1 00:00:02,200 --> 00:00:05,560 Speaker 1: From the heart of where innovation, money and power collive 2 00:00:06,320 --> 00:00:10,840 Speaker 1: in Silicon Valley and beyond. This is Bloomberg Technology with 3 00:00:10,920 --> 00:00:28,080 Speaker 1: Emily Jay. This is Bloomberg Technology. I'm Ed Ludlow in 4 00:00:28,120 --> 00:00:30,760 Speaker 1: San Francisco in for Emily Chang coming up in the 5 00:00:30,800 --> 00:00:34,360 Speaker 1: next hour. Second half momentum is picking up steam both 6 00:00:34,400 --> 00:00:37,440 Speaker 1: the SMP five and has that one, posting their longest 7 00:00:37,479 --> 00:00:41,520 Speaker 1: streak of weekly gains since November, but earnings have shown 8 00:00:41,520 --> 00:00:43,519 Speaker 1: a mixed outlook for the rest of the year. Is 9 00:00:43,560 --> 00:00:48,280 Speaker 1: this tech rally going to last? Last? Walmart Home Depot 10 00:00:48,400 --> 00:00:51,960 Speaker 1: target Low's next week is a big one for retailers 11 00:00:52,000 --> 00:00:55,680 Speaker 1: reporting earnings. Consumer sentiment has been rough the past few months, 12 00:00:55,680 --> 00:00:59,000 Speaker 1: but new data suggests we're turning a corner. Will Chat 13 00:00:59,000 --> 00:01:03,680 Speaker 1: all Things eat commerce and competition for electric semitrucks is 14 00:01:03,720 --> 00:01:06,720 Speaker 1: heating up after the Senate past a roughly three d 15 00:01:06,800 --> 00:01:09,920 Speaker 1: and forty seven billion dollar initiative to boost the transition 16 00:01:09,959 --> 00:01:13,080 Speaker 1: to clean energy and cut emissions. Right now, it's pretty 17 00:01:13,160 --> 00:01:17,120 Speaker 1: much Tesla versus Nikola, but tax incentives could your more 18 00:01:17,200 --> 00:01:21,959 Speaker 1: players into the race. But first, the Federal Bureau of 19 00:01:22,040 --> 00:01:27,119 Speaker 1: Investigation sees classified records, some marked top secret from former 20 00:01:27,160 --> 00:01:30,720 Speaker 1: President Donald Trump's Moral Lago home. That's according to a 21 00:01:30,800 --> 00:01:34,520 Speaker 1: copy of the warrant seen by Bloomberg. Wendy Benjaminson is 22 00:01:34,520 --> 00:01:38,720 Speaker 1: our deputy managing editor for Bloomberg News over in Washington. Wendy, 23 00:01:38,760 --> 00:01:41,840 Speaker 1: thanks for joining us this Friday. Let's stick to the 24 00:01:41,880 --> 00:01:46,679 Speaker 1: basics here. What did we learn from the unsealed documents? Well, 25 00:01:46,720 --> 00:01:50,080 Speaker 1: we learned not as much as one would hope. We 26 00:01:50,200 --> 00:01:53,840 Speaker 1: learned that they did get about two dozen boxes of 27 00:01:54,080 --> 00:01:59,440 Speaker 1: documents UM from from the Moral Lagoa state. We know 28 00:01:59,640 --> 00:02:02,640 Speaker 1: that some of them were, as you said, top secret 29 00:02:02,920 --> 00:02:08,120 Speaker 1: or even higher UM sensitive compartment and information, which means 30 00:02:08,120 --> 00:02:11,079 Speaker 1: that it's only supposed to be in a closed room, 31 00:02:11,240 --> 00:02:14,160 Speaker 1: shield off from cell phones and all sorts of other 32 00:02:14,720 --> 00:02:18,480 Speaker 1: UM interference, and those were, you know, sitting around mar 33 00:02:18,600 --> 00:02:21,919 Speaker 1: Lago UM. We also know that they were searching for 34 00:02:22,000 --> 00:02:26,320 Speaker 1: evidence of violations of three crimes, including a segment of 35 00:02:26,400 --> 00:02:29,000 Speaker 1: the Spionage Act. I'm not saying Donald Trump is going 36 00:02:29,040 --> 00:02:31,960 Speaker 1: to be charged with espionage, but there's a subsection of 37 00:02:32,000 --> 00:02:36,440 Speaker 1: that which relates to mishandling class by documents. We don't 38 00:02:36,480 --> 00:02:39,120 Speaker 1: know that there is evidence of that. We just know 39 00:02:39,240 --> 00:02:43,399 Speaker 1: that they got these documents. Wendy what is the concern here? 40 00:02:43,440 --> 00:02:48,280 Speaker 1: What did the d J and investigators looking at looking for? Well, 41 00:02:48,320 --> 00:02:52,680 Speaker 1: this all started when the National Archives, which keeps presidential 42 00:02:52,720 --> 00:02:58,040 Speaker 1: records and then gives them to a president's library. Um, 43 00:02:58,200 --> 00:03:02,799 Speaker 1: they have been working with Trump to representatives throughout. They 44 00:03:02,840 --> 00:03:07,120 Speaker 1: got the transfer of fifteen boxes in January of this year, 45 00:03:07,600 --> 00:03:10,760 Speaker 1: and they began looking through them and realized that there 46 00:03:10,880 --> 00:03:14,560 Speaker 1: was classified national security information. We don't know what exactly 47 00:03:14,600 --> 00:03:18,560 Speaker 1: that means yet, and UM that's prompted the Archives to 48 00:03:18,600 --> 00:03:20,640 Speaker 1: reach out to the Justice Department and say, hey, you 49 00:03:20,639 --> 00:03:23,040 Speaker 1: may want to get these backs. So that's what this 50 00:03:23,160 --> 00:03:25,560 Speaker 1: action was. We don't know if it's going to relate 51 00:03:25,600 --> 00:03:28,280 Speaker 1: to any of the cases against Donald Trump. It depends 52 00:03:28,280 --> 00:03:30,919 Speaker 1: on I think, when we know what what the documents 53 00:03:30,960 --> 00:03:34,400 Speaker 1: actually show. But um, you can be sure that the 54 00:03:34,480 --> 00:03:38,200 Speaker 1: Justice Department will be coming through those this weekend. Wendy, 55 00:03:38,200 --> 00:03:42,960 Speaker 1: It's always the question. But what happens next? I think 56 00:03:43,000 --> 00:03:45,600 Speaker 1: we don't know as the as the answer. I'm afraid 57 00:03:45,680 --> 00:03:47,800 Speaker 1: we know that they will go through these and try 58 00:03:47,840 --> 00:03:51,400 Speaker 1: to figure out what what was in here, what crimes 59 00:03:51,440 --> 00:03:54,520 Speaker 1: might be violated, and then they'll decide whether to charge 60 00:03:54,680 --> 00:03:58,360 Speaker 1: or start talking to the former president, right, but we 61 00:03:58,400 --> 00:04:01,040 Speaker 1: continue to follow your team's covery, Wendy over the weekend. 62 00:04:01,040 --> 00:04:04,560 Speaker 1: That's Bloomberg's Wendy Benjaminson in d C. Thank you. That's 63 00:04:04,560 --> 00:04:06,560 Speaker 1: gonna check on when moth Kits ended the week with 64 00:04:06,680 --> 00:04:10,640 Speaker 1: Bloomberg's Katie Greifeld out in New York. Katie Tech ending 65 00:04:10,640 --> 00:04:13,480 Speaker 1: the week strong, pretty strong. It was a big risk 66 00:04:13,640 --> 00:04:16,560 Speaker 1: on day. As you can see from the board behind me, 67 00:04:16,680 --> 00:04:18,719 Speaker 1: this isn't it. This is single stocks. But if you 68 00:04:18,720 --> 00:04:21,559 Speaker 1: look at the indexes, for example, you saw the SMP 69 00:04:21,680 --> 00:04:24,760 Speaker 1: five hundred finished higher. You saw the NASAC one hundred 70 00:04:24,880 --> 00:04:27,200 Speaker 1: finished higher as well. There we go. You did see 71 00:04:27,240 --> 00:04:30,360 Speaker 1: bonds rally a little bit, but just five basis points 72 00:04:30,360 --> 00:04:33,120 Speaker 1: are so ad I'm gonna really just continue to fold 73 00:04:33,160 --> 00:04:36,200 Speaker 1: that into this risk on mood. You saw Bitcoin managed 74 00:04:36,240 --> 00:04:38,599 Speaker 1: to speak a little bit of a game. Of course, 75 00:04:38,680 --> 00:04:41,080 Speaker 1: the board has flipped to the after hours trade, but 76 00:04:41,160 --> 00:04:45,000 Speaker 1: Bitcoin higher. You can see it is twenty four thous 77 00:04:45,160 --> 00:04:47,560 Speaker 1: dollars a coin. We haven't been at those levels in 78 00:04:47,680 --> 00:04:49,839 Speaker 1: a little bit, and this was again a big finish 79 00:04:49,880 --> 00:04:52,200 Speaker 1: to what's been a really big week. If you look 80 00:04:52,240 --> 00:04:54,960 Speaker 1: at the NASAC one hundred for example, this was the 81 00:04:55,120 --> 00:04:58,280 Speaker 1: fourth straight week of games. If you look back at 82 00:04:58,320 --> 00:05:00,240 Speaker 1: this chart, you see a lot of red on this screen. 