1 00:00:02,480 --> 00:00:05,840 Speaker 1: From the heart of where Innovation, money and power Collie 2 00:00:06,600 --> 00:00:11,160 Speaker 1: in Silicon Valley and beyond. This is Bloomberg Technology with 3 00:00:11,200 --> 00:00:27,240 Speaker 1: Emily Jay. I'm Emily Changes San Francisco and this is 4 00:00:27,280 --> 00:00:30,120 Speaker 1: Bloomberg Technology. Coming up in the next hour, a glimpse 5 00:00:30,160 --> 00:00:33,920 Speaker 1: into the future of entertainment. Netflix versus Disney, House of 6 00:00:34,000 --> 00:00:36,559 Speaker 1: Dragons versus Lord of the Rings and all of It 7 00:00:36,800 --> 00:00:39,960 Speaker 1: versus TikTok, Who wins and loses. I'll speak with former 8 00:00:40,000 --> 00:00:45,519 Speaker 1: TikTok CEO and top former Disney executive Kevin Meyer. Plus 9 00:00:45,720 --> 00:00:48,519 Speaker 1: Learning in the Metaverse Are at Tech series continues with 10 00:00:48,560 --> 00:00:51,680 Speaker 1: a candid conversation about the future of virtual learning and 11 00:00:52,080 --> 00:00:54,480 Speaker 1: whether it could tip the balance in favor of screen 12 00:00:54,520 --> 00:00:59,360 Speaker 1: time and lawyers for Tharanos founder Elizabeth Holmes failed in 13 00:00:59,440 --> 00:01:02,280 Speaker 1: along on attempt to get her fraud conviction thrown out. 14 00:01:02,560 --> 00:01:04,759 Speaker 1: We're gonna hear from our own General roles in Black, 15 00:01:04,800 --> 00:01:08,640 Speaker 1: who was in the courtroom for this decision. We will 16 00:01:08,680 --> 00:01:10,600 Speaker 1: get to all of that in a moment. Stocks ending 17 00:01:10,720 --> 00:01:13,039 Speaker 1: another week down on the back of a job's report 18 00:01:13,080 --> 00:01:15,680 Speaker 1: that showed people are going back to work, but that 19 00:01:15,720 --> 00:01:18,280 Speaker 1: means the FED will likely stay on a talkish course. 20 00:01:18,280 --> 00:01:20,880 Speaker 1: Bloom Brig Shanali Bossik here to break it all down. 21 00:01:21,080 --> 00:01:23,759 Speaker 1: Pay Shanali happy Friday. Happy Friday, Emily. If we take 22 00:01:23,760 --> 00:01:25,959 Speaker 1: a look not so happy of a Friday for the 23 00:01:26,000 --> 00:01:29,000 Speaker 1: stock market. You have the SMP down more than one percent, 24 00:01:29,280 --> 00:01:31,600 Speaker 1: as you say, on the back of that expectation of 25 00:01:31,640 --> 00:01:34,080 Speaker 1: a hawkish fed. But remember did try to scrape higher 26 00:01:34,080 --> 00:01:36,240 Speaker 1: into the day, ending the day lower than you do. 27 00:01:36,280 --> 00:01:39,440 Speaker 1: Have the NAZAC one hundred ending more than one point 28 00:01:39,480 --> 00:01:41,520 Speaker 1: four percent lower on the day, so the steeper decline 29 00:01:41,520 --> 00:01:43,520 Speaker 1: than you're seeing in the SMP five hundred. Both of 30 00:01:43,520 --> 00:01:46,200 Speaker 1: these indicries are down on the week pretty significantly. And 31 00:01:46,200 --> 00:01:48,760 Speaker 1: then you have the two year yield. Interestingly, you had 32 00:01:48,760 --> 00:01:51,800 Speaker 1: that really rise very significantly into the week, getting well 33 00:01:51,840 --> 00:01:54,680 Speaker 1: above that three fifty level, really pairing some of those 34 00:01:55,240 --> 00:01:57,400 Speaker 1: rises that you saw on the two year yield. And 35 00:01:57,440 --> 00:01:59,400 Speaker 1: remember those yields have a big impact on what you're 36 00:01:59,400 --> 00:02:02,000 Speaker 1: going to expect on how you value a lot of 37 00:02:02,000 --> 00:02:05,360 Speaker 1: these high growth companies moving forward. And bitcoin Bitcoin is 38 00:02:05,400 --> 00:02:10,000 Speaker 1: back below twenty thousand your now at nine nine fifty nine. 39 00:02:10,040 --> 00:02:12,760 Speaker 1: We are watching that very closely. It hasn't broken too 40 00:02:12,760 --> 00:02:16,079 Speaker 1: far below these levels here, But again bitcoin trades into 41 00:02:16,120 --> 00:02:18,320 Speaker 1: the weekend. If we flip up the board here, let's 42 00:02:18,360 --> 00:02:21,720 Speaker 1: look at another asset lately, very correlated to bitcoin. That 43 00:02:21,800 --> 00:02:23,519 Speaker 1: is that NAZAC one hundred. As I've been talking to 44 00:02:23,560 --> 00:02:26,240 Speaker 1: you about the five day move here when I said significant, 45 00:02:26,280 --> 00:02:28,640 Speaker 1: what I meant was a four percent drop this week. 46 00:02:28,720 --> 00:02:31,359 Speaker 1: That's not the biggest drop that we've seen. But again, 47 00:02:31,720 --> 00:02:34,720 Speaker 1: moving into September, which is a traditionally hard month for stocks, 48 00:02:34,919 --> 00:02:37,239 Speaker 1: it'll be interesting to see how this trades into next week. 49 00:02:37,280 --> 00:02:39,280 Speaker 1: We did see traders try to get back some of 50 00:02:39,280 --> 00:02:41,839 Speaker 1: those gains, but again ending the day and the week 51 00:02:42,000 --> 00:02:44,359 Speaker 1: much lower. But a couple of individual movers for you 52 00:02:44,440 --> 00:02:46,520 Speaker 1: quickly here, Emily, I want to take a look here 53 00:02:46,560 --> 00:02:49,800 Speaker 1: at Starbucks because remember they had that new CEO announcement. 54 00:02:50,320 --> 00:02:52,680 Speaker 1: On the back of that, the stock has declined two 55 00:02:52,680 --> 00:02:54,840 Speaker 1: point eight percent on the day to point nine percent. 56 00:02:55,120 --> 00:02:57,560 Speaker 1: That is, of course deeper than we saw in the SMP. 57 00:02:57,919 --> 00:02:59,760 Speaker 1: Lulu Lemon was your biggest s gainer here and that 58 00:02:59,800 --> 00:03:01,359 Speaker 1: now as that one d that was down on the 59 00:03:01,400 --> 00:03:04,240 Speaker 1: day six point seven percent higher on the back of 60 00:03:04,680 --> 00:03:09,440 Speaker 1: encouraging earnings. People are buying leggings Broadcom. We have also 61 00:03:09,560 --> 00:03:12,840 Speaker 1: one point seven percent higher on the day, shaking off 62 00:03:12,919 --> 00:03:15,240 Speaker 1: a lot of those fears for those chip companies. Emily, 63 00:03:15,960 --> 00:03:17,760 Speaker 1: all right, we're gonna dig into chips a little later 64 00:03:17,800 --> 00:03:22,000 Speaker 1: in the show, Shinali Bostek, thank you for that update. Meantime, 65 00:03:22,160 --> 00:03:25,079 Speaker 1: turning to streaming, Netflix is set to launch its AD 66 00:03:25,120 --> 00:03:28,959 Speaker 1: supported service later this year, a significant premium add a 67 00:03:29,000 --> 00:03:32,000 Speaker 1: significant premium compared to other streaming platforms. As far as 68 00:03:32,000 --> 00:03:34,720 Speaker 1: we know, the streaming giant intending to roll out this 69 00:03:34,760 --> 00:03:37,480 Speaker 1: plan ahead of its rival, Disney Plus, which will launch 70 00:03:37,560 --> 00:03:41,600 Speaker 1: its own AD supported plan on December eight. Netflix hasn't 71 00:03:41,600 --> 00:03:44,640 Speaker 1: announced the rate for its AD supported plan. Yeah, we're 72 00:03:44,640 --> 00:03:47,040 Speaker 1: gonna break all of this down with Kevin Meyer, founder 73 00:03:47,080 --> 00:03:51,040 Speaker 1: and co CEO of Candle Media, a former top longtime 74 00:03:51,080 --> 00:03:53,720 Speaker 1: Disney executive of course as well. Kevin, it's so great 75 00:03:53,720 --> 00:03:56,640 Speaker 1: to have you back here on the show. So curious 76 00:03:56,640 --> 00:03:58,400 Speaker 1: what you think of this raft of streaming news we've 77 00:03:58,400 --> 00:04:01,839 Speaker 1: gotten over the last several weeks, and especially this these 78 00:04:01,880 --> 00:04:04,200 Speaker 1: ADS supported tiers. How much do you think these will 79 00:04:04,240 --> 00:04:09,600 Speaker 1: really drive new subscribers to Netflix and Disney Plus. We're 80 00:04:09,600 --> 00:04:13,280 Speaker 1: great to be here, Emily, Always enjoy being on your show. Um, Look, 81 00:04:13,320 --> 00:04:14,880 Speaker 1: I think there's a lot of promise in these as 82 00:04:14,920 --> 00:04:18,160 Speaker 1: supported tiers. I do think that there are very substantial 83 00:04:18,160 --> 00:04:20,880 Speaker 1: tail ones in the marketplace, and marketers are looking to 84 00:04:20,920 --> 00:04:25,040 Speaker 1: place their brand marketing dollars and high quality video environments. Uh, 85 00:04:25,160 --> 00:04:28,599 Speaker 1: linear television has been the traditional place where they spend 86 00:04:28,600 --> 00:04:31,599 Speaker 1: that money, and of course that has becoming that's becoming 87 00:04:31,640 --> 00:04:34,800 Speaker 1: challenged from just an audience perspective as audiences moved from 88 00:04:34,800 --> 00:04:37,760 Speaker 1: linear television and pay TV over to streaming. That's what 89 00:04:37,920 --> 00:04:41,000 Speaker 1: streaming is where the audiences are. When I launched Disney Plus, 90 00:04:41,200 --> 00:04:44,560 Speaker 1: you know, several years ago, we had marketers trying to 91 00:04:44,600 --> 00:04:47,320 Speaker 1: bang down our doors to have advertising on Disney Plus. 92 00:04:47,360 --> 00:04:49,760 Speaker 1: So I know there'll be an explosion of demand. I 93 00:04:49,800 --> 00:04:53,760 Speaker 1: also know, having been involved with running Hulu for many years, 94 00:04:53,800 --> 00:04:57,240 Speaker 1: that the ad supported version of Hulu was five dollars 95 00:04:57,320 --> 00:05:00,800 Speaker 1: less expensive for consumers but brought in and roughly eight 96 00:05:00,800 --> 00:05:03,480 Speaker 1: and a half dollars worth of monthly revenue just from 97 00:05:03,520 --> 00:05:05,400 Speaker 1: the ad loads and the ad sales that they add. 98 00:05:05,600 --> 00:05:07,840 Speaker 1: So I'm feeling pretty bullish about it. I do think 99 00:05:07,880 --> 00:05:11,280 Speaker 1: that consumers do tend to like to pay less, even 100 00:05:11,279 --> 00:05:13,800 Speaker 1: if to put up with a small ad load. I 101 00:05:13,880 --> 00:05:16,200 Speaker 1: think that both Netflix and Disney will be quite successful. 