WEBVTT - Paramount and Skydance's Deal, European Elections' Impact on Tech 0:00:01.520 --> 0:00:05.200 From Mahard where Innovation of Money and Power Collie in 0:00:05.320 --> 0:00:06.840 Silicon Vallet NBN. 0:00:07.160 --> 0:00:11.200 This is Bloomberg Technology with Caroline Hyde and Ed Ludlow. 0:00:24.680 --> 0:00:27.040 I'm parline Heid at Blombug's world headquarters in New York 0:00:27.400 --> 0:00:29.120 Nowmed Ludlow in San Francisco. 0:00:29.360 --> 0:00:31.200 This is Bloueberg Technology coming up. 0:00:31.160 --> 0:00:34.600 This hour paramount. It officially agrees to a deal with Skydouts, 0:00:34.760 --> 0:00:38.640 but shares whipsaw amid one of the industry's most dramatic acquisitions. 0:00:38.840 --> 0:00:41.320 We have details of the complex transaction. 0:00:41.960 --> 0:00:43.360 And all change in Europe. 0:00:43.400 --> 0:00:45.839 We assess the impact from elections in the UK and 0:00:45.960 --> 0:00:48.040 France on the technology sector. 0:00:48.200 --> 0:00:50.920 ANAI startup Heavier raises one hundred and thirty million dollars 0:00:50.960 --> 0:00:53.959 from Andresen and others. A conversation with the CEO as 0:00:54.160 --> 0:00:57.000 enterprises search for AI agents, but first set's check in 0:00:57.000 --> 0:01:00.720 on these markets, and there's some volatility in the direction travel. 0:01:00.440 --> 0:01:01.240 Of the benchmarks. 0:01:01.400 --> 0:01:05.360 While we're seeing ongoing political volatility in the US France, 0:01:05.400 --> 0:01:07.800 we get a shot reaction in terms of the national 0:01:07.880 --> 0:01:11.080 rally coming third way off that first originally predicted the 0:01:11.120 --> 0:01:13.200 Nastak holding onto gains. We only just led by the 0:01:13.280 --> 0:01:15.880 chip stocks. I'll take us through ed. The cat forty 0:01:15.959 --> 0:01:19.000 in France had been higher in midday's training. We're now 0:01:19.040 --> 0:01:21.199 falling back as we head towards the close, as people 0:01:21.240 --> 0:01:22.920 really trying to get a grip on what it means 0:01:23.080 --> 0:01:28.040 for French policymaking, gridlock on everyone's watchword pound look after 0:01:28.120 --> 0:01:31.320 its political clarity that we got at the end of 0:01:31.400 --> 0:01:34.399 last week, the poundmen remains the best performer from a 0:01:34.400 --> 0:01:36.520 G ten perspective. The dollar is a little lower, we 0:01:36.560 --> 0:01:39.920 get CPI, we get to course ched Chair of the Fed, J. 0:01:40.120 --> 0:01:42.640 Powell Tuesday Wednesday, move on to see what that means 0:01:42.680 --> 0:01:44.800 for the world a bitcoin because actually it's not so 0:01:44.880 --> 0:01:47.559 much for fundamentals what's happening with the US and macro policy. 0:01:47.600 --> 0:01:49.760 It's more about what's happening with mant goox to supply, 0:01:49.880 --> 0:01:52.160 with perhaps the German States selling off some of its 0:01:52.200 --> 0:01:54.320 holdings in bitcoin were not by one point eight percent 0:01:54.360 --> 0:01:57.160 fifty six thousand. All about some of those daily moving 0:01:57.200 --> 0:02:00.200 averages and where the technicals pointer said, Ed, what are 0:02:00.200 --> 0:02:01.240 you watching on the micro. 0:02:01.720 --> 0:02:03.400 Just four quick movers, because there's a lot to get 0:02:03.440 --> 0:02:05.920 into the show. Lucid bringing up the rear with quarterly 0:02:05.960 --> 0:02:10.280 ev deliveries twenty one hundred produced twenty four hundred or 0:02:10.360 --> 0:02:13.200 just shy of delivered to customers. Clearly, that's boosting the stock. 0:02:13.480 --> 0:02:15.920 There's still low volume, but that was a record for 0:02:15.960 --> 0:02:18.600 the company. Then I'm looking at Tesla analogous, But there 0:02:18.639 --> 0:02:20.560 was that great story on the terminal in the last 0:02:20.560 --> 0:02:23.040 twenty four hours about if you were a hedge fund 0:02:23.080 --> 0:02:25.920 that was short Tesla ahead of last week's quarterly deliveries 0:02:25.919 --> 0:02:28.160 for them, then you got burned because of the big 0:02:28.200 --> 0:02:31.520 run up in that stock that we've had following quarterly deliveries. 0:02:31.639 --> 0:02:33.280 Then just two names, Intel and Video. 0:02:33.360 --> 0:02:36.200 Intel was six percent higher on track for its biggest 0:02:36.240 --> 0:02:38.280 jumps in April. I don't see any news out there, 0:02:38.360 --> 0:02:40.720 but it's on a pretty decent run right now and recovering, 0:02:40.880 --> 0:02:42.359 and a video is caught up as part of that. 0:02:42.480 --> 0:02:47.320 Probably our top story is Paramount, so Paramount shares lower, 0:02:48.000 --> 0:02:52.239 we get a combination finally with Skydance. It's a complicated deal, 0:02:52.320 --> 0:02:55.120 right carry. The terms are complicated, the players are complicated. 0:02:55.280 --> 0:02:57.359 We've been waiting a long time down two percent off 0:02:57.360 --> 0:02:58.079 session lows. 0:02:58.360 --> 0:02:59.120 Let's get into it. 0:02:59.360 --> 0:03:02.520 Yeah, because people clearly questioning this deal. If the stock 0:03:02.639 --> 0:03:05.080 is still well below some of the price points. Let's 0:03:05.120 --> 0:03:08.880 get to it, Lumage. Lucas Shaw busy this weekend. Lucas, 0:03:09.360 --> 0:03:11.280 what does the deal spell out? 0:03:12.200 --> 0:03:15.600 Well, look, David Ellison gets his way right, he will 0:03:15.919 --> 0:03:20.200 acquire National Amusements, which is Shay Redstone's holding company, and 0:03:20.240 --> 0:03:23.440 then Paramount will will merge with sky Dance, which is really, 0:03:23.800 --> 0:03:27.040 you know, a Paramount acquisition of sky Dance, since paramounts 0:03:27.080 --> 0:03:29.679 a larger company, but since it's the sky Dance team 0:03:29.720 --> 0:03:32.280 that's taking over, it's sort of seen as a as 0:03:32.320 --> 0:03:36.160 a merger. And then he tries to turn around Paramount. 0:03:36.200 --> 0:03:38.880 It's been a media company that has been in decline 0:03:38.960 --> 0:03:42.480 for several years now. They had a call with investors 0:03:42.520 --> 0:03:44.920 this morning with a presentation where David Ellison and his 0:03:45.280 --> 0:03:49.440 deputy Jeff Shell and kind of some other members of 0:03:49.480 --> 0:03:51.760 his team explained why they think they can have more 0:03:51.840 --> 0:03:52.320 luck with it. 0:03:53.600 --> 0:03:56.920 Lucas, we explain in the Bloomberg News story about the 0:03:57.000 --> 0:04:00.320 kind of background the saga that is a think it's 0:04:00.320 --> 0:04:03.400 worth explain to audience who is David Ellison and what 0:04:03.600 --> 0:04:04.560 is sky Dance. 0:04:05.080 --> 0:04:07.240 They are a big name behind some big things. 0:04:07.960 --> 0:04:10.240 Yeah, it's funny that you say that because there was 0:04:10.880 --> 0:04:13.840 a portion of the call that started with that. Where 0:04:13.840 --> 0:04:16.279 you guys know a lot about Paramount, you probably don't 0:04:16.279 --> 0:04:19.080 know as much about Skuydance, you know. David Ellison first 0:04:19.240 --> 0:04:22.400 got known to people because of his father, Larry Ellison, 0:04:22.800 --> 0:04:24.520 who is one of the richest people in the world 0:04:24.560 --> 0:04:28.840 thanks to Oracle and Larry's two kids. David and Meghan 0:04:28.960 --> 0:04:31.880 both got into Hollywood around the same time, producing movies. 0:04:31.920 --> 0:04:34.920 Megan sort of made art house movies. People Hollywood loved 0:04:34.920 --> 0:04:37.320 her at first because she was bankrolling all these big filmmakers, 0:04:37.400 --> 0:04:41.640 but financially it was sort of a ruinous plan. David 0:04:41.720 --> 0:04:44.039 went in the opposite direction, where he made these big 0:04:44.080 --> 0:04:47.360 commercial popcorn movies and has worked with Paramount for more 0:04:47.400 --> 0:04:50.360 than a decade because he is a financier and producer 0:04:50.440 --> 0:04:53.320 on the Mission Impossible movies, on Star Trek movies, on 0:04:53.440 --> 0:04:56.599 many of the biggest films and franchises at Paramount, and 0:04:56.640 --> 0:05:00.200 sort of used his success with those early movies to 0:05:00.279 --> 0:05:03.200 build a larger enterprise, certainly not as big as Paramount, 0:05:03.240 --> 0:05:06.080 but he makes television shows, he makes animated movies. He 0:05:06.120 --> 0:05:09.160 has a partnership at the NFL to make sports programming 0:05:09.200 --> 0:05:11.840 he's got a nascent video game business, and sky Dams 0:05:12.000 --> 0:05:15.040 is one of the larger independent studios out there. 