83 00:05:00,320 --> 00:05:03,680 Speaker 1: That is the longest consecutive weekly rally since all the 84 00:05:03,720 --> 00:05:07,560 Speaker 1: way back in November one. So I don't know, maybe 85 00:05:07,600 --> 00:05:10,320 Speaker 1: we're at the bowl market, but in any case, it's 86 00:05:10,360 --> 00:05:13,080 Speaker 1: been quite a run, especially for those tech socks. Now 87 00:05:13,160 --> 00:05:15,120 Speaker 1: let's look at some of those individual names. As you 88 00:05:15,160 --> 00:05:18,200 Speaker 1: can see, pinto a duel up top lower today. That's, 89 00:05:18,200 --> 00:05:22,040 Speaker 1: of course after news this morning about China delisting five 90 00:05:22,080 --> 00:05:26,000 Speaker 1: of its largest state owned enterprises state owned companies rather 91 00:05:26,360 --> 00:05:29,000 Speaker 1: from US exchanges that weight on ad R s. But 92 00:05:29,040 --> 00:05:31,440 Speaker 1: you go down the list again very strong. You had 93 00:05:31,520 --> 00:05:35,320 Speaker 1: Chips coming back. You had Peloton surging on a mark 94 00:05:35,400 --> 00:05:38,479 Speaker 1: German scoop of course that they're going to cut about 95 00:05:38,520 --> 00:05:40,960 Speaker 1: eight hundred jobs, are going to shut stores, They're going 96 00:05:40,960 --> 00:05:43,120 Speaker 1: to raise the cost of some of their products. Just 97 00:05:43,160 --> 00:05:46,120 Speaker 1: part of this big overhaul that we're seeing at that company. 98 00:05:46,120 --> 00:05:49,720 Speaker 1: In Tesla to rallying almost five percent, maybe part of 99 00:05:49,760 --> 00:05:52,080 Speaker 1: the broader risk on mood in the market. Maybe because 100 00:05:52,120 --> 00:05:56,679 Speaker 1: you're getting married, Ed will remained to continue to watch 101 00:05:56,760 --> 00:06:00,440 Speaker 1: that story. But again a big move for Tesla. Thank Uktie. 102 00:06:00,440 --> 00:06:02,880 Speaker 1: That's one m and a report that I'm able to 103 00:06:02,920 --> 00:06:06,000 Speaker 1: confirm or live on there. Blue Kenny grow felt out 104 00:06:06,000 --> 00:06:07,600 Speaker 1: in New York. Thank you. Does you point out Peloton 105 00:06:07,640 --> 00:06:11,599 Speaker 1: a big move, but Friday Tech broadly outperforming in equity markets. 106 00:06:11,600 --> 00:06:14,640 Speaker 1: I'm absolutely delighted to bringing Mel like Messino, CEO of 107 00:06:14,680 --> 00:06:18,640 Speaker 1: WE Family Offices, which has fifteen billion dollars in assets 108 00:06:18,680 --> 00:06:21,360 Speaker 1: under management. Mel, it's good to see you again. What's 109 00:06:21,360 --> 00:06:24,640 Speaker 1: your takeaway, Thank you? What's your takeaway from this week 110 00:06:24,680 --> 00:06:28,800 Speaker 1: in the markets? Well, I think that it's been a 111 00:06:28,839 --> 00:06:32,600 Speaker 1: great week, and actually it's been a great month for protech. 112 00:06:33,400 --> 00:06:35,479 Speaker 1: And I think that it has to do with the 113 00:06:35,520 --> 00:06:38,039 Speaker 1: fact that people are starting to believe that we're going 114 00:06:38,080 --> 00:06:41,280 Speaker 1: to get inflation under control. Inflation is what will kill 115 00:06:41,320 --> 00:06:45,080 Speaker 1: the earnings of tech companies, and and so I think 116 00:06:45,120 --> 00:06:49,200 Speaker 1: that the mood is positive because they see that inflation, 117 00:06:49,520 --> 00:06:53,080 Speaker 1: inflation is gonna it's going to come down. We're kind 118 00:06:53,080 --> 00:06:54,880 Speaker 1: of breathing a side of relief out here in San 119 00:06:54,920 --> 00:06:57,640 Speaker 1: Francisco at the Bloomberg Bureau. Now that the kind of 120 00:06:57,640 --> 00:07:00,400 Speaker 1: the bulk of earning season is over. If you were 121 00:07:00,400 --> 00:07:03,840 Speaker 1: to draw up your scorecard from earnings, particularly the mega caps, 122 00:07:04,040 --> 00:07:07,520 Speaker 1: what is your takeaway from this earning season, well, I 123 00:07:07,520 --> 00:07:11,880 Speaker 1: think it's been mixed, but in general, h a lot 124 00:07:11,920 --> 00:07:16,360 Speaker 1: of the companies exceeded expectations, both on the revenue side 125 00:07:16,840 --> 00:07:18,880 Speaker 1: and on the on the earning side. And I think 126 00:07:18,880 --> 00:07:20,320 Speaker 1: the name of the game is not going to be 127 00:07:20,320 --> 00:07:21,840 Speaker 1: a revenue. The name of the game is going to 128 00:07:21,960 --> 00:07:26,240 Speaker 1: be earnings and what happens with earnings and earnings always 129 00:07:26,240 --> 00:07:29,160 Speaker 1: look backward. You know, you're you're talking about the last quarter. 130 00:07:29,240 --> 00:07:31,560 Speaker 1: I think the big question with earnings is what's going 131 00:07:31,600 --> 00:07:33,880 Speaker 1: to happen in the next two quarters. And that's why 132 00:07:33,960 --> 00:07:37,560 Speaker 1: I think that good news about getting control over inflation 133 00:07:38,000 --> 00:07:44,040 Speaker 1: is what's causing this rally. You know that historically Tech 134 00:07:44,160 --> 00:07:47,280 Speaker 1: in the first half of the year not not the 135 00:07:47,320 --> 00:07:49,440 Speaker 1: best play, but then does rebound and we've kind of 136 00:07:49,480 --> 00:07:51,880 Speaker 1: seen that in the third quarter. Do you expect Tech 137 00:07:51,960 --> 00:07:54,480 Speaker 1: to continue to have momentum in the second half of 138 00:07:54,520 --> 00:07:57,720 Speaker 1: two It's hard for me to say it's that gonna 139 00:07:57,720 --> 00:08:04,000 Speaker 1: have two but I definitely see it into and what 140 00:08:04,120 --> 00:08:08,160 Speaker 1: where are those opportunities what will drive that? Yeah, I 141 00:08:08,600 --> 00:08:10,640 Speaker 1: think that tech is going to be the way to 142 00:08:10,720 --> 00:08:13,320 Speaker 1: deal with inflation is a productivity. What's going to help 143 00:08:13,400 --> 00:08:16,480 Speaker 1: us with productivity is tech and you have all the 144 00:08:16,560 --> 00:08:21,360 Speaker 1: corporate spending money on their capits on tech, and so 145 00:08:21,520 --> 00:08:25,240 Speaker 1: I I think that we're gonna definitely see tech continue 146 00:08:25,280 --> 00:08:28,000 Speaker 1: to to improve. Now the valuation has got a little 147 00:08:28,000 --> 00:08:32,120 Speaker 1: bit out of controllable for and so I think that um, 148 00:08:32,160 --> 00:08:36,160 Speaker 1: you know, interest rates, um, interest rates going up and 149 00:08:36,240 --> 00:08:38,760 Speaker 1: the discount rate that's implied in that in terms of 150 00:08:38,800 --> 00:08:43,760 Speaker 1: earnings as actually it's what's made evaluations come down well 151 00:08:43,880 --> 00:08:46,320 Speaker 1: now like I'm seeing a CEEO we family office. Is 152 00:08:46,360 --> 00:08:48,560 Speaker 1: great to have you late on a Friday, happy weekend. 153 00:08:48,840 --> 00:09:00,000 Speaker 1: We'll see you again soon shares. The online secondhand good 154 00:09:00,200 --> 00:09:03,960 Speaker 1: marketplace Poshmark dropped eight percent on Thursday, the biggest decline 155 00:09:04,320 --> 00:09:06,920 Speaker 1: since May. The company gave a weaker than hope sales 156 00:09:06,960 --> 00:09:09,960 Speaker 1: forecast for the third quarter as growth has been held 157 00:09:10,040 --> 00:09:13,280 Speaker 1: back by higher inflation and a changing global economy. But 158 00:09:14,000 --> 00:09:16,600 Speaker 1: there were some bright spots, as user engagement on Poshmark 159 00:09:16,679 --> 00:09:19,520 Speaker 1: jumped seventy percent year on year, joining US Sprage or 160 00:09:19,559 --> 00:09:22,040 Speaker 1: Dan and Cars and I on the future is Poshmark 161 00:09:22,160 --> 00:09:26,000 Speaker 1: CEO managed changers, so managed you know, the market's clearly 162 00:09:26,040 --> 00:09:31,400 Speaker 1: focusing on this this sales outlook. What were the factors 163 00:09:31,440 --> 00:09:35,960 Speaker 1: behind that around that that pressure on sales growth. Well, 164 00:09:36,000 --> 00:09:38,079 Speaker 1: we if you look at our Q two results, we 165 00:09:38,160 --> 00:09:42,920 Speaker 1: started we beat the guidance on both revenue and UH 166 00:09:43,040 --> 00:09:45,160 Speaker 1: and sort of came to the midpoint on the earnings. 