to be
Speaker 1: a bit swifter about getting the things that are going
Speaker 1: to sell in the door. Talk to us about how
Speaker 1: your technology is perhaps helping alleviate some of the supply
Speaker 1: chain headaches that have been such an hallmark. And basically
Speaker 1: every e commerce and what bricks and mortar store at
Speaker 1: the moment, right yeah, before the pandemic, everybody thought we
Speaker 1: could push button today and tomorrow the the product would
Speaker 1: show up, and in reality you really need them to
Speaker 1: premendous amount of data between the different trading partners. So
Speaker 1: where we started in food, food that there are over
Speaker 1: ten million companies involved in getting food from where it's
Speaker 1: produced to where it's consumed. But the technology that actually
Speaker 1: is connecting all of this is based upon something was
Speaker 1: invented in three year I was portnant, which is called
Speaker 1: d I and it's very reactive in terms of curtures
Speaker 1: orders that go through the whole supply chain. So everybody's
Speaker 1: with the supply chain need to have reused time data
Speaker 1: to understand what consumers are doing, what the prices, how
Speaker 1: much inventory exists. So everybody through the whole supply chain
Speaker 1: can have used time data and then we avoid these
Speaker 1: huge overstocks that we've seen and also the shortages. That's
Speaker 1: interesting to me because you're talking about the company controlling
Speaker 1: what it can control, but how do you control the consumer.
Speaker 1: We went into this period knowing that promotions would be key.
Speaker 1: We knew that they would be greater than last year.
Speaker 1: I think the data shows US promotions were greater than
Speaker 1: last year. What's your analysis of the role that discounts
Speaker 1: played for the online retailers. I think this kind of
Speaker 1: something incredively important, but I think very often blunt instruments
Speaker 1: are used when you can have surgical precision instead and uh,
Speaker 1: in order to do surgical precision, you really need to
Speaker 1: understand what store is the product selling in, what's price point,
Speaker 1: how inflation sensitive is that particular area, So the discounting
Speaker 1: can be much more precise in a way. Some care
Speaker 1: more about about price and others, but you have to
Speaker 1: have really granular data now to the skew and to
Speaker 1: the store level, and also understand inventory levels and pricing
Speaker 1: and what competitors are doing. So I thinks, see, historically
Speaker 1: we've seen a lot of kind of plant instruments being
Speaker 1: used and you can have for a very little affordable price.
Speaker 1: You can use surgical data instead to to optimize it.
Speaker 1: To us about how that really works, and say you
Speaker 1: realize that a lot more shop is wanting a particular
Speaker 1: item in Brooklyn, Visa VI, what's happening in Minnesota? And
Speaker 1: you can therefore have a cheaper price point. But with
Speaker 1: the e commerce being so prevalent, the fact that I
Speaker 1: can while I'm in the store pick up my phone
Speaker 1: and decide whether this is the price point I want
Speaker 1: to pay out, whether I can wait a couple of
Speaker 1: days and get it cheaper, how do you manage that
Speaker 1: amount of data the consumer has? Yeah, no, you have
Speaker 1: to put together all of the consumer data. There, data
Speaker 1: that the retailer have, the distributor have, and the whole
Speaker 1: supply chain in one kind of north star. In terms
Speaker 1: of data understanding, very many just look at their own data,
Speaker 1: but they are part of a big ecosystem of of
Speaker 1: of companies that all need need the data. So that
Speaker 1: the sharing of data cross companies was something that didn't
Speaker 1: happen as much before the pandemic, but kind of operated
Speaker 1: in their own silo. But now people see that sharing
Speaker 1: data matters a lot because then the manufacturer can be
Speaker 1: ahead of it. They can when build their products and
Speaker 1: they can get the products out in in time. Now
Speaker 1: the returns about tremendous amount of products sitting that was
Speaker 1: for the last last season, So getting there in time,
Speaker 1: that's when that's that's incredibly important. It's novembery give us
Speaker 1: the rich steal outlook for the rest of the holiday season,
Speaker 1: which seems to go on indefinitely. That's always Aliday season,
Speaker 1: the season in retail, which is which is incredible. So
Speaker 1: I I think we're gonna Scostico see continued spend in
Speaker 1: in two four six seven eight percent increase in spending
Speaker 1: two four. I still think we're gonna see a lot
Speaker 1: of price reductions UM, and we're going to see a
Speaker 1: lot of shortage, shortage of products. I think a lot
Speaker 1: of people are gonna realize that the supply chain crisis
Speaker 1: are are not over UM and that is going to
Speaker 1: continue kind of to ripple through the supply chain. All Right,
Speaker 1: our h Hostile CEO and founder of Chris thank you.
