WEBVTT - SEC X Account Hacked, HPE & Juniper's $14B Deal, CES in Las Vegas 0:00:01.680 --> 0:00:05.360 From Marhart of We're Innovation, Money and Power Collie in 0:00:05.480 --> 0:00:10.399 Silicon Valley, NBN. This is Bloomberg Technology with Caroline Hyde 0:00:10.440 --> 0:00:37.120 and Ed Ludlow. 0:00:25.079 --> 0:00:29.760 And Caroline Heinder Bloomberg's world headquarters in New York. 0:00:29.360 --> 0:00:32.000 And I'm d Ludlow live at CS Las Vegas. This 0:00:32.080 --> 0:00:33.320 is Bloomberg Technology. 0:00:33.440 --> 0:00:34.400 Coming up on the show. 0:00:34.479 --> 0:00:38.040 Hackers target the SEC's X account to falsely announce approval 0:00:38.040 --> 0:00:41.440 of the Bitcoin spot. ETF will break down what happened 0:00:41.560 --> 0:00:45.080 and what we can expect regarding today's deadline. Plus Hewlett 0:00:45.120 --> 0:00:48.760 Packard Enterprises while it announces plans to buy Juniper Networks 0:00:48.760 --> 0:00:51.640 of fourteen billion dollars. We are going to discuss the 0:00:51.640 --> 0:00:55.680 deal with the hpeco, Antonio Nairing and the CS coverage 0:00:55.680 --> 0:00:57.920 it continues. We sit down in the CEO's of Zeeman's 0:00:57.920 --> 0:01:01.480 Panasonics US Arms as a tech com. Difference is really 0:01:01.800 --> 0:01:03.880 the life and soul of technology coverage as. 0:01:03.760 --> 0:01:04.520 It stands right now. 0:01:04.520 --> 0:01:07.119 We go out to you Ed in Las Vegas right 0:01:07.120 --> 0:01:10.360 now and well, the wealth of discussion around autos, the 0:01:10.400 --> 0:01:13.360 wealth of discussion around AI was clear to see yesterday. 0:01:13.600 --> 0:01:16.559 What do you seem being really adopted by the press, 0:01:16.560 --> 0:01:17.000 at the moment. 0:01:19.240 --> 0:01:21.199 Do you know, I think day two this morning, certainly 0:01:21.280 --> 0:01:23.480 the new psychle is starting to play out here because 0:01:23.480 --> 0:01:26.880 you have everybody on the ground in high concentration from 0:01:26.920 --> 0:01:30.080 across these industries. You know, we've got that EV data 0:01:30.200 --> 0:01:33.200 for the last three months of twenty twenty three. There 0:01:33.200 --> 0:01:35.280 are lots of EV companies here that are worried about 0:01:35.280 --> 0:01:38.160 the demand picture. We'll have a conversation with Panasonic later 0:01:38.200 --> 0:01:40.679 in the show about that, but also Amazon and Twitch 0:01:40.680 --> 0:01:43.120 News about layoffs. That is a point of discussion for 0:01:43.200 --> 0:01:44.040 obvious reasons. 0:01:44.440 --> 0:01:47.680 Yeah, the ongoing concern about whether technology valuations are right. 0:01:47.760 --> 0:01:49.760 Just think about the RBC note coming out from Lori 0:01:49.840 --> 0:01:53.240 Calvacina today just saying, look, valuations too high. They're cutting 0:01:53.320 --> 0:01:55.040 their overall recommendation. 0:01:54.560 --> 0:01:55.240 On US tech. 0:01:55.280 --> 0:01:57.520 Is that a bit of a downdraft that's happening in cees. 0:01:59.760 --> 0:02:01.960 Yeah, Yeah, it's interesting. We kicked off this week with 0:02:02.000 --> 0:02:05.480 that Nvidio news right on their AI graphics chips for 0:02:05.560 --> 0:02:08.240 PC and that put the stock to a fresh record. 0:02:08.320 --> 0:02:10.320 I know it's continued to kind of train in a 0:02:10.360 --> 0:02:12.520 narrow range since, but there are people that think that 0:02:12.600 --> 0:02:15.840 in video is still kind of cheap and what we're 0:02:15.880 --> 0:02:18.080 seeing here in the news cycle as companies say, Okay, 0:02:18.120 --> 0:02:20.680 this is how we're actually going to use AI in 0:02:20.720 --> 0:02:23.640 our business internally, and we want you to assign some 0:02:23.680 --> 0:02:26.200 more value to our companies because the AI is going 0:02:26.200 --> 0:02:29.639 to boost our margins and increase our sales conversion. I'll 0:02:29.639 --> 0:02:31.399 dig a bit more into that later in the show, 0:02:31.400 --> 0:02:33.840 but I put a newsletter out on that point this morning, 0:02:33.840 --> 0:02:36.320 and that really genuinely is the conversation. 