0:05:16.160 --> 0:05:18.680 The team did a really good job going through the 0:05:18.720 --> 0:05:21.919 minute shure of the deal because it is complicated. But 0:05:21.960 --> 0:05:23.400 the bit that I kind of trips up on was 0:05:23.440 --> 0:05:27.120 the numbers. So there's a deal value, But it seems 0:05:27.160 --> 0:05:29.880 like a lot of cash has to be injected into Paramount, 0:05:30.240 --> 0:05:32.080 and I'm trying to understand why Lucas. Is it that 0:05:32.120 --> 0:05:34.040 they just need to kind of have a revamp. 0:05:35.000 --> 0:05:37.280 Yeah, I mean, I think part of the pitch that 0:05:37.800 --> 0:05:41.880 David Ellison and Jerry cardinally had one of his big investors, 0:05:41.920 --> 0:05:45.160 made to share Redstone that appealed was we're going to 0:05:45.200 --> 0:05:47.640 buy Paramount. We're going to mostly keep it together. We're 0:05:47.680 --> 0:05:50.200 going to sell some non strategic assets that you probably 0:05:50.200 --> 0:05:53.000 would have sold anyways, but we're also going to invest 0:05:53.160 --> 0:05:55.520 billions of dollars into the business to give it a 0:05:55.560 --> 0:05:58.880 realistic shot of competing because Paramount has been held back 0:05:58.920 --> 0:06:01.080 by the fact that it it has a decent amount 0:06:01.080 --> 0:06:03.479 of debt, at least relative to its earnings, and it 0:06:03.600 --> 0:06:05.800 just doesn't have as many resources. You know, it's a 0:06:05.880 --> 0:06:09.520 much smaller company than Disney or even then a company 0:06:09.560 --> 0:06:10.839 like Warner Brothers Discovery. 0:06:11.680 --> 0:06:13.960 And some of that is that, you know, it's sort of. 0:06:13.880 --> 0:06:16.719 The source of all the Redstones worth, so they only 0:06:16.760 --> 0:06:19.320 have so much money that they can put into it. So, yes, 0:06:19.320 --> 0:06:23.000 it's a complicated deal because not only is Ellison and 0:06:23.080 --> 0:06:27.280 his backers putting money into buy National Amusements and then 0:06:27.520 --> 0:06:30.039 the deal to merge with Paramount, but they're investing additional 0:06:30.080 --> 0:06:33.320 capital and they're doing some kind of tricky stuff trying 0:06:33.360 --> 0:06:36.919 to allow regular shareholders to feel like they're not getting 0:06:36.960 --> 0:06:40.240 screwed in this deal, because in the initial proposal, a 0:06:40.240 --> 0:06:41.719 lot of people felt like it was a good deal 0:06:41.760 --> 0:06:44.320 for sharing Redstone, but less good for other shareholders, and 0:06:44.360 --> 0:06:46.960 that's one of the reasons why this has been drawn out. 0:06:47.560 --> 0:06:51.680 And to be specific, non Redstone voting shareholders can get 0:06:51.720 --> 0:06:53.640 twenty three dollars a share or roll their shares into 0:06:53.680 --> 0:06:57.599 the new company. Non voting shareholders get fifteen dollars a 0:06:57.640 --> 0:07:00.279 share in cash or one share in the new company. 0:07:00.520 --> 0:07:02.560 Because you're breaking it all down so brilliant, as he 0:07:02.560 --> 0:07:04.120 always does for us, and we're going to get into 0:07:04.160 --> 0:07:08.000 the nitty gritty of ultimately why perhaps shareholders unbuying this 0:07:08.160 --> 0:07:11.320 deal today with John clin See of Hang Media for 0:07:11.920 --> 0:07:14.480 more on Ultimately we can talk about the vision and 0:07:14.520 --> 0:07:16.920 the AI proposition and the technology in a moment, John, 0:07:17.000 --> 0:07:19.560 But I am interested as to why so much the 0:07:19.600 --> 0:07:22.320 shares are selling off and why perhaps these non voting 0:07:22.360 --> 0:07:24.840 shareholders don't like it, don't buy it, don't think it 0:07:24.880 --> 0:07:25.400 all go through. 0:07:26.840 --> 0:07:30.440 Well, there's all this uncertainty still, it's been such a 0:07:30.480 --> 0:07:33.360 messy deal getting across the finish line, and there's still 0:07:33.400 --> 0:07:38.040 the chance of another party coming in. They've got a 0:07:38.120 --> 0:07:41.640 shopping period where you know, who knows, Garry Diller could 0:07:41.720 --> 0:07:45.560 jump in or Edgar Bronfman has said to be interested also. 0:07:45.640 --> 0:07:51.280 So uncertainty always causes that sort of phenomenon, and they've 0:07:51.320 --> 0:07:52.720 got to make. 0:07:52.560 --> 0:07:54.880 Sure investors have to make sure that this is actually 0:07:54.920 --> 0:07:55.600 going to happen. 0:07:56.400 --> 0:08:00.520 Okay, So we continue to question whether regulatory go through 0:08:00.520 --> 0:08:03.080 and ultimately whether we'll get the deal done. On if 0:08:03.080 --> 0:08:05.320 the deal does get done, what are the positives from 0:08:05.360 --> 0:08:07.880 your perspective? We go to you with your keen eye 0:08:07.920 --> 0:08:09.880 on what technology can do for the media industry. 0:08:10.800 --> 0:08:14.280 Well, everybody's talking about David Ellison, but let's not forget 0:08:14.320 --> 0:08:17.520 Jeff Shell, who is a phenomenal operator is going to 0:08:17.520 --> 0:08:18.880 come in and get his hands. 0:08:18.600 --> 0:08:22.960 On the moving parts of this business, and he's just 0:08:23.160 --> 0:08:23.720 first rate. 0:08:23.840 --> 0:08:26.080 And so you know, in terms of the blocking and 0:08:26.080 --> 0:08:32.360 tackling stuff, the operational initiatives and efforts that have to 0:08:32.360 --> 0:08:36.160 go into it, they've got a fantastic operator there. And 0:08:36.200 --> 0:08:41.720 then in Ellison, they've got a visionary and enthusiastic owner, 0:08:42.360 --> 0:08:44.800 which is always a huge plus because it means that 0:08:45.240 --> 0:08:50.400 you know, he'll put effort and money into things. Ellison 0:08:50.640 --> 0:08:56.600 talked today about re emphasizing their core competency in storytelling, 0:08:57.240 --> 0:09:00.120 and he also talked about bringing them up to speed 0:09:00.280 --> 0:09:01.200 on technology. 0:09:01.520 --> 0:09:04.160 So those are two worthwhile goals. 0:09:04.520 --> 0:09:08.120 But when you talk about storytelling today, you've got to 0:09:08.160 --> 0:09:13.440 be looking at YouTube. YouTube has changed the definition of 0:09:13.480 --> 0:09:17.080 what powerful storytelling is because hundreds of millions of people 0:09:17.280 --> 0:09:21.080 a week come there and they watch short form video 0:09:21.520 --> 0:09:24.559 that they love. And as Lucas was just saying, Ellison 0:09:24.600 --> 0:09:29.240 has made his name with the premium blockbuster type titles, 0:09:29.720 --> 0:09:35.080 and it's going to require a shifted mindset to understand that. 0:09:35.640 --> 0:09:37.319 Even if you're in the movie. 0:09:37.040 --> 0:09:40.960 Business, you can't ignore the fact that YouTube is watched 0:09:41.000 --> 0:09:45.400 by far more people than watching anything else anywhere, and 0:09:45.480 --> 0:09:47.640 so that's going to be a mindset challenge for them 0:09:47.760 --> 0:09:51.880 to not not impossible to unachieve, but that's a challenge. 0:09:52.440 --> 0:09:54.240 So what do they do with the eight billion that 0:09:54.280 --> 0:09:57.000 they're getting paramount to emulate that YouTube success? 0:09:57.880 --> 0:09:59.840 Well, you know, he talked about technology, and when you 0:09:59.840 --> 0:10:02.640 talk talk about technology, you're talking about direct to consumer. 0:10:02.880 --> 0:10:06.280 That is what dominates all media today, whether you're making 0:10:06.320 --> 0:10:09.560 Hollywood blockbusters most of which are watched on a small 0:10:09.559 --> 0:10:14.320 screen in your home, and technology means AI and it 0:10:14.440 --> 0:10:18.960 means direct to consumer, and those fit together. The AI 0:10:19.120 --> 0:10:23.160 of it all also impacts the storytelling because you can 0:10:23.200 --> 0:10:30.120 do more, different, less expensive programming using AI now and 0:10:30.400 --> 0:10:34.040 that's only going to become even more powerful by next week, 0:10:34.440 --> 0:10:37.120 let alone next year when this deal finally comes through. 