167 00:09:45,760 --> 00:09:47,960 Speaker 1: I think when we look into the future we look 168 00:09:48,000 --> 00:09:51,320 Speaker 1: at Q three, one of the good things that's happening 169 00:09:51,400 --> 00:09:54,000 Speaker 1: is that we are starting to see our growth and 170 00:09:54,080 --> 00:09:57,800 Speaker 1: our rhythm and kidens be more like twenty nineteen, which 171 00:09:57,840 --> 00:10:00,840 Speaker 1: is pre COVID, which is a healthy to for poshmarkers. 172 00:10:00,840 --> 00:10:04,000 Speaker 1: As people are going out participate in participating in events, 173 00:10:04,520 --> 00:10:07,160 Speaker 1: going to weddings, you know, going back to school. It's 174 00:10:07,160 --> 00:10:08,880 Speaker 1: a great thing because you need fashion, you need to 175 00:10:08,960 --> 00:10:10,920 Speaker 1: rotate your closet, and people are going back to the 176 00:10:10,960 --> 00:10:13,840 Speaker 1: closet and then rotating it. So that's a good thing. 177 00:10:13,880 --> 00:10:16,679 Speaker 1: But we're being cautious. I mean it's early. We're sort 178 00:10:16,720 --> 00:10:19,040 Speaker 1: of want to observe it for a few months, and 179 00:10:19,080 --> 00:10:22,480 Speaker 1: that's reflected in our guidance. I mean, it's remind us 180 00:10:22,480 --> 00:10:27,800 Speaker 1: how poshmark works. Essentially, you're pairing sellers of second handkerds 181 00:10:27,840 --> 00:10:30,199 Speaker 1: with buyers and second handkerds. Right, But forward me a 182 00:10:30,240 --> 00:10:33,160 Speaker 1: little bit about the profile of of user on the platform, 183 00:10:33,200 --> 00:10:36,640 Speaker 1: the types of folks that are buying goods there. Yeah, 184 00:10:36,760 --> 00:10:39,600 Speaker 1: poshmark is is unique in the sense that we allow 185 00:10:39,679 --> 00:10:42,280 Speaker 1: you to turn your closet into a shop. So it 186 00:10:42,320 --> 00:10:44,760 Speaker 1: really appeals to millions of people out there who have 187 00:10:44,760 --> 00:10:47,280 Speaker 1: a closet. I think almost everyone has a closet has 188 00:10:47,280 --> 00:10:49,560 Speaker 1: some excess stuff to sell, so we really make it 189 00:10:49,679 --> 00:10:51,839 Speaker 1: very easy to take their closet and start selling it 190 00:10:51,840 --> 00:10:55,840 Speaker 1: if we provide everything built into the platform is shipping, 191 00:10:56,360 --> 00:10:59,520 Speaker 1: payment processing, etcetera. And the beautiful thing is the item 192 00:10:59,559 --> 00:11:02,120 Speaker 1: goes straight from the seller to the buyer, so we 193 00:11:02,160 --> 00:11:04,480 Speaker 1: hold no inventory and that allows us to have an 194 00:11:04,559 --> 00:11:09,280 Speaker 1: extremely dynamic assortment, which has been a strong point, particularly 195 00:11:09,320 --> 00:11:12,720 Speaker 1: in this changing sense of fashion going into the pandemic, 196 00:11:12,760 --> 00:11:16,360 Speaker 1: coming out of it, going into from active where to work, 197 00:11:16,400 --> 00:11:18,840 Speaker 1: where to back to school? Where? Uh? And then on 198 00:11:18,880 --> 00:11:21,760 Speaker 1: the flip side, we have people who are shopping these 199 00:11:21,760 --> 00:11:25,400 Speaker 1: closes both for getting values and bargains, but also getting 200 00:11:25,400 --> 00:11:28,960 Speaker 1: access to wide assortment. Everything you want, we believe within 201 00:11:29,040 --> 00:11:31,920 Speaker 1: somebody's closets, so we put them all together and that's 202 00:11:31,960 --> 00:11:35,760 Speaker 1: past manage. I want to get into the psychology of 203 00:11:35,800 --> 00:11:38,040 Speaker 1: the consumer, that what what kind of lens. Do you 204 00:11:38,080 --> 00:11:42,080 Speaker 1: get into the health of the consumer. Are their users 205 00:11:42,080 --> 00:11:45,240 Speaker 1: shopping on your platform because they're feeling the pain of inflation, 206 00:11:45,679 --> 00:11:48,840 Speaker 1: so they're looking to the secondhand goods market rather than 207 00:11:48,960 --> 00:11:52,439 Speaker 1: buying off the high street, you know, off new products. 208 00:11:53,440 --> 00:11:57,360 Speaker 1: What are the kind of macro characteristics that you're seeing 209 00:11:57,400 --> 00:12:01,880 Speaker 1: in your in your users. First thing is consumers are 210 00:12:01,920 --> 00:12:04,520 Speaker 1: looking for value. Consumers are always looking for value, but 211 00:12:04,559 --> 00:12:08,320 Speaker 1: in these inflationary times, they're especially looking for value. Number 212 00:12:08,400 --> 00:12:11,800 Speaker 1: two is consumers preference and dastes are changing and a 213 00:12:11,800 --> 00:12:15,160 Speaker 1: lot of times traditional retail is not able to keep up. 214 00:12:15,200 --> 00:12:17,199 Speaker 1: And what you're seeing with a lot of first supply 215 00:12:17,320 --> 00:12:20,520 Speaker 1: shade famine and now sort of retail store lout is 216 00:12:20,559 --> 00:12:24,360 Speaker 1: this mismatch of computer supply and demand, consumer supply and demand. 217 00:12:24,679 --> 00:12:27,120 Speaker 1: And what we see with posh market is this ability 218 00:12:27,160 --> 00:12:30,920 Speaker 1: to dynamically match from the closets from people this supply 219 00:12:30,960 --> 00:12:32,920 Speaker 1: and demand. So that's the second thing is people looking 220 00:12:32,920 --> 00:12:36,360 Speaker 1: for latest trendy things and that trends are changing, but 221 00:12:36,480 --> 00:12:38,839 Speaker 1: they flips of the posh markets that consumers can also 222 00:12:38,880 --> 00:12:41,160 Speaker 1: make money and as people are sort of looking for 223 00:12:41,160 --> 00:12:44,160 Speaker 1: extra sources of income, wash market provide that as well. 224 00:12:45,120 --> 00:12:49,360 Speaker 1: Told me about Poshmark parties. What is a Poshmark party? 225 00:12:50,679 --> 00:12:53,400 Speaker 1: So two things. We have virtual parties that are happening 226 00:12:53,440 --> 00:12:56,840 Speaker 1: online where people are selling together, will have a theme, 227 00:12:57,000 --> 00:13:00,920 Speaker 1: and thousands, sometimes hundreds of thousands of pop will come together. 228 00:13:01,000 --> 00:13:03,880 Speaker 1: In fact, our evening parties are so big that I've 229 00:13:03,880 --> 00:13:05,880 Speaker 1: seen parties in the last few weeks that have hit 230 00:13:06,160 --> 00:13:08,959 Speaker 1: ten million items being listed in a single party from 231 00:13:08,960 --> 00:13:11,960 Speaker 1: across the country. So they are really a group selling 232 00:13:11,960 --> 00:13:15,160 Speaker 1: event where people are coming buying and selling together, and 233 00:13:15,160 --> 00:13:18,080 Speaker 1: then we take them physical. So we hosted a party 234 00:13:18,080 --> 00:13:19,840 Speaker 1: in l A a couple of weeks back, and next 235 00:13:19,920 --> 00:13:22,720 Speaker 1: week we have one in New York City, and there 236 00:13:22,760 --> 00:13:25,200 Speaker 1: we have hundreds of sellers who come together. They connect 237 00:13:25,200 --> 00:13:27,679 Speaker 1: with each other, they help each other, they learn from 238 00:13:27,720 --> 00:13:30,440 Speaker 1: each other, get inspired. And we also have new sellers 239 00:13:30,440 --> 00:13:33,360 Speaker 1: coming in where we help them activate their closets and 240 00:13:33,400 --> 00:13:37,600 Speaker 1: people who junge Washmark and learn there's something called closet consultation. 241 00:13:37,679 --> 00:13:40,000 Speaker 1: They can see how to run their online business faster. 