0:02:36.000 --> 0:02:37.280 And it's going to be a conversation we have with 0:02:37.360 --> 0:02:39.400 the HPECO because of course a lot of that is 0:02:39.440 --> 0:02:42.399 about aligning his business for the AI focus as well. 0:02:42.440 --> 0:02:44.560 But we have to get into that news regarding the 0:02:44.600 --> 0:02:47.760 SEC's Bitcoin ETF decision and well the hack. Of course, 0:02:47.760 --> 0:02:49.480 it took place at about four pm. 0:02:49.320 --> 0:02:52.040 Yesterday in New York time. Have an on X joining 0:02:52.120 --> 0:02:55.360 us now as blue motion early basecond just regarding the 0:02:55.560 --> 0:02:56.280 X debarcle. 0:02:56.720 --> 0:02:59.760 Now many sort of pointing fingers. Ultimately, it seemed to 0:02:59.800 --> 0:03:03.520 be a lack of double authentication to factor authentication, do 0:03:03.639 --> 0:03:06.440 not use your phone as your second form of authentication? 0:03:06.520 --> 0:03:09.120 Off thatous indeed, what was happening. But what did you 0:03:09.200 --> 0:03:13.160 make of the market reaction? Because everyone on too, paces 0:03:13.160 --> 0:03:13.839 gotta signed off. 0:03:13.880 --> 0:03:14.720 Yeah, it was a. 0:03:14.680 --> 0:03:16.840 Real time test of what would happen if the SEC 0:03:17.320 --> 0:03:20.080 does approve a bitcoin ETF. You saw the price spike 0:03:20.160 --> 0:03:22.680 to almost forty eight thousand dollars, but when the news 0:03:22.760 --> 0:03:25.720 was reversed, we have seen a very sluggish movement here, 0:03:25.800 --> 0:03:29.000 even though many market participants, including many of the issuers, 0:03:29.000 --> 0:03:31.560 believe that they still will get that approval today and 0:03:31.600 --> 0:03:34.040 so you have seen the price crash back down by 0:03:34.080 --> 0:03:36.440 more than two thousand dollars per bitcoin. You have seen 0:03:36.440 --> 0:03:40.160 a crash down closer to forty five thousand. 0:03:39.880 --> 0:03:40.800 At its low. 0:03:41.160 --> 0:03:43.760 It's kind of forty five five hundred giver take at 0:03:43.800 --> 0:03:46.880 the moment, does it get back to that nearly forty 0:03:46.880 --> 0:03:49.320 eight thousand dollars high? And in the coming days if 0:03:49.320 --> 0:03:51.960 we do get an approval and more trading, then what 0:03:52.000 --> 0:03:52.760 does it mean for. 0:03:52.760 --> 0:03:54.360 Price action after that? 0:03:54.400 --> 0:03:56.600 There are a lot of investors, as you know, Caroline, 0:03:56.640 --> 0:04:00.360 that believe that maybe this is priced to perfection. We've 0:04:00.400 --> 0:04:03.840 seen the best in terms of movement, in terms of 0:04:04.120 --> 0:04:07.000 what an SEC could bring, or an SEC approval for 0:04:07.160 --> 0:04:09.320 a spot bitcoin at ETF could bring to the table 0:04:09.440 --> 0:04:10.280 for bitcoin. 0:04:10.920 --> 0:04:13.520 The likes of those that are offering the ETFs, and 0:04:13.560 --> 0:04:14.800 we know that there seems to be a race to 0:04:14.840 --> 0:04:16.680 the bottom in terms of management fees. It's going to 0:04:16.680 --> 0:04:18.920 be incredibly cheap to be able to build this into 0:04:18.960 --> 0:04:20.200 your overall portfolio. 0:04:20.680 --> 0:04:24.000 But are they worried by these sorts of full starts. 0:04:24.040 --> 0:04:25.680 Are they worried that further. 0:04:25.480 --> 0:04:29.719 Dense desire to be getting into the speculative asset class. 