0:10:37.559 --> 0:10:39.920 So he'll be looking for cost savings. 0:10:39.960 --> 0:10:41.880 They've already said they're going to shake out two billion 0:10:41.960 --> 0:10:45.760 dollars in energies and then they're going to put money 0:10:45.800 --> 0:10:51.479 behind some sort of content initiatives powered by technology. 0:10:51.800 --> 0:10:53.240 That would be a smart thing to do. 0:10:53.320 --> 0:10:55.920 I mean, having run an AI platform that Apple acquired, 0:10:56.600 --> 0:10:58.559 you know there's a lot of. 0:10:58.520 --> 0:11:01.680 Complexity in it, but there's a lot of Upside with 0:11:01.800 --> 0:11:02.240 it as. 0:11:02.080 --> 0:11:05.280 Well of course as president of Lenix as well well 0:11:05.360 --> 0:11:07.480 Links even We thank you so much with all the 0:11:07.600 --> 0:11:10.640 Xai expertise and tech. John Client, CEO of Hang Media, 0:11:10.880 --> 0:11:12.520 we appreciate it. Mean while coming up, we're going to 0:11:12.559 --> 0:11:15.880 be joined by Sima Shah, chiefs Global strategist at Principal 0:11:15.920 --> 0:11:18.600 Asset Management that says chip stocks they're trying to pull 0:11:18.600 --> 0:11:20.640 the market higher but failing thus far. 0:11:20.800 --> 0:11:21.640 And what are you watching? 0:11:22.440 --> 0:11:25.120 A story out of Germany? I spotted Sunday kind of 0:11:25.679 --> 0:11:28.400 weekend buried news the stocks down six point seven percent 0:11:28.480 --> 0:11:31.360 on Delivery Hero, they disclosed that they might face up 0:11:31.400 --> 0:11:34.760 to a four hundred million eurofine from the European Commission 0:11:35.160 --> 0:11:39.400 over alleged anti competitive or antitrust practices. Stock have been 0:11:39.440 --> 0:11:42.240 down as much as eighteen percent, but it's paired some 0:11:42.280 --> 0:11:45.720 of that decline and Delivery Hero saying it's going to 0:11:46.080 --> 0:11:48.959 cooperate with European Commission stay with us. 0:11:49.000 --> 0:12:10.600 This has Bloomberg technology. 0:12:01.080 --> 0:12:04.240 Stocks kicking off the week back at all time highs, 0:12:04.280 --> 0:12:08.000 benchmarks being like higher by chip stocks in particular, Siemashageu 0:12:08.040 --> 0:12:11.200 status to Principle Asset Management is here to delve into 0:12:11.240 --> 0:12:13.120 these markets. Well, what's soaring a bit on the day 0:12:13.160 --> 0:12:16.679 seemer but in general, in Vidia, Intel, some of the 0:12:16.800 --> 0:12:19.640 chip stocks playing well. A key part once again, is 0:12:19.679 --> 0:12:20.959 this the ongoing narrative. 0:12:22.960 --> 0:12:24.640 It certainly seems to be the case. You know, It's 0:12:24.679 --> 0:12:27.640 funny because when we came into the year, the expectation 0:12:27.760 --> 0:12:30.120 that this would look very, very different to twenty twenty three, 0:12:30.160 --> 0:12:32.760 that you'd have a broader set of rallies, not just 0:12:32.800 --> 0:12:35.319 focused on those big tech companies, and then fast forward 0:12:35.320 --> 0:12:37.680 six months and actually this year looks so much like 0:12:37.720 --> 0:12:41.280 twenty twenty three, where those megacaps are still carrying the market. 0:12:41.880 --> 0:12:44.319 I think the one slight difference in which I think 0:12:44.360 --> 0:12:46.600 we're going to build on a narrative for the second 0:12:46.640 --> 0:12:49.000 half of the year, though, is that whereas it you know, 0:12:49.040 --> 0:12:51.320 the megacap firms are still expected, we expect them to 0:12:51.320 --> 0:12:54.320 continue to do really well. We are expecting to see 0:12:54.320 --> 0:12:58.040 that risk appetite and ernie's delivery broaden up beyond just 0:12:58.080 --> 0:13:01.000 those tech companies. So you see them companies joining in 0:13:01.040 --> 0:13:02.040 with this positive news. 0:13:03.440 --> 0:13:05.000 Sema, heads ED and San Francisco. 0:13:05.200 --> 0:13:07.640 So I'm just back from like a classic July fourth 0:13:07.679 --> 0:13:10.559 long weekend in the US where we sit around the table. 0:13:10.320 --> 0:13:12.599 And people say, hey, have you seen in video? Like 0:13:12.679 --> 0:13:14.160 what's what's that thing about in video? 0:13:14.520 --> 0:13:16.440 And then they bring up interest rates and then they 0:13:16.480 --> 0:13:19.160 brought up the election. But I think the fair thing 0:13:19.240 --> 0:13:21.679 say is everyone was kind of asking in financial markets, 0:13:22.080 --> 0:13:24.560 what is the thing right now that's the main driver 0:13:24.760 --> 0:13:26.320 or is it a combination of all three? 0:13:28.520 --> 0:13:30.400 Well, so I think you know, at the moment, for 0:13:30.480 --> 0:13:33.760 equity markets in general, clearly the major driver is still 0:13:33.800 --> 0:13:37.000 that megacaps you know in video, the mag seven They 0:13:37.040 --> 0:13:41.480 continue to really be those major foundations for the equity 0:13:41.520 --> 0:13:45.320 market rally. At the same time, you are still seeing 0:13:45.400 --> 0:13:47.760 some kind of optimism feeding into the market with these 0:13:47.760 --> 0:13:50.520 expectations for bed rate cuts, which we would certainly agree with, 0:13:50.920 --> 0:13:53.200 and then with the US election, that's adding volatility. But 0:13:53.240 --> 0:13:55.480 we don't think that volatility would be sustained so much 0:13:55.640 --> 0:13:58.640 beyond the elections. So not something that we continue to 0:13:58.679 --> 0:13:59.240 be worried. 0:13:59.000 --> 0:14:02.920 About, seemago global because we know you can and that's 0:14:02.920 --> 0:14:06.440 why we love you. Look, UK just had elections, France 0:14:06.480 --> 0:14:08.440 were still trying to work it out. Us we have 0:14:08.559 --> 0:14:11.679 that anxiety. Is us the place to play for equities 0:14:11.679 --> 0:14:14.520 and indeed suppons Yeah. 0:14:14.320 --> 0:14:16.880 So the election uncertainty that you've seen an unfold in 0:14:16.960 --> 0:14:19.320 Europe has been somewhat damaging. I think when we think 0:14:19.360 --> 0:14:23.000 about Europe, investors for the first time in years, actually 0:14:23.040 --> 0:14:25.080 just about three months ago, solid to get really interested 0:14:25.080 --> 0:14:28.080 in Europe again, started to see some earning delivery, some 0:14:28.160 --> 0:14:31.600 slight cycnical opturn and had become interested. And then what 0:14:31.640 --> 0:14:33.760 you see now is that this political terminal seems to 0:14:34.160 --> 0:14:36.760 unravel some of that optimism that have been feeding through. 0:14:37.120 --> 0:14:39.480 So now we're looking back to the US. Now, obviously 0:14:39.520 --> 0:14:43.960 the US has its own election volatility on the rise 0:14:44.000 --> 0:14:45.480 in the last couple of weeks, and certainly we would 0:14:45.480 --> 0:14:48.320 expect that to continue through to November. But actually when 0:14:48.360 --> 0:14:50.640 you look at over another you know, not just focusing 0:14:50.640 --> 0:14:52.280 on the next six months, we're really taking more of 0:14:52.320 --> 0:14:55.200 a long term perspective. That secular bull run that you 0:14:55.200 --> 0:14:57.280 see for the US, which is really built on these 0:14:57.320 --> 0:15:01.200 technology companies, we think that we'll still be sustained. So, 0:15:01.480 --> 0:15:04.840 you know, of courses opportunities elsewhere, it always makes sense 0:15:04.880 --> 0:15:07.520 to diversify and try and get exposure to other markets. 0:15:07.880 --> 0:15:10.680 But actually, as a foundational element of a portfolio, we 0:15:10.760 --> 0:15:13.600 still think that the US is the one that really 0:15:13.640 --> 0:15:14.600 deserves the overweight. 0:15:15.960 --> 0:15:18.440 Semashar, chief strategists at Principalsset Management. 0:15:18.480 --> 0:15:19.600 Good to catch up. Thank you. 0:15:28.080 --> 0:15:31.280 President Joe Biden says he's determined to remain in the 0:15:31.360 --> 0:15:35.240 US presidential race, challenging dissenters to end talk of his 0:15:35.320 --> 0:15:37.840 removal from the ballot. In a letter to lawmakers, the 0:15:37.840 --> 0:15:41.320 president wrote, quote, I am firmly committed to staying in 0:15:41.360 --> 0:15:43.760 this race, to running this race to the end, and 0:15:43.800 --> 0:15:47.440 to beating Donald Trump. It's less than five months until 0:15:47.560 --> 0:15:50.600 the presidential election. Let's discuss where the candidates stand on 0:15:50.720 --> 0:15:54.440 AI and the future of AI regulation with Narena Singh, 0:15:54.600 --> 0:15:58.840 CEO of Credo AI and AI governance platform that streamlines 0:15:58.920 --> 0:16:03.920 responsible AI adoption by automating AI oversight. Mavarna also serves 0:16:03.920 --> 0:16:08.600 on the Biden Administration's National AI Advisory Committee. Welcome back 0:16:08.600 --> 0:16:11.840 to the program. I want to start with a difficult question. 