WEBVTT - Tesla Earnings and Klarna's New Product 0:00:02.240 --> 0:00:05.520 From the heart of where innovation, money and power Colli 0:00:06.360 --> 0:00:10.879 in Silicon Vallet and beyond. This is Bloomberg Technology with 0:00:10.960 --> 0:00:30.320 Emily Chany. Welcome to a special edition of Bloomberg Technology 0:00:30.320 --> 0:00:34.040 and Emily Chang at the National Association of Broadcasters Conference 0:00:34.159 --> 0:00:36.680 in New York City. Coming up in the next hour. 0:00:36.880 --> 0:00:41.239 Mixed results. Tesla falls following its earnings reports, saying battery 0:00:41.320 --> 0:00:45.000 supply constraints will be the biggest hurdle going forward. We're 0:00:45.000 --> 0:00:48.560 gonna have all the details. Plus Clarin Up is rolling 0:00:48.560 --> 0:00:50.959 out a new product to make it easier to shop 0:00:51.000 --> 0:00:53.400 on the platform. But the buy now, pay later giant 0:00:53.400 --> 0:00:58.520 facing headwinds with consumer confidence plummeting corner CEO with us 0:00:58.600 --> 0:01:02.480 later this hour, and how has the direct consumer trends 0:01:02.560 --> 0:01:07.360 survived potential recession? The co CEO of the eyewear Darling 0:01:07.360 --> 0:01:11.280 Warby Parker. We'll talk to us about the evolution of DTC. 0:01:13.120 --> 0:01:15.440 I don't continue with Tesla now, and for that we 0:01:15.560 --> 0:01:18.120 bring in Dan. I'ves of what but security. Dan is 0:01:18.160 --> 0:01:20.720 so good to see. Thanks for coming down. All right, 0:01:20.720 --> 0:01:23.920 what's your takeaway from the results we just saw old 0:01:23.920 --> 0:01:26.399 I think clearly the three Q deivery miss you know 0:01:26.480 --> 0:01:29.600 there was an expectation that revenues could be light. I 0:01:29.640 --> 0:01:32.480 think margins will be a focus came in light there. 0:01:32.520 --> 0:01:35.480 The street was hoping ultimately for a better marginal performance, 0:01:35.480 --> 0:01:37.880 but I think really the head one sticking to the 0:01:37.959 --> 0:01:41.199 underlying fift growth for the year in terms of delibrious. 0:01:41.200 --> 0:01:43.640 So the conference call is going to be key in 0:01:43.760 --> 0:01:46.040 terms of are they back and away from that, clearly 0:01:46.080 --> 0:01:50.280 they're not. It shows that China growth story still continues 0:01:50.320 --> 0:01:51.880 to be there, and that's really gonna be the bull 0:01:51.920 --> 0:01:53.760 bear to be coming out of this call. So let's 0:01:53.760 --> 0:01:55.600 talk about the demand story you see and what do 0:01:55.640 --> 0:01:58.040 you see as the difference between the US and China. 0:01:58.080 --> 0:02:00.800 I know there's been some concerns of about weight times 0:02:00.800 --> 0:02:04.440 in China shrinking, which you know, counterintuitively is maybe in 0:02:04.480 --> 0:02:08.079 a not good sign. I think in China productions ram 0:02:08.240 --> 0:02:10.480 three acts. So if you look at weight times, what's 0:02:10.520 --> 0:02:13.720 happened there that's going to start to stabilize, but ultimately 0:02:13.760 --> 0:02:17.320 the production out of China continues to really increase. It. Look, 0:02:17.320 --> 0:02:20.280 that's the hearts and lungs of the Tesla bull story 0:02:20.360 --> 0:02:22.639 in terms of China. Now, if you look what's happening 0:02:22.639 --> 0:02:26.200 from a macro perspective. You know, clearly we're seeing softness, 0:02:26.520 --> 0:02:28.919 but we believe what we're seeing in Tessa's much more 0:02:29.040 --> 0:02:33.400 logistics driven rather than demand driven, and that, in my opinion, 0:02:33.520 --> 0:02:35.119 is why you know, I think this is just more 0:02:35.240 --> 0:02:38.960 massive speed bumps they're navigating. But ultimately from Musk it's 0:02:39.000 --> 0:02:41.240 a moment of truth. I mean, this is the time 0:02:41.280 --> 0:02:44.880 to sort of navigate through the turbulence because investors seeing 0:02:44.880 --> 0:02:48.639 white knuckles. Are you about the battery situation? Look, I'm 0:02:48.639 --> 0:02:51.560 concerned about it, but ultimately, as we go into first 0:02:51.560 --> 0:02:54.560 half of next year, I believe that does start to stabilize. 