102 00:05:16,279 --> 00:05:18,320 Speaker 1: If you don't know how Netflix will yet price their 103 00:05:18,520 --> 00:05:21,640 Speaker 1: their their service with ads. Disney surprised me a little 104 00:05:21,640 --> 00:05:23,680 Speaker 1: bit with keeping the same price as it is today 105 00:05:24,040 --> 00:05:27,440 Speaker 1: add free for ads and moving the ad free price 106 00:05:27,640 --> 00:05:29,800 Speaker 1: up three dollars or thirty eight percent. I think that's 107 00:05:29,839 --> 00:05:32,320 Speaker 1: a pretty aggressive price move. It will be very interesting 108 00:05:32,320 --> 00:05:35,040 Speaker 1: to see how much price sensitivity is in the Disney 109 00:05:35,040 --> 00:05:37,760 Speaker 1: plus subscriber ranks and see how that how that evolves. 110 00:05:38,480 --> 00:05:41,040 Speaker 1: And look, you've always said Netflix and Disney can both 111 00:05:41,279 --> 00:05:44,720 Speaker 1: and will both coexist. But over the longer term, given 112 00:05:44,720 --> 00:05:48,400 Speaker 1: the challenges that we we've known them to face, especially 113 00:05:48,400 --> 00:05:51,279 Speaker 1: over the last six months, does Netflix or Disney have 114 00:05:51,400 --> 00:05:56,719 Speaker 1: the edge? They're very different services. Um Disney is configured 115 00:05:56,920 --> 00:05:59,839 Speaker 1: with the core brands of the Wall Disney Company, including Inport, Disney, 116 00:05:59,839 --> 00:06:03,800 Speaker 1: It's Help and Pixar, Marvels, Star Wars, National Geographic, and 117 00:06:03,839 --> 00:06:07,000 Speaker 1: it's meant is designed to superserve those fans, the fans 118 00:06:07,000 --> 00:06:09,799 Speaker 1: of those brands. Now they have expanded under Bob Shapeck, 119 00:06:09,839 --> 00:06:12,960 Speaker 1: They've expanded the programming somewhat to have a little bit 120 00:06:12,960 --> 00:06:16,280 Speaker 1: more general entertainment adult programming, but still the essence of 121 00:06:16,360 --> 00:06:19,640 Speaker 1: Disney Plus is for fans of those brands, not only families, 122 00:06:19,800 --> 00:06:22,320 Speaker 1: because of course, if you have kids, you're more likely 123 00:06:22,360 --> 00:06:24,080 Speaker 1: to be a fan of one of those brands, but 124 00:06:24,160 --> 00:06:26,880 Speaker 1: also for adults and single people and couples, many of 125 00:06:26,880 --> 00:06:29,280 Speaker 1: whom were fans of those brands as well. So that's 126 00:06:29,279 --> 00:06:31,800 Speaker 1: the focus of Disney Plus. And if you are a 127 00:06:31,800 --> 00:06:34,159 Speaker 1: fan of one of those brands, you kind of have 128 00:06:34,279 --> 00:06:37,520 Speaker 1: to have Disney Plus to satisfy, uh, spatisfy that affinity 129 00:06:37,600 --> 00:06:40,360 Speaker 1: that you have. You can't get that programming elsewhere. So 130 00:06:40,400 --> 00:06:41,960 Speaker 1: I think if you're you know, and the Netflix, of 131 00:06:42,040 --> 00:06:45,159 Speaker 1: course is much broader based too, serves uh the entire population. 132 00:06:45,200 --> 00:06:49,240 Speaker 1: It's very much a general entertainment brand and service, so 133 00:06:49,279 --> 00:06:51,360 Speaker 1: I think that has the broader footprint, and I think 134 00:06:51,400 --> 00:06:53,520 Speaker 1: that Disney Plus is typically going to be an add 135 00:06:53,520 --> 00:06:56,680 Speaker 1: on to Netflix. I think both are doing great. I 136 00:06:56,680 --> 00:06:58,839 Speaker 1: think both will be you know, quote unquote winners in 137 00:06:58,839 --> 00:07:02,640 Speaker 1: the global battle for um for having a successful rollout, 138 00:07:02,680 --> 00:07:04,719 Speaker 1: and they already they already are, So I think both 139 00:07:04,760 --> 00:07:06,920 Speaker 1: are going to go exist. And I don't know that 140 00:07:07,160 --> 00:07:09,160 Speaker 1: either open care one is bigger than the other. They 141 00:07:09,200 --> 00:07:11,120 Speaker 1: just want to service their consumers as best they can. 142 00:07:11,960 --> 00:07:15,800 Speaker 1: Streaming of course, has surpassed cable for the first time. 143 00:07:16,160 --> 00:07:18,600 Speaker 1: You know, with HBO's House of Dragons has been a 144 00:07:18,680 --> 00:07:22,080 Speaker 1: huge hit so far. Who else wins and who else 145 00:07:22,160 --> 00:07:25,240 Speaker 1: loses in this new future, Well, it's hard to say. 146 00:07:25,320 --> 00:07:27,160 Speaker 1: I mean, those are the best programming. I guess it's 147 00:07:27,160 --> 00:07:30,160 Speaker 1: an obvious thing to say that people subscribe to these 148 00:07:30,160 --> 00:07:32,840 Speaker 1: services to watch the programs that they love. I think, 149 00:07:33,120 --> 00:07:35,440 Speaker 1: you know, Netflix has already been established itself as a 150 00:07:35,440 --> 00:07:37,600 Speaker 1: big winner. I know there's turbulence in the stock price, 151 00:07:37,600 --> 00:07:39,720 Speaker 1: and they've hit some They've stalled out a little bit 152 00:07:39,760 --> 00:07:43,080 Speaker 1: on growth of subscribers, but I think the add three 153 00:07:43,120 --> 00:07:45,000 Speaker 1: tier at a lower price will actually help them there. 154 00:07:45,160 --> 00:07:48,480 Speaker 1: I think they should see some additional growth restarting with 155 00:07:48,480 --> 00:07:51,640 Speaker 1: with that offering. Um. Look, I think Disney Plus and 156 00:07:51,680 --> 00:07:55,840 Speaker 1: Netflix are in arguably winners. I think that HBO Max 157 00:07:55,960 --> 00:07:58,200 Speaker 1: with the programming that it has in its vault, and 158 00:07:58,280 --> 00:08:02,280 Speaker 1: the and the ongoing production of HDO and discovery programming 159 00:08:02,360 --> 00:08:04,520 Speaker 1: and even seeing enders, I expect to probably be in 160 00:08:04,560 --> 00:08:07,160 Speaker 1: that in that service. I think that's going to be 161 00:08:07,200 --> 00:08:09,320 Speaker 1: a global winner. I think I've been a little bit 162 00:08:09,320 --> 00:08:11,640 Speaker 1: positively surprised by Paramount Plus. To tell you, the truth, 163 00:08:11,800 --> 00:08:13,400 Speaker 1: I didn't have a lot of pok for it to 164 00:08:13,440 --> 00:08:15,840 Speaker 1: be as successful as it has been. So I think 165 00:08:15,840 --> 00:08:18,920 Speaker 1: that's that's they're they're they're making a big play. Then 166 00:08:18,960 --> 00:08:20,920 Speaker 1: get the Apple and you have Amazon. They have a 167 00:08:20,920 --> 00:08:22,440 Speaker 1: lot of money, a lot of cash, and they have 168 00:08:23,320 --> 00:08:25,760 Speaker 1: other strategic reasons to be in the streaming space other 169 00:08:25,800 --> 00:08:29,160 Speaker 1: than the direct economics of those streaming uh, the streaming 170 00:08:29,440 --> 00:08:32,560 Speaker 1: services themselves. So I think they're pretty well committed. So 171 00:08:32,559 --> 00:08:34,040 Speaker 1: I think you have a handfull, you know, four or 172 00:08:34,040 --> 00:08:37,559 Speaker 1: five global winners, And of course the niches will continue 173 00:08:37,600 --> 00:08:40,600 Speaker 1: to to to exist and then be profitable but smaller 174 00:08:40,640 --> 00:08:43,000 Speaker 1: and those will be um, those will you know, won't 175 00:08:43,000 --> 00:08:45,079 Speaker 1: be competing with the big guys, but the big guys 176 00:08:45,120 --> 00:08:48,079 Speaker 1: I think there will be several of them. Ultimately. I'm 177 00:08:48,080 --> 00:08:51,040 Speaker 1: seeing ads for Amazon's Lord of the Rings everywhere I go, 178 00:08:51,320 --> 00:08:55,040 Speaker 1: everywhere I click. Um. The reviews on Rotten Tomatoes, at 179 00:08:55,080 --> 00:08:58,640 Speaker 1: least if you look at the audience reviews not so positive. 