0:04:29.760 --> 0:04:32.080 Well, it's interesting the less of the concern was around 0:04:32.400 --> 0:04:35.560 the ETF itself and the Bitcoin ETF approval, and more 0:04:35.560 --> 0:04:39.080 concern was around the SEC and its management processes here. 0:04:39.240 --> 0:04:41.520 As you said earlier, X had said that this was 0:04:41.880 --> 0:04:45.279 not a hack. It was because of a compromise individual 0:04:45.360 --> 0:04:48.839 stealing a phone number associated with the SEC account. I 0:04:48.839 --> 0:04:51.240 think it's interesting that Gary Goinsler himself use the word 0:04:51.320 --> 0:04:54.360 compromise rather than hack. Now, remember there are a lot 0:04:54.400 --> 0:04:58.760 of lawmakers here attacking the SEC as well as Gary Gainsler, 0:04:58.760 --> 0:05:02.560 Republican lawmakers in p particular, concerned about how the SEC 0:05:02.640 --> 0:05:05.960 is managing this process. I would also say that Coinbase 0:05:06.000 --> 0:05:08.080 as executives. I don't know if you guys have seen this, 0:05:08.440 --> 0:05:10.719 There are online saying that they could be a part 0:05:10.720 --> 0:05:11.400 of the solution. 0:05:11.520 --> 0:05:11.799 Here. 0:05:12.040 --> 0:05:14.560 The SEC and Coinbase have been in their own disputes 0:05:15.120 --> 0:05:18.960 for the last couple of months, and so the SEC's 0:05:19.000 --> 0:05:22.120 ability to oversee the crypto industry has certainly long been 0:05:22.520 --> 0:05:25.600 in question, and now there are more eyes on that 0:05:25.760 --> 0:05:27.679 after the SEC snafu last. 0:05:27.560 --> 0:05:30.080 Night that did seem to rub salt into a rather 0:05:30.120 --> 0:05:32.799 gaping open wound for the SEC. We thank you Shnani 0:05:32.800 --> 0:05:35.440 basec of course, just to reiterate that my husband is 0:05:35.640 --> 0:05:37.960 a director over at Coinbase. Meanwhile, we want to be 0:05:38.000 --> 0:05:40.560 talking about what's happening in the broader cryptosphere, what all 0:05:40.560 --> 0:05:42.480 of this means if we do indeed the sign off 0:05:42.480 --> 0:05:44.600 for a spot bitcoin etf as soon as today should 0:05:44.720 --> 0:05:47.440 like Jawuen Putrez with us, founder and managing partner of 0:05:47.600 --> 0:05:50.320 Future Perfect Ventures, it's an early stage VC firm focusing 0:05:50.320 --> 0:05:53.120 on blockchain technology, on crypto assets, on AI, on human 0:05:53.160 --> 0:05:55.120 computer interaction, all. 0:05:55.160 --> 0:05:57.240 Of the exciting parts of the tech sphere. 0:05:57.640 --> 0:06:02.520 Jalick, what did you alterly think of this almost test 0:06:02.560 --> 0:06:05.839 case of the price reaction to the sign off, because 0:06:05.920 --> 0:06:06.560 how much. 0:06:06.480 --> 0:06:07.039 Is baked in? 0:06:07.120 --> 0:06:10.280 How much of this exuberance is already sort of there 0:06:10.360 --> 0:06:14.279 and within the forty eight thousand price point, well, it's. 0:06:14.080 --> 0:06:18.240 Great to be with you again. And I think this 0:06:18.360 --> 0:06:24.240 has been an amazing twenty four hours, very apropos for crypto, 0:06:24.839 --> 0:06:29.600 and I do say if we look at the price action, 0:06:29.680 --> 0:06:30.200 it's been. 0:06:30.080 --> 0:06:32.400 With a pretty narrow range. 0:06:32.880 --> 0:06:35.920 And so I think there's still a lot of pent 0:06:36.120 --> 0:06:40.520 up energy deniand for the asset, what. 0:06:40.400 --> 0:06:42.880 Does it ultimately mean for crypto more broadly? There has 0:06:42.920 --> 0:06:45.200 been a lot of focus therefore on the og of 0:06:45.240 --> 0:06:47.839 the space bitcoin and it's been perhaps dragging away some 0:06:47.880 --> 0:06:51.320 of the liquidity and ultimately volumes from old coins. But 0:06:51.440 --> 0:06:56.560 you're busy thinking about business models within crypto, is there 0:06:56.640 --> 0:06:57.640 exuberance into. 0:06:57.440 --> 0:06:59.960 Building into other parts? I'm thinking of Ether Solana. 0:07:01.640 --> 0:07:04.479 Yeah, So if you look at eth, Eth has appreciated 0:07:04.560 --> 0:07:07.080 quite a bit over the last twenty four hours, specially 0:07:07.120 --> 0:07:10.400 since the hack, and I think there's an expectation or 0:07:10.400 --> 0:07:15.720 a viewpoint that the SEC will continue to approve select 0:07:15.920 --> 0:07:20.280 crypto assets at ETFs and that allows a lot more 0:07:20.480 --> 0:07:24.400 retail investors, a lot more institutions to custody feel comfortable 0:07:24.600 --> 0:07:27.000 of owning these assets. 