1 00:00:01,440 --> 00:00:05,120 Speaker 1: From the heart where innovation, money and power Collie in 2 00:00:05,240 --> 00:00:06,720 Speaker 1: Silicon Vallet NBN. 3 00:00:07,080 --> 00:00:11,520 Speaker 2: This is Bloomberg Technology with Caroline Hyde and Ed Ludlow. 4 00:00:25,320 --> 00:00:27,480 Speaker 3: Live from San Francisco and New York. This is Bloomberg 5 00:00:27,520 --> 00:00:30,800 Speaker 3: Technology coming up at and T. It reveals a massive 6 00:00:30,880 --> 00:00:31,840 Speaker 3: new cyber attack. 7 00:00:31,960 --> 00:00:35,480 Speaker 4: Details ahead, and we'll bring you the details on Tesla's 8 00:00:35,520 --> 00:00:38,199 Speaker 4: Robotaxi on veil delay plus. 9 00:00:38,080 --> 00:00:41,760 Speaker 3: Amazon and General Catalyst. They bet on an AI robotics startup. 10 00:00:42,159 --> 00:00:44,360 Speaker 3: But first, Ed, what have you got on the AT 11 00:00:44,479 --> 00:00:44,960 Speaker 3: and T hack? 12 00:00:45,640 --> 00:00:48,280 Speaker 4: Yeah, this is our big breaking technology news story this 13 00:00:48,360 --> 00:00:51,040 Speaker 4: Friday morning. AT and T, in a regulatory filing has 14 00:00:51,040 --> 00:00:55,400 Speaker 4: disclosed a major hack of customer data. It relates to 15 00:00:55,440 --> 00:00:58,680 Speaker 4: basically all of their cell phone customers for a period 16 00:00:58,720 --> 00:01:00,920 Speaker 4: of time in twenty twenty two to the beginning of 17 00:01:00,960 --> 00:01:03,840 Speaker 4: May to the end of October. It is a broad 18 00:01:03,920 --> 00:01:07,120 Speaker 4: spectrum of customer data. But right now the belief is 19 00:01:07,120 --> 00:01:11,640 Speaker 4: that that data that has been obtained by malicious actors 20 00:01:11,720 --> 00:01:15,080 Speaker 4: is not publicly available. We're actually way off session lows 21 00:01:15,080 --> 00:01:17,440 Speaker 4: on the sock down seven tenths of a percent. We 22 00:01:17,560 --> 00:01:20,240 Speaker 4: had been down kind of the most in about a month. 23 00:01:21,200 --> 00:01:24,280 Speaker 4: You know, it's kind of hard to gauge situation. I 24 00:01:24,319 --> 00:01:27,399 Speaker 4: think the main point is that we're still assessing, Caroline, 25 00:01:27,440 --> 00:01:30,760 Speaker 4: the vulnerability of that customer data. But the context, I 26 00:01:30,760 --> 00:01:33,920 Speaker 4: think is that this is a big hack. This is 27 00:01:33,959 --> 00:01:36,640 Speaker 4: something that and it's different from a hack a year ago, 28 00:01:36,800 --> 00:01:38,440 Speaker 4: which we already talked about. 29 00:01:38,680 --> 00:01:41,880 Speaker 3: Well said, the context is this has happened quite recently. 30 00:01:41,920 --> 00:01:45,160 Speaker 3: Before we get straight to John Butler of Bloomberg Intelligence 31 00:01:45,160 --> 00:01:47,480 Speaker 3: on the hack. As Ed mentioned, John AT and T 32 00:01:47,560 --> 00:01:49,520 Speaker 3: has said it currently doesn't believe that the data is 33 00:01:49,560 --> 00:01:51,560 Speaker 3: publicly available. What is the damage. 34 00:01:53,360 --> 00:01:56,720 Speaker 5: Well, I think the damage for eight and two could 35 00:01:56,720 --> 00:01:59,520 Speaker 5: be to their brand image in the nearer term. The 36 00:01:59,600 --> 00:02:02,040 Speaker 5: one thing I'd say, Caroline, when you think about it 37 00:02:02,080 --> 00:02:04,760 Speaker 5: is think of all the hacks that have happened with 38 00:02:04,920 --> 00:02:09,120 Speaker 5: Fortune five hundred companies over the past year. It's become 39 00:02:09,760 --> 00:02:13,760 Speaker 5: quite common, and so I think from a consumer standpoint, 40 00:02:14,480 --> 00:02:18,360 Speaker 5: people maybe more whole hum about it than they would 41 00:02:18,360 --> 00:02:21,560 Speaker 5: have been, say, five years ago, are given how common 42 00:02:21,639 --> 00:02:25,000 Speaker 5: hacks have become. Having said that, this is bad news 43 00:02:25,040 --> 00:02:28,200 Speaker 5: for AT and T in the sense that, as Ed 44 00:02:28,360 --> 00:02:31,800 Speaker 5: just mentioned, it's the second big hack announced in less 45 00:02:31,840 --> 00:02:32,440 Speaker 5: than a year. 46 00:02:33,600 --> 00:02:35,480 Speaker 4: I want to bring some of the latest News. We've 47 00:02:35,480 --> 00:02:37,840 Speaker 4: got John to you and our audience just before we 48 00:02:37,880 --> 00:02:40,600 Speaker 4: came on air. To be expected, but we started to 49 00:02:40,600 --> 00:02:43,160 Speaker 4: hear from regulatory agencies and bodies, and AT and T 50 00:02:43,240 --> 00:02:45,920 Speaker 4: had already said they were in touch with law enforcement. 51 00:02:46,200 --> 00:02:48,720 Speaker 4: But the FBI says it's been contacted by AT and 52 00:02:48,760 --> 00:02:52,760 Speaker 4: T about this. The FCC is investigating the massive hack 53 00:02:52,800 --> 00:02:56,920 Speaker 4: of AT and T customer data. The question is what 54 00:02:57,040 --> 00:02:59,360 Speaker 4: is the vulnerability to AT and T. What is the 55 00:02:59,440 --> 00:03:04,080 Speaker 4: risk to the company from this point. 56 00:03:04,639 --> 00:03:08,239 Speaker 5: So I think regulators are going to look into how 57 00:03:08,240 --> 00:03:09,639 Speaker 5: it's handling its data. 58 00:03:09,800 --> 00:03:11,040 Speaker 4: So to be clear, this. 59 00:03:11,120 --> 00:03:15,360 Speaker 5: Hack was not on AT and t's network. It's to 60 00:03:15,400 --> 00:03:18,280 Speaker 5: be clear, it's network was not breached. It was housing 61 00:03:18,400 --> 00:03:22,080 Speaker 5: data with a third party cloud provider. So it generates 62 00:03:22,800 --> 00:03:25,680 Speaker 5: massive amounts of data through call logs. 63 00:03:25,800 --> 00:03:26,600 Speaker 4: Right when you. 64 00:03:26,520 --> 00:03:31,600 Speaker 5: Call someone, it logs your number and the number being called. 65 00:03:31,720 --> 00:03:34,880 Speaker 5: That's the type of data that was stored on, as 66 00:03:34,920 --> 00:03:40,000 Speaker 5: Bloomberg reported, Snowflake's data platform, and that's where the breach was. 67 00:03:40,080 --> 00:03:43,840 Speaker 5: So I think data regulators or telecom regulators are going 68 00:03:43,880 --> 00:03:48,080 Speaker 5: to look into data storage practices, and of course AT 69 00:03:48,200 --> 00:03:51,960 Speaker 5: and T will be open to potentially consumer lawsuits from this. 70 00:03:53,000 --> 00:03:55,560 Speaker 3: To that point. We reached out to Snowflake as well, 71 00:03:55,680 --> 00:03:58,360 Speaker 3: John and the company saying we have not identified evidence 72 00:03:58,400 --> 00:04:03,440 Speaker 3: suggesting this activity was caused by vulnerability misconfigurational breach of 73 00:04:03,560 --> 00:04:07,440 Speaker 3: snowflakes platform. Is there any read across to more broadly, 74 00:04:07,520 --> 00:04:11,360 Speaker 3: how companies like AT and T do work with third parties. 75 00:04:13,560 --> 00:04:16,560 Speaker 5: So I think, like a lot of Fortune five hundred companies, 76 00:04:16,680 --> 00:04:20,280 Speaker 5: a lot of data now is moving into cloud storage 77 00:04:20,440 --> 00:04:23,320 Speaker 5: because it just isn't practical in the age of data 78 00:04:23,360 --> 00:04:28,000 Speaker 5: to store everything on premise. So I'm sure AT and 79 00:04:28,040 --> 00:04:30,760 Speaker 5: T is going to do a reevaluation of its vendors. 80 00:04:30,760 --> 00:04:34,520 Speaker 5: I'm sure a lot of companies do that routinely. And 81 00:04:34,680 --> 00:04:38,960 Speaker 5: for Snowflake, I think they are probably having spoken with 82 00:04:39,040 --> 00:04:42,560 Speaker 5: our analyst here who covers the company, They're probably going 83 00:04:42,600 --> 00:04:47,920 Speaker 5: to lean much more heavily into securing their platform and 84 00:04:48,080 --> 00:04:51,360 Speaker 5: augmenting the level of security around the data that's housed 85 00:04:51,400 --> 00:04:52,719 Speaker 5: on the Snowflake network. 86 00:04:53,720 --> 00:04:56,440 Speaker 3: John Butler, I've bing meg Intelligence. Thanks for breaking all 87 00:04:56,480 --> 00:04:58,400 Speaker 3: down for us. We appreciate it. Meanwhile, we follow on 88 00:04:58,480 --> 00:05:01,440 Speaker 3: from an incredible scoop from our own ed Ludlow and 89 00:05:01,560 --> 00:05:05,640 Speaker 3: Dana Hull yesterday than Tesla has been of course, delaying 90 00:05:05,680 --> 00:05:08,200 Speaker 3: that roll out, that unrailing of its robotax that was 91 00:05:08,240 --> 00:05:09,960 Speaker 3: set for August the eighth by a couple of months. 92 00:05:10,080 --> 00:05:11,839 Speaker 3: Now we're down on a two day basis, but we 93 00:05:11,880 --> 00:05:15,160 Speaker 3: have recovered somewhat on the trading today, Dan ivesand police 94 00:05:15,200 --> 00:05:18,159 Speaker 3: to say managing director senior ecty analyst at Wembush joined 95 00:05:18,200 --> 00:05:20,119 Speaker 3: for more and you put out a note very quickly 96 00:05:20,200 --> 00:05:22,760 Speaker 3: on this reporting saying the delay did not change ultimately 97 00:05:22,800 --> 00:05:25,400 Speaker 3: your bullish call on Tesla. Why not. 98 00:05:25,880 --> 00:05:28,480 Speaker 6: Look, I mean, it's two months when we're not talking 99 00:05:28,720 --> 00:05:33,479 Speaker 6: nine months a year. You'd rather than be what I 100 00:05:33,560 --> 00:05:36,000 Speaker 6: view as kind of a jaw dropper event, and that's 101 00:05:36,040 --> 00:05:38,680 Speaker 6: what really needs to happen in terms in October. And 102 00:05:38,880 --> 00:05:41,359 Speaker 6: obviously the delay is not what you want to see. 103 00:05:41,440 --> 00:05:44,080 Speaker 6: So no one's popping champagne when you hear that there's 104 00:05:44,080 --> 00:05:46,719 Speaker 6: gonna be deayed. You know, congrats to Ed and Dana 105 00:05:46,760 --> 00:05:50,560 Speaker 6: on the story. But in terms of the AI story FSD, 106 00:05:50,920 --> 00:05:54,839 Speaker 6: the next phase of Tesla that's unchanged. That's why, in 107 00:05:54,880 --> 00:05:59,120 Speaker 6: our opinion, this is just more an air pocket period 108 00:05:59,600 --> 00:06:01,280 Speaker 6: to get on to what I view as gold at 109 00:06:01,279 --> 00:06:02,159 Speaker 6: the end of the rainbow. 