0:16:12.400 --> 0:16:13.440 We had Vivet. 0:16:13.280 --> 0:16:14.760 Ramaswami on the program. 0:16:15.040 --> 0:16:17.760 He is a surrogate for the Trump campaign and he said, look, 0:16:17.800 --> 0:16:22.080 when Trump was in office, this wasn't happening. Biden has 0:16:22.120 --> 0:16:28.000 been through several years of this AI thing. But does 0:16:28.040 --> 0:16:31.560 Biden have a firm grasp on it to your mind 0:16:32.240 --> 0:16:32.680 well ed. 0:16:32.720 --> 0:16:34.920 Thank you so much for having me. There's a lot 0:16:35.040 --> 0:16:37.760 up in the air, especially with the upcoming elections, but 0:16:38.200 --> 0:16:39.920 one of the core things that we have found in 0:16:39.960 --> 0:16:43.640 the past, especially two years, is the policymakers have actually 0:16:43.680 --> 0:16:48.440 taken a very proactive stand in understanding artificial intelligence, but 0:16:48.640 --> 0:16:51.520 also how do you put right guardrails around it so 0:16:51.560 --> 0:16:54.880 that we can ensure responsible years. And so I would 0:16:54.880 --> 0:16:57.840 say that what we are seeing, especially our stakeholders and 0:16:57.880 --> 0:17:00.480 government have done a great job in a he's trying 0:17:00.480 --> 0:17:03.760 to understand. Are they experts? Absolutely not. And this is 0:17:03.760 --> 0:17:06.119 where we come in as industry to make sure that 0:17:06.119 --> 0:17:10.600 there's this public private partnership to ensure understanding of artificial 0:17:10.640 --> 0:17:12.480 intelligence as well as thoughtful. 0:17:12.160 --> 0:17:16.399 Regulations, and that thoughtful regulation has to be global as well. 0:17:16.840 --> 0:17:19.440 And I'm interested in reading we bring you on also 0:17:19.480 --> 0:17:22.320 because over in Washington there's a NATO summit is coming up, 0:17:22.359 --> 0:17:25.320 as if Biden wasn't busy enough already, and I'm interested 0:17:25.320 --> 0:17:29.320 in your perspective on whether we're seeing a global narrative 0:17:29.440 --> 0:17:32.400 form a Western global narrative on governance AI. 0:17:34.680 --> 0:17:38.680 This is a pivotal week in DC, primarily because NATO 0:17:38.760 --> 0:17:42.159 is celebrating seventy five years of bringing together heads of 0:17:42.200 --> 0:17:45.639 states and heads of government and Carolyn, as I always tell, 0:17:45.760 --> 0:17:48.919 it's you know, the only constant is change and AI. 0:17:49.119 --> 0:17:53.159 This year, so we are expecting to see not only 0:17:53.240 --> 0:17:57.440 a thoughtful debate and discussion on what is artificial intelligence 0:17:57.520 --> 0:18:00.520 role in national security and defense on a globe scale, 0:18:00.920 --> 0:18:05.000 but more importantly, it's responsible use. You know, it's been 0:18:05.000 --> 0:18:09.080 fascinating to see NATO since twenty twenty one actually having 0:18:09.119 --> 0:18:12.600 something called as Principles of Responsible Use. They've engaged with 0:18:12.600 --> 0:18:16.720 the industry, including CREEDOAI, which is an AI governance and 0:18:16.840 --> 0:18:22.040 risk management and compliance platform that helps organizations deliver on 0:18:22.240 --> 0:18:24.879 the goals of responsible AI. So what we are going 0:18:24.920 --> 0:18:27.359 to see coming out of the NATO summit is not 0:18:27.400 --> 0:18:30.000 only going to be our belief, is not only going 0:18:30.040 --> 0:18:33.280 to be a firm attention to artificial intelligence, but also 0:18:33.359 --> 0:18:36.560 more international cooperation on standards and evaluations. 0:18:36.840 --> 0:18:40.399 I find this fascinating. NATO is a coalition of thirty 0:18:40.440 --> 0:18:45.560 two member states to North American, thirty European, and within that, 0:18:45.680 --> 0:18:49.120 the United States is probably the market leader in developing 0:18:49.200 --> 0:18:53.000 large language models. Generative AI strong plays in France, the 0:18:53.080 --> 0:18:58.679 United Kingdom, How do they agree on anything when it 0:18:58.720 --> 0:19:02.359 comes to a sets of rules given the cross jurisdictional 0:19:02.960 --> 0:19:04.200 assembly of that group. 0:19:05.000 --> 0:19:08.280 You know ed this work has been in motion for years. 0:19:08.359 --> 0:19:11.040 It is not a question and discussion happening right now. 0:19:11.400 --> 0:19:13.800 So especially for the past four and a half years, 0:19:13.840 --> 0:19:16.200 and I've been on the National Air Advisory Commission now 0:19:16.200 --> 0:19:19.639 for almost two years, there's been a very strong international 0:19:19.680 --> 0:19:25.040 cooperation on what is good artificial intelligence governance and standards 0:19:25.080 --> 0:19:28.680 across artificial intelligence look like. And just as a case 0:19:28.720 --> 0:19:32.920 in point, in August, Europe's first Artificial Intelligence Act goes 0:19:32.960 --> 0:19:35.720 into effect and as you can imagine, that has really 0:19:35.800 --> 0:19:40.440 focused extensively on AI risks but also rights of citizens. 0:19:40.560 --> 0:19:43.120 So we are already seeing across the need to allies 0:19:43.200 --> 0:19:47.160 a lot of discussion but also collaboration and understanding on 0:19:47.600 --> 0:19:50.840 how paramount it is to focus on artificial intelligence risks 0:19:51.119 --> 0:19:53.880 but making sure it actually serves the citizens of all 0:19:53.880 --> 0:19:56.800 these nations. And there's already been a lot of consensus 0:19:57.160 --> 0:19:59.639 I believe in coming up with the right frameworks to 0:19:59.640 --> 0:20:01.760 put gos nafrino. 0:20:01.840 --> 0:20:07.680 Whenever I post anything on guardrails, on protection, on governance 0:20:07.680 --> 0:20:11.040 of artificial intelligence, on Lincoln or wherever else I'm throwing 0:20:11.040 --> 0:20:13.920 my ideas. I get so much vitrial and fight back 0:20:13.960 --> 0:20:16.000 saying you can't even use a word like guardrail when 0:20:16.000 --> 0:20:18.400 it comes to artificial intelligence. I'm sure you get that too. 0:20:18.680 --> 0:20:20.560 What's your response? And people are cynical on. 0:20:20.520 --> 0:20:24.680 It, you know, I think cynics is what drives the 0:20:24.680 --> 0:20:28.639 innovation forward, is what I would say, Carolyn. One of 0:20:28.640 --> 0:20:31.480 the big narrative shifts that we've seen in the past 0:20:31.560 --> 0:20:35.320 few years, and especially you know, Credo AI created the 0:20:35.359 --> 0:20:39.640 word our AI governance, and the shift that we've seen 0:20:39.760 --> 0:20:42.520 is governance is actually not a barrier to AI innovation. 0:20:43.119 --> 0:20:46.440 Now it's becoming a critical component of making sure AI 0:20:46.560 --> 0:20:49.639 actually works for the businesses that are investing in it. 0:20:50.160 --> 0:20:52.399 You know, if you just look at the past earning 0:20:52.480 --> 0:20:56.720 calls from most of the organizations, whether it's Meta, Microsoft, 0:20:57.080 --> 0:21:00.720 Adobe and others, there's been one man so focus on 0:21:00.800 --> 0:21:04.080 investment and artificial intelligence. But as of last week, the 0:21:04.119 --> 0:21:09.040 financial reportings now also include AI risks and making sure 0:21:09.080 --> 0:21:12.240 there are right governance structures not only at the business 0:21:12.280 --> 0:21:15.080 level but at the AI systems level. So the narrative 0:21:15.359 --> 0:21:18.560 I would say has shifted, and also the investments is 0:21:18.600 --> 0:21:23.080 shifting from just AI adoption to now making sure responsible 0:21:23.119 --> 0:21:25.960 AI adoption is paramount to business success. 0:21:26.600 --> 0:21:28.560 Verena. Always great to have you in the building. Thank 0:21:28.560 --> 0:21:32.280 you so much, Neverna saying credo AI CEO busy on 0:21:32.440 --> 0:21:42.920 all things AI. Welcome back to me, Meg Technology. 