242 00:13:40,440 --> 00:13:42,760 Speaker 1: So they become sort of a small manifesto of these 243 00:13:42,840 --> 00:13:48,000 Speaker 1: virtual events. Bloom Bag Intelligence analysts Tam Goyle is also 244 00:13:48,040 --> 00:13:52,400 Speaker 1: excited about poshmarks potential for growth outside of North America 245 00:13:52,480 --> 00:13:56,640 Speaker 1: international markets. Can you update us on the plans there? Yeah. 246 00:13:56,640 --> 00:13:59,560 Speaker 1: Are Our Canadian business just hit four million users, we 247 00:13:59,679 --> 00:14:02,640 Speaker 1: sort of celebrated three year mark and has more than 248 00:14:02,679 --> 00:14:05,360 Speaker 1: a billion dollars of invntory lists, so that market is 249 00:14:05,400 --> 00:14:09,120 Speaker 1: coming along. And we launched in Australia India during the 250 00:14:09,120 --> 00:14:11,600 Speaker 1: pandemic and as we are coming out of it, we 251 00:14:11,640 --> 00:14:14,640 Speaker 1: are seeing the engagement and physical events starting to build 252 00:14:14,640 --> 00:14:18,319 Speaker 1: the communities there. So we believe the para dime of 253 00:14:18,480 --> 00:14:22,040 Speaker 1: really finding the future of fashion inside your closet is 254 00:14:22,080 --> 00:14:24,880 Speaker 1: well aligned, not just in US and Canada, with other 255 00:14:24,880 --> 00:14:28,840 Speaker 1: countries as well. All right, well, we'll look for updates 256 00:14:28,840 --> 00:14:31,480 Speaker 1: on those new markets as they come online. Posh Mark, CEO, 257 00:14:31,560 --> 00:14:33,960 Speaker 1: Managed Chandra, thank you very much for joining us the 258 00:14:34,040 --> 00:14:38,040 Speaker 1: update on the second hand goods market. Meanwhile, delivery startup 259 00:14:38,120 --> 00:14:41,320 Speaker 1: go Path is tapping a new CFO to help it 260 00:14:41,360 --> 00:14:45,400 Speaker 1: become profitable. Panera Bread's CFO Ted Steadham will join the 261 00:14:45,440 --> 00:14:48,520 Speaker 1: same role for Gopath. According to sources, stead and work 262 00:14:48,600 --> 00:14:51,120 Speaker 1: that we work as global head of business Planning and 263 00:14:51,160 --> 00:14:55,320 Speaker 1: Financial Operations. He also served as CFO at Young Brands China. 264 00:14:55,360 --> 00:15:00,840 Speaker 1: Business coming up, Europe's drought will further raise energy prices 265 00:15:00,880 --> 00:15:04,480 Speaker 1: and disrupt trade. As the Rhine rivers water levels did 266 00:15:04,560 --> 00:15:31,360 Speaker 1: below a crucial mark. This is bloom. There's a guess 267 00:15:31,360 --> 00:15:35,600 Speaker 1: storage itself, it's not sufficient. We are facing a crisis 268 00:15:35,640 --> 00:15:38,080 Speaker 1: at the moment. It's been produced by the cush off 269 00:15:38,120 --> 00:15:40,720 Speaker 1: of Russian gas. But it tells us yet again just 270 00:15:40,840 --> 00:15:44,360 Speaker 1: how volatile and uncertain fossil fuel prices are. Guess press 271 00:15:44,480 --> 00:15:47,200 Speaker 1: will remain very high and it also may result in 272 00:15:47,320 --> 00:15:50,920 Speaker 1: some disruption. We cannot magically get sort of tens of 273 00:15:51,040 --> 00:15:55,240 Speaker 1: hundreds of gigger waters of renewable energy before winter. So 274 00:15:55,320 --> 00:15:57,440 Speaker 1: it is a matter of saving energy, it's a matter 275 00:15:57,480 --> 00:16:03,120 Speaker 1: of securing sources. Spec should be more obligatory measures to 276 00:16:03,240 --> 00:16:07,160 Speaker 1: reduce to reduce consumption. The first step obviously is to 277 00:16:07,240 --> 00:16:10,240 Speaker 1: become independent Russian supplies, which in the end can only 278 00:16:10,280 --> 00:16:14,640 Speaker 1: be managed by additional imports, mostly llergy. Here today we've 279 00:16:14,680 --> 00:16:18,400 Speaker 1: seen the the reduction in the guest consumption by about 280 00:16:18,440 --> 00:16:21,120 Speaker 1: ten percent in the EU. I think the effect of 281 00:16:21,120 --> 00:16:24,120 Speaker 1: this crisis will be that Europe will be further down 282 00:16:24,200 --> 00:16:26,440 Speaker 1: the path to emissions reduction. So it would otherwise be 283 00:16:29,160 --> 00:16:31,840 Speaker 1: that some of the commentary on the energy Crunch Europe 284 00:16:32,000 --> 00:16:34,560 Speaker 1: is currently enduring and things don't look much better on 285 00:16:34,600 --> 00:16:37,240 Speaker 1: the trade front. Germany's Rhine River has dropped to a 286 00:16:37,320 --> 00:16:40,640 Speaker 1: level that could disrupt the transport of fuel throughout Europe. 287 00:16:40,680 --> 00:16:44,080 Speaker 1: The effects could ripple through the continent for months. Bloomberg's 288 00:16:44,080 --> 00:16:48,720 Speaker 1: Guy Johnson explains as of this afternoon here in Europe, 289 00:16:48,760 --> 00:16:53,200 Speaker 1: the Rhine River has become impossible at the critical waypoint 290 00:16:53,280 --> 00:16:56,360 Speaker 1: of Cow just to the west of Frankfurt. This is 291 00:16:56,400 --> 00:16:58,920 Speaker 1: something that we've been anticipating for really quite some time. 292 00:16:59,200 --> 00:17:02,280 Speaker 1: You can see the water levels as they've been dropping 293 00:17:02,840 --> 00:17:05,600 Speaker 1: over the last few months. They have now dropped through 294 00:17:05,960 --> 00:17:09,920 Speaker 1: the critical forty centimeter points at Cab. That's just under 295 00:17:09,960 --> 00:17:13,960 Speaker 1: sixteen inches. That means effectively the river is no longer 296 00:17:14,080 --> 00:17:18,080 Speaker 1: navigable for large barges. Now, this is crucial for Europe, 297 00:17:18,080 --> 00:17:20,159 Speaker 1: not just for Germany, but for the whole of Europe. 298 00:17:20,240 --> 00:17:22,720 Speaker 1: Let me show you what the map looks like here. 299 00:17:22,880 --> 00:17:25,840 Speaker 1: So you've got ratted Rotterdam up here on the coast. 300 00:17:25,880 --> 00:17:29,000 Speaker 1: The river Rind runs through Germany through Cologne just to 301 00:17:29,040 --> 00:17:31,760 Speaker 1: the west of Frankfurt there's Cab and then runs through 302 00:17:31,800 --> 00:17:34,560 Speaker 1: the rest of Germany down towards Switzerland. This is a 303 00:17:34,760 --> 00:17:38,680 Speaker 1: hugely important waterway. It transports all kinds of things up 304 00:17:38,720 --> 00:17:41,560 Speaker 1: and down for Germany and for the whole of Europe. 305 00:17:41,720 --> 00:17:45,120 Speaker 1: Think about coal, think about gas, think about diesel. All 306 00:17:45,160 --> 00:17:47,240 Speaker 1: of these things go up and down this river. Big 307 00:17:47,320 --> 00:17:50,640 Speaker 1: chemicals companies are to the east of Cow as well, 308 00:17:50,720 --> 00:17:53,840 Speaker 1: they will now be restricted. Big power plants that that 309 00:17:53,920 --> 00:17:56,640 Speaker 1: require cold to be floated up the river on barges 310 00:17:56,840 --> 00:18:00,480 Speaker 1: will now see those supplies restricted. This comes at a 311 00:18:00,520 --> 00:18:03,600 Speaker 1: time when Europe is already facing a massive energy crisis. 312 00:18:04,000 --> 00:18:06,280 Speaker 1: The fact that we now have drought in Europe that 313 00:18:06,440 --> 00:18:09,880 Speaker 1: is lowering these river levels is only going to exacerbate 314 00:18:09,920 --> 00:18:13,200 Speaker 1: that problem and pour further pressure on politicians to do 315 00:18:13,280 --> 00:18:16,280 Speaker 1: more to deal with this economic crisis that is looming 316 00:18:16,600 --> 00:18:19,159 Speaker 1: and getting worse and worse as we head towards winter 317 00:18:19,280 --> 00:18:22,040 Speaker 1: here in Europe. So, as of today, the Rhine is 318 00:18:22,080 --> 00:18:25,040 Speaker 1: now closed at Cow and it looked like and it 319 00:18:25,040 --> 00:18:27,240 Speaker 1: looks like it's not going to rain for a while. 320 00:18:28,280 --> 00:18:31,600 Speaker 1: Thanks to Boomberg's Guy Johnson in London to that update 321 00:18:31,640 --> 00:18:34,240 Speaker 1: on the Rhine rivers in other stories to watch, Three 322 00:18:34,280 --> 00:18:38,080 Speaker 1: of China's biggest state owned companies planned to delist from 323 00:18:38,240 --> 00:18:41,760 Speaker 1: US exchanges that's fall out from a dispute over whether 324 00:18:41,840 --> 00:18:45,560 Speaker 1: American regulators should be allowed to inspect audits of Chinese 325 00:18:45,560 --> 00:18:48,720 Speaker 1: businesses who shares are listed in the US. The three 326 00:18:48,760 --> 00:18:52,560 Speaker 1: companies that will delist our China Life, Petro China, and 327 00:18:52,640 --> 00:18:58,280 Speaker 1: Cinepec Massaoshi Sun has now lost more than four billion 328 00:18:58,359 --> 00:19:01,119 Speaker 1: dollars on a series of ideals he set up at 329 00:19:01,160 --> 00:19:05,040 Speaker 1: soft Bank to boost his compensation. The Japanese billionaire took 330 00:19:05,080 --> 00:19:09,280 Speaker 1: the unusual step of establishing personal stakes in a series 331 00:19:09,320 --> 00:19:12,080 Speaker 1: of soft Bank ventures in recent years. That was a 332 00:19:12,119 --> 00:19:15,560 Speaker 1: mixing of company and executive interests that drew the ire 333 00:19:15,840 --> 00:19:21,680 Speaker 1: of investors. And Amazon, Oracle, and other data providers were 334 00:19:21,720 --> 00:19:24,240 Speaker 1: pressed by a group of lawmakers about how they sell 335 00:19:24,359 --> 00:19:28,359 Speaker 1: mobile phone location data. The companies offered assurances that the 336 00:19:28,400 --> 00:19:33,280 Speaker 1: information could not be used to track women seeking abortion services. 