110 00:06:03,080 --> 00:06:04,719 Speaker 3: Let's talk about some of the calls at the end 111 00:06:04,760 --> 00:06:07,719 Speaker 3: of the Rainbow ed. I mean we had seen a 112 00:06:07,839 --> 00:06:11,080 Speaker 3: run up in Tesla's stock previous week, up twenty seven percent. 113 00:06:11,440 --> 00:06:13,480 Speaker 3: We did see a fall yesterday. 114 00:06:13,600 --> 00:06:16,560 Speaker 4: Yeah, and look what really surprised me overnight was all 115 00:06:16,600 --> 00:06:19,800 Speaker 4: of the retail investor community are very publicly on x 116 00:06:19,839 --> 00:06:22,080 Speaker 4: saying to Elon Musk, like, can you confirm this? Can 117 00:06:22,120 --> 00:06:24,880 Speaker 4: you confirm this? Like Bloomberg stands by its reporting, and 118 00:06:24,920 --> 00:06:27,080 Speaker 4: we always reach out to Elon Musk and any other 119 00:06:27,120 --> 00:06:31,560 Speaker 4: avenue at Tesla to ask for comment and verify. But Dan, 120 00:06:32,200 --> 00:06:34,720 Speaker 4: what was it then? I know that you remain bullish 121 00:06:34,760 --> 00:06:36,760 Speaker 4: on Tesla, But when I said you were coming on 122 00:06:36,800 --> 00:06:39,120 Speaker 4: the show, a lot of folks in that community were saying, 123 00:06:39,400 --> 00:06:43,159 Speaker 4: we'll explain that the eight point four percent drop that 124 00:06:43,240 --> 00:06:46,120 Speaker 4: happened in Thursday session. Is that just because the run 125 00:06:46,200 --> 00:06:48,200 Speaker 4: up in the stock that preceded it, or is it 126 00:06:48,200 --> 00:06:49,440 Speaker 4: because of genuine concern? 127 00:06:50,120 --> 00:06:51,840 Speaker 6: No, I think it's more the run up. 128 00:06:51,839 --> 00:06:52,119 Speaker 4: Book. 129 00:06:52,200 --> 00:06:54,360 Speaker 6: This is going to be an historical day, whether a 130 00:06:54,480 --> 00:06:57,560 Speaker 6: dated or TENAID or whatever day it's going to be 131 00:06:57,640 --> 00:07:01,760 Speaker 6: in October. While anticipation going in here, and in my opinion, 132 00:07:02,360 --> 00:07:06,240 Speaker 6: Tessa's more of an AI robotics play than just an 133 00:07:06,240 --> 00:07:09,720 Speaker 6: auto company and investors, they don't like the lease because 134 00:07:09,760 --> 00:07:12,520 Speaker 6: then it feeds into that narrative. And obviously the Bears, 135 00:07:12,760 --> 00:07:15,800 Speaker 6: you know, they focus on in terms of empty promises. 136 00:07:15,880 --> 00:07:19,240 Speaker 6: And I think it's important, and this is the most 137 00:07:19,280 --> 00:07:22,800 Speaker 6: important thing that when they have this event in October, 138 00:07:23,080 --> 00:07:27,480 Speaker 6: it doesn't disappoint. It shows the path for robotaxies, shows 139 00:07:27,520 --> 00:07:31,240 Speaker 6: our time, as shows the AI vision and monization two 140 00:07:31,320 --> 00:07:34,880 Speaker 6: months away. That's arounding our relative to where we see 141 00:07:35,000 --> 00:07:37,880 Speaker 6: longer term. As we've said, I think the AI story 142 00:07:37,920 --> 00:07:41,600 Speaker 6: alone is worth a trillion dollars for Tessa. 143 00:07:42,320 --> 00:07:45,120 Speaker 4: Mister Ives, we always appreciate having you on this program 144 00:07:45,120 --> 00:07:49,560 Speaker 4: going back technology. You are unwaveringly bullish on everything, and 145 00:07:49,600 --> 00:07:53,160 Speaker 4: we just show you a graphic with your coverage right 146 00:07:53,240 --> 00:07:57,360 Speaker 4: all the stocks that you are across thirty buys, three 147 00:07:57,440 --> 00:08:02,800 Speaker 4: holds and zero cells. So again I kind of think, Caroline, 148 00:08:02,920 --> 00:08:05,800 Speaker 4: what would it take to make mister Ives a little 149 00:08:05,840 --> 00:08:08,120 Speaker 4: more cautious on Tesla White? What is it that he 150 00:08:09,000 --> 00:08:11,440 Speaker 4: would see that would make him rethink it's cool? 151 00:08:11,520 --> 00:08:15,600 Speaker 6: Carra, I don't know, Yeah, I mean what i'd say 152 00:08:16,040 --> 00:08:18,800 Speaker 6: to that point, Look, we've talked. I mean, for the 153 00:08:18,920 --> 00:08:21,840 Speaker 6: last almost twenty five years. I mean really pound the 154 00:08:21,880 --> 00:08:24,360 Speaker 6: table on tech and of course we've had bad calls 155 00:08:24,400 --> 00:08:27,600 Speaker 6: in there as well, but our view, especially where we 156 00:08:27,640 --> 00:08:29,840 Speaker 6: are in the last decade, but especially the last what 157 00:08:29,880 --> 00:08:34,040 Speaker 6: I called eighteen months, this AI revolutions just starting. So 158 00:08:34,840 --> 00:08:37,640 Speaker 6: when I look at Tesla and what would make us negative. 159 00:08:37,960 --> 00:08:40,720 Speaker 6: We talked about a quarter or two ago that must 160 00:08:40,720 --> 00:08:42,439 Speaker 6: need to step it up right in terms of adult 161 00:08:42,480 --> 00:08:43,360 Speaker 6: in the point I think, and. 162 00:08:43,320 --> 00:08:44,280 Speaker 4: I think he did that. 163 00:08:44,960 --> 00:08:47,760 Speaker 6: I think deliveries was important for two Q and I 164 00:08:47,800 --> 00:08:49,680 Speaker 6: think you know, you saw a lot of the Bears 165 00:08:49,679 --> 00:08:52,400 Speaker 6: going back into their kids for that. But you need 166 00:08:52,440 --> 00:08:56,400 Speaker 6: to continue to see demand stabilization, no more major price 167 00:08:56,480 --> 00:09:00,920 Speaker 6: cuts and October you gotta deliver in terms of this 168 00:09:01,000 --> 00:09:01,920 Speaker 6: next phase of the store. 169 00:09:01,920 --> 00:09:04,960 Speaker 3: In terms of ROBOTAXI, I'm really interested by the today 170 00:09:04,960 --> 00:09:07,520 Speaker 3: that you're like, this is an AI robotics play. More broadly, 171 00:09:07,559 --> 00:09:11,360 Speaker 3: that's certainly what we've heard from Elon. Apple suddenly has 172 00:09:11,400 --> 00:09:13,880 Speaker 3: got on the AI bandwagon as well. They're also talking 173 00:09:13,960 --> 00:09:16,360 Speaker 3: up production at least for their suppliers. That's what we 174 00:09:16,440 --> 00:09:19,320 Speaker 3: reported yesterday. How are you feeling about the AI play 175 00:09:19,360 --> 00:09:21,920 Speaker 3: for that big company that you're also an outperformance, and we've. 176 00:09:21,800 --> 00:09:26,319 Speaker 6: Talked the consumer AI revolution goes through Apple. So when 177 00:09:26,360 --> 00:09:30,200 Speaker 6: you think about WWDC and I'll compare it a little 178 00:09:30,480 --> 00:09:34,000 Speaker 6: to maybe a Robotaxiday, that was a historical day, and 179 00:09:34,080 --> 00:09:37,199 Speaker 6: I think that's where investors started to recognize the keys 180 00:09:37,280 --> 00:09:40,199 Speaker 6: to that kingdom is Apple. And we've talked about a 181 00:09:40,320 --> 00:09:42,320 Speaker 6: huge part of what I think not just the valuation, 182 00:09:42,920 --> 00:09:46,280 Speaker 6: but catalyzing this next upgrade cycle is going to be 183 00:09:46,880 --> 00:09:49,160 Speaker 6: Apple intelligence and AI and that just speaks to a 184 00:09:49,240 --> 00:09:52,720 Speaker 6: broader view and tech and we see with Google, Amazon, 185 00:09:52,880 --> 00:09:55,440 Speaker 6: of course in the Dell and Microsoft and godfather of AI, 186 00:09:55,559 --> 00:09:58,080 Speaker 6: Jens in a video, Dan. 187 00:09:58,040 --> 00:10:00,560 Speaker 4: I want to just remind you specific points to our 188 00:10:00,600 --> 00:10:02,839 Speaker 4: audience that we reported. One is that part of the 189 00:10:02,960 --> 00:10:06,439 Speaker 4: Robotaxi delay was because I think Elon Musk wanted more 190 00:10:06,520 --> 00:10:09,400 Speaker 4: to show. We said via sources that they wanted to 191 00:10:09,440 --> 00:10:12,760 Speaker 4: have more prototypes, but they also had some design rethink. 192 00:10:13,440 --> 00:10:16,720 Speaker 4: And in the same moment, Uber and Lyft jumped five 193 00:10:16,760 --> 00:10:19,920 Speaker 4: percent in the session. What did that tell you about 194 00:10:19,960 --> 00:10:24,880 Speaker 4: how seriously investors in the market take Tesla in basically 195 00:10:25,200 --> 00:10:29,200 Speaker 4: an app based ride hailing platform that Tesla might introduce. 