0:21:42.920 --> 0:21:44.040 I'm Caroline had in New York. 0:21:44.640 --> 0:21:46.520 I met love Low in San Francisco. Carolin, what do 0:21:46.520 --> 0:21:47.680 you see in the markets right now? 0:21:47.840 --> 0:21:49.920 I mean a little bit of volatility, I mean to 0:21:49.960 --> 0:21:52.040 be expected. We get a big CPI print this week, 0:21:52.080 --> 0:21:54.520 we get J Powell, of course giving testimony for two 0:21:54.520 --> 0:21:56.959 straight days. We're up two tens percent. We're actually at 0:21:56.960 --> 0:21:59.600 record highs once again. We try to flip into the red, 0:21:59.600 --> 0:22:02.000 but the NAWA one hundred back on top once again. 0:22:02.200 --> 0:22:04.080 Chip makes help there. I'm looking at a CAC forty, 0:22:04.119 --> 0:22:07.720 though more affected by politics at this very moment. We're 0:22:07.760 --> 0:22:10.040 off by about five tenths percent at the moment, so 0:22:10.400 --> 0:22:14.240 clearly worries about really what France is able to achieve, 0:22:14.520 --> 0:22:16.159 and we're going to dig into that in a moment. Ed, 0:22:16.280 --> 0:22:18.800 But it's affecting stocks a little bit. Bitcoin off by 0:22:18.800 --> 0:22:20.200 one and a half percent. This is more about a 0:22:20.200 --> 0:22:22.960 supply side issue. We're also hitting some technical levels where 0:22:22.960 --> 0:22:24.520 we see US trade lower into the second half of 0:22:24.560 --> 0:22:26.359 the year. Remember it's been a phenomenal performer for the 0:22:26.359 --> 0:22:28.119 first half. Let's move on and to look at the 0:22:28.280 --> 0:22:29.359 individual companies that. 0:22:29.359 --> 0:22:30.000 I've got an eye on. 0:22:30.320 --> 0:22:33.840 Socks, chip stocks, benchmarks rising higher, looking Video doing very 0:22:33.840 --> 0:22:36.040 well once again up top leading US higher. From our 0:22:36.080 --> 0:22:39.240 points perspective, we're also seeing Intel do incredibly well. 0:22:39.359 --> 0:22:39.919 Some of these. 0:22:39.760 --> 0:22:41.480 Companies that many feel have been left out of the 0:22:41.480 --> 0:22:44.479 AI trade actually saying start to play in there and 0:22:44.520 --> 0:22:46.879 get ahead of any sort of short squeeze. Super micro 0:22:46.960 --> 0:22:48.960 Computer one of those at more than eight percent on 0:22:49.000 --> 0:22:51.399 the day. This is about a server perspective and an 0:22:51.400 --> 0:22:54.480 AI glow. But Meta on the downside more than a 0:22:54.480 --> 0:22:57.080 percentage point off now it rallied hard on Friday. Maybe 0:22:57.080 --> 0:22:59.600 we've got some profit taking happening as we get Webbush 0:22:59.680 --> 0:23:02.760 and some other key names saying look upgrade your price 0:23:02.800 --> 0:23:05.760 targets here. But we are also seeing Bernstein putting out 0:23:05.760 --> 0:23:08.679 a thoughtful note saying, look, maybe we've got Meta not 0:23:08.840 --> 0:23:11.520 performing well. If Trump came to power. Let's dwell a 0:23:11.520 --> 0:23:14.120 bit more on geopolitics and political landscape now and. 0:23:15.160 --> 0:23:17.600 Yeah, let's head over to France, which is heading into 0:23:18.000 --> 0:23:22.000 an extended period of political gridlock after a shock defeat 0:23:22.480 --> 0:23:25.960 for Marine La Penz far right in Sunday's election. A 0:23:26.040 --> 0:23:28.320 left wing alliance will be the biggest group, but the 0:23:28.359 --> 0:23:33.240 divided parliament has no clear majority. Here to discuss Bloomberg's 0:23:33.240 --> 0:23:37.360 Oliver Krook in Paris, there is an AI startup ecosystem 0:23:37.359 --> 0:23:39.960 conversation to be had here, Oliver. 0:23:40.000 --> 0:23:41.240 But let's start with the basics. 0:23:41.280 --> 0:23:44.000 Where do we stand in what will be I guess 0:23:44.040 --> 0:23:48.800 protracted coalition building and political bargaining over the coming weeks. 0:23:51.280 --> 0:23:54.359 Yeah, that's right, and in protection, protect and protracted a 0:23:54.440 --> 0:23:57.320 political bargaining and coalition building in a sort of nation 0:23:57.480 --> 0:23:59.880 that is not really accustomed to that sort of thing. Right, 0:24:00.119 --> 0:24:02.520 is really a presidential system where generally you have some 0:24:02.680 --> 0:24:05.199 kind of majority within the parliament, the president appoints the 0:24:05.200 --> 0:24:08.200 prime minister and you sort of move along. It's quite unprecedented, 0:24:08.240 --> 0:24:10.920 in fact for the president, as macoln did, to dissolve 0:24:10.920 --> 0:24:13.479 the parliament and call these sort of snap elections. And 0:24:13.520 --> 0:24:15.639 though this sort of great fear for the mainstream of 0:24:15.640 --> 0:24:17.800 politics within France was that the far right was going 0:24:17.840 --> 0:24:19.520 to sweep. That is not at all the story that 0:24:19.520 --> 0:24:21.840 we have today, but it is not any simpler. As 0:24:21.840 --> 0:24:24.919 a result, you now have this left coalition that is 0:24:25.720 --> 0:24:29.040 composed of people with very different views on the political spectrum, 0:24:29.080 --> 0:24:32.400 the very far left Jean Driuquemino Chanp is among them, 0:24:32.520 --> 0:24:34.440 and none of them have an outright majority. So there's 0:24:34.440 --> 0:24:36.679 going to be a lot of discussions. The Prime minister 0:24:36.760 --> 0:24:39.639 attendered his resignation today, Macohlen refused to acceptly, say you 0:24:39.640 --> 0:24:41.119 need to hang on, So he's going to be there 0:24:41.119 --> 0:24:42.960 for at least another couple of weeks. There are just 0:24:43.119 --> 0:24:44.960 not the votes right now, or is not any clear 0:24:45.000 --> 0:24:46.919 path to how this government gets formed. 0:24:47.840 --> 0:24:52.720 Oliver, What then is corporate France's reaction, because interestingly, there's 0:24:52.720 --> 0:24:55.639 a lot of very big international businesses within the CAP forty, 0:24:55.760 --> 0:24:58.040 but what has been the domestic viewpoint? 0:25:00.880 --> 0:25:02.680 Yeah, so listen, there's going to be this is by 0:25:02.840 --> 0:25:04.680 this is not even close to the sort of worst 0:25:04.680 --> 0:25:06.719 case scenario for business and for Marcus for what's come 0:25:06.760 --> 0:25:09.760 out here. This gridlock situation, though it's not sort of ideal, 0:25:10.040 --> 0:25:12.000 falls short of some of these sort of other issues 0:25:12.000 --> 0:25:13.879 that you would have had. There is also, though a 0:25:13.920 --> 0:25:17.600 great consciousness within France and across Europe, particularly with you 0:25:17.640 --> 0:25:19.920 have the far right rising as it is about the 0:25:20.000 --> 0:25:22.639 question of immigration, and particularly in France and in my 0:25:22.720 --> 0:25:25.760 home country where I live, Germany, this question of where 0:25:25.840 --> 0:25:27.600 is the labor? There is just not the labor in 0:25:27.640 --> 0:25:30.040 the market to build a lot of the businesses that 0:25:30.720 --> 0:25:32.560 people need to be building, and a lot of the 0:25:32.560 --> 0:25:36.000 policymakers in the mainstream politics see the answer there as immigration. 0:25:36.359 --> 0:25:38.719 Though the far right did not sweep the elections, let 0:25:38.800 --> 0:25:40.880 us not fail to mention that they got the They're 0:25:40.960 --> 0:25:43.880 the number one party right now in French Parliament. They 0:25:43.880 --> 0:25:46.280 have set a record. So in terms of actually creating 0:25:46.280 --> 0:25:49.639 a stable environment for business, this is not an ideal outcome, 0:25:49.800 --> 0:25:52.120 though it falls somewhat short of the worst case scenario. 0:25:53.040 --> 0:25:55.399 Let's take that and focus at a micro level and 0:25:55.440 --> 0:25:59.720 the tech sector. Then you know, this immigration center point 0:26:00.160 --> 0:26:03.800 is not unique to France, but there is a debate 0:26:03.840 --> 0:26:06.920 around talent oliver and being able to bring talent into 0:26:06.960 --> 0:26:09.600 a market where you know, France sees itself as an 0:26:09.600 --> 0:26:13.560 AI leader for example, what do the startup level conversations 0:26:13.600 --> 0:26:15.560 tell you about the outcome of this election? 0:26:18.359 --> 0:26:20.720 Absolutely, I mean it wants to be a nimble economy. 