Speaker 1: We see the same confidence and the full confidence in
Speaker 1: point based that we've seen previously, and we do not
Speaker 1: see anybody leaving the space. And that said, given that
Speaker 1: Inmia and when I mean in Meda, I not only
Speaker 1: mean the European Union with the MIKA regular but also
Speaker 1: the Financial Services and Markets build a passing through the
Speaker 1: UK Parliament at the moment, as well as the creation
Speaker 1: of the VARA, the Virtual Asset Regulatory Authority in Dubai
Speaker 1: is really leading the charge in creating regulatory clarity and
Speaker 1: a regulatory framework that we can work within. Daniel see
Speaker 1: for their m e a, Vice President managing director of
Speaker 1: coin Base. Now let's talk about confidence more broadly in
Speaker 1: the space, particularly after today's perhaps inevitable news the block
Speaker 1: fires finally had to file for bankruptcy joining us now
Speaker 1: has been in motion basa, can I say finally because
Speaker 1: it was anticipated because the White Knight had been the
Speaker 1: now bankrupt FTX for them previously. We have been expecting
Speaker 1: a filing and reporting now for at least a week
Speaker 1: here that this would be expected at some point, and
Speaker 1: now we have some details and what do we have
Speaker 1: from them? We have not just the plan to file
Speaker 1: for bankruptcy in New Jersey, we have some details about
Speaker 1: the scope of how big this bankruptcy proceeding is going
Speaker 1: to be. So one billion to ten million dollars in
Speaker 1: assets is the general size of black quite a large size,
Speaker 1: but more than a hundred thousand creditors. We would have
Speaker 1: to keep an eye on future filings to see how
Speaker 1: many that will ultimately be. Remember f t X also
Speaker 1: had checked that last box on their filing and found
Speaker 1: out later that was about a million people at play
Speaker 1: here that we're talking about. We also know that the
Speaker 1: concentration is different among the unsecured creditor group. So what
Speaker 1: is that exactly? It's more than seven hundred million that
Speaker 1: is really highlighted here earmark to the trustee of different
Speaker 1: depositors f t X itself, which we'll talk a little
Speaker 1: more about it now. And then also you have the
Speaker 1: sec from the remainder of them before exactly. So there
Speaker 1: are a lot of names that you don't have here
Speaker 1: similar to f t X. But you know that those
Speaker 1: amounts are kind of isolated here between one million and
Speaker 1: thirty million dollars. So you might see more contagion there
Speaker 1: among the people that they're owed money too, because you
Speaker 1: don't know what they'll get back yet, but we know
Speaker 1: that that is the general size of per per customer
Speaker 1: per creditor that has owed money and how much generally
Speaker 1: their own. There's a question of chronology and timeline because
Speaker 1: it's clear Block five had issues before f t x
Speaker 1: is collapse, but at the same time f t x
Speaker 1: is collapse seems to have made things worse for Block
Speaker 1: fi um if you follow that sonale, what is the
Speaker 1: relationship now between the two? The claim here on the
Speaker 1: bankruptcy filing is about two seventy five million dollars for
Speaker 1: f t X earmarked. There's some really interesting unanswered questions here.
Speaker 1: Ed if you look at the testimony by an advisor here,
Speaker 1: you had seen that they didn't get money. They didn't
Speaker 1: get all the money that they had asked for from
Speaker 1: f t X to begin with, according to the Block
Speaker 1: five filings. Now remember to your points, some of these
Speaker 1: issues started before f t X. That's why f t
Speaker 1: X got involved in the first place. They were related
Speaker 1: to three Arrows in ft x is filing. I would
Speaker 1: also point out that apparently the US business of f
Speaker 1: t X lent money to block FI in part through
Speaker 1: that ft t token. And so my question here is
Speaker 1: this entire agreement, who owes who what and who is
Speaker 1: responsible for actually paying each other back after this kind
Speaker 1: of tight web that needed knitted after the three Arrows debacle,
Speaker 1: I think is interesting. Now, remember blockedby is also said
Speaker 1: that getting money back from f t X might take
Speaker 1: time give an f t x is own bankruptcy. So
Speaker 1: things are certainly complicated between the two Shinali. Over the weekend,
Speaker 1: it looked as though much of crypto twittersho decided to
Speaker 1: up sticks and leave to the Bahamas at some point
Speaker 1: into their own digging in some way, shape or form.