196 00:10:29,440 --> 00:10:31,200 Speaker 6: Yeah, and I also i'd say, I mean you get 197 00:10:31,240 --> 00:10:34,000 Speaker 6: in England when and that scoop it was a good 198 00:10:34,080 --> 00:10:36,920 Speaker 6: day for a world war right, And I think when 199 00:10:37,000 --> 00:10:39,760 Speaker 6: you when you talk about the AI piece, yeah, I 200 00:10:39,800 --> 00:10:43,160 Speaker 6: mean I think there's worries about this fleet and what 201 00:10:43,320 --> 00:10:45,719 Speaker 6: that could ultimately look like for Uber and WEPT. So 202 00:10:45,920 --> 00:10:48,680 Speaker 6: that negative for Tasos views the paths of Uber and WEPT. 203 00:10:49,040 --> 00:10:50,880 Speaker 6: I don't view a zero some game. I think some 204 00:10:51,000 --> 00:10:54,320 Speaker 6: of the negative specific when Uber is overdone in terms 205 00:10:54,320 --> 00:10:56,679 Speaker 6: of what this is going to mean from a robotaxi 206 00:10:56,800 --> 00:11:00,720 Speaker 6: fleet perspective. And I ultimately believe that something where they're 207 00:11:00,720 --> 00:11:03,360 Speaker 6: going to have partnerships as well Tessa when it comes 208 00:11:03,400 --> 00:11:06,719 Speaker 6: to Ride shair but three five years from them, I 209 00:11:06,760 --> 00:11:09,640 Speaker 6: mean there's going to be a decent percentage, whether it's 210 00:11:09,679 --> 00:11:12,960 Speaker 6: ten percent or twenty percent, that that Ride Shairing will 211 00:11:13,040 --> 00:11:14,120 Speaker 6: not have a driver. 212 00:11:15,400 --> 00:11:17,079 Speaker 4: Be interesting to see if way most still in that 213 00:11:17,160 --> 00:11:20,120 Speaker 4: conversation as well, Dan ives of Webbush, thank you, Happy Friday, 214 00:11:20,480 --> 00:11:21,640 Speaker 4: Grateful to have you on set. 215 00:11:29,200 --> 00:11:30,840 Speaker 3: It's got a bit of a macro picture right now. 216 00:11:30,920 --> 00:11:33,160 Speaker 3: In the markets, there is risk on for tech names. 217 00:11:33,520 --> 00:11:35,559 Speaker 3: The NASDAT goes higher more than one point two percent, 218 00:11:35,679 --> 00:11:38,280 Speaker 3: volumes higher on this benchmark as well, and that is 219 00:11:38,360 --> 00:11:40,880 Speaker 3: perhaps we get a feel good music coming back in 220 00:11:41,000 --> 00:11:43,760 Speaker 3: when we're looking at consumer expectations for inflation dialing down 221 00:11:43,840 --> 00:11:46,800 Speaker 3: to two point nine percent. Yes, US producer prices were 222 00:11:47,080 --> 00:11:49,000 Speaker 3: climbing a little, but actually if you dig into the 223 00:11:49,080 --> 00:11:52,240 Speaker 3: personal consumption expenditship price IndX, that didn't look bad two 224 00:11:52,280 --> 00:11:54,760 Speaker 3: yr yels they four. We're seeing actually Europe on fire 225 00:11:55,000 --> 00:11:58,160 Speaker 3: stock markets more broadly around the world doing well, albeit 226 00:11:58,360 --> 00:12:01,440 Speaker 3: maybe summon age your sell off Japan intervening once again. 227 00:12:01,559 --> 00:12:03,719 Speaker 3: But we want to get to the macro pics and 228 00:12:03,760 --> 00:12:05,719 Speaker 3: what it means the tech stocks on a Rathbun's with 229 00:12:05,840 --> 00:12:09,080 Speaker 3: us cioc bused investment advisory services and look, this tech 230 00:12:09,160 --> 00:12:12,360 Speaker 3: market has been what's dragged us higher on a Can 231 00:12:12,440 --> 00:12:13,280 Speaker 3: it continue to do so? 232 00:12:14,920 --> 00:12:16,559 Speaker 2: I think it can. And here's why. 233 00:12:17,520 --> 00:12:20,080 Speaker 7: There are some weaknesses in the economy, as we've been 234 00:12:20,160 --> 00:12:22,280 Speaker 7: talking about I think for the last month or so. 235 00:12:22,960 --> 00:12:25,520 Speaker 7: And when there are weaknesses, there's bound to be cost 236 00:12:25,679 --> 00:12:29,079 Speaker 7: reduction and cost management as well as margin pressure. So 237 00:12:29,160 --> 00:12:32,880 Speaker 7: if you look at it from that perspective, the cyclical 238 00:12:33,040 --> 00:12:35,840 Speaker 7: areas of the markets are going to continue to be pressured. 239 00:12:35,920 --> 00:12:38,880 Speaker 7: What does that mean for tech sucks. We have believed 240 00:12:38,920 --> 00:12:41,160 Speaker 7: that the tech stock rally has not just been an 241 00:12:41,200 --> 00:12:45,960 Speaker 7: AI phenomenon, it is also a quality phenomenon. So when 242 00:12:46,040 --> 00:12:48,960 Speaker 7: you have tech sucks running, really the companies that are 243 00:12:49,040 --> 00:12:51,120 Speaker 7: at the MAC seven companies that have given us more 244 00:12:51,160 --> 00:12:55,120 Speaker 7: than fifty percent your year earnings growth in Q one, 245 00:12:55,920 --> 00:12:59,120 Speaker 7: there's a reason to be in those stocks other than AI. 246 00:13:00,040 --> 00:13:02,600 Speaker 7: You continue to see economic pressure, we think there's more 247 00:13:02,720 --> 00:13:04,360 Speaker 7: room for quality stocks to do well. 248 00:13:05,720 --> 00:13:08,160 Speaker 4: And a single session a market does not make. But 249 00:13:08,240 --> 00:13:11,640 Speaker 4: I found yesterday very interesting, you know, the moment that 250 00:13:12,080 --> 00:13:16,080 Speaker 4: Dana and I and Caroline reported that the Tesla news 251 00:13:16,360 --> 00:13:18,839 Speaker 4: it clearly had an impact on the index level, and 252 00:13:18,920 --> 00:13:21,360 Speaker 4: we all reflected that it was the worst performer on 253 00:13:21,360 --> 00:13:23,559 Speaker 4: the S and P five hundred and the NASDAT one hundred, 254 00:13:23,720 --> 00:13:26,360 Speaker 4: But the biggest points drags were in Nvidia and other 255 00:13:26,520 --> 00:13:29,520 Speaker 4: names relating to aib it on the software side, like Microsoft. 256 00:13:29,559 --> 00:13:31,800 Speaker 4: I think is there a lesson to be taken from 257 00:13:31,840 --> 00:13:33,319 Speaker 4: that in yesterday's session. 258 00:13:33,800 --> 00:13:36,640 Speaker 7: Well, I think the lesson is that investors had been 259 00:13:36,720 --> 00:13:40,400 Speaker 7: flocking to them because they're heavy, heavy with flush with cash, 260 00:13:40,840 --> 00:13:43,120 Speaker 7: little debt, and that is the place to be. 261 00:13:43,640 --> 00:13:47,960 Speaker 2: And when the FED is it lowers interest rates, as. 262 00:13:48,000 --> 00:13:51,920 Speaker 7: The CPI number seemed to suggest yesterday, we're going to 263 00:13:51,960 --> 00:13:54,840 Speaker 7: have a rotation into more cyclical areas that had been 264 00:13:54,880 --> 00:13:58,360 Speaker 7: really pressured downward. And so I think the lesson yesterday 265 00:13:58,720 --> 00:14:01,360 Speaker 7: it was a confirmation for me actually that a lot 266 00:14:01,440 --> 00:14:04,280 Speaker 7: of the reasons for the Tech Magnificent seven going up 267 00:14:04,400 --> 00:14:08,000 Speaker 7: had also been quality, and that the reason for believing 268 00:14:08,080 --> 00:14:10,120 Speaker 7: that Max seven can continue to do well. 269 00:14:11,559 --> 00:14:13,640 Speaker 2: Going forward. It was a confirmation. 270 00:14:15,240 --> 00:14:18,880 Speaker 3: Well, therein lies the question of earnings and proof of fundamentals. 271 00:14:19,120 --> 00:14:22,880 Speaker 3: The banks today not looking good, Anna, but all eyes 272 00:14:23,160 --> 00:14:26,200 Speaker 3: continue to be Netflix as they come first. But then 273 00:14:26,280 --> 00:14:28,400 Speaker 3: some of the Max seven, as you mentioned, can they 274 00:14:28,440 --> 00:14:31,680 Speaker 3: support the valuations with the earnings growth that manufacturing in. 275 00:14:32,760 --> 00:14:35,400 Speaker 2: Yeah, the valuation component is the sticking point. 276 00:14:36,520 --> 00:14:39,479 Speaker 7: The question is how much of the valuation is reflective 277 00:14:39,680 --> 00:14:42,240 Speaker 7: of earnings, how much of it is reflective of AI, 278 00:14:42,640 --> 00:14:45,600 Speaker 7: and how much of it is just investors flocking to quality. 279 00:14:45,640 --> 00:14:47,480 Speaker 2: And that's very difficult to tease out. 280 00:14:48,040 --> 00:14:50,360 Speaker 7: On the AI component, It's like, how do you even 281 00:14:50,440 --> 00:14:54,080 Speaker 7: price hope because frankly, I mean, we are seeing AI 282 00:14:54,200 --> 00:14:58,880 Speaker 7: kind of filtering into the consumer life through I guess 283 00:14:59,000 --> 00:15:02,480 Speaker 7: rufus was in use today to fetch, you know, information 284 00:15:02,640 --> 00:15:05,440 Speaker 7: from Amazon, but we still don't know exactly how it's 285 00:15:05,480 --> 00:15:10,520 Speaker 7: going to be expressed in the productivity component the labor market. 286 00:15:11,200 --> 00:15:13,920 Speaker 7: So that is the sticking point and that's why we're 287 00:15:14,280 --> 00:15:16,920 Speaker 7: pretty much balanced in terms of our investing. 288 00:15:17,040 --> 00:15:19,960 Speaker 2: We're very, very diversified. When the market seem to. 289 00:15:20,000 --> 00:15:24,400 Speaker 7: Be irrational irrational, we write it and then we rebalance 290 00:15:24,440 --> 00:15:26,560 Speaker 7: it taking the gains, and that has been our strategy 291 00:15:26,640 --> 00:15:27,120 Speaker 7: year today. 292 00:15:28,320 --> 00:15:31,120 Speaker 4: Anna, the world was watching last night in the context 293 00:15:31,240 --> 00:15:35,560 Speaker 4: of NATO summit, press conferences, and a US presidential election. 294 00:15:35,760 --> 00:15:39,200 Speaker 4: If you are an investor operating in the technology sector, 295 00:15:40,240 --> 00:15:42,600 Speaker 4: do you look at it as well and think about 296 00:15:42,640 --> 00:15:45,680 Speaker 4: what might happen to the areas you put money depending 297 00:15:45,720 --> 00:15:46,920 Speaker 4: on the outcome in November. 