0:26:20.720 --> 0:26:23.399 And that's sort of what Macon sort of promised when 0:26:23.400 --> 0:26:25.360 he came into power, to try to make this economy 0:26:25.400 --> 0:26:27.640 a little bit less stale, a little bit more dynamic. 0:26:27.800 --> 0:26:29.760 I mean, it's home to Misscid, which is sort of 0:26:29.800 --> 0:26:32.919 one of the great AI hopes here within Europe, you know, 0:26:32.920 --> 0:26:35.040 where there are not a great many of these sort 0:26:35.040 --> 0:26:37.000 of chech leaders to choose from. And this is coming 0:26:37.040 --> 0:26:39.479 at a moment ed where Europe is really, you know, 0:26:39.600 --> 0:26:42.600 in a slow burning kind of existential crisis in terms 0:26:42.600 --> 0:26:44.720 of its own competitiveness. I mean, they worry at the 0:26:44.720 --> 0:26:47.399 French level, but they're really worried at the EU level. 0:26:47.400 --> 0:26:51.040 How do you boost French competitiveness and European competitors at 0:26:51.080 --> 0:26:54.840 a time when you really see global blocks fragmenting with 0:26:54.880 --> 0:26:58.879 the United States Inflation Reduction Act, It's Chips Act, China 0:26:58.960 --> 0:27:01.200 that is doing a lot of helping of its own 0:27:01.240 --> 0:27:04.560 businesses with its own domestic economic policy. Where does that 0:27:04.640 --> 0:27:07.399 leave Europe. One of the solutions that McColl puts forward 0:27:07.440 --> 0:27:11.080 and the mainstream of Europe is a more robust European market, 0:27:11.119 --> 0:27:13.840 a capital markets union, banking union to try to get 0:27:13.840 --> 0:27:17.560 that capital flowing across borders. When you have McColl basically 0:27:17.680 --> 0:27:20.520 just you know, his power taken out from under him 0:27:20.560 --> 0:27:22.679 at the EU level, it makes it much harder to 0:27:22.720 --> 0:27:25.520 move forward that, particularly when you have the far right 0:27:25.560 --> 0:27:28.320 and the far left, neither of whom are really big 0:27:28.359 --> 0:27:30.520 fans of a bigger and stronger Europe. 0:27:31.080 --> 0:27:33.480 Oliver Crook, we really appreciate you staying late. They're in 0:27:33.520 --> 0:27:36.479 Paris for us on what has been a long weekend 0:27:36.560 --> 0:27:39.080 of coverage. Thank you very much. Indeed, and look, it's 0:27:39.080 --> 0:27:41.320 not the only political story. I've got to get to 0:27:41.359 --> 0:27:44.200 the UK and discuss the recent elections there. As new 0:27:44.200 --> 0:27:48.640 Prime Minister Kis Starmer focuses on economic growth, what role 0:27:48.680 --> 0:27:50.920 does technology play in all of that? Preece So welcome 0:27:51.000 --> 0:27:53.800 Julian David Cee of k for more on this. 0:27:54.280 --> 0:27:57.119 So, Julian, what does the investments. 0:27:56.680 --> 0:28:01.000 Landscape look like for technology now? From a perspective? 0:28:02.080 --> 0:28:04.560 Well, it's really interesting. I mean, the tech sector in 0:28:04.600 --> 0:28:07.800 the UK is a success story already, it's already grown 0:28:07.960 --> 0:28:11.280 twenty five percent over the last ten years and investment 0:28:11.400 --> 0:28:13.399 is coming in and we've we're now one hundred and 0:28:13.440 --> 0:28:18.280 fifty billion pounds GBA to the whole economy. So the 0:28:18.400 --> 0:28:21.199 starting point is in a great place, Caroline. What was 0:28:21.240 --> 0:28:24.399 interesting today I was at Rachel Reeves, the new Chancellor, 0:28:24.480 --> 0:28:27.560 first female chancellor by the way, historic moment, giving a 0:28:27.600 --> 0:28:30.080 speech about what is the plan for growth, how they're 0:28:30.119 --> 0:28:32.399 going to go about it, and it was very much 0:28:32.560 --> 0:28:38.640 about changing planning, It was about investment, it was about reform. 0:28:39.080 --> 0:28:39.360 Julian. 0:28:39.400 --> 0:28:42.080 The conversations I've had with the tech industry over the 0:28:42.120 --> 0:28:45.800 weekend and good morning to you from San Francisco is 0:28:45.840 --> 0:28:48.320 that there's they're big on hope in the UK based 0:28:48.360 --> 0:28:51.480 on a Keir Starmer government with Rachel Reeves at the Treasury, 0:28:51.840 --> 0:28:53.000 but thin on detail. 0:28:53.160 --> 0:28:53.320 You know. 0:28:53.360 --> 0:28:56.520 I went back and read the Labor manifesto and they 0:28:56.560 --> 0:29:00.719 write about AI right, fostering a competitive AI industry. 0:29:01.120 --> 0:29:02.480 But one complaint is that. 0:29:02.560 --> 0:29:06.040 Actually they don't explain how they're going to do that, 0:29:06.120 --> 0:29:09.280 particularly when it comes to getting data centers built, talent 0:29:09.320 --> 0:29:09.880 on the ground. 0:29:11.080 --> 0:29:15.320 Yeah, so really interesting because this morning as an illustration 0:29:15.400 --> 0:29:18.640 of the new powers to do with planning, because the 0:29:18.680 --> 0:29:22.520 Deputy Prime Minister was there as well, Angela Rayner, and 0:29:22.680 --> 0:29:25.800 Rachel Reeves said the first two decisions that she's calling 0:29:25.800 --> 0:29:28.120 in under her new powers as definitely Prime Minister to 0:29:28.160 --> 0:29:31.120 review had two planning permissions for data centers that were 0:29:31.160 --> 0:29:34.640 turned down under the previous government. So that's quite an indicator. 0:29:34.720 --> 0:29:38.000 I think of them treating the tech sector importantly, but 0:29:38.080 --> 0:29:40.480 there's more to do and we want them to now 0:29:40.520 --> 0:29:42.600 start to publish how are they going to use AI. 0:29:42.880 --> 0:29:45.520 There's some good indicators ed, I mean, there's quite a 0:29:45.520 --> 0:29:47.360 bit set out about the way they're going to try 0:29:47.360 --> 0:29:50.400 and use AI to reform health provision. There's some talk 0:29:50.480 --> 0:29:54.440 about more use of AI across education and skills and 0:29:54.640 --> 0:29:58.360 continuing to look at how we bring in more tech investment. 0:29:58.480 --> 0:30:01.320 And that's another meeting that's tomorrow morning. They're caning thick 0:30:01.360 --> 0:30:04.240 and fast at the moment these engagements for the new government, 0:30:04.440 --> 0:30:05.800 and a lot of it is about tech. 0:30:06.480 --> 0:30:10.239 It's notable it should be about tech because despite so 0:30:10.360 --> 0:30:14.120 called turmoil worry about Brexit, we still have a notable 0:30:14.120 --> 0:30:17.560 amount of unicorns in the United Kingdom with resolute maybe 0:30:17.640 --> 0:30:20.200 iiring an IPO for example, But a key question for 0:30:20.240 --> 0:30:22.680 me has to be talent, Julian and whether or not 0:30:22.760 --> 0:30:26.000 it is going to get any easier to get talent 0:30:26.080 --> 0:30:28.360 from abroad into the UK. If that is necessary for 0:30:28.400 --> 0:30:29.080 the ecosystem. 0:30:30.000 --> 0:30:32.920 Well, we need world class talent from around the place. 0:30:32.960 --> 0:30:35.719 That's how tech thrives, and we're willplace to get there. 0:30:35.760 --> 0:30:37.960 But we also need to grow our own talent, Caroline 0:30:38.160 --> 0:30:40.160 and the other thing that was interesting today was a 0:30:40.240 --> 0:30:43.360 much more flexible approach to the apprenticeship levy, which business 0:30:43.400 --> 0:30:47.880 has been complaining about for many years now, to actually say, Okay, 0:30:47.880 --> 0:30:50.880 how do we get more flexible use of skills, how 0:30:50.920 --> 0:30:53.200 do we get lifelong skills, how do we get returners 0:30:53.200 --> 0:30:55.600 and retrainers, how do we open up our industry. It's 0:30:55.640 --> 0:30:58.000 something we and our eleven hundred members at tech UK 0:30:58.280 --> 0:31:01.160 are very passionate about. I think we're in good shape 0:31:01.160 --> 0:31:04.160 for this. I mean, yes, the arguments about migration. I 0:31:04.160 --> 0:31:07.480 heard you talking in respect to the French elections, but 0:31:07.560 --> 0:31:09.760 we ended up with a centrist government and I think 0:31:09.800 --> 0:31:11.920 a sensible approach to this is going to be one 0:31:11.920 --> 0:31:15.440 that says, get the skills we need globally available and 0:31:15.520 --> 0:31:17.560 grow our own and keep doing that. 0:31:18.960 --> 0:31:21.760 Julian, the City of London is fascinating to me. You 0:31:21.840 --> 0:31:26.440 have a basically emboldened labor mayor in partnership with now 0:31:26.440 --> 0:31:29.960 a labor government who's talked about devolving more power to 0:31:30.040 --> 0:31:33.240 the mayor's office. Do you think that brightens the prospects 0:31:33.240 --> 0:31:33.880 for that city? 0:31:35.880 --> 0:31:39.280 Yes, I do, and I also think that you know 0:31:40.120 --> 0:31:43.160 how to say this, A lot of talk was about 0:31:43.200 --> 0:31:44.400 growing other parts of the. 0:31:44.400 --> 0:31:47.160 UK, seemly once formally. 