0:07:27.080 --> 0:07:29.560 So if we take a step back. 0:07:29.360 --> 0:07:33.840 And these are new financial asset classes, but also it's 0:07:33.880 --> 0:07:39.520 all driven by technology and what's been enabled by the increase. 0:07:39.200 --> 0:07:40.200 In processing power. 0:07:40.240 --> 0:07:43.880 We've had a lot of it works in TANEM with 0:07:44.000 --> 0:07:47.520 artificial intelligence. So all of these technologies are now being 0:07:47.640 --> 0:07:51.280 enabled in real time, and it's a new financial system 0:07:51.840 --> 0:07:55.480 that will not only be built on these rails but 0:07:55.600 --> 0:08:00.560 also allow more access for people to own these these assets. 0:08:00.600 --> 0:08:03.160 I have so many people around the world that I've 0:08:03.160 --> 0:08:05.520 talked to over the last ten years since I latch 0:08:05.560 --> 0:08:09.000 Future Perfect Ventures who have asked, how do I buy bitcoin? 0:08:09.080 --> 0:08:10.440 And you know, they don't know that you don't have 0:08:10.480 --> 0:08:12.800 to buy a whole bitcoin. They don't know how to 0:08:12.800 --> 0:08:15.840 custody bitcoin. And this is on a worldwide basis. So 0:08:16.480 --> 0:08:20.720 this ETF approval, this bitcoin ETF approval, is a first 0:08:20.800 --> 0:08:25.920 step to allow a more mass ownership of the self 0:08:26.080 --> 0:08:31.080 sovereign assets. And I think this is certainly a watershed 0:08:31.160 --> 0:08:34.680 moment in terms of not only the financial elements of this, 0:08:34.800 --> 0:08:37.000 but the technology behind these assets. 0:08:37.240 --> 0:08:38.240 And see if it happens. 0:08:38.360 --> 0:08:40.640 Celec jaman Putra, we want to thank you so much, 0:08:40.679 --> 0:08:43.880 founder managing partner of Future Perfect Ventures. 0:08:44.120 --> 0:08:45.360 We thank you so much. 0:08:46.080 --> 0:08:49.200 On Tuesday, hpe it announced it has agreed to buy 0:08:49.280 --> 0:08:52.079 Juniper Networks for fourteen billion dollars in a move to 0:08:52.120 --> 0:08:55.000 will expand its presence in networking in particular. But there 0:08:55.040 --> 0:08:57.280 is also some skepticism being raised by Wall Street, as 0:08:57.280 --> 0:08:59.800 we saw with the price action hpecu an Tonio Andry 0:09:00.200 --> 0:09:03.280 us now to talk us through the reasoning. What attracted 0:09:03.320 --> 0:09:07.680 you to Juniper Networks Why focusing data centers expansion, Yes, 0:09:07.840 --> 0:09:12.120 networking cloud networking presence expansion, Yes, any worry about overlap here? 0:09:12.120 --> 0:09:17.480 Antonio, Well, good afternoon, Karen, Thanks for having me. Yes, 0:09:17.520 --> 0:09:20.760 there was an exciting day for HP our shareholders, our customers, 0:09:20.760 --> 0:09:23.960 and our employees. We are reshaping the entire networking industry 0:09:24.320 --> 0:09:28.880 by combining two amazing companies with amazing complementary assets to 0:09:29.040 --> 0:09:32.280 capture the inflection point we see today, particularly with the AI. 0:09:33.160 --> 0:09:36.400 So we believe this is going to turbocharge the strategy 0:09:36.600 --> 0:09:39.160 that I have put in place five years ago and 0:09:39.200 --> 0:09:42.559 we have been executing with discipline, and then ultimately give 0:09:42.640 --> 0:09:46.720 us the relevancy in this massive inflection point. And Jenniber 0:09:46.840 --> 0:09:50.600 brings to us the complementary capabilities we didn't have across 0:09:50.600 --> 0:09:53.680 the networking portfolio. But think about it this way, we 0:09:53.760 --> 0:09:57.480 are actually creating a new core business for Hulet packer Enterprise, 0:09:57.920 --> 0:10:00.559 which will represent more than a third of the company 0:10:00.640 --> 0:10:05.800 revenues and most importantly, almost sixty percent of the company profit. 