298 00:15:49,120 --> 00:15:51,920 Speaker 7: Well, so, the big threat I think to big tech 299 00:15:52,160 --> 00:15:55,360 Speaker 7: is regulation. And I know there's been a lot of 300 00:15:55,440 --> 00:15:59,000 Speaker 7: talk about one party rule in Washington, and that's really 301 00:15:59,680 --> 00:16:02,160 Speaker 7: it's way too early, but I think there is a 302 00:16:02,240 --> 00:16:04,120 Speaker 7: fear of that. If we do have a one party rule, 303 00:16:04,120 --> 00:16:06,080 Speaker 7: it's not so much just about the White House, right, 304 00:16:06,160 --> 00:16:09,240 Speaker 7: It's about passing of laws. And if that's the case, 305 00:16:09,320 --> 00:16:12,200 Speaker 7: then it changes the landscape for not only tech but 306 00:16:12,320 --> 00:16:15,160 Speaker 7: definitely for AI because there's a lot of fear around it. 307 00:16:15,520 --> 00:16:17,640 Speaker 7: So I would say that that's the uncertainty that is 308 00:16:17,760 --> 00:16:18,840 Speaker 7: facing us in the future. 309 00:16:19,880 --> 00:16:23,760 Speaker 4: Anna Rathband, COEO of CBIZ Investment Advisory Services, Thank you 310 00:16:23,880 --> 00:16:26,480 Speaker 4: very much. Now, coming up on Bloomberg Technology, there are 311 00:16:26,560 --> 00:16:30,160 Speaker 4: growing calls on the Hill for a probe into Microsoft's 312 00:16:30,200 --> 00:16:33,720 Speaker 4: AI deal with the Amorati company G forty two. We 313 00:16:33,840 --> 00:16:36,200 Speaker 4: have some more details next, this is Blomberg Technology. 314 00:16:54,840 --> 00:16:57,560 Speaker 3: Now ken you Republican lawmakers. They are now calling for 315 00:16:57,680 --> 00:17:01,200 Speaker 3: a formal intelligence probe into the outing AI partnership between 316 00:17:01,280 --> 00:17:05,560 Speaker 3: Microsoft and Abadabai from G forty two, with a focus 317 00:17:05,640 --> 00:17:08,639 Speaker 3: on the emeranti companies ties to China. That's bring abey 318 00:17:08,680 --> 00:17:12,040 Speaker 3: Meg's Mackenzie Halkins. We've had murmurings, wiries, now it's more formal. 319 00:17:12,440 --> 00:17:14,119 Speaker 3: What is key the risk here of them? 320 00:17:15,040 --> 00:17:19,240 Speaker 8: So we have yesterday House Foreig Affairs Committee Chairman Mike 321 00:17:19,359 --> 00:17:22,520 Speaker 8: McCall and the chairman of the China Select Committee calling 322 00:17:22,640 --> 00:17:26,080 Speaker 8: for a formal Biden Administration intelligence probe into this partnership 323 00:17:26,080 --> 00:17:28,960 Speaker 8: between Microsoft and G forty two, This deal which has 324 00:17:29,040 --> 00:17:31,720 Speaker 8: Microsoft investing one and a half billion dollars in the 325 00:17:31,800 --> 00:17:34,520 Speaker 8: hottest AI startup in the Gulf has attracted a lot 326 00:17:34,560 --> 00:17:37,359 Speaker 8: of scrutiny in Washington on issues ranging from human rights 327 00:17:37,400 --> 00:17:40,080 Speaker 8: to the risk of sensitive American type being diverted to China. 328 00:17:40,560 --> 00:17:43,040 Speaker 8: And folks in Congress have been frustrated for a long 329 00:17:43,119 --> 00:17:45,160 Speaker 8: time about what they see as a lack of transparency 330 00:17:45,200 --> 00:17:48,760 Speaker 8: from the Biden administration. They haven't gotten a comprehensive briefing, 331 00:17:49,119 --> 00:17:51,399 Speaker 8: and they're now saying it's not enough for the US 332 00:17:51,560 --> 00:17:54,760 Speaker 8: government to be working on sort of general frameworks behind 333 00:17:54,800 --> 00:17:57,640 Speaker 8: closed doors. They want to see the intelligence community prepare 334 00:17:57,680 --> 00:18:00,639 Speaker 8: a formal assessment and evaluate all of the national security 335 00:18:00,720 --> 00:18:01,760 Speaker 8: risks that they've identified. 336 00:18:02,600 --> 00:18:04,760 Speaker 4: Mackenzie, you and I've been through a similar story together 337 00:18:04,840 --> 00:18:08,760 Speaker 4: with CATL, the Chinese battery maker and its relationships with 338 00:18:08,880 --> 00:18:12,080 Speaker 4: US auto makers, and it was kind of the China 339 00:18:12,160 --> 00:18:16,480 Speaker 4: Hawks that were doing this in DC. How analogous is 340 00:18:16,560 --> 00:18:20,440 Speaker 4: this G forty two and Microsoft. 341 00:18:20,040 --> 00:18:24,679 Speaker 8: Tie So we're looking at two different types of investments. 342 00:18:25,160 --> 00:18:29,640 Speaker 8: The CTL thing that you mentioned has a partnership between 343 00:18:29,720 --> 00:18:33,280 Speaker 8: CTL and Ford for a battery plant in Michigan, but 344 00:18:33,400 --> 00:18:36,920 Speaker 8: it's not actually a direct investment by Ford into a 345 00:18:37,040 --> 00:18:40,000 Speaker 8: Chinese company. And in G forty two's cases, is a 346 00:18:40,080 --> 00:18:43,280 Speaker 8: Chinese company. The concern actually is that if the US 347 00:18:43,359 --> 00:18:47,720 Speaker 8: allows sensitive American technology everything from AI model weights to 348 00:18:48,000 --> 00:18:50,640 Speaker 8: the Nvidia H one hundred ships that would be necessary 349 00:18:50,720 --> 00:18:53,640 Speaker 8: to actually stand up a data center that China would 350 00:18:53,640 --> 00:18:56,600 Speaker 8: be able to use G forty two, and the UAE 351 00:18:56,640 --> 00:18:59,240 Speaker 8: as a country as a backdoor to access technology that 352 00:18:59,320 --> 00:19:02,439 Speaker 8: the US has cut China off from. So these are 353 00:19:02,640 --> 00:19:06,440 Speaker 8: sort of different situations, but a similar tide of concern 354 00:19:06,600 --> 00:19:09,119 Speaker 8: in Washington that's been consistent over the past couple of 355 00:19:09,240 --> 00:19:13,080 Speaker 8: years that any deal between a US company and a 356 00:19:13,240 --> 00:19:15,920 Speaker 8: Chinese company, or a company with links to sanction of 357 00:19:16,040 --> 00:19:19,000 Speaker 8: Chinese companies, poses an inherent national security risk. 358 00:19:20,080 --> 00:19:23,679 Speaker 4: Bloomberg's Mackenzie Hawkins always on it really appreciate your reporting. 359 00:19:23,760 --> 00:19:26,840 Speaker 4: This Friday, thank you. Open Ai has come up with 360 00:19:27,000 --> 00:19:30,680 Speaker 4: a set of five levels to track its progress toward 361 00:19:30,760 --> 00:19:35,040 Speaker 4: building AI software capable without performing humans. It's the startup's 362 00:19:35,119 --> 00:19:39,160 Speaker 4: latest effort to help people better understand its thinking about 363 00:19:39,240 --> 00:19:42,080 Speaker 4: safety and the future of AI. Bloomberg Rachel Mets is 364 00:19:42,080 --> 00:19:44,080 Speaker 4: here with the details. I saw you put this out 365 00:19:44,160 --> 00:19:45,720 Speaker 4: last night on social media, and I think for like 366 00:19:46,160 --> 00:19:50,240 Speaker 4: the everyday person right through to investors and AI industry participants. 367 00:19:50,720 --> 00:19:52,960 Speaker 4: This is kind of a set of codified rules that 368 00:19:53,040 --> 00:19:55,720 Speaker 4: might be helpful. What are they So? 369 00:19:56,000 --> 00:19:59,600 Speaker 1: The company has these five levels, and they also told 370 00:20:00,000 --> 00:20:03,280 Speaker 1: employees that they believe they're on level one, which is 371 00:20:03,440 --> 00:20:07,760 Speaker 1: chatbots similar to GPT, which is probably their most popular product. 372 00:20:08,200 --> 00:20:10,080 Speaker 1: There are sort of on the cost between level one 373 00:20:10,320 --> 00:20:13,359 Speaker 1: and level two, which they call reasoners. This would be 374 00:20:13,480 --> 00:20:17,680 Speaker 1: machines that have more of the reasoning type capabilities similar 375 00:20:17,760 --> 00:20:21,359 Speaker 1: to what humans today can only do They put this 376 00:20:21,480 --> 00:20:23,200 Speaker 1: out in part because they want people to be a 377 00:20:23,240 --> 00:20:25,560 Speaker 1: little bit more aware of how they're thinking about this 378 00:20:26,000 --> 00:20:30,520 Speaker 1: process of trying to build artificial general intelligence, which has 379 00:20:30,600 --> 00:20:32,200 Speaker 1: long been the company's stated goal. 380 00:20:32,280 --> 00:20:34,040 Speaker 3: Whether or not they will get there is another story. 381 00:20:34,080 --> 00:20:36,359 Speaker 1: But they've been working on this for quite a long time, and. 382 00:20:36,520 --> 00:20:40,320 Speaker 3: Rachel and to that point, Somemman himself have said maybe 383 00:20:40,400 --> 00:20:43,239 Speaker 3: we get to AGI in the next decade. Hasn't been 384 00:20:43,280 --> 00:20:46,560 Speaker 3: any whisperings of ultimately how far along how quickly we 385 00:20:46,680 --> 00:20:49,920 Speaker 3: could get to the ultimate level five. 386 00:20:50,800 --> 00:20:53,480 Speaker 1: I mean, I think everybody has a different opinion on this. 387 00:20:53,600 --> 00:20:54,960 Speaker 1: I mean, one of the things we have to think 388 00:20:54,960 --> 00:20:57,560 Speaker 1: about is like this is a very rough draft in 389 00:20:57,680 --> 00:21:00,520 Speaker 1: progress thing that they're working on here as as they 390 00:21:00,600 --> 00:21:02,879 Speaker 1: were very clear about saying, and they're going to be 391 00:21:02,960 --> 00:21:05,320 Speaker 1: taking feedback from a lot of different kinds of people. 