0:02:54.840 --> 0:02:58.000 I still believe demand is out strip and supply for Tesla, 0:02:58.520 --> 0:03:01.400 and that's why it's all about ken they fulfill two 0:03:01.440 --> 0:03:04.280 million units in terms of going two thousand and twenty three, 0:03:04.480 --> 0:03:07.560 if they can then testas the stock that they might 0:03:07.600 --> 0:03:12.200 opinion could be from these levels. But in this backdrop, 0:03:12.600 --> 0:03:15.760 this report, in my opinion, it's most the most important 0:03:15.760 --> 0:03:18.200 conference call probably in the last two and a half 0:03:18.240 --> 0:03:20.720 three years. It might also be the last conference call 0:03:20.800 --> 0:03:23.400 before he buys Twitter. Right, a deal could be sealed 0:03:23.800 --> 0:03:25.840 in a matter of days, and we've seen test La 0:03:25.960 --> 0:03:30.480 shares very much intertwined with what's happening with Twitter. Are 0:03:30.520 --> 0:03:34.800 you expecting a potential negative impact from that deal? Me 0:03:34.840 --> 0:03:37.240 and you've talked about. I mean that's where the albatross 0:03:37.280 --> 0:03:40.480 around the Tesla story, because ultimately the worry is the 0:03:40.520 --> 0:03:43.880 financing in this market starts to fall through a bit. 0:03:43.920 --> 0:03:46.400 Does he have to come up in more capital? Do 0:03:46.440 --> 0:03:49.160 you see form fours? Does he sell an incremental five 0:03:49.280 --> 0:03:52.440 ten billion dollars of Tesla stock to fund Twitter? And 0:03:52.440 --> 0:03:56.320 that's why the frustration now for the TESTSA investors is 0:03:56.360 --> 0:03:58.600 it feels like Musk has jogging allowed to balls. You've 0:03:58.600 --> 0:04:02.120 got the Twitter situation and right now he's continuing to 0:04:02.280 --> 0:04:05.720 trade cave are for two hours slice of pizza in 0:04:05.840 --> 0:04:08.920 terms of Twitter style. Are you worried about the ball juggling? 0:04:09.560 --> 0:04:12.360 That's a lot of well, I think that's that's one 0:04:12.360 --> 0:04:14.560 of the biggest problems is that Musk is the key 0:04:14.640 --> 0:04:18.000 to the Tesla story. He's ultimately really the reason that 0:04:18.560 --> 0:04:21.080 Tessa has been able to get in this position, and 0:04:21.200 --> 0:04:24.520 I think he really needs to ultimately give investors confidence 0:04:24.920 --> 0:04:27.640 that he's there pilot on the plane and you're not 0:04:27.839 --> 0:04:31.480 ultimately going to see shortfalls as we go into Q four, 0:04:31.520 --> 0:04:33.640 and especially as going two thousand and twenty three in 0:04:33.720 --> 0:04:36.800 such a pivotal year for evs, What do you want 0:04:36.880 --> 0:04:39.520 to see and what do Tesla investors want to see 0:04:39.520 --> 0:04:42.080 in terms of his management approach to Twitter, like not 0:04:42.240 --> 0:04:44.880 managing Twitter at all? Well, I think part of it 0:04:45.040 --> 0:04:47.840 as a testa investor. You want to ultimately see him 0:04:48.000 --> 0:04:51.560 navigate this and ultimately give the reins to social media 0:04:51.680 --> 0:04:54.520 experts that could ultimately be the ones that could try 0:04:54.560 --> 0:04:57.440 to turn Twitter around. From Musk, the easiest thing was 0:04:57.520 --> 0:04:59.800 buying Twitter. The hardest part is going to be fixing it. 0:05:00.160 --> 0:05:02.560 That's gonna be an everse like uphill battle from Musk 0:05:02.640 --> 0:05:06.279 in terms of fixing Twitter. But is a testa investor 0:05:06.720 --> 0:05:09.720 at such a crucial time, you need steady hands. And 0:05:09.880 --> 0:05:13.240 that's really why this conference call the next few quarters 0:05:13.320 --> 0:05:15.760 are just so crucial. What I believe is in the 0:05:15.880 --> 0:05:17.640 history of the test of story well, and it may 0:05:17.680 --> 0:05:21.719 be for honestly almost every company given the macroeconomic conditions 0:05:21.960 --> 0:05:24.280 that we're facing, and you know, Musk will potentially only 0:05:24.320 --> 0:05:28.560 now multiple companies that are facing these macro economic conditions. 