337 00:19:33,600 --> 00:19:36,840 Speaker 1: The Supreme Court's decision to overturn women's federal right to 338 00:19:36,880 --> 00:19:40,920 Speaker 1: abortion has sparks concerns that location data can be used 339 00:19:40,920 --> 00:19:44,280 Speaker 1: by law enforcement in states that have outlawed or restricted 340 00:19:44,320 --> 00:19:56,840 Speaker 1: abortion to prosecute people who seek reproductive care. I'm going 341 00:19:56,880 --> 00:19:59,040 Speaker 1: to bring you some breaking news and headlines crossing the 342 00:19:59,040 --> 00:20:02,320 Speaker 1: Bloomberg terminal. The House has enough votes to send a 343 00:20:02,400 --> 00:20:05,760 Speaker 1: roughly four hundred thirty seven billion dollar TACKS, climate, and 344 00:20:05,840 --> 00:20:09,440 Speaker 1: drug price package to President Biden's desk. The inflation reduction 345 00:20:09,480 --> 00:20:12,160 Speaker 1: bill is designed to boost the US transition to clean 346 00:20:12,280 --> 00:20:15,200 Speaker 1: energy and alleviate costs. Which had more about the bill's 347 00:20:15,200 --> 00:20:20,320 Speaker 1: impact on electric vehicles later this hour. This is Boomberg Technology. 348 00:20:20,359 --> 00:20:22,800 Speaker 1: I am Ed Lovelow in San Francisco for more on 349 00:20:22,880 --> 00:20:26,600 Speaker 1: Peloton's news. Let's bring in Bloomberg's Jackie Deavlos, who's out 350 00:20:26,800 --> 00:20:29,000 Speaker 1: in d C. Jackie, what do we learn from Peloton 351 00:20:29,080 --> 00:20:33,960 Speaker 1: on Friday? Absolutely well, for customers, you know, prices are 352 00:20:34,000 --> 00:20:36,679 Speaker 1: going to be hyked up, and it's kind of a 353 00:20:36,680 --> 00:20:39,360 Speaker 1: reversal from what we saw in April when we saw 354 00:20:39,480 --> 00:20:42,320 Speaker 1: price cut for the bike and the treadmill UM. So 355 00:20:42,359 --> 00:20:43,760 Speaker 1: if you were looking for a deal, you may have 356 00:20:43,800 --> 00:20:45,560 Speaker 1: missed out on that one. But it's really part of 357 00:20:45,560 --> 00:20:50,040 Speaker 1: this broader plan to shift more of its costs from 358 00:20:50,119 --> 00:20:53,600 Speaker 1: the hardware side of the business to higher margin memberships. 359 00:20:53,640 --> 00:20:58,120 Speaker 1: And you know, layoffs are expected to impact around eight 360 00:20:58,240 --> 00:21:02,400 Speaker 1: hundred people, mostly Constant traded, and you know the customer 361 00:21:02,520 --> 00:21:07,600 Speaker 1: service and distribution and UM delivery type functions and this 362 00:21:07,680 --> 00:21:11,840 Speaker 1: is a really bigger picture part of this broader strategy 363 00:21:12,080 --> 00:21:16,879 Speaker 1: to overhaul the cost structure and redirect more of its 364 00:21:17,359 --> 00:21:20,600 Speaker 1: capital to research and development. You know the memo to 365 00:21:20,760 --> 00:21:24,600 Speaker 1: employees that Barry McCarthy uh sent earlier today, you know, 366 00:21:24,680 --> 00:21:27,720 Speaker 1: he outlines this rationale that you know, you need to 367 00:21:27,800 --> 00:21:31,800 Speaker 1: spur innovation to spur revenue growth, and that's going to 368 00:21:31,880 --> 00:21:34,560 Speaker 1: be key, especially when they've been burning so much capital. 369 00:21:35,440 --> 00:21:38,399 Speaker 1: Barry McCarthy, the Peloton CEO, said in this internal memo 370 00:21:39,400 --> 00:21:42,800 Speaker 1: that cash is oxygen and oxygen is life. And clearly, 371 00:21:42,880 --> 00:21:46,000 Speaker 1: you know they're worried about that. They're operating health if 372 00:21:46,040 --> 00:21:48,280 Speaker 1: you will. But what's the why the context here, Jackie? 373 00:21:48,320 --> 00:21:51,320 Speaker 1: They did layoffs in February as well. Is it that 374 00:21:51,359 --> 00:21:54,560 Speaker 1: the demand for the product has disappeared, that people just 375 00:21:54,600 --> 00:21:59,280 Speaker 1: simply aren't using Peloton hardware anymore? You know, I think 376 00:21:59,280 --> 00:22:02,600 Speaker 1: it's a company aation of things. The economic outlook has 377 00:22:02,640 --> 00:22:06,160 Speaker 1: certainly shifted since the beginning of the year. And when 378 00:22:06,200 --> 00:22:09,520 Speaker 1: he joined earlier in February, you know, it was already 379 00:22:09,640 --> 00:22:13,560 Speaker 1: undergoing this major turnaround plan, but it wasn't really sure 380 00:22:14,000 --> 00:22:17,120 Speaker 1: where some of the pain points were. Was it demand, 381 00:22:17,960 --> 00:22:20,960 Speaker 1: was it just kind of this broader grim outlook. And 382 00:22:21,040 --> 00:22:23,320 Speaker 1: what we're seeing now is that you know, they signaled 383 00:22:23,440 --> 00:22:27,840 Speaker 1: they expect demand to soften going forward, and when consumer 384 00:22:27,960 --> 00:22:31,640 Speaker 1: spend is really on the line, a luxury premium product 385 00:22:31,800 --> 00:22:35,600 Speaker 1: like Peloton is more vulnerable, and you know, so future 386 00:22:35,680 --> 00:22:40,840 Speaker 1: growth is somewhat hanging in the phrase, especially um. You 387 00:22:40,880 --> 00:22:43,560 Speaker 1: know they've signaled that sales aren't going to be as 388 00:22:43,600 --> 00:22:47,119 Speaker 1: strong now when it comes to saving money. This is 389 00:22:47,160 --> 00:22:51,680 Speaker 1: where uh, you've seen somewhat of a vacillating in strategy. 390 00:22:51,880 --> 00:22:55,800 Speaker 1: You know, when they upped that membership cost earlier in 391 00:22:55,800 --> 00:22:59,600 Speaker 1: in April, UM, that was signaling that, look, this is somewhere. 392 00:22:59,640 --> 00:23:03,040 Speaker 1: This is an area that they want to tap going forward. 393 00:23:03,080 --> 00:23:06,639 Speaker 1: It's higher margin, it's recurring, predictable revenue. So you're definitely 394 00:23:06,680 --> 00:23:08,720 Speaker 1: going to start to see them lean into that as 395 00:23:08,800 --> 00:23:12,000 Speaker 1: the demand side of the picture becomes more uncertain. Well, 396 00:23:12,160 --> 00:23:14,480 Speaker 1: investors certainly like what they saw the stock jumping almost 397 00:23:14,480 --> 00:23:17,359 Speaker 1: fourteen percent Bloomberg's Jackie Devil loss. How in d C, 398 00:23:17,520 --> 00:23:20,800 Speaker 1: thank you have a great weekend. Let's turn to retail earnings. 399 00:23:20,880 --> 00:23:23,359 Speaker 1: Lots coming up next week from the likes of Walmart 400 00:23:23,480 --> 00:23:25,919 Speaker 1: and Macy's. So let's take a little look ahead and 401 00:23:25,920 --> 00:23:29,159 Speaker 1: talk about what to expect with Nicky Baird, VP of 402 00:23:29,240 --> 00:23:33,080 Speaker 1: strategy for the global retail technology company app Toss, and 403 00:23:33,160 --> 00:23:36,840 Speaker 1: my good mate Bloomberg Zone Brending Case out in Dallas 404 00:23:36,840 --> 00:23:39,160 Speaker 1: and Brendan, I'm gonna start with you. You You know this 405 00:23:39,280 --> 00:23:41,040 Speaker 1: is the week for you, right, You're going to be 406 00:23:41,080 --> 00:23:42,760 Speaker 1: at your desk. I know you're going to be just 407 00:23:43,160 --> 00:23:47,200 Speaker 1: so much coffee, so much coffee, bracing for what's to come. 408 00:23:47,359 --> 00:23:49,320 Speaker 1: But actually we already have a good sense of what's come, 409 00:23:49,400 --> 00:23:52,439 Speaker 1: don't we. That's exactly right. It is gonna be a 410 00:23:52,440 --> 00:23:55,040 Speaker 1: big week, but it's going to be a week that's 411 00:23:55,040 --> 00:23:57,800 Speaker 1: sort of a sequel to an announcement that Walmart made 412 00:23:57,840 --> 00:24:00,560 Speaker 1: a few weeks ago in which it Warren that as 413 00:24:00,560 --> 00:24:04,400 Speaker 1: profits were going to be down more than expected. And 414 00:24:04,440 --> 00:24:07,960 Speaker 1: the reason for that is that inflation is just hitting 415 00:24:07,960 --> 00:24:10,800 Speaker 1: people really hard and it's leaving them with less money 416 00:24:10,840 --> 00:24:16,640 Speaker 1: to spend, especially on general merchandise as opposed to groceries. Uh. 417 00:24:16,640 --> 00:24:18,359 Speaker 1: And I think what we'll what we'll be looking for 418 00:24:18,440 --> 00:24:21,040 Speaker 1: next week, We'll be looking for any kind of clues 419 00:24:21,160 --> 00:24:24,480 Speaker 1: or commentary they offer about how they see the state 420 00:24:24,520 --> 00:24:27,119 Speaker 1: of the consumer and and and and how people are 421 00:24:27,119 --> 00:24:29,840 Speaker 1: going to be able to hold up or not as 422 00:24:30,080 --> 00:24:33,080 Speaker 1: the rest of the year goes on. So we've already 423 00:24:33,080 --> 00:24:36,119 Speaker 1: heard from Amazon, the big sort of e commerce giant. Actually, 424 00:24:36,119 --> 00:24:38,600 Speaker 1: earlier in the year, we spoke to Annie Jassey and 425 00:24:38,640 --> 00:24:41,200 Speaker 1: this was his kind of assessment of the inflation story. 