392 00:21:06,119 --> 00:21:08,320 Speaker 1: But nobody can really agree on what it even would 393 00:21:08,400 --> 00:21:13,359 Speaker 1: mean to have artificial general intelligence AI that can outperform 394 00:21:13,480 --> 00:21:15,040 Speaker 1: humans or do a lot of the things do all 395 00:21:15,080 --> 00:21:17,160 Speaker 1: the things that humans stay can currently do. So maybe 396 00:21:17,200 --> 00:21:19,399 Speaker 1: we need to work on that to you know, figure 397 00:21:19,400 --> 00:21:21,359 Speaker 1: out what do we mean when we talk about that, 398 00:21:21,600 --> 00:21:22,520 Speaker 1: like what would that look like? 399 00:21:23,720 --> 00:21:26,879 Speaker 3: Bloomberg Rachel mets all over trying to gauge the risks 400 00:21:26,920 --> 00:21:37,680 Speaker 3: that is to artificial intelligence. I'll come back to Bluembag technology. 401 00:21:37,760 --> 00:21:40,080 Speaker 4: I'm Caroline Hide in New York and I met Lolo 402 00:21:40,119 --> 00:21:42,280 Speaker 4: in San Francisco, and I'm looking at the markets really quick. Caro, 403 00:21:42,400 --> 00:21:44,879 Speaker 4: I think the story this Friday is very much like 404 00:21:45,520 --> 00:21:49,040 Speaker 4: fed BET's cut rate, something like that's going on. We're 405 00:21:49,080 --> 00:21:51,480 Speaker 4: looking at economic data. But the conversation we had early 406 00:21:51,520 --> 00:21:54,320 Speaker 4: in the show about also thinking valuation, what's having the 407 00:21:54,359 --> 00:21:56,760 Speaker 4: election is at play? Now's that one hundred one point 408 00:21:56,800 --> 00:21:59,719 Speaker 4: two percent, Tessa's a really interesting component of that. Right 409 00:22:00,119 --> 00:22:03,840 Speaker 4: rebounded from its biggest drop since January twenty fourth on Thursday. 410 00:22:03,840 --> 00:22:06,480 Speaker 4: It's now up three point four percent. Generally there is 411 00:22:06,520 --> 00:22:09,560 Speaker 4: a risk on attitude and the ev names others like 412 00:22:09,640 --> 00:22:11,880 Speaker 4: Ribban and Lucid are caught up in that. I've also 413 00:22:11,960 --> 00:22:13,879 Speaker 4: been thinking a little bit about bitcoin, you know, we 414 00:22:14,160 --> 00:22:16,400 Speaker 4: do say it's kind of our go to risk asset 415 00:22:17,080 --> 00:22:19,720 Speaker 4: from time to time. Not a lot going on over 416 00:22:19,760 --> 00:22:21,520 Speaker 4: the course of the week. It's a weekly gain of 417 00:22:21,560 --> 00:22:24,280 Speaker 4: one point six percent, But at fifty eight thousand US 418 00:22:24,359 --> 00:22:26,760 Speaker 4: dollars per token, we're trading at a level that we 419 00:22:26,840 --> 00:22:28,960 Speaker 4: were kind of at in February and March before the 420 00:22:29,080 --> 00:22:32,600 Speaker 4: steeper climb tied to the approval of spot bitcoin ETFs, 421 00:22:32,920 --> 00:22:34,920 Speaker 4: and I just don't see a lot in the moment 422 00:22:35,040 --> 00:22:37,560 Speaker 4: out there. A lot of our audience will say, well, 423 00:22:37,600 --> 00:22:39,840 Speaker 4: we poddle, you know, we're all about the long term, 424 00:22:39,920 --> 00:22:42,200 Speaker 4: but we do a little check on it, and then 425 00:22:42,359 --> 00:22:44,560 Speaker 4: maybe it's back to being a risk asset along with 426 00:22:44,600 --> 00:22:46,399 Speaker 4: everything else in a risk on environment. I don't know. 427 00:22:46,840 --> 00:22:48,600 Speaker 3: Well, if you don't know, we've got someone to ask. 428 00:22:48,680 --> 00:22:51,320 Speaker 3: Thomas Perfumo is with us had a strategy at cracking 429 00:22:51,359 --> 00:22:54,280 Speaker 3: and Thomas, look, there's been a lot of supply side 430 00:22:54,400 --> 00:22:58,440 Speaker 3: issues weighing at least sentiment wise, worries about the Manox 431 00:22:58,600 --> 00:23:03,240 Speaker 3: issuance coming back, giving back bar and German government moving 432 00:23:03,280 --> 00:23:06,480 Speaker 3: things around within wallets. But fundamentally, what is our next catalyst? 433 00:23:06,600 --> 00:23:08,800 Speaker 3: Is it the ETHTF if and as and when it comes. 434 00:23:09,040 --> 00:23:11,360 Speaker 9: Yeah, So I think in the short run, I'd say 435 00:23:11,359 --> 00:23:13,680 Speaker 9: there's about four big catalysts in the second half that 436 00:23:13,720 --> 00:23:16,679 Speaker 9: I'm looking out for. So broadly speaking, risk assets, we're 437 00:23:16,720 --> 00:23:20,600 Speaker 9: talking about the macro economy. So Canada, Europe already cutting 438 00:23:20,680 --> 00:23:22,960 Speaker 9: interest rates. Question is one, is the fay're going to 439 00:23:23,000 --> 00:23:24,240 Speaker 9: do it and to what degree are they going to 440 00:23:24,320 --> 00:23:27,600 Speaker 9: do it? With crypto specifically, the ethere METF launch is 441 00:23:27,640 --> 00:23:30,960 Speaker 9: a big deal that brings a lot of attention on crypto. Again, 442 00:23:31,000 --> 00:23:33,240 Speaker 9: it brings a lot of capital flows. It's a rising 443 00:23:33,320 --> 00:23:37,440 Speaker 9: tide lifts all both story. Looking forward, US election sets 444 00:23:37,520 --> 00:23:40,639 Speaker 9: the tone for policymaking and the legislative agenda for the 445 00:23:40,720 --> 00:23:43,720 Speaker 9: next four years. And then beyond that, you know, I 446 00:23:43,760 --> 00:23:46,280 Speaker 9: think it's just the ongoing trend of adoption a bitcoin 447 00:23:47,280 --> 00:23:50,440 Speaker 9: global engagement, with exchange traded products like the UK and 448 00:23:50,520 --> 00:23:53,639 Speaker 9: Hong Kong launching their own, as well as increased access 449 00:23:53,680 --> 00:23:56,879 Speaker 9: to crypto ETFs here in the US, and then actually 450 00:23:57,240 --> 00:24:00,400 Speaker 9: Tomas mentions an election here in the US something we've 451 00:24:00,400 --> 00:24:02,680 Speaker 9: been thinking a lot about and the impact on crypto. 452 00:24:02,520 --> 00:24:05,080 Speaker 4: Right ed, Yeah, I mean one of the things I 453 00:24:05,200 --> 00:24:09,480 Speaker 4: reported Tomas was this idea that vivid Ramaswami had acted 454 00:24:09,560 --> 00:24:13,320 Speaker 4: as like an intermediary between Elon Musk and Donald Trump, 455 00:24:13,440 --> 00:24:16,000 Speaker 4: former President Trump, and one of the areas that they 456 00:24:16,119 --> 00:24:19,639 Speaker 4: found a renewed common ground was on crypto. So I 457 00:24:19,720 --> 00:24:22,359 Speaker 4: wanted to ask if Kraken kind of has a scenario 458 00:24:22,920 --> 00:24:25,639 Speaker 4: or game plan for the either case in this election, 459 00:24:26,119 --> 00:24:28,879 Speaker 4: what happens in crypto markets if it's Biden, or what 460 00:24:29,040 --> 00:24:32,320 Speaker 4: happens if it's Trump, or you know, after last night, 461 00:24:32,359 --> 00:24:34,560 Speaker 4: we may ask if it's a different Democratic nominee. We 462 00:24:34,600 --> 00:24:34,920 Speaker 4: don't know. 463 00:24:35,800 --> 00:24:38,359 Speaker 9: Yeah, I'm not an expert on the political spectrum here, 464 00:24:38,480 --> 00:24:40,480 Speaker 9: but I will say that when it comes to the 465 00:24:40,600 --> 00:24:44,560 Speaker 9: US specifically, it's really about legislative action and develop link 466 00:24:45,040 --> 00:24:48,720 Speaker 9: clarity for this industry. And when I think about the 467 00:24:48,840 --> 00:24:50,920 Speaker 9: issues that we've seen this year, the progress we've made, 468 00:24:50,960 --> 00:24:54,080 Speaker 9: it's really been a late progress along the Congress where 469 00:24:54,080 --> 00:24:57,399 Speaker 9: they've passed two bills more recently Fit twenty one in 470 00:24:57,600 --> 00:25:00,840 Speaker 9: SAB one two to one, And what interesting there is. 471 00:25:00,880 --> 00:25:05,159 Speaker 9: It showcases some of the bipartisan support that's emerging for 472 00:25:05,480 --> 00:25:08,440 Speaker 9: crypto legislation in the Congress at least, And so even 473 00:25:08,440 --> 00:25:12,000 Speaker 9: though you've hit barriers at the executive level, still good 474 00:25:12,080 --> 00:25:15,720 Speaker 9: progress going forward. I think, of course, the Republican side 475 00:25:15,760 --> 00:25:18,880 Speaker 9: of things seems to be more pro crypto, more progressive 476 00:25:18,920 --> 00:25:21,960 Speaker 9: in that sense. Trump going to Big Nationale in a 477 00:25:21,960 --> 00:25:23,920 Speaker 9: couple of weeks, so we'll see how it plays out. 478 00:25:25,040 --> 00:25:28,119 Speaker 4: Tamas can I make a hard pivot to football or 479 00:25:28,240 --> 00:25:31,800 Speaker 4: for our American audience soccer. Regular views of this show 480 00:25:31,840 --> 00:25:35,040 Speaker 4: will know I'm obsessed, and so I note the partnership 481 00:25:35,080 --> 00:25:38,760 Speaker 4: with Atletico The thing I've always thought about Alertico Madrid 482 00:25:38,880 --> 00:25:41,880 Speaker 4: is they have a massive following in Latin America, even 483 00:25:41,920 --> 00:25:44,200 Speaker 4: though they may be the smaller of the clubs in 484 00:25:44,240 --> 00:25:47,200 Speaker 4: the city of Madrid. Just explain why you did that. 485 00:25:47,520 --> 00:25:50,119 Speaker 9: Sure, so I'll try to keep this short, But Kraigman 486 00:25:50,240 --> 00:25:52,840 Speaker 9: was founded in twenty eleven with this ambitious vision to 487 00:25:52,960 --> 00:25:55,680 Speaker 9: be the most trusted and secure place to buy crypto 488 00:25:55,840 --> 00:25:58,479 Speaker 9: anywhere in the world. And when you think about our 489 00:25:58,600 --> 00:26:03,240 Speaker 9: thirteen year legacy pioneering things like proof of reserves, audits, 490 00:26:03,840 --> 00:26:06,000 Speaker 9: things like being a day one supporter for a theear 491 00:26:06,040 --> 00:26:08,720 Speaker 9: and when it launched, being a day one supporter for saking, 492 00:26:08,760 --> 00:26:12,520 Speaker 9: when Tezos launched this concept, and even today making crypto 493 00:26:12,560 --> 00:26:13,560 Speaker 9: accessible to the world. 