0:10:06.360 --> 0:10:09.280 And we will address a market that's growing, which represent 0:10:09.360 --> 0:10:13.520 approximately one hundred and eighteen billion dollars. And this acquisition, 0:10:13.800 --> 0:10:16.880 this proposed acquisition, is going to be a creative post 0:10:16.920 --> 0:10:20.720 closed day one. So it is an exciting time for everyone. 0:10:21.000 --> 0:10:23.400 I think the market needs to understand it, but they 0:10:23.440 --> 0:10:27.000 will realize that we're going to challenge the twenty years 0:10:27.000 --> 0:10:31.920 incumbency with modern architectures and drive better solutions for our customers. 0:10:32.000 --> 0:10:35.000 Let's talk about those solutions. Let's talk about that modern focus. 0:10:35.080 --> 0:10:38.280 Because Cisco basically is the gorilla. 0:10:37.960 --> 0:10:40.760 In the room that we're talking about, and Juniper Networks 0:10:40.840 --> 0:10:43.719 isn't a new asset, as an older one that has 0:10:43.840 --> 0:10:46.120 failed to gain that market share from some of these 0:10:46.120 --> 0:10:48.640 competitors in the switching and the networking space. 0:10:49.000 --> 0:10:50.600 Why with you will it be different? 0:10:51.800 --> 0:10:53.199 Yeah, well, I think. 0:10:53.000 --> 0:10:55.680 We need to understand their business a little bit more 0:10:55.720 --> 0:10:56.199 in depth. 0:10:56.320 --> 0:10:56.520 Right. 0:10:56.559 --> 0:10:59.559 So, obviously, when you think about the Internet area, Jurniper 0:10:59.600 --> 0:11:03.800 today powers a lot of the Internet connectivity and so 0:11:04.000 --> 0:11:08.280 that's an enormous foundation when we think about the enterprise business. 0:11:08.880 --> 0:11:11.360 They have done a fantastic job driving what I call 0:11:11.480 --> 0:11:15.680 the AI driven disruption. Obviously have a power Floud platform 0:11:15.679 --> 0:11:19.599 with MISSED. We have an amazing platform with HP Aruba Networking. 0:11:20.120 --> 0:11:23.280 Both are complementary because we have the scale, the rich 0:11:24.000 --> 0:11:27.280 from a technology and go to market perspective, but also 0:11:27.400 --> 0:11:30.880 they have been innovating what I call the next generation 0:11:31.160 --> 0:11:34.520 of AI driven secure networking. So we're going to bring 0:11:34.679 --> 0:11:38.040 both together and deliver a better solution for customers. On 0:11:38.080 --> 0:11:40.800 the other side, you need to understand that also bring 0:11:40.920 --> 0:11:47.240 an amazing silicon easy capabilities for high performance networking. We 0:11:47.280 --> 0:11:51.400 already in HP have been focused on AI interconnect fabric. 0:11:51.640 --> 0:11:54.200 This will turbo charge our strategy because we have the 0:11:54.200 --> 0:11:57.000 market leader in supercomputing and when you talk about AI 0:11:57.240 --> 0:11:59.800 and talk about large language model, you talk about foundation. 0:12:00.320 --> 0:12:03.640 Whether it's weather or whether it is other type of applications, 0:12:03.920 --> 0:12:07.320 you need high performance silicon and the core foundation of 0:12:07.360 --> 0:12:10.720 that is the network. We're going to create that network solution. 0:12:10.880 --> 0:12:12.760 We are going to add the data layer on top 0:12:12.800 --> 0:12:15.520 of that, and we're going to deliver this secure, unified 0:12:15.600 --> 0:12:19.160 experience to our amazing platform college Big grey Lake. 0:12:20.000 --> 0:12:24.679 Sticking with the ultimate technology and the profitability of Antonio. 0:12:24.800 --> 0:12:28.720 The margin difference that we see within the networking businesses. 0:12:28.640 --> 0:12:31.000 GUS is lower than yours. How do you bring that up? 0:12:31.280 --> 0:12:34.120 Is that about ensuring that you're within the AI sphere, 0:12:34.160 --> 0:12:36.400 you're being able to charge more for what you're providing. 0:12:37.600 --> 0:12:39.760 Actually, Helly, you have to look at two levels of margin. 