426 00:24:41,280 --> 00:24:44,800 Speaker 1: Have a listened. We thought that inflation would started to 427 00:24:44,800 --> 00:24:48,399 Speaker 1: attenuate Ino, and with the war in Ukraine, it just 428 00:24:48,400 --> 00:24:50,960 Speaker 1: went the other way and has significantly accelerated. So the 429 00:24:51,040 --> 00:24:54,359 Speaker 1: cost of trucking and line hol ocean and air and 430 00:24:54,440 --> 00:24:58,399 Speaker 1: fuel has just substantially gone up. And I think that 431 00:24:58,440 --> 00:25:00,119 Speaker 1: will all tenuate at some point. No one no is 432 00:25:00,119 --> 00:25:04,280 Speaker 1: how long that will take. So Nikki I played that 433 00:25:04,359 --> 00:25:07,480 Speaker 1: sound bite which was from June, the first week of June, 434 00:25:07,480 --> 00:25:10,679 Speaker 1: because it seems like in some sense, the paw for 435 00:25:10,760 --> 00:25:13,680 Speaker 1: inflation court retailers off guard a little bit. Did did 436 00:25:13,720 --> 00:25:16,520 Speaker 1: the industry just kind of get inflation and how the 437 00:25:16,560 --> 00:25:21,480 Speaker 1: consumer reacted wrong? I don't know that they necessarily got 438 00:25:21,480 --> 00:25:23,439 Speaker 1: the inflation part wrong. I mean a lot of the 439 00:25:23,480 --> 00:25:26,919 Speaker 1: goods that are on shelves in June were things that 440 00:25:26,960 --> 00:25:30,640 Speaker 1: were purchased before gas prices really went up. Before some 441 00:25:30,720 --> 00:25:34,440 Speaker 1: of those stronger things really hit that drove prices up 442 00:25:34,960 --> 00:25:37,760 Speaker 1: in other places, like in grocery where the supply chains 443 00:25:37,840 --> 00:25:40,760 Speaker 1: much shorter. But I do think it surprised them how 444 00:25:40,840 --> 00:25:45,120 Speaker 1: much consumer demand there was and how much consumers were 445 00:25:45,200 --> 00:25:48,600 Speaker 1: still willing to spend um, you know, as things opened 446 00:25:48,680 --> 00:25:51,119 Speaker 1: up more. I think we're starting to see the impact 447 00:25:51,160 --> 00:25:54,359 Speaker 1: of that now where July I think isn't going to 448 00:25:54,480 --> 00:25:57,960 Speaker 1: be as strong retail sales as June was. Some of 449 00:25:58,000 --> 00:26:01,000 Speaker 1: it is inflation biting into that, just scretionary spending, but 450 00:26:01,040 --> 00:26:04,240 Speaker 1: I think as well, some of it is everybody's on vacation, 451 00:26:04,359 --> 00:26:08,920 Speaker 1: everybody's out traveling, They're shifting their spending to other places. Yeah, 452 00:26:09,280 --> 00:26:12,679 Speaker 1: Nicky Bed VP of Strategy, adopt toss and Bloomberg's brending 453 00:26:12,760 --> 00:26:16,119 Speaker 1: case of course, thanks to you both. Happy weekend. Coming up, 454 00:26:16,160 --> 00:26:20,639 Speaker 1: we'll talk about Ethereum's winning streak and by the way, 455 00:26:20,680 --> 00:26:24,679 Speaker 1: is the merge finally happening? Really more than that? Next? 456 00:26:25,000 --> 00:26:53,320 Speaker 1: This is Bloomberg alright, time for our crypto report now, 457 00:26:53,359 --> 00:26:56,560 Speaker 1: and EFA jumps ten this week for a sixth straight 458 00:26:56,640 --> 00:27:00,840 Speaker 1: week of gains. This in anticipation of ground breaking software 459 00:27:00,920 --> 00:27:04,760 Speaker 1: upgrade to its blockchain Ethereums upgrade has been long awaited, 460 00:27:05,160 --> 00:27:07,680 Speaker 1: and news around it has been welcomed by investors. We've 461 00:27:07,720 --> 00:27:11,520 Speaker 1: pushed its token price up by roughly over the past month. 462 00:27:11,560 --> 00:27:14,359 Speaker 1: That's bringing Bloomberg's David Pan out in New York for 463 00:27:14,359 --> 00:27:17,679 Speaker 1: more David. Everyone's been weighing in on this, the merge. 464 00:27:18,080 --> 00:27:22,760 Speaker 1: It's close, it's exciting, Ethereums all over the shop. Is 465 00:27:22,760 --> 00:27:25,800 Speaker 1: it actually going to happen? Right? So, the merge has 466 00:27:25,840 --> 00:27:29,280 Speaker 1: been on the roadmap of the Ethereum Blocked and Projects 467 00:27:29,280 --> 00:27:34,120 Speaker 1: Development UM since its inception twenties fifteen. There have been 468 00:27:34,200 --> 00:27:37,920 Speaker 1: several dealays in the past several years and UM there 469 00:27:37,960 --> 00:27:40,679 Speaker 1: has been a suspicion of the time of the merge, 470 00:27:41,160 --> 00:27:45,639 Speaker 1: but based on the conversations with investors and developers that 471 00:27:45,720 --> 00:27:48,520 Speaker 1: there are more confident than ever that the merger way 472 00:27:48,640 --> 00:27:50,960 Speaker 1: happened in the next couple of months, based on a 473 00:27:51,000 --> 00:27:55,240 Speaker 1: couple of reasons. And firstly, we've seen the merge on 474 00:27:55,320 --> 00:28:00,400 Speaker 1: the test nets being completed with without major technical at chist, 475 00:28:00,440 --> 00:28:02,800 Speaker 1: which is a promising sign that shows the merch will 476 00:28:02,840 --> 00:28:06,040 Speaker 1: actually happened in the near future. A Secondly, if we 477 00:28:06,160 --> 00:28:09,840 Speaker 1: look at the derivatives market, in particular the ether options 478 00:28:09,880 --> 00:28:12,600 Speaker 1: market we're seeing a lot of investors who are betting 479 00:28:12,680 --> 00:28:15,960 Speaker 1: on a price hike during around the time of the merch. 480 00:28:16,400 --> 00:28:21,040 Speaker 1: So those those two things kind of indicate that, you know, um, 481 00:28:21,080 --> 00:28:24,439 Speaker 1: there's a fairly high confidence level for the merch to 482 00:28:24,480 --> 00:28:27,400 Speaker 1: happen in the near future. Well, it seems like investors 483 00:28:27,440 --> 00:28:30,520 Speaker 1: a positioning for this to happen right there, that trying 484 00:28:30,600 --> 00:28:35,400 Speaker 1: to get in because they anticipate further upward movement in ethereum. 485 00:28:35,800 --> 00:28:37,679 Speaker 1: But then there's a school of thought that when it 486 00:28:37,720 --> 00:28:43,320 Speaker 1: actually happens, we'll see a crash. Explain that logic to us. Yes, 487 00:28:43,480 --> 00:28:46,880 Speaker 1: So um, so you know, like, um, there's a say 488 00:28:46,960 --> 00:28:50,040 Speaker 1: in the crypto space, you know, sell the news. Um 489 00:28:50,080 --> 00:28:51,560 Speaker 1: at the end of the day. I mean, we have 490 00:28:51,680 --> 00:28:55,360 Speaker 1: to remember that crypto market is highly speculative market, and 491 00:28:55,480 --> 00:28:59,560 Speaker 1: a lot of hot money, speculative capital, you know, will 492 00:28:59,600 --> 00:29:03,320 Speaker 1: be going from the large scale investors into the market 493 00:29:03,360 --> 00:29:05,440 Speaker 1: around the time when the merge happened, because you're in 494 00:29:05,480 --> 00:29:09,680 Speaker 1: search of our charge opportunities in the time of high volatility. 