494 00:26:14,040 --> 00:26:15,919 Speaker 4: Now we feel like we've earned the. 495 00:26:15,960 --> 00:26:18,120 Speaker 9: Right to boast about this legacy being in the market 496 00:26:18,160 --> 00:26:20,600 Speaker 9: for thirteen years, but it's only in the last year 497 00:26:20,680 --> 00:26:22,880 Speaker 9: that we've really started to bring our brand out into 498 00:26:22,920 --> 00:26:25,359 Speaker 9: the world. So things like our F one partnership with 499 00:26:25,480 --> 00:26:29,280 Speaker 9: Williams Racing, or even this new partnership with Atltico Madrid, 500 00:26:29,840 --> 00:26:31,920 Speaker 9: one of the most iconic football teams in Spain. And 501 00:26:32,000 --> 00:26:34,720 Speaker 9: so I think it's really just a showcase that we're 502 00:26:34,760 --> 00:26:37,600 Speaker 9: trying to get crack and known globally in a place 503 00:26:37,680 --> 00:26:39,880 Speaker 9: that we have already operated for a number of years. 504 00:26:39,960 --> 00:26:42,440 Speaker 9: And so we're really proud of everything that we're doing now. 505 00:26:42,720 --> 00:26:46,240 Speaker 3: Marketing Tomas to an audience that you want to come 506 00:26:46,280 --> 00:26:49,320 Speaker 3: and use the product, but also maybe is marketing to 507 00:26:49,400 --> 00:26:51,800 Speaker 3: an investor base that eventually you go public into Is 508 00:26:51,880 --> 00:26:54,440 Speaker 3: that something that you're lying in terms of this market. 509 00:26:54,800 --> 00:26:57,120 Speaker 9: I got nothing propriety to share here, but I will 510 00:26:57,200 --> 00:27:00,480 Speaker 9: say our missions to accelerate the adoption of crypto strategic 511 00:27:00,560 --> 00:27:03,159 Speaker 9: paths available to make that happen is something we're going 512 00:27:03,200 --> 00:27:04,240 Speaker 9: to be exploring. 513 00:27:04,160 --> 00:27:08,040 Speaker 3: And we pause the numbers. We look at a fifty 514 00:27:08,080 --> 00:27:10,480 Speaker 3: eight thousand handle on a bitcoin, and we've been looking 515 00:27:10,480 --> 00:27:11,760 Speaker 3: at what the old coins have been doing in the 516 00:27:11,840 --> 00:27:15,800 Speaker 3: mean coin rush that we've seen. But ultimately, are we 517 00:27:16,000 --> 00:27:21,000 Speaker 3: still seeing money move into the overall ecosystem for the 518 00:27:21,080 --> 00:27:22,840 Speaker 3: second half of the year or do we trade where 519 00:27:22,840 --> 00:27:24,119 Speaker 3: we're currently at? Do you think so? 520 00:27:24,240 --> 00:27:26,400 Speaker 9: I think a lot of it hinges on the ETHEREMTF 521 00:27:26,840 --> 00:27:28,399 Speaker 9: and the launch of that, So a lot of the 522 00:27:28,440 --> 00:27:31,320 Speaker 9: market sentiment is trying to gauge what kind of capital 523 00:27:31,359 --> 00:27:33,720 Speaker 9: inflows do we see from that event in general? So 524 00:27:34,560 --> 00:27:36,480 Speaker 9: from what I've been able to gauge, I think the 525 00:27:36,560 --> 00:27:39,440 Speaker 9: market is pricing in something along the lines of seven 526 00:27:39,560 --> 00:27:42,119 Speaker 9: hundred and fifty million to a billion dollars of net 527 00:27:42,200 --> 00:27:45,560 Speaker 9: inflows into a theem METF products on a monthly basis, 528 00:27:45,720 --> 00:27:47,760 Speaker 9: and so if we start to match that, I think 529 00:27:47,800 --> 00:27:51,040 Speaker 9: that creates positive support for the industry. If we surpassed that, 530 00:27:51,320 --> 00:27:53,720 Speaker 9: note that bitcoin was at a pace of north of 531 00:27:53,760 --> 00:27:56,120 Speaker 9: two and a half billion, that's where you start thinking 532 00:27:56,160 --> 00:27:58,719 Speaker 9: about maybe Ethereum tests all time highs in the mid 533 00:27:58,800 --> 00:28:01,720 Speaker 9: four thousand range and again rising thigh lift our boats. 534 00:28:02,320 --> 00:28:04,080 Speaker 9: One last note here is when I look at the 535 00:28:04,160 --> 00:28:07,240 Speaker 9: prior all time high back in March for bitcoin, that's 536 00:28:07,280 --> 00:28:10,399 Speaker 9: what I'm calling a quiet peak. We didn't see similar 537 00:28:10,480 --> 00:28:15,240 Speaker 9: levels of extreme volatility or similar levels of unpreceded volatility 538 00:28:15,280 --> 00:28:18,000 Speaker 9: of sign ups on our platform to suggest that you 539 00:28:18,080 --> 00:28:21,040 Speaker 9: really had peak momentum of lots of people, tens of millions, 540 00:28:21,119 --> 00:28:23,359 Speaker 9: hundreds of millions of people coming into the industry for 541 00:28:23,440 --> 00:28:24,200 Speaker 9: the first time. 542 00:28:24,720 --> 00:28:27,520 Speaker 3: Hundreds of millions. Tomaskov, Humo, we thank you had a 543 00:28:27,560 --> 00:28:30,720 Speaker 3: strategy at Kraken and what are you as you looking 544 00:28:30,760 --> 00:28:31,840 Speaker 3: at so some. 545 00:28:31,880 --> 00:28:34,240 Speaker 4: Of the other big news stories in today's Talking Tech. 546 00:28:34,359 --> 00:28:37,919 Speaker 4: First up, a rare failure for SpaceX. The company's Falcon 547 00:28:38,000 --> 00:28:42,360 Speaker 4: nine rocket deployed twenty Starlink satellites but into the wrong orbit. 548 00:28:42,720 --> 00:28:45,160 Speaker 4: In a post on, X CEO Elon Musk said a 549 00:28:45,280 --> 00:28:48,720 Speaker 4: portion of the upper engine failed for unknown reasons. SpaceX 550 00:28:48,760 --> 00:28:51,640 Speaker 4: has said it made contact with five of the satellites 551 00:28:51,880 --> 00:28:55,480 Speaker 4: and will attempt to reposition them using the attached thrusters. 552 00:28:55,680 --> 00:28:57,880 Speaker 4: Within the last hour at the FAA's announced it will 553 00:28:58,000 --> 00:29:00,960 Speaker 4: require a probe into that File nine failure. But I 554 00:29:01,000 --> 00:29:05,920 Speaker 4: would say that's largely procedural. Soft Bank strengthens its chip investments. 555 00:29:05,960 --> 00:29:10,040 Speaker 4: The Japanese investor acquired UK semiconductor startup Graph Corps. The 556 00:29:10,120 --> 00:29:13,240 Speaker 4: companies set to operate as a soft Bank subsidiary and 557 00:29:13,360 --> 00:29:15,680 Speaker 4: will keep its management team. The financial terms of that 558 00:29:15,800 --> 00:29:20,200 Speaker 4: deal were not disclosed, and Samsung is facing more walkouts, 559 00:29:20,280 --> 00:29:23,120 Speaker 4: this time at one of the company's most advanced AI 560 00:29:23,320 --> 00:29:26,600 Speaker 4: memory chip plants. Several hundred workers joined the protests on 561 00:29:26,680 --> 00:29:30,520 Speaker 4: Thursday and Friday. As the campaign for higher wages continue. 562 00:29:30,920 --> 00:29:34,880 Speaker 4: Union leaders have told Bloomberg they're targeting smaller but important 563 00:29:35,000 --> 00:29:38,000 Speaker 4: complexes in the hopes of amping up pressure. 564 00:29:38,320 --> 00:29:42,840 Speaker 3: Caroline fascinating. Meanwhile, stay global with the Russian story now 565 00:29:43,560 --> 00:29:46,880 Speaker 3: waging war under the sea. This question has been emerging 566 00:29:46,920 --> 00:29:50,520 Speaker 3: after a worrying pattern of missing underwater cables. Who most 567 00:29:50,560 --> 00:29:52,040 Speaker 3: Jordan Robertson has a story. 568 00:29:55,800 --> 00:29:59,200 Speaker 10: In twenty twenty one, an unexplained incident occurred off the 569 00:29:59,280 --> 00:30:03,560 Speaker 10: coast of Norway. An important undersea data cable had been damaged, 570 00:30:03,840 --> 00:30:05,240 Speaker 10: and no one could explain. 571 00:30:05,000 --> 00:30:11,680 Speaker 11: Why something was obviously seriously wrong. Nothing worked anymore, no instruments, 572 00:30:11,920 --> 00:30:14,920 Speaker 11: no sensors. Where the cable was supposed to be there 573 00:30:15,080 --> 00:30:15,880 Speaker 11: was no cable. 574 00:30:16,800 --> 00:30:19,760 Speaker 4: You just see mayhem at. 575 00:30:19,720 --> 00:30:22,600 Speaker 10: The bottom of the world's oceans line essential network of 576 00:30:22,680 --> 00:30:26,520 Speaker 10: data cables. They stretched hundreds of thousands of miles around 577 00:30:26,520 --> 00:30:26,880 Speaker 10: the world. 578 00:30:27,720 --> 00:30:33,520 Speaker 12: Information flow, communications, banking system, financial communications. It's a vast 579 00:30:33,800 --> 00:30:36,120 Speaker 12: network and it's extremely vulnerable. 580 00:30:36,640 --> 00:30:38,920 Speaker 10: Damage to any of them could be catastrophic. 581 00:30:39,520 --> 00:30:43,959 Speaker 12: It could spread a panic, disrupt the normal functioning of states. 582 00:30:45,000 --> 00:30:47,440 Speaker 10: In the last few years, there have actually been a 583 00:30:47,560 --> 00:30:52,080 Speaker 10: whole series of incidents involving undersea cables. These may not 584 00:30:52,280 --> 00:30:55,360 Speaker 10: be freak accidents. They may actually be a sign of 585 00:30:55,440 --> 00:30:58,680 Speaker 10: something more sinister sabotage. 