Speaker 1: That is, because of the different jurisdictions with which ft
Speaker 1: X has been enveloped the same thing he will block
Speaker 1: five bit. Obviously, Chapter eleven isn't as a protection here
Speaker 1: in the US, but it wasn't just based in the US.
Speaker 1: I spent an inordinate amount of time with Bankruptcy US
Speaker 1: today for that reason because it to that end they
Speaker 1: had many people that win shine truly in this case,
Speaker 1: I will tell you just how much. In a moment,
Speaker 1: for Block five, they file the petition with the Bermuda
Speaker 1: and Supreme Court here so that they would have provisional
Speaker 1: liquidators in both regions. Now, remember from Bahamas point of
Speaker 1: view for f t X, there is a lot of
Speaker 1: dispute that has occurred since the bankruptcy proceedings have begune
Speaker 1: and to the point that you even have the Attorney
Speaker 1: General saying that some of the words that have come
Speaker 1: from the new f t X EO are regrettable. So
Speaker 1: to the extent that the Bermuda government in the US
Speaker 1: stay in line in this bankruptcy filing. Again, they want
Speaker 1: to recoup money for their customers, for their own people.
Speaker 1: And at the end of the day, what it seems
Speaker 1: like from the statements we're seeing from the Bahamas is
Speaker 1: also redefined the credibility of every single jurisdictions financial system
Speaker 1: and ability to embrace crypto still but have tight rules
Speaker 1: around the industry such that people don't lose their funds.
Speaker 1: We go to go shnati, but you teased us how
Speaker 1: much of the bankrupcy loise million dollars? So right for some,
Speaker 1: we thank you so much. She's going to go back
Speaker 1: to those bankrupcy to is now. Meanwhile, coming up, Elon
Speaker 1: Musk picks a fight with Apple. I'll tell you why next.
Speaker 1: This is black So today Elon Musk has once again
Speaker 1: been going viral on his own platform and others. This
Speaker 1: time he's stirring a fight with none other than Apple. Now.
Speaker 1: Mask says Apple has halted most of its advertising on
Speaker 1: Twitter and asked the company quote if they hate free
Speaker 1: speech in America. He even appealed directly to Apple CEO,
Speaker 1: asking what's going on here? Tim Cook. He also went
Speaker 1: on to accuse the company threatening to remove the platform
Speaker 1: from its app store. He did said not say why though,
Speaker 1: And now this will comes as many companies have halted spending.
Speaker 1: We know on it and make concerns about your mass
Speaker 1: content moderation plans for the site watch dogs site and
Speaker 1: fact medium Matters reported last week that half of Twitter's
Speaker 1: top advertisers had pulled their advertising on Twitter after concerns
Speaker 1: about the direction of Twitter Look Forward Jeep among them.
Speaker 1: Elon Musk, meanwhile, has been blaming activists for pressuring advertisers
Speaker 1: and has talked about Twitter seeing a massive drop in
Speaker 1: revenue already. He said in the past that he wants
Speaker 1: to make money for Twitter by turning it into a
Speaker 1: paid subscription service, with a relaunch of its paid verified
Speaker 1: services due Friday, of course, but for now, the vast
Speaker 1: majority of Twitter's revenue still comes from advertising. Ed Now,
Speaker 1: let's stick with this story, bringing Bloomberg's Kurt Wagner, a
Speaker 1: social media reporter, for more. I mean, Kurt, there's a
Speaker 1: lot to unpick here. What happens if Apple took Twitter
Speaker 1: off the app store. I guess that's the place to start, sure,
Speaker 1: I mean, that's a pretty dramatic outcome, right, Like this
Speaker 1: would be that Twitter is routinely, uh, you know, allowing
Speaker 1: terrible content on the plan from usually Apple reserves this
Speaker 1: for you know, Gregis violations, and so if this worted
Speaker 1: to be the case, of course, that's a huge blow
Speaker 1: to Twitter. Right. The app store is is probably the
Speaker 1: main way, or one of the main ways that most
Speaker 1: of its users get the app get app updates, so
Speaker 1: you know, for example, I believe the app would still
Speaker 1: work on my phone, but in order to you know,
Speaker 1: get an updated version I have an iPhone, I might
Speaker 1: have to you know, figure out a way to download
Speaker 1: that from the web. It's the kind of thing that's
Speaker 1: going to erode over time and cause a lot of
Speaker 1: people to either stop using Twitter or or you know,
Speaker 1: possibly have to move to a different device. And so
Speaker 1: that's a huge issue. And one of the reasons I
Speaker 1: tweeted that I think Twitter needs Apple a lot more
Speaker 1: than Apple needs Twitter here, and that's because Apple has