180 00:08:59,600 --> 00:09:02,400 Speaker 1: So are kind of rotten on Rotten Tomatoes critics have 181 00:09:02,520 --> 00:09:06,920 Speaker 1: been more positive. What are you making this look? I 182 00:09:06,960 --> 00:09:08,640 Speaker 1: haven't had a chance yet to watch it. I have 183 00:09:08,679 --> 00:09:11,240 Speaker 1: seen the same same reviews that you've seen I would 184 00:09:11,280 --> 00:09:13,319 Speaker 1: pay a lot more attention to the customer reviews than 185 00:09:13,320 --> 00:09:15,599 Speaker 1: to the critic reviews. That's where the rubber reviews the 186 00:09:15,679 --> 00:09:18,559 Speaker 1: road actually. But look, there's a lot of pent up 187 00:09:18,840 --> 00:09:22,640 Speaker 1: excitement for this, for this title, I expected to do well. Um, 188 00:09:22,640 --> 00:09:25,520 Speaker 1: it doesn't have to be critically reviewed to be successful 189 00:09:25,559 --> 00:09:28,280 Speaker 1: or and rotten tomatoes only go so far by the way. 190 00:09:28,520 --> 00:09:31,240 Speaker 1: I just I expected to be to work. I expected 191 00:09:31,320 --> 00:09:36,040 Speaker 1: to to you know, to help Amazon continue to gather 192 00:09:36,200 --> 00:09:40,280 Speaker 1: and keep Prime subscribers. And remember, people subscribe to Prime 193 00:09:40,360 --> 00:09:42,600 Speaker 1: not just for video, but primarily for delivery of their 194 00:09:42,679 --> 00:09:44,520 Speaker 1: of their goods and to and to conclude e commerce 195 00:09:44,520 --> 00:09:47,840 Speaker 1: transactions on on on that platform. So I do think 196 00:09:47,880 --> 00:09:51,160 Speaker 1: that it's not a must win. It doesn't have to 197 00:09:51,200 --> 00:09:52,760 Speaker 1: be one of the top shows of the year for 198 00:09:52,840 --> 00:09:55,440 Speaker 1: it to be to prove successful and to leverage more 199 00:09:55,559 --> 00:09:57,839 Speaker 1: e commerce activity on Amazon, this is the old purpose 200 00:09:57,880 --> 00:10:00,960 Speaker 1: of it, I think. So, look, you know, you've also 201 00:10:01,000 --> 00:10:03,720 Speaker 1: talked about consolidation, but uh, you know, it seems like 202 00:10:03,760 --> 00:10:06,080 Speaker 1: you're pretty optimistic about a lot of these services. If 203 00:10:06,080 --> 00:10:10,079 Speaker 1: consolidation happens, who who gets consolidated? It's always hard to 204 00:10:10,120 --> 00:10:12,120 Speaker 1: call that, Emily. Um, you know, if I knew that, 205 00:10:12,240 --> 00:10:14,120 Speaker 1: I don't have a crystal ball there. But these are 206 00:10:14,120 --> 00:10:16,160 Speaker 1: big brands, I guess the ones that are, you know, 207 00:10:16,200 --> 00:10:19,480 Speaker 1: somewhat smaller could be consolidated. No one's consolidating Apple. No 208 00:10:19,480 --> 00:10:22,240 Speaker 1: one's consolidating Amazon. That's obvious. And then you look at 209 00:10:22,240 --> 00:10:24,800 Speaker 1: the media companies and which one of those might be consolidated. 210 00:10:25,040 --> 00:10:28,880 Speaker 1: There's always rumors about you know, UM Peacock and HBO 211 00:10:28,920 --> 00:10:31,120 Speaker 1: Max coming to the other possibly, or the parent companies 212 00:10:31,240 --> 00:10:36,040 Speaker 1: merging Paramount and Paramount Global. The parent company is often 213 00:10:36,040 --> 00:10:38,959 Speaker 1: discussed as being in play, and Stars is out there too, 214 00:10:39,000 --> 00:10:41,480 Speaker 1: by the way, which is being separated from lions Gate. 215 00:10:41,559 --> 00:10:43,600 Speaker 1: That that will be brought with someone ultimately, I think 216 00:10:43,960 --> 00:10:47,040 Speaker 1: so hard to say. Obviously, the bigger guys, if there 217 00:10:47,120 --> 00:10:49,679 Speaker 1: is consolidation, the bigger guys swallow the smaller guys. That's 218 00:10:49,720 --> 00:10:52,160 Speaker 1: the way the physics of it, and that that will 219 00:10:52,200 --> 00:10:54,320 Speaker 1: take place here too. So you might look at you 220 00:10:54,360 --> 00:10:56,800 Speaker 1: might look at some of the digital giants to to 221 00:10:56,880 --> 00:10:59,080 Speaker 1: buy some of the smaller media companies, or you might 222 00:10:59,120 --> 00:11:01,880 Speaker 1: look for a merger between media companies. But I don't 223 00:11:01,960 --> 00:11:04,080 Speaker 1: I think that that will happen ultimately, and not not 224 00:11:04,120 --> 00:11:07,000 Speaker 1: in the two distant future. Now, Dan Lobe a few 225 00:11:07,040 --> 00:11:12,960 Speaker 1: weeks ago urging Disney to spin off ESPN was otherwise 226 00:11:13,080 --> 00:11:17,440 Speaker 1: positive of Bob Chpeck. Of course, you worked at Disney 227 00:11:17,440 --> 00:11:22,960 Speaker 1: for so many years and oversaw ESPN. Was this ever 228 00:11:23,320 --> 00:11:28,199 Speaker 1: discussed and in your view is this ever going to happen? Well, 229 00:11:28,200 --> 00:11:30,360 Speaker 1: it's it's a very interesting question. From time to time 230 00:11:30,400 --> 00:11:33,280 Speaker 1: we discussed, you know, what what should be the deployment 231 00:11:33,320 --> 00:11:34,920 Speaker 1: of all of the assets of the Walt Disney Company. 232 00:11:34,960 --> 00:11:38,800 Speaker 1: We had are very very um, a very high quality boarder, 233 00:11:39,120 --> 00:11:41,000 Speaker 1: and of course one of the one of the things 234 00:11:41,040 --> 00:11:44,120 Speaker 1: that board always asks of management is to review the 235 00:11:44,160 --> 00:11:47,280 Speaker 1: asset portfolio that you have and understand whether or not 236 00:11:47,520 --> 00:11:49,480 Speaker 1: there should be some additions to the assets or some 237 00:11:49,559 --> 00:11:52,680 Speaker 1: subtractions should you sell something. So it is discussed, you know, 238 00:11:52,720 --> 00:11:54,240 Speaker 1: at various times over the years that I was there, 239 00:11:54,280 --> 00:11:55,960 Speaker 1: was there for a very long time, so I had 240 00:11:56,000 --> 00:11:59,160 Speaker 1: to discussed several times. Bob is a very smart guy. 241 00:11:59,280 --> 00:12:01,400 Speaker 1: I respect him all. I think he's a great uh. 242 00:12:01,400 --> 00:12:04,280 Speaker 1: He's doing a very well good job as CEO. He'll 243 00:12:04,320 --> 00:12:06,680 Speaker 1: make the right call. My own observation would be that 244 00:12:07,000 --> 00:12:09,680 Speaker 1: ESPN was a very strategic asset for the Walt Disney 245 00:12:09,679 --> 00:12:12,520 Speaker 1: Company when they are when PayTV was growing, and when 246 00:12:12,760 --> 00:12:15,480 Speaker 1: ESPN was such an important part of the bundle of 247 00:12:15,600 --> 00:12:18,280 Speaker 1: channels that Disney had, including ABC and the Disney Channel 248 00:12:18,280 --> 00:12:20,320 Speaker 1: and X and all the different all the different channels 249 00:12:20,320 --> 00:12:22,480 Speaker 1: and Nation National, Geographic, all the channels that they have. 250 00:12:22,720 --> 00:12:26,320 Speaker 1: As the pay TV universe continues, it's precipitous decline. I 251 00:12:26,360 --> 00:12:28,680 Speaker 1: think that the channel business and also the audiences for 252 00:12:29,080 --> 00:12:31,760 Speaker 1: among the you know, for the programming on linear channels, 253 00:12:31,920 --> 00:12:34,960 Speaker 1: is decreasing quite substantially. The channel business, not only for 254 00:12:35,000 --> 00:12:37,120 Speaker 1: Disney but for all these media companies, is declining in 255 00:12:37,360 --> 00:12:41,880 Speaker 1: strategic importance. So therefore the importance of ESPN to be 256 00:12:41,960 --> 00:12:46,319 Speaker 1: a bulwark in that channel distribution modality is becoming less also, 257 00:12:46,559 --> 00:12:49,640 Speaker 1: So I think that the the reason the strategic comparative 258 00:12:49,880 --> 00:12:51,920 Speaker 1: of having a sports service like ESPN is less than 259 00:12:51,960 --> 00:12:54,400 Speaker 1: it used to be. So I think there's more degrees 260 00:12:54,400 --> 00:12:57,040 Speaker 1: of freedom, operating flexibility, if you will, for the for 261 00:12:57,120 --> 00:12:59,200 Speaker 1: Bob and the management team there to make the right decision. 262 00:12:59,240 --> 00:13:01,960 Speaker 1: So I wouldn't be shocked to see it um spun 263 00:13:02,040 --> 00:13:04,280 Speaker 1: off from Disney, but I wouldn't be shocked to see 264 00:13:04,280 --> 00:13:08,840 Speaker 1: a state or two. Yeah, okay, okay, Well, next week 265 00:13:09,160 --> 00:13:11,679 Speaker 1: kicks off NFL season, and you know, there's been a 266 00:13:11,720 --> 00:13:14,640 Speaker 1: lot of talk about whether these streaming services need sports 267 00:13:14,679 --> 00:13:16,240 Speaker 1: to take them to the next level. Is that going 268 00:13:16,280 --> 00:13:19,320 Speaker 1: to drive the next chapter, the next era of subscriber growth. 269 00:13:19,679 --> 00:13:22,959 Speaker 1: Maybe it's not just sports, maybe it's also news. What 270 00:13:23,080 --> 00:13:25,800 Speaker 1: do you think on the tournament of a big sports 271 00:13:25,800 --> 00:13:28,280 Speaker 1: streaming service outside the US called the Zone D A 272 00:13:28,440 --> 00:13:31,760 Speaker 1: c N and we stream the big most important soccer 273 00:13:31,840 --> 00:13:36,280 Speaker 1: leagues in Italy and Spain and in Germany, and we 274 00:13:36,360 --> 00:13:38,760 Speaker 1: have and across the tontinent of Europe, and in Japan 275 00:13:38,880 --> 00:13:40,800 Speaker 1: we also have a big, big presence, and in the 276 00:13:40,920 --> 00:13:43,880 Speaker 1: US with boxing. I think that the ultimate, the ultimate 277 00:13:44,200 --> 00:13:46,360 Speaker 1: way that sports will be delivered to consumers will be 278 00:13:46,760 --> 00:13:48,840 Speaker 1: over the top. It will be delivered via the internet, 279 00:13:48,960 --> 00:13:52,439 Speaker 1: on apps, on televisions, and on mobile devices, just like 280 00:13:52,880 --> 00:13:58,280 Speaker 1: entertainment programming is. I don't think that entertainment services need 281 00:13:58,400 --> 00:14:00,319 Speaker 1: to have sports, nor do I think that sport needs 282 00:14:00,360 --> 00:14:03,480 Speaker 1: of entertainment. I think consumers are tired of paying a 283 00:14:03,600 --> 00:14:06,559 Speaker 1: lot for sports when they're just interested in entertainment. That's 284 00:14:06,559 --> 00:14:08,800 Speaker 1: what's bringing the pay TV bundle down. And I think 285 00:14:08,840 --> 00:14:10,840 Speaker 1: that people just just want to watch for I want 286 00:14:10,840 --> 00:14:13,679 Speaker 1: to pay for entertainment necessarily, so I think the disaggregation 287 00:14:13,840 --> 00:14:17,280 Speaker 1: of different programming types into and making leving consumers make 288 00:14:17,320 --> 00:14:18,839 Speaker 1: a choice of what they want to pay for. I 289 00:14:18,920 --> 00:14:21,240 Speaker 1: think that is the promise of the Internet. That's why 290 00:14:21,320 --> 00:14:24,000 Speaker 1: streaming services have have done so well. And I think 291 00:14:24,040 --> 00:14:26,360 Speaker 1: you'll see that here sports services will be paid for 292 00:14:26,840 --> 00:14:30,120 Speaker 1: separately and package separately entertainment in the future. I think 293 00:14:31,360 --> 00:14:33,560 Speaker 1: would love an update on what you're doing at Candle Media. 