586 00:31:04,040 --> 00:31:06,880 Speaker 4: That was epic and that was Bloomberg Jordan robertson who 587 00:31:06,960 --> 00:31:09,960 Speaker 4: you can catch the full story from on Bloomberg dot com, 588 00:31:10,040 --> 00:31:13,240 Speaker 4: and there's also a much longer video report on the issue. 589 00:31:13,520 --> 00:31:14,960 Speaker 4: All right, coming up, we're going to be joined by 590 00:31:15,000 --> 00:31:19,160 Speaker 4: the CEO of Standard Box on the company's fresh series 591 00:31:19,200 --> 00:31:21,520 Speaker 4: B round and how they're going to use the new funds. 592 00:31:21,960 --> 00:31:23,880 Speaker 4: That's next. This is Bloomberg Technology. 593 00:31:41,120 --> 00:31:44,280 Speaker 3: Let's talk about robotics. AI robotics, the startup Standard Bots. 594 00:31:44,520 --> 00:31:47,440 Speaker 3: It's raised sixty three million dollars over a series of deals, 595 00:31:47,520 --> 00:31:49,520 Speaker 3: with a majority of the funding hall which has not 596 00:31:49,600 --> 00:31:52,360 Speaker 3: previously been reported, coming in at thirty nine million dollars 597 00:31:52,480 --> 00:31:55,920 Speaker 3: Series B round led by General Catalyst, the participation from 598 00:31:56,040 --> 00:31:59,680 Speaker 3: some key strategics, Amazon Industrial Innovation Fund and Samsung. Next 599 00:32:00,200 --> 00:32:02,800 Speaker 3: here from Standardbot CEO and then Ben. Great to have 600 00:32:02,920 --> 00:32:03,160 Speaker 3: you here. 601 00:32:03,400 --> 00:32:04,080 Speaker 4: Thank you for having me. 602 00:32:04,600 --> 00:32:06,680 Speaker 3: How quickly did it come about, Kim? 603 00:32:06,760 --> 00:32:07,240 Speaker 4: Really quickly. 604 00:32:07,320 --> 00:32:10,040 Speaker 13: Jerald Carlos actually preempted around. So I think it shows 605 00:32:10,080 --> 00:32:12,200 Speaker 13: the how hot air and robotics is at the moment. 606 00:32:12,480 --> 00:32:15,000 Speaker 3: Okay, is this feel like slowly, slowly all at once? 607 00:32:15,080 --> 00:32:16,800 Speaker 3: Because I'm pretty sure you've been at this for quite 608 00:32:16,840 --> 00:32:19,640 Speaker 3: a while and already you've had your ro palms in companies. 609 00:32:19,880 --> 00:32:20,720 Speaker 4: That's exactly right. 610 00:32:21,160 --> 00:32:22,560 Speaker 13: I think it's I think it's a really it's a 611 00:32:22,640 --> 00:32:24,960 Speaker 13: moment in time where we realize this is happening. 612 00:32:27,240 --> 00:32:29,120 Speaker 4: Evan, I am really grateful to have you on the show. 613 00:32:29,240 --> 00:32:31,320 Speaker 4: I want to go into those strategics. You know, we've 614 00:32:31,360 --> 00:32:33,520 Speaker 4: done a lot on this program about Amazon robotics in 615 00:32:33,560 --> 00:32:37,320 Speaker 4: the warehouse Samsung, Like, I guess, is the opportunity down 616 00:32:37,400 --> 00:32:40,719 Speaker 4: the line in the manufacturing context, what are you kind 617 00:32:40,760 --> 00:32:41,640 Speaker 4: of hoping for there? 618 00:32:42,080 --> 00:32:44,120 Speaker 13: Yeah, so we realized a few years ago we can 619 00:32:44,160 --> 00:32:47,200 Speaker 13: make an American made robot that's easier to use, more affordable, 620 00:32:47,520 --> 00:32:50,440 Speaker 13: and most importantly, capable of performing many more tasks than 621 00:32:50,480 --> 00:32:54,360 Speaker 13: other robots out there. Most robots today they have this 622 00:32:54,880 --> 00:32:59,120 Speaker 13: rigid programming that's it's sort of like code, something resembles code. 623 00:32:59,440 --> 00:33:01,840 Speaker 13: And so we're focused on this new paradigm where you 624 00:33:01,960 --> 00:33:04,200 Speaker 13: just demonstrate the task you want the robots perform, and 625 00:33:04,240 --> 00:33:05,960 Speaker 13: then it can learn how to perform that from the 626 00:33:06,000 --> 00:33:07,600 Speaker 13: demonstration autonomously. 627 00:33:08,840 --> 00:33:11,240 Speaker 4: So we're just showing some pictures of the technology we're 628 00:33:11,280 --> 00:33:15,200 Speaker 4: talking about. We're not talking about humanoid robots. We're talking 629 00:33:15,280 --> 00:33:21,320 Speaker 4: about cutting edge of robotic arms. Essentially, why is yours 630 00:33:21,440 --> 00:33:23,880 Speaker 4: better than the rest? We've had some similar things on 631 00:33:23,960 --> 00:33:25,360 Speaker 4: the show. Evan, Yeah, I. 632 00:33:25,400 --> 00:33:29,760 Speaker 13: Think we don't need to create legs in a torso 633 00:33:30,200 --> 00:33:32,320 Speaker 13: to make a huge impact. So our approach is we 634 00:33:32,440 --> 00:33:35,200 Speaker 13: make a device and this device it's sort of like scissors, 635 00:33:35,240 --> 00:33:37,800 Speaker 13: but it can grip instead of cutting, and you can 636 00:33:37,880 --> 00:33:41,520 Speaker 13: show show how to assemble something, show how to prepare food, 637 00:33:41,840 --> 00:33:44,200 Speaker 13: what have you, and it learns from that demonstration. 638 00:33:44,640 --> 00:33:46,960 Speaker 4: And we think our approach with this device. 639 00:33:47,240 --> 00:33:49,240 Speaker 13: It's a much quicker way to market than the humanoids, 640 00:33:49,280 --> 00:33:51,040 Speaker 13: and it's going to make a really big impact and 641 00:33:51,080 --> 00:33:53,120 Speaker 13: we can take it to market this year. We already 642 00:33:53,160 --> 00:33:55,000 Speaker 13: are with with some really big customers. 643 00:33:55,840 --> 00:33:59,400 Speaker 3: Look, how hard is this What sort of academic affiliations 644 00:33:59,480 --> 00:34:02,440 Speaker 3: you having to have? How much are you having to 645 00:34:02,520 --> 00:34:04,440 Speaker 3: push forward an innovation with the funding that you've got. 646 00:34:04,520 --> 00:34:06,880 Speaker 3: This is now about hiring talent? Is it about expanding 647 00:34:06,920 --> 00:34:07,520 Speaker 3: here in New York? 648 00:34:08,000 --> 00:34:11,560 Speaker 13: Yeah, it's definitely it's it's definitely hard. We've got an 649 00:34:11,600 --> 00:34:13,480 Speaker 13: amazing team, so they really get all the credit. But 650 00:34:13,520 --> 00:34:17,880 Speaker 13: we've hired from places like Cruise, Waimo, Rivian, Meta, so 651 00:34:18,120 --> 00:34:19,719 Speaker 13: we've got the best of the best on the team. 652 00:34:20,320 --> 00:34:22,240 Speaker 13: We really think this can make a really big impact 653 00:34:22,280 --> 00:34:24,160 Speaker 13: in the world, So that drives our team. 654 00:34:24,280 --> 00:34:25,839 Speaker 4: And it's a lot of fun too. 655 00:34:25,920 --> 00:34:29,239 Speaker 3: So I mean sped out the mission here because many 656 00:34:29,520 --> 00:34:31,799 Speaker 3: who are working in manufacturing might be like, well, that's 657 00:34:32,120 --> 00:34:35,880 Speaker 3: my job. So ultimately, what is the net positive outcome 658 00:34:35,960 --> 00:34:37,800 Speaker 3: that you want from this business that drives all the 659 00:34:37,840 --> 00:34:40,080 Speaker 3: people to want to leave Rivian and other key companies 660 00:34:40,120 --> 00:34:40,480 Speaker 3: to come to you. 661 00:34:40,840 --> 00:34:41,000 Speaker 7: Yeah. 662 00:34:41,200 --> 00:34:43,520 Speaker 13: Actually, we have industry stats show over the next few 663 00:34:43,560 --> 00:34:46,759 Speaker 13: years a shortage of two million workers, so there's it's 664 00:34:46,840 --> 00:34:49,800 Speaker 13: not so much replacing jobs as we have this huge shortage, 665 00:34:50,200 --> 00:34:54,279 Speaker 13: and we really think that, you know, most of the 666 00:34:54,320 --> 00:34:56,239 Speaker 13: products we buy are not made in the US, or 667 00:34:56,360 --> 00:34:58,120 Speaker 13: many of them aren't, and so if we can bring 668 00:34:58,239 --> 00:35:01,680 Speaker 13: back manufacturing that actually h jobs and it's better for 669 00:35:01,800 --> 00:35:04,799 Speaker 13: national security, it's better for the environment to produce where 670 00:35:04,840 --> 00:35:08,800 Speaker 13: we use the items, and these kinds of productivity boosts, 671 00:35:08,800 --> 00:35:10,840 Speaker 13: they really lower the cost of food and other items 672 00:35:10,880 --> 00:35:13,320 Speaker 13: for people who can't afford them the most. So we 673 00:35:13,360 --> 00:35:14,319 Speaker 13: think it's really important work. 674 00:35:14,360 --> 00:35:15,800 Speaker 4: They're can have a large positive impact. 675 00:35:15,880 --> 00:35:18,400 Speaker 13: And you know, there's a huge shortage right now in 676 00:35:18,520 --> 00:35:21,200 Speaker 13: job so I think people can can can rest assured. 677 00:35:22,920 --> 00:35:25,879 Speaker 4: I've listened to Jensen Wong talk about the biggest opportunities 678 00:35:25,920 --> 00:35:30,320 Speaker 4: to be unlocked by what's happening in large language models 679 00:35:30,320 --> 00:35:33,080 Speaker 4: and robotics is front and center for him. What I 680 00:35:33,160 --> 00:35:35,840 Speaker 4: find interesting is your scale and your your location in 681 00:35:35,960 --> 00:35:38,760 Speaker 4: New York, So it talks me about building the company. 682 00:35:39,040 --> 00:35:42,799 Speaker 4: Talent is the money you've raised enough walk us through 683 00:35:42,880 --> 00:35:44,839 Speaker 4: the roadmap of the next couple of years. 