0:31:47.880 --> 0:31:52.239 Yeah, seemingly not talking about continue to grow London, as 0:31:52.240 --> 0:31:54.360 if London could look up itself. And I think that 0:31:54.400 --> 0:31:56.720 will change now that does seem to be the case. 0:31:57.520 --> 0:32:01.400 So we're certainly thinking that they the view of London. 0:32:01.800 --> 0:32:05.120 I mean Elon Musk was recently talking about the fact that, 0:32:05.640 --> 0:32:08.560 apart from the Bay Area, London is the next biggest 0:32:08.560 --> 0:32:12.040 center for a talent already. So those kind of things 0:32:12.120 --> 0:32:14.400 are working for us if you put that together with 0:32:14.520 --> 0:32:19.200 an active industrial strategy, a real focus on skills. And 0:32:19.440 --> 0:32:22.080 there's an investment conference, as I said, where we're actually 0:32:22.080 --> 0:32:23.880 saying how do we get some of the people who 0:32:23.920 --> 0:32:25.680 wont to investor around it? Well, come and look at 0:32:25.680 --> 0:32:28.960 the UK. It's stable, it's very tech friendly, it's got 0:32:29.000 --> 0:32:31.400 lots of talent and it's got some really great industries 0:32:31.640 --> 0:32:32.200 like the city. 0:32:33.560 --> 0:32:37.120 Julian David, CEO of Tech UK, fresh reaction to a 0:32:37.120 --> 0:32:40.600 busy weekend of government forming Thank You Right, a story 0:32:40.600 --> 0:32:44.240 we've been watching overnight. Turning to Samsung. Thousands of workers 0:32:44.280 --> 0:32:47.640 have walked off the job today, staging a rally to 0:32:47.720 --> 0:32:51.480 demand better pay. It's the biggest organized labor action in 0:32:51.520 --> 0:32:55.600 the South Korean company's half century history. Negotiations over pay 0:32:55.640 --> 0:32:59.880 and vacation time collapse last month. According to union leaders, 0:33:00.080 --> 0:33:03.520 strike aims to drive home their demands by disrupting production 0:33:03.880 --> 0:33:07.160 at one of the company's most advanced chip facilities. 0:33:07.240 --> 0:33:10.480 Caro fascinating labor story. Meanwhile, coming up, we're going to 0:33:10.480 --> 0:33:14.200 be joined by the CEO of an aiagent startup heavier 0:33:14.600 --> 0:33:18.200 on the company's latest funding round as Next AI Agents 0:33:18.280 --> 0:33:33.040 as a Bloomberg Technology Heavier, it's an LM platform which 0:33:33.080 --> 0:33:36.360 handles really complex multi step questions. Well, it's raise one 0:33:36.400 --> 0:33:38.280 hundred and thirty million dollars in a series b led 0:33:38.280 --> 0:33:39.560 by Andrews and Horowitz. 0:33:39.680 --> 0:33:40.680 Here to discuss how. 0:33:40.560 --> 0:33:43.120 The company will use those funds. Heavy A founder CEO, 0:33:43.440 --> 0:33:45.760 George Savelka, George's great to have you here, New York 0:33:45.800 --> 0:33:49.520 based company. You're looking to raise funds to what how 0:33:49.560 --> 0:33:51.840 do you build up what it is that you're currently building. 0:33:53.280 --> 0:33:55.760 Thanks so much for having me A really important thing 0:33:55.840 --> 0:33:58.040 to understand about what Heavier does and who we are 0:33:58.680 --> 0:34:03.040 is something broader about the larger AI landscape. We fundamentally 0:34:03.080 --> 0:34:06.440 think that there's a problem in AI right now, and 0:34:07.000 --> 0:34:09.719 you have thousands of companies going out and building chatbots 0:34:09.800 --> 0:34:11.640 or search engines or things that are really great at 0:34:11.680 --> 0:34:14.359 one off tasks. But at the end of the day, 0:34:14.520 --> 0:34:17.640 the way that we work is much more complex. And 0:34:17.760 --> 0:34:21.000 HEBIA is building and has really built an AI analyst, 0:34:21.360 --> 0:34:25.080 which is amazing at doing a variety of complex tasks. 0:34:25.480 --> 0:34:27.759 It understands the way we work, breaks it down into 0:34:27.840 --> 0:34:31.360 single steps and then can execute complex work and to end. 0:34:31.440 --> 0:34:33.520 So your problem is that, look, we're all getting hyped 0:34:33.560 --> 0:34:35.600 about AI and AI agents, but very few of them 0:34:35.640 --> 0:34:37.560 are able to do very much complex at all. 0:34:37.760 --> 0:34:41.560 I think that's true. Last year was this year of experimentation, 0:34:42.040 --> 0:34:44.760 But this year people are really trying to get serious 0:34:44.880 --> 0:34:48.640 value and quantifiable value out of these AI systems, and 0:34:48.960 --> 0:34:51.319 it's quite hard to find unless you have things that 0:34:51.360 --> 0:34:54.960 can do more complex work. A chatbot can rewrite an 0:34:55.000 --> 0:34:57.600 email or help your kids cheat on their homework, but 0:34:57.640 --> 0:34:59.799 at the end of the day, what we have to 0:34:59.800 --> 0:35:01.840 do we have to go and create AI agents that 0:35:01.960 --> 0:35:06.319 can do complexity, that can tackle the interesting parts of. 0:35:06.320 --> 0:35:06.680 What we do. 0:35:08.000 --> 0:35:10.200 George, I've been reading a lot about what you've built. 0:35:10.480 --> 0:35:12.040 When I think about my own sort of day to 0:35:12.120 --> 0:35:16.160 day workflow, if I'm using Slack or Google Drive, I'm 0:35:16.160 --> 0:35:19.640 interacting with files in multiple mediums, right text in documents, 0:35:19.680 --> 0:35:23.000 but also video, audio, and often I want to find 0:35:23.040 --> 0:35:25.960 things across all of them. How difficult was that to 0:35:26.000 --> 0:35:30.240 build something that can work across multiple mediums and search 0:35:30.280 --> 0:35:30.759 across them. 0:35:30.760 --> 0:35:34.040 Commonly, You're seeing a trend in AI right now where 0:35:34.200 --> 0:35:37.160 a lot of the things that people are building, a 0:35:37.200 --> 0:35:39.680 lot of the research that people are undergoing is all 0:35:39.680 --> 0:35:43.600 around embracing multimodality, and Heavier is a model agnostic. 0:35:43.880 --> 0:35:44.560 It's hard for. 0:35:44.480 --> 0:35:46.319 Any firm to actually go out and say I'm going 0:35:46.360 --> 0:35:48.960 to make a serious bet on one model or another model. 0:35:49.640 --> 0:35:52.600 And part of the benefit that Heavier provides is that 0:35:52.880 --> 0:35:55.840 the minute that multimodal models are released, or the minute 0:35:55.880 --> 0:35:59.680 that anything new happens in AI, you can leverage it immediately, 0:36:00.120 --> 0:36:05.279 very easily understandable way. And when multimodal models came out 0:36:05.320 --> 0:36:07.720 heavy it was one of the first places where leading 0:36:07.800 --> 0:36:13.000 financial firms asset managers and Fortune one hundred companies actually 0:36:13.080 --> 0:36:16.799 ended up using those models in production for live, quantifiable 0:36:16.880 --> 0:36:18.200 use cases that drove value. 0:36:19.840 --> 0:36:23.160 George Bliombeck reported that this deal values that around year 0:36:23.200 --> 0:36:26.280 around seven hundred million dollars. You know, tell me about 0:36:26.320 --> 0:36:29.040 how quickly you've scaled the business side of the company, 0:36:29.120 --> 0:36:33.799 your sales, your operations, and how big a challenge that's been. 0:36:34.840 --> 0:36:37.960 One of the really exciting things about Heavier is just 0:36:38.040 --> 0:36:41.080 how fast we've grown. We now work with over a 0:36:41.120 --> 0:36:45.680 third of the top fifty largest asset managers by AUM, 0:36:46.000 --> 0:36:49.000 and we're really planning on kind of continuing to grow 0:36:49.000 --> 0:36:50.960 out and use this funding to become the de facto 0:36:51.040 --> 0:36:54.440 leader in generative AI for financial services, while also going 0:36:54.480 --> 0:36:57.280 out to a variety of different verticals like the legal vertical, 0:36:57.360 --> 0:36:59.560 where we have a variety of new customers and those 0:36:59.600 --> 0:37:03.680 really arge Fortune five hundred companies that I've previously mentioned. 