Speaker 1: the distribution that it's at its fingertips. And actually I
Speaker 1: was pretty surprised that Apple was one of the biggest
Speaker 1: advertisers with Twitter cut. Meanwhile, cryptic sort of war almost
Speaker 1: he's declared on Apple continues and talk to us about
Speaker 1: what he means by a free sprint speech suppression. He says,
Speaker 1: he said in a tweet, well, the Twitter falls on
Speaker 1: free speech. This suppression will soon be published on the
Speaker 1: social media platform. What does he mean was he going
Speaker 1: to declare on that? Well, we don't know, but he's
Speaker 1: certainly kind of piquing our interest, right He's saying, hey,
Speaker 1: look now that I'm inside the building now that I've
Speaker 1: had time to figure out, you know, what's been going
Speaker 1: on in the code or behind the scenes. Uh, you know,
Speaker 1: I'm going to kind of unveil what Twitter has been
Speaker 1: hiding from you this whole time, right and and presumably, um,
Speaker 1: the way I'm reading that is that means he's going
Speaker 1: to come out and say, you know, here are the
Speaker 1: types of tweets that maybe we're down ranked in the algorithm,
Speaker 1: or here's the types of accounts that had been removed
Speaker 1: that maybe you didn't know about. Again, this is speculation, right,
Speaker 1: because he's intentionally sort of building this drama there. But again,
Speaker 1: you know, what he has tried to say all along
Speaker 1: is that he is this free speech uh kind of evangelist,
Speaker 1: and he's gonna come in and he's going to make
Speaker 1: Twitter the free speech version of the service that people
Speaker 1: wanted to be. That it has not been be as
Speaker 1: it has you know, rules around what you can and
Speaker 1: cannot say. We know the new look verification systems coming Friday,
Speaker 1: what has must said? What are the details? Yeah, well
Speaker 1: you mentioned and I think we talked about this and
Speaker 1: actually on spaces on Friday when we were there, that
Speaker 1: there's going to be a series of different colored badges, right,
Speaker 1: at least that's the plan for now, and I'm I'm
Speaker 1: going to forget the colors off the top of my head.
Speaker 1: But presumably you know, uh, you might have one color
Speaker 1: if you are an elected official. You might have another
Speaker 1: color if you are a brand, or if you're running
Speaker 1: kind of an account that's representing you know, a company
Speaker 1: versus an individual person. Right, And so this is actually
Speaker 1: not a new idea. This is something that folks have
Speaker 1: inside Twitter have kicked around for a long time before
Speaker 1: Elon showed up, this idea that maybe there should be
Speaker 1: different kind of labels for different accounts, including one for bots.
Speaker 1: Believe it or not, there was an idea that, you know,
Speaker 1: maybe bots should exist on Twitter, but they should be
Speaker 1: labeled as bots that you know, you're interacting with a
Speaker 1: kind of an automated account. So, as you know, Ed
Speaker 1: and Caroline, this plan for verification has changed almost daily
Speaker 1: from the last couple of weeks. So we'll see what
Speaker 1: it looks like when we actually see it live. But
Speaker 1: as of now, you know, it seems to be that
Speaker 1: you're starting to get a little bit more strategic around
Speaker 1: um instead of everyone gets the blue check. There's going
Speaker 1: to be different variations of that green, gold, blue. We
Speaker 1: wait to see what the rainbow is going to be. Like,
Speaker 1: Kurt Wagner, so great that you join us on spaces.
Speaker 1: That was a nice little tea. You've gotta come and
Speaker 1: join us on Friday, Twitter Spaces and indeed then digging
Speaker 1: a little bit more on what's happening. I'm sure there's
Speaker 1: going to be plenty to discuss come Friday. It's only Monday, Kurt.
Speaker 1: We're gonna let you get back to your day job,
Speaker 1: which is tracking what the cryptic tweet doesn't even mean,
Speaker 1: but and it really is a story that continues to unfold.
Speaker 1: And the fact that you know, Musque, Yes, the wealthiest
Speaker 1: individual is taking on Apple and almost retweeting out there
Speaker 1: what some of the videos the Epic Games made about
Speaker 1: Apple's business practices. It really does feel like he's going
Speaker 1: for them. It's gold check for companies, great check for government,
Speaker 1: and blue for individuals. By the way, Carrot, that does
Speaker 1: it for this edition of Bloomberg Technology. Make sure to
Speaker 1: join us again tomorrow. AWS c O Adams Litski joins
Speaker 1: us as Amazon kicks off it's annual cloud conference. You
Speaker 1: don't want to miss it. This Carrow is Bloomberg