0:05:28.640 --> 0:05:30.960 What's your outlook over the next six months as we 0:05:31.520 --> 0:05:35.680 potentially head into a recession and a downturn that could last. 0:05:35.880 --> 0:05:38.280 Some people are telling me to to three years. Yeah, well, 0:05:38.400 --> 0:05:41.360 I think in terms of disruptive technology, who are going 0:05:41.400 --> 0:05:43.640 to be the winners over the next two three years, 0:05:44.040 --> 0:05:47.520 Tesla's front and center, along with Apple and banful names 0:05:47.560 --> 0:05:50.120 like Microsoft. When you look at Tesla as we went 0:05:50.200 --> 0:05:53.160 back three years ago, look how they navigated through what 0:05:53.240 --> 0:05:58.000 I view is almost historic challenges. Musk the challenges, not demand, 0:05:58.200 --> 0:06:01.200 its logistics, and if you go China, I believe this 0:06:01.279 --> 0:06:04.400 will ultimately be a period of time that Tesla is 0:06:04.400 --> 0:06:07.480 able to navigate. And I do believe the multiple starts 0:06:07.520 --> 0:06:10.680 to re rate, you start to ultimately see margins start 0:06:10.760 --> 0:06:12.760 to come back. And I think we look at this 0:06:13.000 --> 0:06:15.960 is just a blip on the radar over and over 0:06:16.080 --> 0:06:19.360 and overall called five six years. Cybertruck, What do you 0:06:19.400 --> 0:06:21.400 want to hear? Ok, I think you want to hear 0:06:21.480 --> 0:06:24.200 that's coming in two thousand and three because you got 0:06:24.279 --> 0:06:27.200 all the Detroit stalwarts that are ready to get those 0:06:27.240 --> 0:06:30.440 trucks out there. Also you have Rivy and others. This 0:06:30.640 --> 0:06:33.000 is gonna be an arms race in terms of pickup trucks. 0:06:33.000 --> 0:06:35.520 For e V need to make sure it doesn't keep 0:06:35.560 --> 0:06:38.479 continue to get delayed. But it goes back to your 0:06:38.600 --> 0:06:43.680 navigating SpaceX Tessa now Twitter, and there's you know, ultimately 0:06:43.760 --> 0:06:45.760 which kid you love the most? And that's gonna be 0:06:45.880 --> 0:06:49.680 the issue from Musk because the Golden Child continues to 0:06:49.760 --> 0:06:53.120 be Tesla. We hear so much about one shot well 0:06:53.160 --> 0:06:57.040 at SpaceX. How deep is the bench at Tesla? If 0:06:57.400 --> 0:07:00.800 his attentions are divided. It's so different if if Judge 0:07:00.800 --> 0:07:04.360 and Stanton we're not playing for the Yankees, you got 0:07:04.640 --> 0:07:07.600 you got a bench there. But ultimately Musk is continue 0:07:07.640 --> 0:07:10.520 to key to the test of story. They have navigated 0:07:10.560 --> 0:07:12.720 a bit of a bench. But let's just be clear. 0:07:12.760 --> 0:07:14.960 I mean that is the biggest worry right now in 0:07:15.080 --> 0:07:18.160 the story. And of course Tom's taken next Friday, that's 0:07:18.160 --> 0:07:20.840 when the Twitter deal is supposed to close. Otherwise Wen 0:07:20.880 --> 0:07:23.000 into a game of Thrones in Delaware. All right, I'm 0:07:23.000 --> 0:07:25.480 gonna let you get away with that Yankees comparison. Just 0:07:25.520 --> 0:07:28.320 because we're in New York, Dan Ives Bush, so good 0:07:28.360 --> 0:07:37.840 to see you here in person. Thank you looking at me, 0:07:39.920 --> 0:07:42.520 Welcome back. I'm Emily Changing of the National Association of 0:07:42.800 --> 0:07:45.040 Broadcasters conference in New York, and I want to look 0:07:45.080 --> 0:07:50.320 more broadly now at Investment Sentiment consumer facing investments. In particular, 0:07:50.400 --> 0:07:53.680 Ben Lair is Lara Hippo managing partner, which manages twelve 0:07:53.720 --> 0:07:56.679 billion dollars and has invested in companies from All Birds 0:07:56.720 --> 0:07:58.520 to Warby Parker, which will be on the show later. 0:07:58.920 --> 0:08:04.920 Casper and more Than also had some interesting job transitions recently. 0:08:05.040 --> 0:08:08.960 So you came back to Lara Hippo full time? Or 0:08:09.080 --> 0:08:11.320 how how should how should we we talk about your kind? 0:08:11.520 --> 0:08:13.640 So I was doing two jobs for a long time. 0:08:13.680 --> 0:08:17.720 I was operating and investing, and uh, we sold the 0:08:17.760 --> 0:08:19.800 operating company in March and so now on full time 0:08:19.840 --> 0:08:23.440 and Lyric Group Media to Box. Yes, let's talk about 0:08:23.520 --> 0:08:25.720 the media space first and and and then we'll move 0:08:25.760 --> 0:08:29.360 on because there's just so much disruption there. There's contraction there. 