0:12:39.840 --> 0:12:42.160 You have to look at the gross margin level and 0:12:42.360 --> 0:12:46.160 have super high gross margin level because of the entire 0:12:46.240 --> 0:12:49.439 ownership of the stack from silicon to infrastructure to software, 0:12:49.640 --> 0:12:52.120 similar to what we do in campus and branch. But 0:12:52.160 --> 0:12:55.520 we're going to bring to them the efficiency in order 0:12:55.600 --> 0:13:00.360 to drive the operative margin leverage by reducing cost the 0:13:00.400 --> 0:13:04.800 ability to go and execute. So we believe the first 0:13:04.800 --> 0:13:08.520 step is the cost synergies. That's why the synergy costs 0:13:08.520 --> 0:13:11.280 more than payoff for the capital that we are taking 0:13:11.400 --> 0:13:14.160 to pay for this transaction. And then on top of that, 0:13:14.200 --> 0:13:17.400 you're going to have the revenue synergies, a higher gross margin. 0:13:17.720 --> 0:13:20.760 The ultimate to the scale of our reach will drive 0:13:20.920 --> 0:13:24.520 better operating margins for our shareholders and that will translate 0:13:24.600 --> 0:13:27.720 into a free cash flow because remember this transaction is 0:13:27.760 --> 0:13:30.599 a creative day one for both a non gap EPs 0:13:30.840 --> 0:13:31.640 and free cash flow. 0:13:31.679 --> 0:13:35.280 Basis we want to remind of blingbag TV and radio audiences. 0:13:35.320 --> 0:13:37.959 We are sat down with the hpeco Antonio and Arian. 0:13:38.160 --> 0:13:40.960 You're talking about that cost discipline. Where do the cost 0:13:41.000 --> 0:13:41.480 come out? 0:13:41.640 --> 0:13:42.840 Is it people? Is it jobs? 0:13:44.400 --> 0:13:47.559 The cost actually is many things. To be fair, I mean, 0:13:47.600 --> 0:13:50.400 the biggest part will be in the GNA side. You know, 0:13:50.679 --> 0:13:54.079 HPE and my team had had a tremendous track record 0:13:54.160 --> 0:13:57.400 in driving operating leverage across the company. When I became 0:13:57.480 --> 0:14:01.080 CEO of HPE, our non gap earning pressure was ninety 0:14:01.120 --> 0:14:05.800 six cents. We exit twenty twenty three to more than 0:14:05.840 --> 0:14:08.439 two dollars and twelve cents, and a lot of that 0:14:08.600 --> 0:14:12.520 was gross margin expansion to Pivotal portfolio, which this transaction 0:14:12.679 --> 0:14:15.880 turbo chargers. Right, we can talk about gross margin, higher 0:14:15.880 --> 0:14:19.240 growth areas and then reducing the cost to run the 0:14:19.280 --> 0:14:23.920 business through automation and efficiencies, so that GNA portion would 0:14:23.960 --> 0:14:27.840 be a huge booster to the Juniper operating margin. And 0:14:27.920 --> 0:14:30.800 remember also we're going to give them access to capability 0:14:30.880 --> 0:14:34.200 they couldn't deliver themselves in terms of as a service model, 0:14:34.320 --> 0:14:38.200 cloud scale and last monel list that go to market 0:14:38.280 --> 0:14:40.440 each has a crown jewel which is a go to 0:14:40.520 --> 0:14:42.800 market reach everywhere in the world, one hundred and seventy 0:14:42.800 --> 0:14:45.680 two countries, a scale they couldn't imagine themselves. 0:14:45.840 --> 0:14:49.240 Antonio, we've got a minute left. Fourteen billion dollars in 0:14:49.240 --> 0:14:51.960 cash is a lot of money. What about the buybacks? 0:14:52.000 --> 0:14:52.920 What about the dividends? 0:14:52.920 --> 0:14:54.400 What about how else. 0:14:54.200 --> 0:14:55.880 You're able to pay back when you've got a heavier 0:14:55.880 --> 0:14:56.320 debt looad. 