495 00:29:10,320 --> 00:29:14,120 Speaker 1: Another reason might be that you know, um, there might 496 00:29:14,160 --> 00:29:19,400 Speaker 1: be other potential technical difficulties for glitches happening after the merge, 497 00:29:19,480 --> 00:29:23,080 Speaker 1: which would discourage investors to invest more, to put more 498 00:29:23,120 --> 00:29:25,960 Speaker 1: money into the into the project. So those are the 499 00:29:25,960 --> 00:29:29,320 Speaker 1: two major reasons, um, you know, based on my conversations 500 00:29:29,360 --> 00:29:34,240 Speaker 1: with investors and core developers behind the project. Alright, all 501 00:29:34,280 --> 00:29:36,880 Speaker 1: eyes on ethereum then Bloombergs David Penn, thank you, have 502 00:29:36,920 --> 00:29:48,680 Speaker 1: a great weekend in New York. Let's look at the 503 00:29:48,680 --> 00:29:51,400 Speaker 1: week that was in the world of electric vehicles, with 504 00:29:51,560 --> 00:29:55,320 Speaker 1: Nicola beating expectations last weekend, announcing his active shake up 505 00:29:55,760 --> 00:29:58,920 Speaker 1: this week, and Rivian cutting its annual earnings forecast saying 506 00:29:58,920 --> 00:30:01,800 Speaker 1: it would have a larger than previously guided loss on 507 00:30:02,000 --> 00:30:06,000 Speaker 1: inflationary wose. And now we'll talk about the Inflation Reduction 508 00:30:06,040 --> 00:30:09,520 Speaker 1: Acts which Congress has just voted to pass and pass 509 00:30:09,560 --> 00:30:12,320 Speaker 1: onto the President Biden in his desk, which the President says, 510 00:30:12,560 --> 00:30:16,040 Speaker 1: according to headlines crossing the Bloomberg, he will sign next week. 511 00:30:16,160 --> 00:30:19,960 Speaker 1: The bill could deliver a boost to electric commercial vehicles 512 00:30:20,000 --> 00:30:23,400 Speaker 1: in this macro environment. Joining me now is Olfsakker's general 513 00:30:23,400 --> 00:30:26,640 Speaker 1: partner at Red Blue Capital, a VC focused on early 514 00:30:26,680 --> 00:30:30,760 Speaker 1: stage companies in the mobility and automotive space, and Bloomberg 515 00:30:30,880 --> 00:30:34,440 Speaker 1: Zone Car's stock out on the East Coast. So you 516 00:30:34,560 --> 00:30:38,560 Speaker 1: and I are laugh have discussed this bill through its passage. 517 00:30:39,200 --> 00:30:43,800 Speaker 1: What's your reaction now that it seems real and done. So, 518 00:30:43,840 --> 00:30:45,920 Speaker 1: there are a few things that are happening all at once. 519 00:30:46,000 --> 00:30:47,960 Speaker 1: The one is that there's a lot of political jostling 520 00:30:48,000 --> 00:30:50,520 Speaker 1: in order to get the steel through um and it 521 00:30:50,560 --> 00:30:54,480 Speaker 1: creates a short term confusion because it kind of immediately 522 00:30:54,560 --> 00:30:58,280 Speaker 1: changes the subsidiary regime, changes the rules around it um 523 00:30:58,360 --> 00:31:00,360 Speaker 1: and and that's going to create abit of fusion in 524 00:31:00,400 --> 00:31:03,320 Speaker 1: the NYOTA. It does correct for some of the things 525 00:31:03,440 --> 00:31:07,200 Speaker 1: that were problematic in the pre existing EV subsidies, that 526 00:31:07,280 --> 00:31:10,600 Speaker 1: there were effectively regressive, that wealthy people were the ones 527 00:31:10,640 --> 00:31:14,400 Speaker 1: that could afford high end you know howmer evs and Tesla's, 528 00:31:14,680 --> 00:31:17,600 Speaker 1: and yet you know those aren't necessarily the people you 529 00:31:17,640 --> 00:31:21,040 Speaker 1: want to be subsidizing with tax dollars. Now, the bill 530 00:31:21,120 --> 00:31:24,320 Speaker 1: is shifting the thresholds for who qualifies and which vehicles 531 00:31:24,400 --> 00:31:27,120 Speaker 1: qualify to be more focused on the middle class. But 532 00:31:27,240 --> 00:31:30,920 Speaker 1: it is still fundamentally regressive in a sense. Why do 533 00:31:31,000 --> 00:31:33,400 Speaker 1: you believe I think your school of thought is that 534 00:31:34,400 --> 00:31:37,720 Speaker 1: it misses the point that actually there's a much broader 535 00:31:37,760 --> 00:31:42,400 Speaker 1: section of the global automotive market that needs attention, that 536 00:31:42,520 --> 00:31:45,960 Speaker 1: needs more support to electrify. It's not just the automotive market. 537 00:31:45,960 --> 00:31:47,440 Speaker 1: I think what you need to think about is what 538 00:31:47,560 --> 00:31:49,959 Speaker 1: is the point of cars? They move people, and they 539 00:31:50,040 --> 00:31:52,400 Speaker 1: to some extent move goods, especially if somebody's going to 540 00:31:52,440 --> 00:31:55,600 Speaker 1: Walmart or something, they're they're hauling stuff in their vehicle. 541 00:31:56,000 --> 00:31:57,800 Speaker 1: But what we should be focusing on if we care 542 00:31:57,840 --> 00:31:59,880 Speaker 1: about climate and the two things that are attentioned in this, 543 00:32:00,000 --> 00:32:02,320 Speaker 1: well we can get to them. One is America first, 544 00:32:02,400 --> 00:32:06,080 Speaker 1: like these policies around American manufacturing, etcetera. And the other 545 00:32:06,200 --> 00:32:08,920 Speaker 1: is around climate. But if you care about that second bucket, 546 00:32:09,320 --> 00:32:12,720 Speaker 1: the climate bucket, would you care about is not electrifying vehicles, 547 00:32:12,840 --> 00:32:15,120 Speaker 1: not making cars that people own the drive four percent 548 00:32:15,200 --> 00:32:18,640 Speaker 1: of the time electric, would rather electrifying miles. And the 549 00:32:18,720 --> 00:32:21,120 Speaker 1: miles that really matter are the ones that are driven 550 00:32:21,120 --> 00:32:25,320 Speaker 1: by fleets of various kinds, whether it's commercial fleas, trucks, 551 00:32:26,040 --> 00:32:30,560 Speaker 1: delivery vans, but also fleets like Scuta, fleets in cities 552 00:32:30,600 --> 00:32:34,360 Speaker 1: like San Francisco, which are also high utilization, and also 553 00:32:34,440 --> 00:32:38,080 Speaker 1: for delivery of food. Company like door Dash is doing 554 00:32:38,320 --> 00:32:41,080 Speaker 1: one point six billion trips a year. You know, why 555 00:32:41,160 --> 00:32:44,880 Speaker 1: isn't there focused on commercializing those trips. It's subsidizing those 556 00:32:44,920 --> 00:32:48,440 Speaker 1: trips through these kinds of subsidies. So a big focus 557 00:32:48,480 --> 00:32:50,560 Speaker 1: on the consumer. I want to bring Bloomberg, Bloomberg's Carl 558 00:32:50,640 --> 00:32:53,680 Speaker 1: Stock into the conversationating Kyle, you know, give us a 559 00:32:53,720 --> 00:32:56,320 Speaker 1: sense of where we're at in electrification in America. You 560 00:32:56,360 --> 00:32:59,840 Speaker 1: write fantastic story last week that basically points out that 561 00:33:00,040 --> 00:33:02,640 Speaker 1: fuel anywhere in the States but on the West Past, 562 00:33:02,640 --> 00:33:04,320 Speaker 1: for example. And you want to take a road trip, 563 00:33:04,360 --> 00:33:07,440 Speaker 1: a classic American road trip in an e V, It's 564 00:33:07,480 --> 00:33:13,320 Speaker 1: not that easy. Yeah. Well, I think EV adoption is 565 00:33:12,800 --> 00:33:16,080 Speaker 1: is sort of ahead of where the narrative is. I 566 00:33:16,120 --> 00:33:19,360 Speaker 1: think Americans are open to these vehicles, but the charging 567 00:33:19,360 --> 00:33:25,440 Speaker 1: infrastructure here is still a big challenge. We lag China, Europe, 568 00:33:25,840 --> 00:33:29,800 Speaker 1: South Korea, even Japan when it comes to the number 569 00:33:29,840 --> 00:33:34,400 Speaker 1: of places to charge a vehicle quickly, um, if you're 570 00:33:34,480 --> 00:33:39,240 Speaker 1: outside of the Tesla universe. So that's because we haven't 571 00:33:39,280 --> 00:33:41,600 Speaker 1: had subsidies like this in the past. We haven't had 572 00:33:42,080 --> 00:33:45,120 Speaker 1: you know, rebuff policy like they have in Scandinavia and 573 00:33:45,120 --> 00:33:48,720 Speaker 1: in China. UM to really put these cords out there 574 00:33:48,760 --> 00:33:51,000 Speaker 1: in the wild, and not just that you know, whole 575 00:33:51,040 --> 00:33:55,200 Speaker 1: foods or the gym or Um your office, but at 576 00:33:55,240 --> 00:33:57,680 Speaker 1: the National Park at the Grand Canyon, you know that's 577 00:33:57,680 --> 00:34:00,800 Speaker 1: still kind of off the map for someone taking a 578 00:34:00,840 --> 00:34:04,280 Speaker 1: Navy road trip right now. So you know, this build 579 00:34:04,360 --> 00:34:10,160 Speaker 1: speaks to that. But Biden's giant infrastructure package also speaks 580 00:34:10,160 --> 00:34:12,160 Speaker 1: to that five billion dollars that's going to start to 581 00:34:12,160 --> 00:34:17,560 Speaker 1: be deployed this autumn um should help cover a lot 582 00:34:17,600 --> 00:34:20,359 Speaker 1: of those EV deserts, but we're not really there yet 583 00:34:20,400 --> 00:34:22,640 Speaker 1: in terms of where you can go in these vehicles. 