0:08:29.640 --> 0:08:32.679 You know, what is the future of the media business? 0:08:32.760 --> 0:08:36.160 Really cool? I think it's a tough market. Um, you know, 0:08:36.400 --> 0:08:39.000 my perspective has changed a lot. We were very active 0:08:39.040 --> 0:08:41.640 at Lara Hippo investing in media and we're the first 0:08:41.679 --> 0:08:46.240 investors in BuzzFeed and Business Insider and wonder Ee and 0:08:46.600 --> 0:08:48.600 Axios and a lot of stuff that that did well. 0:08:49.280 --> 0:08:52.160 We do almost no media investing anymore. I don't really 0:08:52.200 --> 0:08:54.719 think it's a venture category, so I think there's not 0:08:54.920 --> 0:08:57.760 growth to be had. I think that social media has 0:08:58.080 --> 0:09:01.280 massively screwed up the industry. I think TikTok more than 0:09:01.440 --> 0:09:06.120 even Facebook before. It is sucking away attention in ways 0:09:06.240 --> 0:09:09.200 that we never could even imagine would be the case, 0:09:09.440 --> 0:09:12.559 and the advertising industry is really challenging. I think that 0:09:12.679 --> 0:09:15.480 there are going to be winners in the digital media space. 0:09:15.480 --> 0:09:18.280 I think Fox, which acquired our company, is one of them. Um, 0:09:18.600 --> 0:09:22.120 But uh, I don't think there's a lot of venture 0:09:22.160 --> 0:09:24.240 money to fund new businesses, and I think there's going 0:09:24.280 --> 0:09:26.120 to be more and more consolidation. You've seen it at 0:09:26.559 --> 0:09:28.079 you know in traditional media, You're going to see it 0:09:28.120 --> 0:09:30.000 continue to happen in digital. Okay, so let's walk that 0:09:30.280 --> 0:09:32.520 out a little bit. How does that play out? Where 0:09:32.520 --> 0:09:35.360 do you see the condult solidation and do you see 0:09:35.840 --> 0:09:39.240 media product path to being destroyed? I don't know that 0:09:39.280 --> 0:09:41.160 I would say seeing a path to being destroyed. I 0:09:41.200 --> 0:09:44.280 think people want content, and I think that, you know, 0:09:44.520 --> 0:09:47.800 news media is in a really particularly dark place with 0:09:48.440 --> 0:09:51.959 what's happened to trust of media in the country, and 0:09:52.520 --> 0:09:55.120 the business model of news I think is very challenged. 0:09:55.160 --> 0:09:57.160 There's a few organizations that are doing a good job, 0:09:57.240 --> 0:10:01.000 but one of the big problems is advertiser is don't 0:10:01.040 --> 0:10:04.199 support news media. Um, it's the most important area to 0:10:04.240 --> 0:10:06.000 put your dollars, but they don't want to be around 0:10:06.320 --> 0:10:08.160 Donald Trump, they don't want to be around the war 0:10:08.200 --> 0:10:10.240 in Russia, they don't want to be around horrible stories, 0:10:10.559 --> 0:10:14.400 and so you see, uh, the the industry really suffering. 0:10:14.440 --> 0:10:18.440 And then I think entertainment media is uh generally moving 0:10:18.480 --> 0:10:21.319 in the direction of the creator, and so YouTube and 0:10:21.440 --> 0:10:24.760 TikTok and platforms that empower lots of people to create 0:10:25.120 --> 0:10:28.720 reams of sort of generally lower quality and less expensive 0:10:28.760 --> 0:10:32.160 content are eating up advertising dollars that used to go 0:10:32.240 --> 0:10:36.240 to premium content creators. And it's challenging at stake here, 0:10:38.679 --> 0:10:40.840 I mean really, I think I think on one level 0:10:40.920 --> 0:10:42.880 that by the way, I don't think the truth is 0:10:42.920 --> 0:10:45.280 at stake. I think the truth is. I think that's 0:10:45.280 --> 0:10:49.520 already gone for the moment, I mean, there is it. 0:10:50.720 --> 0:10:52.640 We're in a really, really, really bad situation. I have 0:10:52.679 --> 0:10:56.240 little kids, and I am terrified for the way that 0:10:56.280 --> 0:10:59.920 they're going to get truthful