0:14:57.520 --> 0:14:59.920 Well, first of all, this transaction is thirteen point six 0:15:00.080 --> 0:15:02.160 billion dollars and not people like to run things up, 0:15:02.160 --> 0:15:05.560 but you know, we are committed a number one, to 0:15:05.640 --> 0:15:08.920 maintain our credit rating, which is very important to us, 0:15:09.880 --> 0:15:14.520 and we believe that's absolutely doable. Number two, we are 0:15:14.600 --> 0:15:18.040 maintaining the share by back commitment we give the security 0:15:18.040 --> 0:15:21.840 Analyst meeting in October, and the dividends, which is our 0:15:21.960 --> 0:15:26.400 core component of our return capital return to shareholders. And 0:15:26.440 --> 0:15:29.400 then over the next two years close closing, we're going 0:15:29.440 --> 0:15:33.200 to return to two times leverage on not ebita and 0:15:33.600 --> 0:15:35.920 pay down the death And one component that paid down 0:15:35.960 --> 0:15:39.359 the dead is obviously the proceeds from our HTREC divestors 0:15:39.520 --> 0:15:42.800 in China, which is proceeded very well, and obviously the 0:15:42.960 --> 0:15:45.320 synergies we're going to drive through the free cash flow 0:15:45.400 --> 0:15:49.120 generation on both the Juniper side and on obviously on 0:15:49.120 --> 0:15:51.600 the HP side. So that's why when I think about 0:15:51.640 --> 0:15:54.840 the shareholders, this is a no brainer in many ways 0:15:54.880 --> 0:15:57.240 because it's the best use of cash to drive long 0:15:57.320 --> 0:16:00.920 term sustainable profit growth and expansion of owners pressure and 0:16:00.960 --> 0:16:03.600 free cush flow which will actually resolve in a better 0:16:03.720 --> 0:16:05.880 term capital pusherholder all the time. 0:16:05.720 --> 0:16:07.960 Antonio and Narry Great has some time with you, the 0:16:08.120 --> 0:16:09.040 HPE CEO. 0:16:09.800 --> 0:16:10.960 This is Bloomberg. 0:16:14.640 --> 0:16:18.640 Welcome back to cs Las Vegas, where it is AI everything. 0:16:18.680 --> 0:16:21.680 But it's not just about the software component or devices. 0:16:21.840 --> 0:16:24.800 Also a lot of the infrastructure and platform providers getting 0:16:24.800 --> 0:16:26.920 in on the actor as well. We're joined by Siemens 0:16:27.080 --> 0:16:32.920 US CEO Barbara Humpton, and your company is positioning itself 0:16:33.720 --> 0:16:36.200 at lots of different layers of what is happening in 0:16:36.280 --> 0:16:40.920 artificial intelligence. The mainstay of that relationship with both AWUS 0:16:41.000 --> 0:16:44.000 and Microsoft, the two kind of cloud leaders in the space. 0:16:44.080 --> 0:16:45.160 Just explain what you're doing. 0:16:45.520 --> 0:16:47.360 Yeah, here's what's going on these days. 0:16:47.720 --> 0:16:50.320 If the last decade or two was about the Internet 0:16:50.320 --> 0:16:53.360 of people, this decade for sure is about the Internet 0:16:53.520 --> 0:16:56.840 of things and Semens has deep domain knowledge. Now you 0:16:56.840 --> 0:17:00.200 think about all the classic tech companies who've worked in 0:17:00.240 --> 0:17:05.240 the fields of AI bringing this to bear, and others 0:17:05.400 --> 0:17:08.560 like in Nvidia, who are bringing high processing power into 0:17:08.600 --> 0:17:12.159 the field. We're partnering with companies who have those superpowers 0:17:12.640 --> 0:17:15.840 and focusing those technologies. 0:17:15.080 --> 0:17:16.840 On the domains we understand. 0:17:16.920 --> 0:17:20.679 So well, yeah, let's go seed AWS component, because what 0:17:20.720 --> 0:17:24.080 you're effectively saying is you're taking one of your technology 0:17:24.080 --> 0:17:26.960 platforms and marrying it with Bedrock, which we've covered on 0:17:26.960 --> 0:17:30.639 this program deeply for a while. Now, how does it work? 0:17:30.960 --> 0:17:34.520 Yeah, So think about the need for people to embed 0:17:35.840 --> 0:17:41.800 AI programs into their operations with AWS components, AI components 0:17:41.920 --> 0:17:47.160 now with Siemen's Low Code mendix normal people like us. 0:17:47.960 --> 0:17:49.840 We're democratizing technology. 0:17:50.119 --> 0:17:52.440 We have the ability to use point and click, very 0:17:52.480 --> 0:17:55.440 intuitive interfaces to put together our own programs. 0:17:55.480 --> 0:17:57.439 And Microsoft is a part of that as well. What 0:17:57.520 --> 0:17:59.280 is the difference in the relationships. 0:17:59.359 --> 0:18:01.879 Yeah, they've got slightly different focus areas. 