584 00:34:23,800 --> 00:34:28,400 Speaker 1: The other area is this whole energy crisis and and 585 00:34:28,480 --> 00:34:31,200 Speaker 1: the motivation to move to e v s. In your 586 00:34:31,239 --> 00:34:34,399 Speaker 1: reporting in recent weeks and months, what do you see 587 00:34:34,400 --> 00:34:37,520 Speaker 1: in the US consumer in terms of their willingness to 588 00:34:37,600 --> 00:34:40,320 Speaker 1: transition to evs their ability to afford an e v 589 00:34:41,719 --> 00:34:44,560 Speaker 1: The affordability is a huge chunk of it. I mean, 590 00:34:44,560 --> 00:34:47,319 Speaker 1: these cars are they were expensive to begin with, They're 591 00:34:47,320 --> 00:34:51,200 Speaker 1: getting more expensive now because of the supply crisis because 592 00:34:51,280 --> 00:34:55,879 Speaker 1: dealerships can add on these market adjustment rates um and 593 00:34:56,040 --> 00:34:58,960 Speaker 1: even if you're paying a sticker price, you're waiting months 594 00:34:59,000 --> 00:35:01,120 Speaker 1: for one of these cars. So that's a big issue. 595 00:35:01,520 --> 00:35:04,480 Speaker 1: A big thing in the bill, that pattern that is 596 00:35:05,239 --> 00:35:08,680 Speaker 1: going through now is a provision for a rebate for 597 00:35:08,840 --> 00:35:12,480 Speaker 1: use dvs. And this is massive, Like anyone in the 598 00:35:12,560 --> 00:35:18,160 Speaker 1: AVA universe is thrilled about this because in America, seven 599 00:35:18,840 --> 00:35:22,440 Speaker 1: percent of cars that are purchased are pre owned, so 600 00:35:22,520 --> 00:35:24,640 Speaker 1: this is the lion's share of the market. So to 601 00:35:25,120 --> 00:35:29,080 Speaker 1: sort of have something that speaks to that buyer could 602 00:35:29,360 --> 00:35:34,000 Speaker 1: move the needle drastically for the for the space. So 603 00:35:34,040 --> 00:35:36,480 Speaker 1: that's the kind of consumer side of the story from Kyle. 604 00:35:36,600 --> 00:35:38,560 Speaker 1: And again, you know, your point is that you we 605 00:35:38,560 --> 00:35:41,360 Speaker 1: shouldn't just focus on cause. So if I said to you, 606 00:35:41,400 --> 00:35:45,440 Speaker 1: here's a pen, go back and rewrite the bill as 607 00:35:45,480 --> 00:35:48,080 Speaker 1: you would have written it, what would you have put 608 00:35:48,120 --> 00:35:53,880 Speaker 1: in that to hit those targets reducing emissions and advancing 609 00:35:53,880 --> 00:35:56,960 Speaker 1: a transition to sustainable energy. Yeah, I think the focus 610 00:35:57,040 --> 00:36:00,719 Speaker 1: on you know, going to a national park or something 611 00:36:00,760 --> 00:36:03,320 Speaker 1: like that is not how people actually use cars. Cause 612 00:36:03,600 --> 00:36:07,360 Speaker 1: are designed today for family to go to a picnic, 613 00:36:07,520 --> 00:36:09,680 Speaker 1: right and have all this trunk space and all the 614 00:36:10,040 --> 00:36:12,400 Speaker 1: kids in the car. But in reality, most of the 615 00:36:12,440 --> 00:36:15,200 Speaker 1: vehicles are actually being used to commute, or they're being 616 00:36:15,320 --> 00:36:18,799 Speaker 1: used for trips that people take for retail um and 617 00:36:18,880 --> 00:36:22,000 Speaker 1: usually there's only one person driving that car. Um and 618 00:36:22,080 --> 00:36:25,760 Speaker 1: so I wrote a book, and the book is basically 619 00:36:25,840 --> 00:36:29,200 Speaker 1: about the transition to what I call the trip economy. Basically, 620 00:36:29,280 --> 00:36:31,879 Speaker 1: these trip marketplaces that bring things to you or take 621 00:36:31,960 --> 00:36:36,279 Speaker 1: your places Uber, Amazon, Door, Dash, These all different ways 622 00:36:36,280 --> 00:36:39,120 Speaker 1: in which you can buy trips for specific purposes. And 623 00:36:39,200 --> 00:36:42,920 Speaker 1: this trip economy rationalizes all the efficiencies in efficiencies of 624 00:36:42,960 --> 00:36:46,359 Speaker 1: car ownership. Car ownership is extremely wasteful. Think about all 625 00:36:46,360 --> 00:36:48,799 Speaker 1: the metal that's being moved all the way to take 626 00:36:48,840 --> 00:36:52,320 Speaker 1: you anywhere that you're going. That's just unnecessary. Um and 627 00:36:52,320 --> 00:36:57,280 Speaker 1: and the real opportunity is to not electrify the energy 628 00:36:57,320 --> 00:36:59,160 Speaker 1: that's being used to move all that weight, but actually 629 00:36:59,160 --> 00:37:01,640 Speaker 1: to change how much energy is needed in the first 630 00:37:01,640 --> 00:37:05,120 Speaker 1: place to move people and goods for the economic purposes 631 00:37:05,160 --> 00:37:07,719 Speaker 1: of growing the economy, etcetera. So, if I were to 632 00:37:07,760 --> 00:37:10,760 Speaker 1: rewrite the bill, I'd be focused on those kinds of opportunities. 633 00:37:11,160 --> 00:37:15,520 Speaker 1: UM focus on commercial fleets. And how do you accelerate electrification? 634 00:37:15,719 --> 00:37:18,400 Speaker 1: If you look at where electrification is really happening today, 635 00:37:18,680 --> 00:37:23,200 Speaker 1: it's it's buses and cities they've already close to those 636 00:37:23,239 --> 00:37:26,240 Speaker 1: buses have already transitioned. UM. If you look at Amazon, 637 00:37:26,360 --> 00:37:29,279 Speaker 1: you mentioned Rivian before they made a massive purchase of 638 00:37:29,360 --> 00:37:32,279 Speaker 1: Rivian vehicles UM, and that's really what what is the 639 00:37:32,280 --> 00:37:35,760 Speaker 1: tailwind behind rivian um. Those those are the use cases 640 00:37:35,800 --> 00:37:39,520 Speaker 1: that really have rapid adoption, and those vehicles are the 641 00:37:39,520 --> 00:37:42,920 Speaker 1: ones that are doing high amounts of miles door dashes 642 00:37:43,000 --> 00:37:45,680 Speaker 1: using e bikes in many cities to deliver goods, and 643 00:37:45,680 --> 00:37:49,320 Speaker 1: they're bundling the amounts the packages that are being delivered 644 00:37:49,560 --> 00:37:51,880 Speaker 1: so you don't have to Instead of having consumers take 645 00:37:51,920 --> 00:37:54,480 Speaker 1: individual trips to a store, you have multiple trips being 646 00:37:54,480 --> 00:37:57,600 Speaker 1: bumbled into one one ride. And similarly with Uber you 647 00:37:57,680 --> 00:38:01,240 Speaker 1: sing in London under pressure from uh the from TfL 648 00:38:01,520 --> 00:38:04,200 Speaker 1: that it was actually much more quickly electrifying than than 649 00:38:04,280 --> 00:38:06,359 Speaker 1: consumer flee. So that's that's if you want to show 650 00:38:06,600 --> 00:38:09,480 Speaker 1: electric miles to electric education, that's that's a lot of 651 00:38:09,600 --> 00:38:12,160 Speaker 1: the things you should be focusing on. We could have 652 00:38:12,200 --> 00:38:15,960 Speaker 1: spoken about this all night, all weekend, perhaps big thanks 653 00:38:16,000 --> 00:38:18,920 Speaker 1: to a Love Secres, general partner at Red Blue Capital 654 00:38:19,040 --> 00:38:22,200 Speaker 1: and Bloomberg's Kyle Stock, good mate of mine out on 655 00:38:22,280 --> 00:38:25,120 Speaker 1: the East Coast. Thanks to you both. Well, that does 656 00:38:25,120 --> 00:38:28,360 Speaker 1: it for this edition of Bloomberg Technology Monday. We have 657 00:38:28,560 --> 00:38:32,480 Speaker 1: BBG Ventures President's student line to chat big tech regulation 658 00:38:32,800 --> 00:38:36,280 Speaker 1: and the investing landscape. Don't forget to check out our podcast. 659 00:38:36,320 --> 00:38:38,640 Speaker 1: You can find it on the terminal as well as 660 00:38:38,680 --> 00:38:44,360 Speaker 1: online on Apple's Spotify and on iHeart. This is Bloomberg 661 00:39:00,680 --> 00:39:04,680 Speaker 1: You day at the will have been keeping the