information. And the problem is 0:11:00.200 --> 0:11:03.240 that it's right now not good business to invest in 0:11:03.840 --> 0:11:05.839 the news category and that has to change, and I 0:11:05.880 --> 0:11:08.240 think it will. The pendulum always shifts. Uh, there's a 0:11:08.320 --> 0:11:11.760 lot of people who want to fix this problem, and so, um, 0:11:11.840 --> 0:11:14.040 we continue to be interested in meeting companies that are 0:11:14.040 --> 0:11:17.480 doing that. So where do you think responsibility live? Is 0:11:17.520 --> 0:11:21.000 it advertisers? Is it with social media companies? At the 0:11:21.080 --> 0:11:22.679 end of the day, we live in a you know, 0:11:23.040 --> 0:11:27.960 capitalist society. I think it's hard to make this about responsibility. 0:11:28.000 --> 0:11:30.439 I think we have to find business models that make 0:11:30.520 --> 0:11:34.320 it that work for everyone. Uh, No one is going 0:11:34.360 --> 0:11:37.240 to do what's you know, some people will do it's 0:11:37.320 --> 0:11:38.719 right for the world, but most people are gonna do 0:11:38.720 --> 0:11:42.199 what's right for their wallet. And so uh, I think 0:11:42.240 --> 0:11:44.800 at the end of the day, the the social media companies, 0:11:45.760 --> 0:11:48.480 a huge opportunity was missed twenty years ago to regulate 0:11:48.840 --> 0:11:51.880 these companies. Uh this all started. I've been sort of 0:11:52.000 --> 0:11:54.960 learning more about this, how this started around in September eleven. Actually, 0:11:55.200 --> 0:11:57.079 where I think there's a great opportunity to regulate some 0:11:57.160 --> 0:12:00.440 of these companies that didn't happen, and we're now, uh 0:12:00.720 --> 0:12:03.440 in a world where they've been allowed to run amuck 0:12:03.559 --> 0:12:06.240 and they're their you know their monopolies and they've made 0:12:06.240 --> 0:12:09.440 a really challenging so by the way, it's not too 0:12:09.520 --> 0:12:12.000 late at all, and there are amazing brands that do 0:12:12.160 --> 0:12:15.559 great journalism. Um, and again I will say I continue 0:12:15.559 --> 0:12:18.679 to be, as a Vox board member, biased but also 0:12:18.920 --> 0:12:22.439 incredibly impressed with the quality of journalism, the quality of 0:12:22.520 --> 0:12:26.640 these communities, the diversification of revenue that these companies are generating. 0:12:26.720 --> 0:12:29.640 But um, it's hard when you see the you know, 0:12:29.920 --> 0:12:34.240 Discovery and Warner needing to consolidate and CBS and biocomp 0:12:34.280 --> 0:12:37.360 needing to consolidate. Well, what is that due to smaller 0:12:37.840 --> 0:12:41.840 independent brands who want to continue to be independent when 0:12:42.040 --> 0:12:44.240 when the top of the food chain is joining forces 0:12:44.320 --> 0:12:47.960 because they're feeling that the pressure from social media. Okay, 0:12:48.080 --> 0:12:53.079 so let's talk about capitalism. You are continuing to invest absolutely, 0:12:53.600 --> 0:12:55.880 how bad is this downturn, how bad is it going 0:12:55.920 --> 0:12:57.600 to get? How long is it gonna last? And are 0:12:57.679 --> 0:13:00.920 you finding places to put your money or is it? Yeah, 0:13:01.080 --> 0:13:03.040 so are you just waiting on the sideline? So we're 0:13:03.080 --> 0:13:05.520 not absolutely not waiting on the sidelines. Our model is 0:13:05.559 --> 0:13:08.920 to be first money in and we're backing founders who 0:13:09.000 --> 0:13:10.760 want to change the world. And there's still plenty of 0:13:10.800 --> 0:13:12.599 great founders that want to change the world, and so 0:13:13.200 --> 0:13:15.640 most of the companies that we back today are going 0:13:15.760 --> 0:13:19.080 to be raising money in the future in different markets. 0:13:19.120 --> 0:13:21.120 The you know, markets go up, markets go down. I 0:13:21.200 --> 0:13:24.840 do think that this downturn is going to be significantly prolonged. 