294 00:14:33,640 --> 00:14:36,720 Speaker 1: Of course you bought Hello Sunshine. I want to know 295 00:14:36,840 --> 00:14:40,280 Speaker 1: how that's going and where your priorities are in this 296 00:14:40,480 --> 00:14:44,640 Speaker 1: new kind of constantly evolving world. Well, Candle Meet is 297 00:14:44,760 --> 00:14:48,280 Speaker 1: going great. They have a fantastic partner in Blackstone Private 298 00:14:48,320 --> 00:14:51,480 Speaker 1: Equity Group. They've been unbelievable supporters of the Candle We 299 00:14:51,600 --> 00:14:54,320 Speaker 1: have bought about nine or ten companies already. The biggest 300 00:14:54,400 --> 00:14:57,920 Speaker 1: ones were Hello Sunshine and the company called Moonbug. Pella 301 00:14:58,000 --> 00:15:00,720 Speaker 1: Sunshine is doing great, Reese is Restura, this spoon is 302 00:15:00,720 --> 00:15:03,720 Speaker 1: still highly involved with a great management team. There. We're 303 00:15:03,760 --> 00:15:06,760 Speaker 1: doing We're doing very well uh at Hello Sunshine, but 304 00:15:06,880 --> 00:15:09,400 Speaker 1: also a Moonbug where if you're a parent with small kids, 305 00:15:09,400 --> 00:15:12,560 Speaker 1: you would under you would know of our great intellectual 306 00:15:12,560 --> 00:15:16,360 Speaker 1: property and characters and Mukoka Millon the most popular streaming 307 00:15:17,400 --> 00:15:19,800 Speaker 1: the second most popular show on Netflix last year in 308 00:15:19,880 --> 00:15:23,119 Speaker 1: the second biggest YouTube channel in the world. Slippy Little 309 00:15:23,160 --> 00:15:24,920 Speaker 1: Baby Bomb a whole bunch of different ip that we 310 00:15:24,960 --> 00:15:27,960 Speaker 1: haven't move like. That's doing very well. We have bought 311 00:15:28,040 --> 00:15:31,000 Speaker 1: a company called Exile, which does programming in Latin America 312 00:15:31,160 --> 00:15:33,760 Speaker 1: under the stewardship of Isaac Lee, who was the former 313 00:15:34,080 --> 00:15:37,240 Speaker 1: head of content for both Televisa and Univision. He's a 314 00:15:37,280 --> 00:15:39,920 Speaker 1: great Latin American programmer. And that's a multi platform business 315 00:15:39,960 --> 00:15:43,120 Speaker 1: that we acquired. Also Required Attention, which does social media 316 00:15:43,160 --> 00:15:46,080 Speaker 1: storytelling on TikTok and Instagram and elsewhere. That will help 317 00:15:46,200 --> 00:15:48,720 Speaker 1: all of our companies do. All of our brands do 318 00:15:49,000 --> 00:15:50,720 Speaker 1: much better in the marketplace when they need to have 319 00:15:50,840 --> 00:15:53,800 Speaker 1: a social media footprint. So we love the fly wheel 320 00:15:53,840 --> 00:15:57,080 Speaker 1: that we've created in traditional television content, social media storytelling 321 00:15:57,160 --> 00:15:59,920 Speaker 1: and then related commerce opportunities. And we we're doing We're 322 00:16:00,360 --> 00:16:04,160 Speaker 1: We're very polish on our future. I've got a three 323 00:16:04,200 --> 00:16:06,840 Speaker 1: year old Kevin Coco melon is huge in our house. 324 00:16:07,000 --> 00:16:08,440 Speaker 1: I don't know whether to say thank you or no 325 00:16:08,560 --> 00:16:14,040 Speaker 1: thank you for that, but you watch Kevin Meyer, candle 326 00:16:14,120 --> 00:16:16,840 Speaker 1: founder and co CEO. Always good to have you, Kevin, 327 00:16:17,080 --> 00:16:28,760 Speaker 1: have a great weekend. Thank you for stopping by. Twitter 328 00:16:28,960 --> 00:16:31,160 Speaker 1: is asking a judge to order Elon Musk to turn 329 00:16:31,240 --> 00:16:33,720 Speaker 1: over all of his text messages from the first six months. 330 00:16:35,040 --> 00:16:38,160 Speaker 1: The company is saying the billionaire isn't cooperating and exchanging 331 00:16:38,200 --> 00:16:40,720 Speaker 1: evidence ahead of the trial in this fight over that 332 00:16:40,880 --> 00:16:44,080 Speaker 1: forty four billion dollar deal bloom Brooks. Jeff Phely joins 333 00:16:44,160 --> 00:16:48,960 Speaker 1: us from Delaware More Late Friday News. Jeff, is it 334 00:16:49,080 --> 00:16:52,680 Speaker 1: usual to be asking for six months of test text messages? 335 00:16:52,720 --> 00:16:55,360 Speaker 1: I mean, should we have expected this given Elon Musk 336 00:16:55,520 --> 00:16:58,920 Speaker 1: is witness number one? Yeah, I don't think it's an 337 00:16:59,000 --> 00:17:02,760 Speaker 1: unusual request. I've seen it in other cases, and I 338 00:17:02,880 --> 00:17:06,320 Speaker 1: suspect Mr Musk has a lot of business by text, 339 00:17:06,720 --> 00:17:10,760 Speaker 1: so you know, so it's easily actually going to hand 340 00:17:10,800 --> 00:17:13,479 Speaker 1: them over. What's the likelihood Twitter is going to get these? 341 00:17:14,320 --> 00:17:16,480 Speaker 1: I think the judge will ask him to hand over, 342 00:17:16,920 --> 00:17:19,040 Speaker 1: you know, maybe not all of them, but some of them, 343 00:17:19,240 --> 00:17:21,639 Speaker 1: if you know, have to go through and have somebody 344 00:17:21,800 --> 00:17:25,320 Speaker 1: look at them to see if they're relevant to the case. Maybe, 345 00:17:25,440 --> 00:17:27,880 Speaker 1: but he's not going to be able to keep texts 346 00:17:28,160 --> 00:17:32,520 Speaker 1: completely out. How does one do this? I mean, I 347 00:17:32,680 --> 00:17:35,760 Speaker 1: mean there are hundreds thousands of texts, and there could 348 00:17:35,760 --> 00:17:38,960 Speaker 1: be a lot of different kinds of information in those times, 349 00:17:39,920 --> 00:17:44,080 Speaker 1: those things that might be interesting. True, But he also 350 00:17:44,200 --> 00:17:48,280 Speaker 1: has he liked many folks. He also has multiple phones 351 00:17:48,720 --> 00:17:52,280 Speaker 1: and wipes his phone periodically, so you know, it gets 352 00:17:52,400 --> 00:17:54,800 Speaker 1: kind of touchy, you know, trying to figure it out. 353 00:17:55,920 --> 00:18:00,040 Speaker 1: I suspect that since he filed the notice that he 354 00:18:00,160 --> 00:18:02,600 Speaker 1: was gonna walk away from the deal though, that he's 355 00:18:02,640 --> 00:18:06,240 Speaker 1: been saving his texts because judges don't like here, and 356 00:18:06,320 --> 00:18:10,840 Speaker 1: that that that kind of material has been deleted. Okay, okay. Now, 357 00:18:10,880 --> 00:18:13,680 Speaker 1: Twitter says he hasn't been cooperating in the discovery process. 358 00:18:14,000 --> 00:18:17,800 Speaker 1: What does that mean? Well, and the discovery is the 359 00:18:17,840 --> 00:18:21,680 Speaker 1: pre trial information exchange that folks do so you can 360 00:18:21,960 --> 00:18:23,960 Speaker 1: you know, get the material to put your case together. 361 00:18:24,520 --> 00:18:27,920 Speaker 1: Twitter claims that he has not been cooperating in good faith, 362 00:18:28,000 --> 00:18:30,919 Speaker 1: acting in good faith, dragging his feet. In other words, 363 00:18:31,440 --> 00:18:33,960 Speaker 1: that the most people say, oh no, it's not us, 364 00:18:34,040 --> 00:18:36,639 Speaker 1: has been dragging our feet. Twitter has been dragging their 365 00:18:36,680 --> 00:18:39,480 Speaker 1: feet and trying to hide witnesses about this whole box 366 00:18:39,600 --> 00:18:44,200 Speaker 1: issue again. These kind of fights are very common in 367 00:18:44,280 --> 00:18:48,040 Speaker 1: the run up to these you know merger cases, all right, 368 00:18:48,080 --> 00:18:49,960 Speaker 1: and we are still, of course waiting to see if 369 00:18:50,040 --> 00:18:53,440 Speaker 1: this indeed will stay in October or if it gets 370 00:18:53,480 --> 00:18:55,920 Speaker 1: pushed back to November December, as Muski is asking for 371 00:18:56,240 --> 00:19:08,720 Speaker 1: Jeff Feey in Delaware, thank you chip Stocks and focus. 372 00:19:08,760 --> 00:19:12,760 Speaker 1: After the US government imposed new license requirements on semiconductor 373 00:19:12,920 --> 00:19:16,199 Speaker 1: exports to China. Bloomberg's Ian King, of course, covers all 374 00:19:16,359 --> 00:19:19,560 Speaker 1: things chips Ian. What does this mean? Yeah, I mean 375 00:19:19,640 --> 00:19:22,080 Speaker 1: this is a big deal first of all, for in 376 00:19:22,200 --> 00:19:25,320 Speaker 1: video obviously, for hundred million dollars in a quarter for 377 00:19:25,440 --> 00:19:27,400 Speaker 1: in video that's and the ads up over a year. 378 00:19:27,920 --> 00:19:30,320 Speaker 1: On the flip side of that, for China, this is 379 00:19:30,720 --> 00:19:34,560 Speaker 1: a key piece of technology. These are key AI accelerators 380 00:19:34,640 --> 00:19:37,960 Speaker 1: that really helped train these systems. So if you're in 381 00:19:38,040 --> 00:19:39,959 Speaker 1: a hyper scale you really need this if you want 382 00:19:40,000 --> 00:19:42,280 Speaker 1: to stay up with what Google, what a ws are doing. 