0:18:01.880 --> 0:18:05.840 With Microsoft, we recently announced the Industrial Copilot. Now, imagine 0:18:05.880 --> 0:18:09.040 you want to reprogram the controls that you have in 0:18:09.040 --> 0:18:12.040 a manufacturing environment. You now have the ability with the 0:18:12.040 --> 0:18:16.440 Industrial Copilot to actually interface with natural language to write 0:18:16.480 --> 0:18:19.439 the programs so now I really think what we're going 0:18:19.480 --> 0:18:21.200 to be able to do is bring more and more 0:18:21.280 --> 0:18:23.679 people into the fields of engineering. 0:18:23.800 --> 0:18:25.360 Let me tell you about one more Sony. 0:18:25.680 --> 0:18:29.159 Sony just announced their exclusive arrangement with US, working with 0:18:29.320 --> 0:18:35.280 Siemens Software through the Accelerator platform, creating an industrial engineering 0:18:35.440 --> 0:18:40.320 VR headset. We're bringing the industrial metaverse to life. And 0:18:40.400 --> 0:18:43.280 everybody has talked about what's the true value of the metaverse? 0:18:43.560 --> 0:18:45.119 Well, here is the proof point. 0:18:45.320 --> 0:18:48.080 The ability for engineers to actually meet in a common 0:18:48.119 --> 0:18:52.399 area from wherever and to use the intuitive interfaces that 0:18:52.440 --> 0:18:55.800 they know from gaming in order to interact and create 0:18:55.880 --> 0:18:56.680 develop new things. 0:18:56.880 --> 0:18:59.520 I want to bring it back to the real world. Rolandbush, 0:18:59.560 --> 0:19:01.919 the global CEO, spoke to us last year when you 0:19:01.960 --> 0:19:05.400 announced a more than five hundred million dollar infrastructure investment 0:19:05.440 --> 0:19:07.879 in the US. The idea is that you want to 0:19:07.880 --> 0:19:09.720 be a part of the supply chain for the data 0:19:09.720 --> 0:19:14.760 center providers, the semiconductor supply chain as well. What is 0:19:14.800 --> 0:19:16.920 it that you can give them? How are you helping them? 0:19:17.200 --> 0:19:20.879 So Siemens creates the technology that combines the real and 0:19:20.920 --> 0:19:23.199 the digital world, all those things that sit right at 0:19:23.200 --> 0:19:25.720 the edge. And what does it take to bring AI 0:19:25.800 --> 0:19:28.359 into the world. We need data centers capable of handling that. 0:19:28.640 --> 0:19:31.080 How do you build data centers? It requires a ton 0:19:31.119 --> 0:19:34.840 of electricity, so the electrical switch gear that powers those 0:19:34.920 --> 0:19:37.639 data centers. Then turn it around, how do you embed 0:19:37.800 --> 0:19:40.720 what's being developed into the technology we have in the 0:19:40.760 --> 0:19:44.240 industrial space. So that five hundred million dollar investment has 0:19:44.280 --> 0:19:48.080 actually put new switch gear manufacturing in Texas and it's 0:19:48.080 --> 0:19:50.640 put new rail manufacturing in North Carolina. 0:19:50.800 --> 0:19:52.919 I know you've been meeting with a number of government 0:19:52.920 --> 0:19:57.600 officials while you've been here on that investment. Specifically, how 0:19:57.720 --> 0:20:01.280 big a factor was the IRA convincing Semens that this 0:20:01.400 --> 0:20:02.200 was a good project. 0:20:02.640 --> 0:20:06.080 What Semens has seen is that customers everywhere are choosing 0:20:06.160 --> 0:20:08.080 to come to the US and invest. You've seen the 0:20:08.160 --> 0:20:10.680 data on the Chips and Science Act. Fifty two billion 0:20:10.720 --> 0:20:14.480 dollars of government investment, that's a down payment. So far, 0:20:14.840 --> 0:20:17.800 well over two hundred and fifty billion have already been 0:20:17.840 --> 0:20:19.520 committed by the private sector. 0:20:19.760 --> 0:20:22.440 Which Semens divisions are going to benefit the most from 0:20:22.440 --> 0:20:25.360 this AI boom. And is there anything missing and I'm 0:20:25.400 --> 0:20:27.560 talking M and A that you've got to go shopping for. 0:20:27.760 --> 0:20:30.800 Oh, this is the most exciting sector in tech today. 0:20:31.119 --> 0:20:33.800