0:13:24.920 --> 0:13:28.040 I think the public markets have experienced a lot of 0:13:28.160 --> 0:13:30.320 the pain, certainly not all of the pain. I think 0:13:30.360 --> 0:13:33.400 the private markets talk about experiencing the pain. But the 0:13:33.480 --> 0:13:35.880 reality is, I think we're probably a year or two 0:13:35.960 --> 0:13:39.720 years away from really seeing what this looks like once 0:13:39.920 --> 0:13:43.199 a bunch of companies that have raised capital start to 0:13:43.320 --> 0:13:48.319 run out of money. Last year, everyone got capitalized. You know, 0:13:48.440 --> 0:13:50.120 let's see what the back half of next year, even 0:13:50.200 --> 0:13:53.199 the next year looks like. And uh, I think it's 0:13:53.200 --> 0:13:55.200 gonna be rough. So they are gonna be some casualties. 0:13:55.440 --> 0:13:58.200 There's gonna be a lot of casualties. Good companies are 0:13:58.240 --> 0:14:01.079 still going to be just fine. And in fact, I 0:14:01.160 --> 0:14:03.120 think all the money that's on the sidelines is going 0:14:03.200 --> 0:14:06.800 to start consolidating around the better companies. And you're actually 0:14:06.840 --> 0:14:10.439 gonna see You're not gonna see the valuations go down much. 0:14:10.640 --> 0:14:13.360 You're gonna see fewer companies get funded. So where do 0:14:13.440 --> 0:14:15.320 you think we're going to see the wreckage and where 0:14:15.360 --> 0:14:17.240 are you placing your best I think you're going to 0:14:17.320 --> 0:14:22.520 see the wreckage pretty much everywhere. But but it's healthy. 0:14:22.640 --> 0:14:25.560 This is healthy wreckage. And when you build companies in 0:14:25.680 --> 0:14:29.800 an environment where money feels free or cheap, you build 0:14:29.840 --> 0:14:32.560 companies that are not necessarily as strong with some of 0:14:32.600 --> 0:14:35.960 the wrong disciplines. And right now we're going to build 0:14:35.960 --> 0:14:37.800 a new generation of companies that are gonna get built 0:14:37.800 --> 0:14:43.440 the right way. And I'm incredibly optimistic about early stage investing. 0:14:43.560 --> 0:14:46.800 Right now. I feel frankly more excited than I ever have. 0:14:46.880 --> 0:14:49.600 And there's tons of data why well, there there's just 0:14:50.120 --> 0:14:52.840 you know, there's so much data that supports the idea 0:14:52.960 --> 0:14:56.480 that investing when times are tough produces great companies. I 0:14:56.520 --> 0:14:59.280 know Neil from Warby's coming on. Neil is a founder 0:14:59.320 --> 0:15:02.200 who we back as a seed investment ten years ago, 0:15:02.360 --> 0:15:04.880 coming right out of the financial crisis, and is a 0:15:04.920 --> 0:15:06.840 perfect example of a company that was built in a 0:15:06.920 --> 0:15:11.000 tough time, that built an extraordinary business. And I think 0:15:11.040 --> 0:15:12.960 you're going to see a new generation of great companies 0:15:13.000 --> 0:15:14.600 get built, just like you do in every downtain if 0:15:14.600 --> 0:15:16.800 it's going to be worse than the financial crisis, though 0:15:17.200 --> 0:15:19.240 I don't know, and honestly I wasn't enough of a 0:15:19.280 --> 0:15:22.960 fully formed human during a crisis to really have perfect 0:15:23.000 --> 0:15:25.280 context for it. But I think this is gonna be hard. 0:15:25.400 --> 0:15:29.360 But knowledge is still enabling unbelievable things. Just look at 0:15:29.400 --> 0:15:31.400 the way that we were able to weather the last 0:15:31.440 --> 0:15:36.800 two years survive. If that says anything, it says that technology, 0:15:37.120 --> 0:15:40.120 even while it's being used in a bunch of weird ways, 0:15:40.800 --> 0:15:43.760 is ultimately uh an incredible thing in a place where 0:15:43.880 --> 0:15:45.880 we can continue to feel good about. All Right, Well, 0:15:45.920 --> 0:15:49.320 that was a reality check. I say thank you for 0:15:49.400 --> 0:15:51.920 having La, thank you for giving it to us. Strange 0:15:51.960 --> 0:15:54.400 and sugarcoat anything. Lara have Boe, managing partner of Been 0:15:54.440 --> 0:15:56.480 lare going to see you again. All right? Coming up, 0:15:56.600 --> 0:15:59.520 the risks of speaking of social media, TikTok user data 0:15:59.600 --> 0:16:03.720 leaking to China still likely even if the Biden administration 0:16:03.800 --> 0:16:07.520 forges that security agreement with the video platform. We're gonna 0:16:07.520 --> 0:16:11.320 have details on that a new Bloomberg analysis next. This 0:16:11.480 --> 0:16:28.800 is Bloomberg. Personal data for millions of US TikTok users 0:16:28.840 --> 0:16:31.560 would still be at risk even if the Biden administration 0:16:31.600 --> 0:16:34.800 reaches a security deal with the platform's parent Bye Dance. 