383 00:19:42,720 --> 00:19:44,600 Speaker 1: And that's really you know, could be a major blow 384 00:19:44,680 --> 00:19:49,480 Speaker 1: to some of these Chinese customers, you know, chip companies 385 00:19:49,880 --> 00:19:52,359 Speaker 1: reporting it's been a lot of doom and gloom, but 386 00:19:52,560 --> 00:19:57,399 Speaker 1: Broadcom seems to be more positive. Why is that? Yeah, No, 387 00:19:57,560 --> 00:20:00,119 Speaker 1: I mean, they spent an hour on the phone ys 388 00:20:00,160 --> 00:20:02,399 Speaker 1: today with analyst saying are you shut you know, answering 389 00:20:02,440 --> 00:20:04,840 Speaker 1: the same question, which was are you sure? Are you sure? 390 00:20:05,320 --> 00:20:08,520 Speaker 1: And you know, it's really a division between the PC 391 00:20:08,760 --> 00:20:11,800 Speaker 1: related companies where we've seen, you know, laptop demand has 392 00:20:11,840 --> 00:20:15,080 Speaker 1: just gone away after the pandemic, and you know, lots 393 00:20:15,119 --> 00:20:18,439 Speaker 1: of companies like Intel like you know, a lot weaker 394 00:20:18,560 --> 00:20:22,359 Speaker 1: outlook on the flip side. Don't comment saying, look, infrastructure, 395 00:20:22,440 --> 00:20:25,919 Speaker 1: these giant data centers people are still building. Companies are 396 00:20:25,960 --> 00:20:29,080 Speaker 1: still investing in their infrastructure and that's why our numbers 397 00:20:29,119 --> 00:20:32,640 Speaker 1: are good. Broadcom is, of course a big Apple supplier. 398 00:20:33,200 --> 00:20:36,199 Speaker 1: What is what they had to say indicate about iPhone 399 00:20:36,200 --> 00:20:38,080 Speaker 1: de man, especially with the big Apple event coming up 400 00:20:38,119 --> 00:20:41,080 Speaker 1: next week. Yeah, no, you're you're absolutely right. That got 401 00:20:41,160 --> 00:20:43,360 Speaker 1: kind of lost in the in the general mix yesterday. 402 00:20:43,400 --> 00:20:46,359 Speaker 1: And what world Com said was like, you know, the 403 00:20:46,720 --> 00:20:50,280 Speaker 1: shipments for our large North American customer that everybody knows 404 00:20:50,320 --> 00:20:52,920 Speaker 1: who it is, It's, it's it's Apple are going to 405 00:20:53,000 --> 00:20:55,800 Speaker 1: be kind of what they were last at this point 406 00:20:55,960 --> 00:20:59,280 Speaker 1: last time, and demand this solid. So the indications at 407 00:20:59,359 --> 00:21:02,080 Speaker 1: least from that on a unit basis is that Apple 408 00:21:02,240 --> 00:21:04,960 Speaker 1: is expecting the next version of the iPhone to be 409 00:21:05,200 --> 00:21:07,720 Speaker 1: sort of as good as the previous one was, which 410 00:21:07,720 --> 00:21:10,760 Speaker 1: I think, given you know the environment and consumer spending, 411 00:21:11,080 --> 00:21:14,200 Speaker 1: will be seen as a positive side all right, And 412 00:21:14,320 --> 00:21:16,480 Speaker 1: of course Bloomberg Technology will be coming to you live 413 00:21:16,640 --> 00:21:19,760 Speaker 1: from the Apple event Wednesday of next week, will be 414 00:21:19,760 --> 00:21:22,800 Speaker 1: across all of those new iPhones were expecting them to unveil. 415 00:21:22,840 --> 00:21:25,800 Speaker 1: Bloomberg's and King Ian thank you so much for that update. 416 00:21:34,680 --> 00:21:36,840 Speaker 1: Welcome back to Bloomberg Technology. I'm Emily Chang in San 417 00:21:36,880 --> 00:21:40,560 Speaker 1: Francisco for the last installment of our a Tech series. 418 00:21:40,600 --> 00:21:42,240 Speaker 1: This week, we want to take a look at education 419 00:21:42,400 --> 00:21:46,840 Speaker 1: in the metaverse. With today's technology already prompting so many 420 00:21:46,880 --> 00:21:49,159 Speaker 1: safety concerns, how do we make sure the metaverse can 421 00:21:49,200 --> 00:21:52,600 Speaker 1: be a safe place for all students. Let's bring in 422 00:21:52,760 --> 00:21:55,560 Speaker 1: Kathy hirsh Passek for more on this. She's a professor 423 00:21:55,600 --> 00:21:59,479 Speaker 1: of psychology at Temple University and a senior fellow at 424 00:21:59,520 --> 00:22:02,960 Speaker 1: the Brookie Institution. Dr harsh Passing, thank you so much 425 00:22:03,240 --> 00:22:06,119 Speaker 1: for joining us. What does the metaverurs look like in 426 00:22:06,200 --> 00:22:08,400 Speaker 1: the classroom, or should I say what does the classroom 427 00:22:08,440 --> 00:22:12,480 Speaker 1: look like in the metamurs? Well, we're not really sure yet, 428 00:22:12,760 --> 00:22:15,240 Speaker 1: is the curi answer to that. We're on the cusp 429 00:22:15,400 --> 00:22:18,960 Speaker 1: of so much that's so exciting that it feels kind 430 00:22:19,000 --> 00:22:22,240 Speaker 1: of like the dot com revolution, and I think many 431 00:22:22,280 --> 00:22:24,680 Speaker 1: of us are trying to figure it out. But I 432 00:22:24,760 --> 00:22:26,560 Speaker 1: want to take you on a journey right now what 433 00:22:26,720 --> 00:22:29,760 Speaker 1: it would be like. It's instead of reading paragraphs about 434 00:22:29,840 --> 00:22:34,280 Speaker 1: ancient Greece, you actually got to visit it, and you 435 00:22:34,480 --> 00:22:37,840 Speaker 1: actually got to figure out how we know so much 436 00:22:38,000 --> 00:22:42,400 Speaker 1: about ancient Greece given that we're living thousands of years later. 437 00:22:43,080 --> 00:22:46,520 Speaker 1: So what if students could be active and engaged as 438 00:22:46,600 --> 00:22:49,800 Speaker 1: they were learning, as opposed to pass it when they're 439 00:22:49,800 --> 00:22:56,800 Speaker 1: reading or listening. You know, it's I feel like technology 440 00:22:56,960 --> 00:23:00,920 Speaker 1: is just coming into classrooms. Were us getting kids to 441 00:23:01,000 --> 00:23:04,280 Speaker 1: start learning how to code? How are we going to 442 00:23:04,359 --> 00:23:07,600 Speaker 1: get educators and schools on board and equipped with this 443 00:23:07,680 --> 00:23:10,919 Speaker 1: new technology even when it is available. Well, I think 444 00:23:10,960 --> 00:23:12,720 Speaker 1: it's going to take a little while, to be quite 445 00:23:12,760 --> 00:23:15,199 Speaker 1: honest with you. The affordability is a big piece, as 446 00:23:15,240 --> 00:23:18,639 Speaker 1: you mentioned, um the second big pieces right now. The 447 00:23:18,680 --> 00:23:22,800 Speaker 1: glasses are kind of clunky, but researchers are working on 448 00:23:22,960 --> 00:23:26,160 Speaker 1: that technology. Folks are working on it, so quite soon. 449 00:23:26,280 --> 00:23:28,320 Speaker 1: I think it's gonna be like wearing a pair of 450 00:23:28,400 --> 00:23:30,800 Speaker 1: glasses like this, and we're going to be able to 451 00:23:31,160 --> 00:23:35,160 Speaker 1: enter into new spaces and alternate realities. One key piece 452 00:23:35,240 --> 00:23:37,440 Speaker 1: I want to add here, though, is that this is 453 00:23:37,520 --> 00:23:41,159 Speaker 1: not meant to be a substitute for the kind of 454 00:23:41,240 --> 00:23:44,440 Speaker 1: reality that we live in or for the social interactions 455 00:23:44,560 --> 00:23:47,680 Speaker 1: we have in that reality. It's not a solo game. 456 00:23:48,160 --> 00:23:50,119 Speaker 1: This is meant to be a space in which we 457 00:23:50,240 --> 00:23:53,639 Speaker 1: can work with others and have teachers who guide us 458 00:23:53,840 --> 00:23:59,040 Speaker 1: into these worlds and back again. A lot of parents, 459 00:23:59,080 --> 00:24:03,160 Speaker 1: including myself, concerned about screen time, concerned about tech addiction. 460 00:24:03,560 --> 00:24:07,840 Speaker 1: Why wouldn't this make all of that worse. Well, look, 461 00:24:08,200 --> 00:24:10,480 Speaker 1: tech has its good sides and its bad sides. It 462 00:24:10,640 --> 00:24:13,399 Speaker 1: takes us to places that we could never go otherwise. 463 00:24:14,040 --> 00:24:16,600 Speaker 1: On the other hand, if we sit around by ourselves 464 00:24:16,800 --> 00:24:20,320 Speaker 1: just investigating tech, we kind of that the solo doesn't 465 00:24:20,359 --> 00:24:22,720 Speaker 1: work so well for human beings because we have a 466 00:24:22,840 --> 00:24:26,760 Speaker 1: socially integrated brain and that's how we learn. So I 467 00:24:26,880 --> 00:24:29,600 Speaker 1: think what we need to move to a more collective 468 00:24:29,720 --> 00:24:34,399 Speaker 1: kinds of environments that prompt prompt social interaction rather than 469 00:24:34,480 --> 00:24:38,280 Speaker 1: taking over for it. They can't be substitutes, and that's 470 00:24:38,320 --> 00:24:40,640 Speaker 1: going to be true as we go along the same 471 00:24:40,680 --> 00:24:43,440 Speaker 1: as nutrition, How are we going to stop our kids 472 00:24:43,480 --> 00:24:46,000 Speaker 1: from meeting dessert? Well, we have to set limits and say, 473 00:24:46,160 --> 00:24:50,840 Speaker 1: you know, you've got to eat the roccoli. Now, what 474 00:24:50,960 --> 00:24:55,520 Speaker 1: about concerns about privacy and protecting our our children in 475 00:24:55,640 --> 00:24:59,280 Speaker 1: these new worlds? Given that much of this technology is 476 00:24:59,320 --> 00:25:01,119 Speaker 1: going to be deployed by big tech company, some of 477 00:25:01,200 --> 00:25:04,880 Speaker 1: which don't have the best records on privacy. Boy, isn't 478 00:25:04,920 --> 00:25:07,879 Speaker 1: that isn't that true? I think at the beginning, um, 479 00:25:08,200 --> 00:25:09,800 Speaker 1: you know, will be wonderful for a lot of this 480 00:25:09,960 --> 00:25:14,560 Speaker 1: were through the gating of the education systems so that 481 00:25:14,920 --> 00:25:19,399 Speaker 1: teachers would work together to prin pick wonderful experiences that 482 00:25:19,520 --> 00:25:22,239 Speaker 1: our kids could learn from and enjoy and that they 483 00:25:22,359 --> 00:25:25,119 Speaker 1: could be guides in. Um. What I don't think we 484 00:25:25,240 --> 00:25:27,960 Speaker 1: want to create is something that's a total free for all, 485 00:25:28,720 --> 00:25:32,760 Speaker 1: because I worry, like you do, that many of these 486 00:25:33,240 --> 00:25:36,440 Speaker 1: new technologies can get out of hand. So let's move 487 00:25:36,600 --> 00:25:39,000 Speaker 1: slowly this time, and let's try to think it out 488 00:25:39,600 --> 00:25:44,000 Speaker 1: before we just thrust it in the marketplace. I spoke 489 00:25:44,080 --> 00:25:47,840 Speaker 1: with the Attorney General of New Mexico yesterday. Hector Balderis 490 00:25:47,880 --> 00:25:51,640 Speaker 1: who's sounded the alarm about kids privacy when it comes 491 00:25:51,680 --> 00:25:56,040 Speaker 1: to technology in the current world. He's actually sued Google 492 00:25:56,640 --> 00:25:59,520 Speaker 1: about how they used student data even even before the 493 00:25:59,560 --> 00:26:02,159 Speaker 1: pandemic ever happened. Because you know, a lot of the 494 00:26:02,200 --> 00:26:05,280 Speaker 1: technology that schools are using it's free software, free technology, 495 00:26:05,800 --> 00:26:09,040 Speaker 1: because a lot of these schools are under research sourced. 