0:37:05.200 --> 0:37:06.799 At the end of the day, we're coming off of 0:37:06.840 --> 0:37:10.440 eighteen months where we grew fifteen x in our revenue, 0:37:10.880 --> 0:37:14.319 our head count when tuppled over the last year, and 0:37:14.480 --> 0:37:16.400 I don't think it could be more exciting time to 0:37:16.440 --> 0:37:19.160 be building an AI company right here in New York. 0:37:20.200 --> 0:37:23.200 George Saboka, founder and CEO of Heavy, thank you for 0:37:23.200 --> 0:37:23.640 your time here. 0:37:23.640 --> 0:37:25.400 I'm bliembags technology, appreciate it. 0:37:34.400 --> 0:37:37.759 As Apple approaches the decade anniversary of the debut of 0:37:37.840 --> 0:37:41.400 the original Apple Watch, the company is preparing major updates 0:37:41.680 --> 0:37:45.040 to its smart watch line for later this year. Apple's 0:37:45.080 --> 0:37:48.359 working on an apple Watch Series ten, an apple Watch 0:37:48.520 --> 0:37:51.440 Ultra three, as well as a third generation version of 0:37:51.520 --> 0:37:54.720 the apple Watch sc The biggest changes to the Apple 0:37:54.800 --> 0:37:57.440 Watch line this year will be coming to the Series ten. 0:37:58.080 --> 0:38:00.880 For the first time in several years, Apple's planning to 0:38:00.960 --> 0:38:03.680 make the Apple Watch quite a bit thinner. It's also 0:38:03.800 --> 0:38:06.800 planning to increase the screen size on the series models 0:38:07.040 --> 0:38:09.600 for the first time since the Series seven launched in 0:38:09.640 --> 0:38:13.400 twenty twenty one. The new Series ten high end version 0:38:13.520 --> 0:38:16.360 will come with a display that approaches the screen size 0:38:16.440 --> 0:38:19.840 of the Apple Watch Ultra. It's also planning update to 0:38:19.960 --> 0:38:22.440 the Ultra but that will retain the same design that 0:38:22.560 --> 0:38:25.840 launched in twenty twenty two. Both the Series ten and 0:38:26.040 --> 0:38:28.960 the Ultra three will get a new processor that will 0:38:29.000 --> 0:38:32.080 be a big focus of the company's introduction. There's also 0:38:32.200 --> 0:38:34.600 going to be a new lower end Apple Watch SSE. 0:38:35.200 --> 0:38:37.759 The company has considered moving to a plastic casing for 0:38:37.840 --> 0:38:40.640 that device in order to bring down the cost and 0:38:40.800 --> 0:38:43.840 better compete with lower and smart watches from Samsung and 0:38:43.960 --> 0:38:46.240 other providers. I'm Mark Ermann. 0:38:46.560 --> 0:38:47.279 This is power on. 0:38:52.480 --> 0:38:54.920 Let's just talk about a corpors story. Now that Microsoft 0:38:55.000 --> 0:38:59.440 is ordering its China based employees so the androids iPhones, 0:39:00.000 --> 0:39:02.880 an internal memo entertained by Bloomberger, workers will be required 0:39:02.920 --> 0:39:05.920 to use only Apple devices to verify their identities on 0:39:06.040 --> 0:39:08.759 work computers or their phones. In fact, starting all in 0:39:08.840 --> 0:39:11.320 September now, the move is set to impact hundreds of 0:39:11.400 --> 0:39:14.520 workers across mainline China and is meant to ensure staff 0:39:14.640 --> 0:39:19.320 use the Microsoft authenticator when logging in a cyber focus. Meanwhile, 0:39:19.400 --> 0:39:21.560 let's turn our touch to Bitcoin down slightly today as 0:39:21.600 --> 0:39:24.640 concerns grow about the possible sale of the tokens by 0:39:24.719 --> 0:39:26.960 creditors of the failed mount goox exchange all the way 0:39:27.040 --> 0:39:29.920 back years ago. Is fueling though these concerns that maybe 0:39:29.960 --> 0:39:33.120 this crypto bullrum that started last year is waning yet 0:39:33.200 --> 0:39:35.759 further promotion. Ali Bassik has been across all of the 0:39:35.800 --> 0:39:38.359 moves or down another two percent. We've done five percent, 0:39:38.480 --> 0:39:40.520 five percent lower and it feels though it's a supply 0:39:40.600 --> 0:39:41.960 side issue rather than anything else. 0:39:42.320 --> 0:39:44.640 That is largely what the problem is. You have remember 0:39:44.760 --> 0:39:48.239 the Mount Garx overhand, this is about eight billion worth 0:39:48.360 --> 0:39:51.719 of bitcoin. You're a sizeable chunk that is really being 0:39:51.760 --> 0:39:54.399 repaid to creditors here about a decade after the Mount 0:39:54.480 --> 0:39:57.440 Garkx bankruptcy. But think about how much pressure this has 0:39:57.520 --> 0:40:01.400 recently put off the market. After the initial exuberance of 0:40:01.520 --> 0:40:05.080 those bitcoin spot ETFs in the United States started, you 0:40:05.280 --> 0:40:10.520 now have bitcoin plunging below that fifty six thousand dollars level. 0:40:10.760 --> 0:40:13.640 And remember that is almost twenty four percent off the 0:40:13.719 --> 0:40:15.719 high that we saw just a little earlier this year. 0:40:16.080 --> 0:40:19.839 So when you have the supply overhang compounded by let's say, 0:40:19.840 --> 0:40:22.719 the lack of excitement around the asset class right now, 0:40:22.840 --> 0:40:26.480 you do have a tough summer here for the cryptocurrency, 0:40:26.600 --> 0:40:30.560 particularly when you think about other catalysts that should have 0:40:30.640 --> 0:40:34.160 been more exciting, think, for example, an ethereum spot ETF. 0:40:34.520 --> 0:40:36.200 Tough to have an overhang like this for this. 0:40:36.280 --> 0:40:36.920 Market right now. 0:40:38.400 --> 0:40:40.880 I was reading the Bloomberg story and it's it's Monday, 0:40:41.000 --> 0:40:43.600 but it says in the story, if this decline carries 0:40:43.640 --> 0:40:47.000 through Sunday of like seven days from now, it'll be 0:40:48.040 --> 0:40:51.279 five straight weeks of declines. Like who starts a week 0:40:51.360 --> 0:40:54.120 by saying that, But we're trading our last levels since February. 0:40:54.160 --> 0:40:57.160 What other dates are we looking at like ETF outflows? 0:40:57.400 --> 0:41:00.279 Where it's interesting that you asked that, because one thing 0:41:00.320 --> 0:41:02.839 that I have, for example, is many people who invest 0:41:02.880 --> 0:41:05.120 in bitcoin have alerts. They wake up in the morning 0:41:05.239 --> 0:41:08.120 and oh my god, bitcoin's down in another six percent. Now, 0:41:08.200 --> 0:41:10.880 most people are used to volatility in this asset class. 0:41:11.160 --> 0:41:14.439 But to your point here, it's been weeks now where 0:41:14.480 --> 0:41:16.640 we haven't really seen a strong bit in the market 0:41:17.000 --> 0:41:20.400 and some significant forces when it comes to selling. Also, 0:41:20.600 --> 0:41:23.320 and what is a harder struggle to find is what 0:41:23.520 --> 0:41:26.640 that next catalyst is? What is that next market moment 0:41:26.800 --> 0:41:29.640 for a bitcoin? When are people going to get energized 0:41:30.000 --> 0:41:30.920 about where. 0:41:30.840 --> 0:41:31.640 This goes next. 0:41:31.760 --> 0:41:34.279 There weren't those stories at the beginning of the year, 0:41:34.480 --> 0:41:38.360 like the happening like the spot bitcoin ETF that exists 0:41:38.440 --> 0:41:41.279 for this cryptocurrency. Now, if you talk to most people 0:41:41.360 --> 0:41:43.560 in the crypto market, they take a macro view, this 0:41:43.719 --> 0:41:46.960 idea that US fiscal spending, for example, will be a 0:41:47.000 --> 0:41:50.280 bigger catalyst for bitcoin. But what does that draw interest 0:41:50.360 --> 0:41:51.720 in the near term. 0:41:51.680 --> 0:41:54.960 Into the asset. Bloombacks Sonali Basek. Great to have you 0:41:55.000 --> 0:41:56.080 on the show. Thank you so much. 0:41:56.280 --> 0:41:58.880 So that does it for this edition of Bloombay Technology. 0:41:59.000 --> 0:42:02.120 Just a quick programming, Caroline, there is no Bloomberg Technology. 0:42:02.400 --> 0:42:05.120 For the next couple of days, Boomberg Open Interest will 0:42:05.160 --> 0:42:08.160 be carrying FED Chair Drone Pal's testimony to the Senate 0:42:08.480 --> 0:42:11.960 Banking Community. But BTEK is back on Thursday. You will 0:42:11.960 --> 0:42:13.960 be in New York and I will be in San Francisco, 0:42:14.480 --> 0:42:16.880 and from those cities this is Bloomberg Technology.