0:16:35.080 --> 0:16:38.560 That's the findings of a new Bloomberg News analysis. Joining 0:16:38.640 --> 0:16:43.400 us now with the details Bloomberg's and bloodlow Ed explained. Yeah, 0:16:43.440 --> 0:16:45.960 I mean this is based on interviews with dozens of 0:16:46.040 --> 0:16:49.560 experts across the fields of data security, those that have 0:16:49.680 --> 0:16:53.960 negotiated these types of deals before. When it comes to lawyers, 0:16:54.000 --> 0:16:55.800 and as you say, the top line is this that 0:16:55.880 --> 0:16:59.520 in every scenario, even if it deals reached, there's runner ability. 0:16:59.680 --> 0:17:02.080 A big part of it is that there's always going 0:17:02.120 --> 0:17:04.880 to be a human component. Right, this is a business 0:17:05.200 --> 0:17:08.040 that was built in China, and even if you separate 0:17:08.119 --> 0:17:12.080 off the US assets so to speak, it's largely going 0:17:12.160 --> 0:17:15.040 to be somebody in China and Chinese personnel that potentially 0:17:15.080 --> 0:17:18.679 could fix any issue. You know, TikTok has been transparent 0:17:18.840 --> 0:17:22.080 or relatively so that there are personnel in China to 0:17:22.160 --> 0:17:25.520 have access to public information from the platform, and even 0:17:25.560 --> 0:17:29.480 if not private, but basically the range of concerns are worrying. 0:17:29.760 --> 0:17:31.919 And even if they do reach a deal such as 0:17:32.000 --> 0:17:35.200 the control of Siphius and the administration that you know, 0:17:35.320 --> 0:17:38.840 even if they cannot hold TikTok's act and responsible responsibly, 0:17:38.960 --> 0:17:42.200 they just pull the plug on any deal. Ticktok currently 0:17:42.560 --> 0:17:45.200 handle US user data. Yes, so this is a really 0:17:45.280 --> 0:17:49.640 key point. Currently all user data is effectively siphoned through 0:17:49.960 --> 0:17:53.600 the United States through servers that are owned by Oracle 0:17:53.760 --> 0:17:56.959 and hosted in the United States. The data is housed 0:17:57.000 --> 0:18:00.840 here and process the United States for US users. But again, 0:18:00.960 --> 0:18:04.080 the vulnerability that the concern is here is well, what 0:18:04.200 --> 0:18:07.360 if something goes wrong, who is the actual human being 0:18:07.480 --> 0:18:10.280 in in charging, in control and able to make a fix. 0:18:10.320 --> 0:18:12.920 And the answer is that person is probably in China. 0:18:13.359 --> 0:18:16.240 What is TikTok's position on this. The position is that 0:18:16.880 --> 0:18:19.000 while they won't comment in talk about talks to the 0:18:19.080 --> 0:18:21.439 US government, in a statement to Bloomberg, they think they 0:18:21.520 --> 0:18:24.120 can reach a deal. You know, they've tried a number 0:18:24.160 --> 0:18:27.320 of mechanisms over the years, including selling a stake of 0:18:27.440 --> 0:18:31.159 the company to reflect the US user ship to the 0:18:31.240 --> 0:18:33.320 likes of Oracle and Walmart. That did not go well. 0:18:33.400 --> 0:18:36.160 But what you see in your screen is the company's position. 0:18:36.440 --> 0:18:38.520 They're trying to get this done and they're hoping that 0:18:38.720 --> 0:18:43.200 the data management process through Oracle and ideas like supervision 0:18:43.320 --> 0:18:47.160 from various US government bodies can get it done. Thanks 0:18:47.200 --> 0:18:59.200 for breaking that one down. This is Little Brook Technology 0:18:59.240 --> 0:19:02.959 and Emily Chang at the National Association of Broadcasters conference 0:19:02.960 --> 0:19:06.119 in New York City. By Now Pay Later, Giant Clara 0:19:06.240 --> 0:19:09.200 has unveiled client Clara Spotlight, a new search tool that 0:19:09.240 --> 0:19:12.440 will compare prices across thousands of retailers and even enable 0:19:12.480 --> 0:19:18.200 shoppers to filter by color, size ratings. Clarna CEO Sebastian 0:19:18.240 --> 0:19:21.000 Schemiakovsky is with me now in person. So good to 0:19:21.080 --> 0:19:25.600 see you in person, maybe for the first time. You 0:19:25.720 --> 0:19:28.080 say this will usher in a new era of shopping. 