496 00:26:09,200 --> 00:26:12,840 Speaker 1: He's very concerned about regulation and whether or not lawmakers 497 00:26:13,320 --> 00:26:16,480 Speaker 1: can figure out how to regulate current technologies. Take a 498 00:26:16,560 --> 00:26:20,159 Speaker 1: listen to what he had to say. Technology is a 499 00:26:20,200 --> 00:26:25,119 Speaker 1: great equalizer in terms of education outcomes, but we are 500 00:26:25,200 --> 00:26:29,040 Speaker 1: not regulating these companies, and we are not regulating safety 501 00:26:29,800 --> 00:26:34,560 Speaker 1: and these safeguards within these technology products. What do you 502 00:26:34,600 --> 00:26:37,480 Speaker 1: think about Dr Hirst that Doctor Hirst passet given that 503 00:26:37,640 --> 00:26:40,159 Speaker 1: you know, obviously we want everyone to have the benefit 504 00:26:40,200 --> 00:26:44,840 Speaker 1: of these technologies, but they also need to be fairly 505 00:26:44,920 --> 00:26:49,040 Speaker 1: and appropriately regulated. But regulation is up to lawmakers who 506 00:26:49,080 --> 00:26:52,360 Speaker 1: don't necessarily understand the technology that they're trying to regulate. Well, 507 00:26:52,400 --> 00:26:54,080 Speaker 1: I think we're going to have to help train them, 508 00:26:54,480 --> 00:26:57,160 Speaker 1: and I think it's really important. I couldn't agree more 509 00:26:57,400 --> 00:26:59,680 Speaker 1: with what I just heard. I think it has to 510 00:26:59,800 --> 00:27:03,720 Speaker 1: be some regulation to make this safe for parents and 511 00:27:03,920 --> 00:27:07,040 Speaker 1: for children, and I think we have to deal with 512 00:27:07,200 --> 00:27:09,760 Speaker 1: that upfront. In the same way we have to make 513 00:27:09,800 --> 00:27:14,480 Speaker 1: sure that there's quality, quality experiences in the metaverse. Again, 514 00:27:14,520 --> 00:27:17,280 Speaker 1: as is suggested to, we have to have some gate 515 00:27:17,359 --> 00:27:20,200 Speaker 1: keeping and a free for all that just says anything 516 00:27:20,320 --> 00:27:24,280 Speaker 1: goes is dangerous for children, and as a parent, I 517 00:27:24,320 --> 00:27:28,200 Speaker 1: would be scared too, ill with you. Then there's the 518 00:27:28,400 --> 00:27:31,800 Speaker 1: equity piece, and you know, so much of technic classrooms, 519 00:27:32,640 --> 00:27:34,880 Speaker 1: right like, so much of technic classrooms is not equitable. 520 00:27:35,000 --> 00:27:37,640 Speaker 1: Some students have access to these things, some students don't. 521 00:27:37,680 --> 00:27:39,800 Speaker 1: If you don't have access, there can be these huge 522 00:27:40,600 --> 00:27:43,240 Speaker 1: learning gaps. I mean when it comes to something like 523 00:27:43,359 --> 00:27:46,840 Speaker 1: the metaverse and technology that's you know, so advanced. Are 524 00:27:46,880 --> 00:27:49,960 Speaker 1: you concerned this could could lead to even more, even 525 00:27:50,000 --> 00:27:53,359 Speaker 1: bigger sort of class divides and education. Well, as you 526 00:27:53,440 --> 00:27:56,480 Speaker 1: suggested in our paper, this is something we definitely have 527 00:27:56,640 --> 00:27:59,639 Speaker 1: to have to look at. But we're on the cusp 528 00:27:59,800 --> 00:28:03,000 Speaker 1: of something and the classrooms aren't really ready nor the 529 00:28:03,080 --> 00:28:06,920 Speaker 1: schools yet for taking on the metaverse. So I think 530 00:28:07,040 --> 00:28:10,200 Speaker 1: we had some league time here to really think about 531 00:28:10,240 --> 00:28:12,320 Speaker 1: how we want to introduce it. What should the school 532 00:28:12,359 --> 00:28:16,800 Speaker 1: classroom look like? How should we retrain in teaching, teaching 533 00:28:16,840 --> 00:28:20,040 Speaker 1: professional development, How do the teachers get on board so 534 00:28:20,160 --> 00:28:23,120 Speaker 1: they help us in the training, how do we grow scientists? 535 00:28:23,200 --> 00:28:26,080 Speaker 1: And so what we're presenting on the metaverse really is 536 00:28:26,280 --> 00:28:29,920 Speaker 1: of high quality for children. Now in the interim, it 537 00:28:30,080 --> 00:28:33,080 Speaker 1: may be something like an imax, and it may be 538 00:28:33,240 --> 00:28:37,119 Speaker 1: the communities will adopt a certain place where schools can 539 00:28:37,160 --> 00:28:40,479 Speaker 1: take their kids on field trips and visit areas they 540 00:28:40,520 --> 00:28:45,080 Speaker 1: could have never visited otherwise. So I think there's tremendous potential. 541 00:28:45,680 --> 00:28:50,440 Speaker 1: And well, I appreciate that, Um, your concentration today is 542 00:28:50,520 --> 00:28:52,840 Speaker 1: more on the risks and the safety and the oh nose. 543 00:28:53,440 --> 00:28:55,440 Speaker 1: I think we have to put together the oh nos 544 00:28:55,520 --> 00:28:57,760 Speaker 1: and the oh my gosh is and see if we 545 00:28:57,840 --> 00:29:00,400 Speaker 1: can create an optimal product that will be safe for 546 00:29:00,600 --> 00:29:05,040 Speaker 1: children and will bring everyone in at a cost that 547 00:29:05,160 --> 00:29:09,440 Speaker 1: will be reasonable. So let's leave then on the oh 548 00:29:09,480 --> 00:29:13,680 Speaker 1: my gosh as. What are you most excited about and 549 00:29:13,720 --> 00:29:16,720 Speaker 1: where do you think we will realistically be Let's say 550 00:29:16,760 --> 00:29:19,840 Speaker 1: five years from now. I think five years from now 551 00:29:20,160 --> 00:29:24,600 Speaker 1: we will have more affordable products that allow us to 552 00:29:24,800 --> 00:29:27,760 Speaker 1: visit the maniverse. I don't think classrooms will be quite 553 00:29:27,800 --> 00:29:30,400 Speaker 1: ready yet, but I do think we could set up 554 00:29:30,480 --> 00:29:33,880 Speaker 1: community centers that people could take field trips in, and 555 00:29:34,000 --> 00:29:37,160 Speaker 1: I think the oh my gosh for me instead, a 556 00:29:37,280 --> 00:29:40,440 Speaker 1: lot of things that were otherwise kind of boring to 557 00:29:40,640 --> 00:29:44,320 Speaker 1: learn for kids might then be excited. And if we 558 00:29:44,400 --> 00:29:49,120 Speaker 1: can bring more joy and more experience and more energy 559 00:29:49,720 --> 00:29:53,480 Speaker 1: into classrooms and into learning experiences, children will not only 560 00:29:53,560 --> 00:29:56,200 Speaker 1: learn what we're teaching them, but they will learn how 561 00:29:56,360 --> 00:29:59,640 Speaker 1: to learn. And since the world is changing so so 562 00:30:00,040 --> 00:30:03,880 Speaker 1: very quickly, that's the skill that everyone needs. Well, that 563 00:30:04,040 --> 00:30:09,600 Speaker 1: is something certainly worth continuing to innovate for. Kathy Hurts Passek, 564 00:30:09,720 --> 00:30:13,400 Speaker 1: Professor of psychology at Temple University and uh Senior Fellow 565 00:30:13,440 --> 00:30:16,720 Speaker 1: at the Brookings Institution. Thank you, what a fascinating conversation. 566 00:30:16,760 --> 00:30:31,760 Speaker 1: Appreciate you stopping by A hedge fund that told most 567 00:30:31,800 --> 00:30:34,480 Speaker 1: of its crypto holdings last month, says today's jobs report 568 00:30:34,560 --> 00:30:37,680 Speaker 1: could have been dire for the price of bitcoin. Alpha 569 00:30:37,720 --> 00:30:42,120 Speaker 1: Trey CEO Max Goackam, saying bitcoin could have dropped below 570 00:30:42,680 --> 00:30:45,800 Speaker 1: fifteen thousand dollars or to fifteen thousand dollars if the 571 00:30:45,880 --> 00:30:49,000 Speaker 1: report was a major eat. You know it's Bitcoin has 572 00:30:49,080 --> 00:30:52,680 Speaker 1: been increasingly tied to macro sentiment joining us to discuss 573 00:30:52,920 --> 00:30:57,040 Speaker 1: Juthaa Choe, head of OTC trading for crack in. UH, 574 00:30:57,720 --> 00:31:00,920 Speaker 1: what's your take on this? I mean, I think there's 575 00:31:00,960 --> 00:31:04,200 Speaker 1: no question that bitcoin has been tied to the macro 576 00:31:04,400 --> 00:31:07,400 Speaker 1: markets um, and I think that's for a few reasons. So, 577 00:31:08,120 --> 00:31:11,040 Speaker 1: you know, in one area, bitcoin is kind of like 578 00:31:11,160 --> 00:31:13,680 Speaker 1: a growth text stock, you know, a three hundred four 579 00:31:13,760 --> 00:31:18,040 Speaker 1: hundred billion dollar market cap. It's not really a macro asset. 