0:19:28.200 --> 0:19:32.119 How so good questions, Well, I think it's really exciting 0:19:32.160 --> 0:19:34.840 to see. One fun aspect of this is just that, 0:19:35.280 --> 0:19:37.359 you know, due to the dominance of one of the 0:19:37.400 --> 0:19:40.280 biggest retailers in the world in the US, it's almost 0:19:40.320 --> 0:19:42.560 like put a little bit stop to development of great 0:19:42.640 --> 0:19:45.000 services on the shopping side because they were so dominant, 0:19:45.040 --> 0:19:46.960 and in Europe that wasn't really a case. So what 0:19:47.080 --> 0:19:49.879 we've taken here is a service that has been highly 0:19:49.920 --> 0:19:54.080 appreciated by consumers in Europe, which is about comparison, finding products, 0:19:54.119 --> 0:19:56.720 finding prices and all this and then basically you know, 0:19:56.920 --> 0:19:59.920 taking into the US markets. I'm super excited. Can you 0:20:00.000 --> 0:20:02.119 give us any details, not just how successful for a 0:20:02.320 --> 0:20:06.639 Spotlight has been in Europe and what makes you think 0:20:06.680 --> 0:20:10.760 you can challenge us big US tech giants. Yeah, well 0:20:10.840 --> 0:20:13.840 you have to try to start. We'll see if we can. 0:20:14.320 --> 0:20:17.440 But you know, I think the it's huge in the 0:20:17.520 --> 0:20:18.879 sense that in a lot of the countries where the 0:20:18.920 --> 0:20:21.560 service has existed, it is the starting point for people 0:20:21.600 --> 0:20:23.879 shopping experience. So they go there, they start there, they 0:20:23.960 --> 0:20:26.480 find the products, you know, they get, they learn about it, 0:20:26.560 --> 0:20:28.399 and then they go further to the retailers. So it 0:20:28.520 --> 0:20:30.720 is really the starting points is really really big. And 0:20:30.760 --> 0:20:35.520 you're also integrating shoppable video now gen z Loves. What 0:20:35.640 --> 0:20:38.520 do you think the impact of that can be? I 0:20:38.600 --> 0:20:40.320 think I mean to us to be honest right now, 0:20:40.520 --> 0:20:43.080 is the marketing side of our services has grown tremendously. 0:20:43.320 --> 0:20:45.159 We actually do now business with half from the top 0:20:45.240 --> 0:20:48.840 one US retailers for marketing services. And the problem we 0:20:48.960 --> 0:20:51.240 have is our demand is much hiris four or five 0:20:51.280 --> 0:20:53.640 times higher to supply. So one of the ideas here 0:20:53.720 --> 0:20:55.560 is just to see how can we get the audience 0:20:55.600 --> 0:20:57.919 that we already have in the thirty million Americans are 0:20:58.000 --> 0:21:00.280 using the app, How can we provide it with more 0:21:00.440 --> 0:21:03.680 interesting content so that we can also grow, you know, 0:21:03.880 --> 0:21:06.680 offer more supply for everyone who wants to market in 0:21:06.760 --> 0:21:09.399 that environment. So let's take matters specifically. Obviously, they've got 0:21:09.480 --> 0:21:11.919 Facebook and Instagram and they have some of these features 0:21:12.040 --> 0:21:14.640 built into their apps. What makes you think you can 0:21:14.840 --> 0:21:17.480 compete with them specifically? Well, I think there will be 0:21:17.720 --> 0:21:21.119 multiple places to entertain yourself. But I think to some degree, 0:21:21.119 --> 0:21:23.400 you know, if you look at an Instagram experience, you're 0:21:23.440 --> 0:21:25.320 doing a lot of things there, You're maybe you know, 0:21:25.440 --> 0:21:30.399 watching kitten videos, You're maybe doing like following different type 0:21:30.440 --> 0:21:33.119 of things. Here, it's very much more around shopping, right, 0:21:33.119 --> 0:21:36.480 it's very concentrated aroound that. So it's different experiences, But 0:21:36.480 --> 0:21:38.240 I think there would be multiple channels where people to 0:21:38.320 --> 0:21:42.240