580 00:31:18,160 --> 00:31:20,160 Speaker 1: It does trade like a growth stock. You can think 581 00:31:20,200 --> 00:31:23,240 Speaker 1: about it kind of like an equity investment UM, but 582 00:31:23,400 --> 00:31:26,240 Speaker 1: that's a small component. I think another piece is that 583 00:31:26,560 --> 00:31:31,240 Speaker 1: it becomes a self fulfilling prophecy um, similar to signals 584 00:31:31,280 --> 00:31:34,480 Speaker 1: like technical nowlysis. Sometimes if everybody's looking at them and 585 00:31:34,640 --> 00:31:36,920 Speaker 1: kind of trading on them and believing them, you can 586 00:31:36,960 --> 00:31:39,880 Speaker 1: start to see that price action UM. And then I 587 00:31:39,960 --> 00:31:43,160 Speaker 1: think the last pieces that uh, in a lot of ways, 588 00:31:43,640 --> 00:31:46,800 Speaker 1: I think investors in the crypto space are latching onto 589 00:31:46,880 --> 00:31:50,240 Speaker 1: the macro narrative a little bit because without that, there 590 00:31:50,280 --> 00:31:54,480 Speaker 1: wouldn't really be many catalysts or many events for bitcoin. 591 00:31:54,560 --> 00:31:57,400 Speaker 1: You know, we're in a bear market. Volatility has come down. 592 00:31:57,520 --> 00:32:00,040 Speaker 1: We've been sitting around twenty thousand for a while. And 593 00:32:00,160 --> 00:32:03,200 Speaker 1: so if not for some of these macro events like 594 00:32:03,320 --> 00:32:06,000 Speaker 1: Jackson Hole and some of the jobs numbers, UM, August 595 00:32:06,040 --> 00:32:09,000 Speaker 1: would look a lot quieter, and so crypto investors are 596 00:32:09,240 --> 00:32:12,960 Speaker 1: following them. Um, I think for a number of those reasons. Well, 597 00:32:13,040 --> 00:32:15,800 Speaker 1: speaking of events, we've got the merge coming up in 598 00:32:15,880 --> 00:32:20,280 Speaker 1: mid September. You know, what are you expecting uh to 599 00:32:20,400 --> 00:32:23,720 Speaker 1: happen around the merge? What kind of volume will there be? 600 00:32:23,880 --> 00:32:28,160 Speaker 1: Will there be a sort of sell the news event? Well, 601 00:32:28,200 --> 00:32:32,840 Speaker 1: we're definitely seeing a wide range of speculative bets and 602 00:32:33,000 --> 00:32:36,040 Speaker 1: positioning and hedging that are being put on, particularly in 603 00:32:36,080 --> 00:32:40,160 Speaker 1: the derivativist market and the options market ethereum. Open interests 604 00:32:40,360 --> 00:32:42,440 Speaker 1: is reaching high as we're seeing a lot of volume 605 00:32:42,520 --> 00:32:45,360 Speaker 1: through our OTC death on ethereum, and so I think 606 00:32:45,480 --> 00:32:47,960 Speaker 1: investors are gearing up for something to happen. UM. I 607 00:32:47,960 --> 00:32:50,440 Speaker 1: think if you look at the volatility surface of the 608 00:32:51,080 --> 00:32:55,240 Speaker 1: term structure, UH, the September sixteenth term, which is the 609 00:32:55,320 --> 00:32:57,320 Speaker 1: one that's kind of pricing in at least a couple 610 00:32:57,360 --> 00:32:59,880 Speaker 1: of the merge events, UH, it's about ten points of 611 00:33:00,120 --> 00:33:02,440 Speaker 1: the September ninth term, And so I think investors are 612 00:33:02,480 --> 00:33:04,840 Speaker 1: gearing up for some sort of price action in some 613 00:33:05,000 --> 00:33:08,600 Speaker 1: sort of move for sure. What about cracking house cracking 614 00:33:09,080 --> 00:33:11,600 Speaker 1: handling the merge. Are you gonna halt trading of ether 615 00:33:11,880 --> 00:33:16,440 Speaker 1: for example, we won't halt trading. Nope, So customers can 616 00:33:16,560 --> 00:33:18,760 Speaker 1: still trade ether. It will be available. They can trade 617 00:33:18,800 --> 00:33:21,840 Speaker 1: at otc um. All the trading services will be available. 618 00:33:22,120 --> 00:33:25,320 Speaker 1: There might be temporary suspension on withdrawals and deposits, so 619 00:33:25,480 --> 00:33:28,280 Speaker 1: just at the plock chain level, but trading will still 620 00:33:28,280 --> 00:33:32,360 Speaker 1: be available. Congress has been questioning Cracking about your handling 621 00:33:32,440 --> 00:33:35,960 Speaker 1: of fraud. What is it important that regulators know about 622 00:33:36,000 --> 00:33:40,320 Speaker 1: your security standards? Well, you know, Cracking abides by all 623 00:33:40,400 --> 00:33:44,560 Speaker 1: the necessary KYC and transaction monitoring, and this obviously in 624 00:33:44,640 --> 00:33:46,840 Speaker 1: my area of expertise, but we've been doing this for 625 00:33:46,960 --> 00:33:49,120 Speaker 1: many years. Cracking itself has been around for more than 626 00:33:49,160 --> 00:33:51,160 Speaker 1: a decade, and you can't be around for more than 627 00:33:51,200 --> 00:33:53,520 Speaker 1: a decade in the crypto space unless you're abiding by 628 00:33:53,560 --> 00:33:56,200 Speaker 1: all the local regulations and so UM I think some 629 00:33:56,320 --> 00:33:58,360 Speaker 1: of the inquiries might be related to just some of 630 00:33:58,440 --> 00:34:02,080 Speaker 1: the fallout on related to cracking really from three a 631 00:34:02,240 --> 00:34:04,840 Speaker 1: C And Tornado and things of that nature. UM, But 632 00:34:05,040 --> 00:34:06,840 Speaker 1: from our point of view. This is just kind of 633 00:34:06,920 --> 00:34:12,040 Speaker 1: standard KYC transaction monitoring that we normally do meantime Crypto 634 00:34:12,200 --> 00:34:14,680 Speaker 1: dot com. The story getting a lot of attention is 635 00:34:14,760 --> 00:34:18,880 Speaker 1: suing a woman after accidentally sending her seven million dollars 636 00:34:19,360 --> 00:34:21,719 Speaker 1: she was supposed to get a hundred and and and 637 00:34:21,840 --> 00:34:24,280 Speaker 1: reportedly she went on a little bit of a spending spree. 638 00:34:24,960 --> 00:34:27,920 Speaker 1: I'm so curious what your reaction is to this story 639 00:34:28,040 --> 00:34:31,759 Speaker 1: and how crack can handles these kinds of scenarios and 640 00:34:31,840 --> 00:34:36,239 Speaker 1: awards these kinds of errors. Well, you know, I think 641 00:34:36,360 --> 00:34:38,000 Speaker 1: this is one of those things with that when you 642 00:34:38,080 --> 00:34:41,400 Speaker 1: look at bitcoin and what makes it so powerful is 643 00:34:41,520 --> 00:34:45,520 Speaker 1: that this transaction settlement finality that you know, without any 644 00:34:45,640 --> 00:34:49,640 Speaker 1: intermediary you can send money seven and three, six five, 645 00:34:49,680 --> 00:34:52,800 Speaker 1: and it's a gross settlement network that clears instantly, like 646 00:34:52,880 --> 00:34:56,400 Speaker 1: better than wire transfers. But obviously there's this downside that 647 00:34:56,560 --> 00:34:58,920 Speaker 1: you have to be really careful. I'm cracking. You can 648 00:34:59,040 --> 00:35:01,719 Speaker 1: again imagine being a for many many years, has a 649 00:35:01,880 --> 00:35:07,080 Speaker 1: lot of protections, policies, procedures, safeguards UM. Anytime funds are 650 00:35:07,200 --> 00:35:10,839 Speaker 1: are sent out, we have hosts of customer service representatives 651 00:35:10,920 --> 00:35:13,120 Speaker 1: that US is send it to UM and we do 652 00:35:13,400 --> 00:35:16,000 Speaker 1: a proof of reserves audit so that customers can also 653 00:35:16,040 --> 00:35:18,600 Speaker 1: feel comfortable that all of the funds that they have 654 00:35:18,800 --> 00:35:22,520 Speaker 1: on deposit are are not being sent out, either for 655 00:35:22,560 --> 00:35:25,439 Speaker 1: affarious reasons or for errors. So all of these things 656 00:35:25,480 --> 00:35:28,360 Speaker 1: have really been built over time because all of the 657 00:35:28,680 --> 00:35:31,640 Speaker 1: powerful elements you get from being able to send money, 658 00:35:31,800 --> 00:35:34,160 Speaker 1: you know, bitcoin as a method of payment on a blockchain, 659 00:35:34,520 --> 00:35:36,440 Speaker 1: come with some downsides too, and so we have to 660 00:35:36,480 --> 00:35:39,920 Speaker 1: protect against those for sure. So speaking out of downsides, 661 00:35:39,920 --> 00:35:43,719 Speaker 1: where do you think the bottom is, Well, you know, 662 00:35:43,880 --> 00:35:46,680 Speaker 1: I do think it depends on the macro environment. I 663 00:35:46,719 --> 00:35:50,000 Speaker 1: mean within crypto. I think with volatility coming down, you 664 00:35:50,080 --> 00:35:52,200 Speaker 1: can kind of see that investors have gotten a little 665 00:35:52,239 --> 00:35:54,719 Speaker 1: bit comfortable around this level, which can be both a 666 00:35:54,800 --> 00:35:56,480 Speaker 1: good and a bad thing. A lot of the panic 667 00:35:56,600 --> 00:35:59,200 Speaker 1: and the leverage has been wiped out of the system, 668 00:35:59,360 --> 00:36:03,480 Speaker 1: so they're not as much of that um inherent kind 669 00:36:03,520 --> 00:36:07,120 Speaker 1: of riskiness that's still in a lot of the positions 670 00:36:07,160 --> 00:36:09,440 Speaker 1: that are out there. But I think everybody is waiting 671 00:36:09,520 --> 00:36:11,839 Speaker 1: to see what happens with the macro markets, and once 672 00:36:11,920 --> 00:36:14,800 Speaker 1: there's a little bit of resilience shown in the NAZAC 673 00:36:14,880 --> 00:36:17,000 Speaker 1: and the SMP, then I think we'll see that altern 674 00:36:17,000 --> 00:36:20,600 Speaker 1: into crypto markets as well. All right, thanks for that 675 00:36:20,800 --> 00:36:25,120 Speaker 1: crack and head of OTC Trading Juicoo, appreciate you stopping by. 676 00:36:34,560 --> 00:36:37,400 Speaker 1: All right, let's get back to the Sara Noes trial. 677 00:36:37,560 --> 00:36:40,759 Speaker 1: A lot has happened since Elizabeth Holmes guilty verdict. For one, 678 00:36:41,080 --> 00:36:44,960 Speaker 1: she just tried to get her own fraud conviction thrown out, 679 00:36:45,160 --> 00:36:48,759 Speaker 1: but the judge upheld that verdict. Let's break it all 680 00:36:48,800 --> 00:36:52,040 Speaker 1: down with our court reporter Joel Rosenblatt, who was in 681 00:36:52,120 --> 00:36:55,560 Speaker 1: the courtroom every day and was there for this latest decision. 682 00:36:55,719 --> 00:36:59,400 Speaker 1: So what happened? So yesterday's hearing was a rather routine 683 00:36:59,520 --> 00:37:04,360 Speaker 1: hearing in which Elizabeth Holmes her lawyers argued that the 684 00:37:04,480 --> 00:37:08,360 Speaker 1: verdict should be set aside or thrown out for insufficient evidence, 685 00:37:08,560 --> 00:37:11,840 Speaker 1: so that the government really just didn't a mass or 686 00:37:12,000 --> 00:37:15,840 Speaker 1: martial the evidence required to convict her on on the 687 00:37:15,920 --> 00:37:19,360 Speaker 1: various counts that she was convicted of. Um. That was 688 00:37:20,280 --> 00:37:23,799 Speaker 1: quickly dismissed. H and kind of surprisingly for this judge 689 00:37:23,840 --> 00:37:28,839 Speaker 1: who likes to weigh and consider everything, he wasn't having it. Really, 690 00:37:29,600 --> 00:37:32,760 Speaker 1: So what's next? I mean, does she have any other options? 691 00:37:33,080 --> 00:37:36,080 Speaker 1: She does, and so well there's a So we're entering 692 00:37:36,200 --> 00:37:39,680 Speaker 1: the endgame of her legal odyssey. But there's gonna be 693 00:37:39,719 --> 00:37:42,640 Speaker 1: a flurry of activity now. So we have left her 694 00:37:42,719 --> 00:37:46,080 Speaker 1: sentencing next month. Uh and assuming that goes well for 695 00:37:46,160 --> 00:37:51,000 Speaker 1: the prosecution, um, she will show up for prison six 696 00:37:51,680 --> 00:37:56,040 Speaker 1: days after that. However, yesterday at this hearing, she in 697 00:37:56,160 --> 00:37:59,440 Speaker 1: true kind of Holmes fashion, through something of a curveball, 698 00:37:59,640 --> 00:38:02,560 Speaker 1: hinted at a curveball. And this is a different kind 699 00:38:02,640 --> 00:38:05,040 Speaker 1: of motion in which she's arguing for a new trial. 700 00:38:05,840 --> 00:38:10,640 Speaker 1: So her attorneys have found something since since the conviction 701 00:38:11,160 --> 00:38:15,200 Speaker 1: that they've decided that they've they're going to argue warrants 702 00:38:15,560 --> 00:38:18,239 Speaker 1: a whole new trial. So not not an acquittal as 703 00:38:18,320 --> 00:38:21,120 Speaker 1: they argued for yesterday and looks like they failed, but 704 00:38:21,280 --> 00:38:23,560 Speaker 1: for a whole new trial. Just three more months for trial, 705 00:38:23,680 --> 00:38:27,440 Speaker 1: Rosen Black in the courtroom is what that means? Really though? 706 00:38:27,600 --> 00:38:29,120 Speaker 1: How likely is it that she's going to get a 707 00:38:29,160 --> 00:38:33,080 Speaker 1: new trial? All of this is unlikely. Yesterday's the chances 708 00:38:33,120 --> 00:38:36,480 Speaker 1: of yesterday's acquittal. The acquittal she asked for very low probability, 709 00:38:36,480 --> 00:38:40,480 Speaker 1: I mean extremely low. All white color criminal defendants or 710 00:38:40,600 --> 00:38:43,279 Speaker 1: convicts usually ask for this, but don't get it. This 711 00:38:43,480 --> 00:38:46,480 Speaker 1: new this new question of of of a new trial 712 00:38:47,000 --> 00:38:50,719 Speaker 1: based on this new evidence. Again low probability, but it's 713 00:38:50,840 --> 00:38:53,799 Speaker 1: just kind of so fitting with how this thing is unfolded, 714 00:38:54,239 --> 00:38:56,160 Speaker 1: and it's just gonna be interesting to see what it 715 00:38:56,280 --> 00:38:58,799 Speaker 1: is that she's comes up with. So, in all likely 716 00:38:59,120 --> 00:39:01,279 Speaker 1: she's going to jail, In all likely that she's going 717 00:39:01,320 --> 00:39:03,799 Speaker 1: to prison, I'm just like, it's just kind of unbelievable 718 00:39:03,840 --> 00:39:08,359 Speaker 1: after all this time. So I'm being careful. How much 719 00:39:08,520 --> 00:39:11,560 Speaker 1: time is she likely to serve when all is said 720 00:39:11,600 --> 00:39:13,640 Speaker 1: and done? So this is the question I always get 721 00:39:13,760 --> 00:39:16,680 Speaker 1: because people always want to know. And look, there has 722 00:39:16,800 --> 00:39:20,800 Speaker 1: been a case made that her entire defense was built 723 00:39:20,840 --> 00:39:25,680 Speaker 1: around not winning and acquittal, but minimizing her her time served. 724 00:39:26,040 --> 00:39:30,360 Speaker 1: If she gets seven years, seven years, that would be 725 00:39:30,400 --> 00:39:32,920 Speaker 1: a win for her. At this point, that would be 726 00:39:33,080 --> 00:39:38,040 Speaker 1: a win. She's facing uh, well, legally twenty years, she's 727 00:39:38,120 --> 00:39:41,319 Speaker 1: likely to get eight to ten years, Okay, and at 728 00:39:41,440 --> 00:39:43,960 Speaker 1: what point? How much longer is this drag on? For 729 00:39:44,800 --> 00:39:51,280 Speaker 1: her sentencing is scheduled for October, if you know, barring 730 00:39:51,360 --> 00:39:55,719 Speaker 1: these barring a kind of twist that we've discussed, um, 731 00:39:55,880 --> 00:39:58,959 Speaker 1: she would be asked to show up for prison six 732 00:39:59,400 --> 00:40:04,080 Speaker 1: nine day after that sentencing. Uh, and she will appeal, 733 00:40:04,400 --> 00:40:06,719 Speaker 1: but it's unlikely that she would have to be she 734 00:40:06,719 --> 00:40:10,000 Speaker 1: would have to go to prison while she appeals her conviction. 735 00:40:10,440 --> 00:40:13,640 Speaker 1: And what's happening with Sonny Balwani? So Sonny meanwhile, yeah, 736 00:40:13,800 --> 00:40:18,120 Speaker 1: everybody kind of has furgotten about Sonny um. But he 737 00:40:18,400 --> 00:40:22,600 Speaker 1: was convicted in May on twelve counts and so in 738 00:40:22,719 --> 00:40:26,600 Speaker 1: other words, all the counts, including the the accounts of 739 00:40:26,640 --> 00:40:30,879 Speaker 1: patient fraud. M His sentencing is scheduled for November. Will 740 00:40:30,960 --> 00:40:32,759 Speaker 1: he serve as much time as her? Will he serve 741 00:40:32,800 --> 00:40:35,680 Speaker 1: four time than her? What decides? That? Very interesting? That's 742 00:40:35,800 --> 00:40:38,799 Speaker 1: this kind of this endgame, this phase of sentencing, right, 743 00:40:38,960 --> 00:40:41,520 Speaker 1: both sides will make the case that these are in 744 00:40:41,640 --> 00:40:45,399 Speaker 1: fact good people who maybe win austray all these kinds 745 00:40:45,400 --> 00:40:48,800 Speaker 1: of arguments from family members and friends, and the judge 746 00:40:48,880 --> 00:40:52,800 Speaker 1: will decide, and he will compare their respective roles in 747 00:40:52,880 --> 00:40:56,200 Speaker 1: this fraud and decide who should get what. They were 748 00:40:56,280 --> 00:41:00,080 Speaker 1: both convicted of conspiracy. It was a conspiracy, uh, the 749 00:41:00,160 --> 00:41:03,400 Speaker 1: crime of co conspirators. So I I'm thinking they're going 750 00:41:03,440 --> 00:41:05,359 Speaker 1: to get the same sentence. I think they're both going 751 00:41:05,400 --> 00:41:09,680 Speaker 1: to be serving eight to ten years, all right, Joel 752 00:41:09,800 --> 00:41:12,280 Speaker 1: Rolls and Black who, of course, has lived and breathed 753 00:41:12,719 --> 00:41:15,400 Speaker 1: both of these cases. Thank you Joel for that update. 754 00:41:15,560 --> 00:41:19,920 Speaker 1: Appreciate it all right. This weekend, NASA we'll try again 755 00:41:20,040 --> 00:41:22,959 Speaker 1: Saturday to launch it's Artemis one moon rocket. The Space 756 00:41:23,000 --> 00:41:25,480 Speaker 1: Agency tried earlier this week, but the launch was scrowed 757 00:41:25,520 --> 00:41:28,160 Speaker 1: because of a problem with one of the rocket's engines 758 00:41:28,239 --> 00:41:31,839 Speaker 1: and other technical issues. It is the first major flight 759 00:41:31,920 --> 00:41:34,480 Speaker 1: in NASA's ambitious plan to go back to the Moon. 760 00:41:34,960 --> 00:41:38,200 Speaker 1: This mission is carrying test dummies instead of astronauts. You 761 00:41:38,239 --> 00:41:41,920 Speaker 1: can watch the launch Saturday on Bloomberg Television. Coverage starts 762 00:41:42,000 --> 00:41:45,600 Speaker 1: two pm Eastern. And that does it for this edition 763 00:41:45,800 --> 00:41:49,760 Speaker 1: of Bloomberg Technology. I'm Emily changing in San Francisco. Tuesday, 764 00:41:49,800 --> 00:41:52,960 Speaker 1: we're going to start a series on sports technology. That'll 765 00:41:53,000 --> 00:41:55,839 Speaker 1: be a fun one. Drafting CEO Jason Robbins will help 766 00:41:55,960 --> 00:41:58,840 Speaker 1: us kick that off. Have a great weekend everyone. This 767 00:41:59,040 --> 00:42:03,640 Speaker 1: is Bloomberg the Big Who Day. Were up Everything