684 00:35:45,560 --> 00:35:47,960 Speaker 13: Yeah, we're we're bringing this to market this year in 685 00:35:48,000 --> 00:35:51,320 Speaker 13: a big way. Talent is is I think this is 686 00:35:51,400 --> 00:35:53,319 Speaker 13: like a really really fun other than being a TV 687 00:35:53,400 --> 00:35:54,879 Speaker 13: anchor like you had. This is one of the most 688 00:35:54,920 --> 00:35:56,560 Speaker 13: fun things you can work on right now in tech. 689 00:35:56,920 --> 00:35:59,560 Speaker 13: So so it hasn't been that hard to attract amazing talent, 690 00:35:59,640 --> 00:36:01,520 Speaker 13: and I think the mission oriented focus of the company 691 00:36:01,560 --> 00:36:04,160 Speaker 13: helps to attract amazing talent as well. But we're going 692 00:36:04,239 --> 00:36:06,480 Speaker 13: to continue to need amazing people. We've doubled our team 693 00:36:06,480 --> 00:36:08,960 Speaker 13: in the last twelve months. Our robot orders have gone 694 00:36:09,000 --> 00:36:10,960 Speaker 13: up twenty x in the last year, so we're really 695 00:36:11,000 --> 00:36:12,800 Speaker 13: experiencing a lot of growth. We're trying to hire to 696 00:36:12,840 --> 00:36:15,799 Speaker 13: handle the growth and the orders, and we're very excited 697 00:36:15,840 --> 00:36:16,440 Speaker 13: about the future. 698 00:36:18,200 --> 00:36:20,840 Speaker 4: Evan Bid, CEO Standard Box. Great to have you on 699 00:36:20,880 --> 00:36:21,160 Speaker 4: the show. 700 00:36:28,920 --> 00:36:31,480 Speaker 3: We just want to turn our attention to what President 701 00:36:31,520 --> 00:36:34,520 Speaker 3: Biden is saying on the platform X just a few 702 00:36:34,600 --> 00:36:37,399 Speaker 3: moments ago, he's posted that six weeks ago, I laid 703 00:36:37,440 --> 00:36:40,280 Speaker 3: out a comprehensive framework for how to achieve a CEASEPAR 704 00:36:40,400 --> 00:36:44,439 Speaker 3: and bring hostages home. Course talking about Israel Hamas, there's 705 00:36:44,440 --> 00:36:46,840 Speaker 3: still work to do in these complex issues, but that 706 00:36:47,040 --> 00:36:50,440 Speaker 3: framework is now agreed by both Israel and Hamas, and 707 00:36:50,520 --> 00:36:54,239 Speaker 3: he says he's making progress and interesting use of course 708 00:36:54,320 --> 00:36:55,480 Speaker 3: of the social media platform. 709 00:36:56,520 --> 00:37:00,160 Speaker 4: Yeah, there's been a big development this morning with in 710 00:37:00,239 --> 00:37:02,880 Speaker 4: its relationship with the European Union. The European Union or 711 00:37:02,920 --> 00:37:06,200 Speaker 4: the Commissioner has basically said that X is the first 712 00:37:06,719 --> 00:37:09,480 Speaker 4: breacher of the Digital Services Act. I want to bring 713 00:37:09,520 --> 00:37:12,520 Speaker 4: in Bloomberg's Kurt Wagner, who also has a column out 714 00:37:12,560 --> 00:37:15,719 Speaker 4: today about Ex's video ambitions, that Kurt, you will have 715 00:37:15,840 --> 00:37:18,120 Speaker 4: seen the ping pong on X in the last hour 716 00:37:18,440 --> 00:37:24,200 Speaker 4: between Mask, Margaret ves Tierre Berton they explain what's happening please. 717 00:37:27,120 --> 00:37:29,120 Speaker 14: Yeah, I actually haven't seen it this morning. 718 00:37:29,320 --> 00:37:29,360 Speaker 11: Ed. 719 00:37:29,400 --> 00:37:33,480 Speaker 14: I'm sorry to but you know, obviously there's Ex's doing 720 00:37:33,520 --> 00:37:35,759 Speaker 14: a lot with the check marks. That was the big 721 00:37:35,880 --> 00:37:38,480 Speaker 14: issue that Must started when he took over that he 722 00:37:38,600 --> 00:37:41,040 Speaker 14: was saying, hey, you know, this is something that I'm 723 00:37:41,080 --> 00:37:42,880 Speaker 14: going to charge for versus something I'm going to give 724 00:37:42,920 --> 00:37:45,360 Speaker 14: away for free. I imagine you know that there's some 725 00:37:45,520 --> 00:37:47,759 Speaker 14: issues with how they're doling these things out to people. 726 00:37:48,520 --> 00:37:51,320 Speaker 14: And obviously they'd run a foul of some EU regulations before, 727 00:37:51,400 --> 00:37:53,479 Speaker 14: so it doesn't surprise me that they're running into this again. 728 00:37:54,480 --> 00:37:57,320 Speaker 3: Yeah, I mean across the board though, this is something 729 00:37:57,360 --> 00:37:59,640 Speaker 3: that it al must wants to be able to be 730 00:38:00,000 --> 00:38:04,360 Speaker 3: bringing backgrounds, bringing back the talk of driving forward revenue 731 00:38:04,520 --> 00:38:07,040 Speaker 3: and people's confidence. How is he doing that with video 732 00:38:07,120 --> 00:38:07,520 Speaker 3: at the moment? 733 00:38:07,600 --> 00:38:07,799 Speaker 8: Cerve? 734 00:38:08,360 --> 00:38:11,359 Speaker 14: Yeah, well you may remember that at CEES a few 735 00:38:11,440 --> 00:38:14,239 Speaker 14: months ago, they said that they were going to really 736 00:38:14,280 --> 00:38:18,320 Speaker 14: push into this high quality, professionally produced video shows, and 737 00:38:18,360 --> 00:38:20,520 Speaker 14: they announced a bunch of partners, you know, Don Lemon, 738 00:38:20,880 --> 00:38:24,279 Speaker 14: Tulcy Gabbert, Jim Rome, And there was this big idea 739 00:38:24,360 --> 00:38:25,920 Speaker 14: that X was going to sort of be like a 740 00:38:26,080 --> 00:38:29,640 Speaker 14: second TV, right you would watch these highly produced things 741 00:38:29,640 --> 00:38:32,440 Speaker 14: on your phone. Well, six months later, a lot of 742 00:38:32,480 --> 00:38:34,680 Speaker 14: this just hasn't materialized. You know, we've talked about what 743 00:38:34,760 --> 00:38:38,480 Speaker 14: happened with Don Lemon that shows fizzled out, Tulcy Gabbard 744 00:38:38,560 --> 00:38:40,600 Speaker 14: has not posted any show as yet. Jim Rome is 745 00:38:40,640 --> 00:38:43,520 Speaker 14: posting shows, but I watched yesterday there were no ads 746 00:38:43,600 --> 00:38:47,200 Speaker 14: running alongside these shows. So it just feels like this 747 00:38:47,320 --> 00:38:50,120 Speaker 14: big push, this big cell to rebrand X as this 748 00:38:50,560 --> 00:38:54,160 Speaker 14: video destination, in my opinion, seems to really be struggling 749 00:38:54,239 --> 00:38:56,080 Speaker 14: right now. Six months into this process. 750 00:38:57,600 --> 00:39:01,320 Speaker 4: The question is Eyebels right, So elon really emphasis on 751 00:39:02,080 --> 00:39:06,400 Speaker 4: emphasises this data point of user seconds, how many seconds 752 00:39:07,280 --> 00:39:08,880 Speaker 4: user ivles are on the platform. If you go to 753 00:39:08,960 --> 00:39:11,200 Speaker 4: a tweet, you see the tweet views, and if you 754 00:39:11,280 --> 00:39:14,560 Speaker 4: posted the video you get separate data. Is there any 755 00:39:14,600 --> 00:39:18,200 Speaker 4: confidence from advertisers that it is actually being watched if 756 00:39:18,239 --> 00:39:20,000 Speaker 4: you put video content to the platform. 757 00:39:21,440 --> 00:39:24,160 Speaker 14: Yeah, I mean this debate between views and you know 758 00:39:24,280 --> 00:39:26,719 Speaker 14: someone actually sitting there and consuming it has made a 759 00:39:26,760 --> 00:39:28,640 Speaker 14: big issue for years, and not just on x right. 760 00:39:28,680 --> 00:39:31,799 Speaker 14: We've talked about this with Meta before Instagram as well, 761 00:39:32,760 --> 00:39:35,239 Speaker 14: and so I think the issue and what I put 762 00:39:35,280 --> 00:39:37,160 Speaker 14: in the column this morning, what I heard from a 763 00:39:37,239 --> 00:39:39,359 Speaker 14: source is that part of the reason these shows aren't 764 00:39:39,400 --> 00:39:42,200 Speaker 14: really getting made is that they are having issues with 765 00:39:42,239 --> 00:39:45,520 Speaker 14: advertiser demand, right, And if people are sitting there throwing 766 00:39:45,560 --> 00:39:48,160 Speaker 14: money at you, those projects usually get made. But the 767 00:39:48,239 --> 00:39:51,200 Speaker 14: fact that they're not seeing that interest from advertisers is 768 00:39:51,280 --> 00:39:53,560 Speaker 14: sort of a sign that, you know, the views probably 769 00:39:53,600 --> 00:39:56,279 Speaker 14: aren't there, right, because advertisers are going to want to 770 00:39:56,280 --> 00:39:58,239 Speaker 14: go where they can get eyeballs. So I don't know 771 00:39:58,320 --> 00:40:01,560 Speaker 14: the specific numbers behind this, but usually ed as you know, 772 00:40:01,880 --> 00:40:04,160 Speaker 14: if there's an audience, there are advertisers that want to 773 00:40:04,200 --> 00:40:06,400 Speaker 14: reach them, and the fact that there's not that interest 774 00:40:06,520 --> 00:40:08,000 Speaker 14: right now is sort of a telling sign. 775 00:40:08,719 --> 00:40:11,399 Speaker 3: How are things internally? Alex right now. 776 00:40:11,480 --> 00:40:14,040 Speaker 4: Kurt, Yeah, I. 777 00:40:14,080 --> 00:40:16,719 Speaker 14: Mean I think it's tough because there's a lot of 778 00:40:16,800 --> 00:40:18,840 Speaker 14: cost cutting still going on. You know, there was this 779 00:40:18,920 --> 00:40:20,759 Speaker 14: big push obviously when Elon took over. There were a 780 00:40:20,760 --> 00:40:23,000 Speaker 14: bunch of layoffs, a bunch of cost cuts. Things sort 781 00:40:23,000 --> 00:40:25,920 Speaker 14: of settled down, but earlier this year they brought back 782 00:40:25,960 --> 00:40:29,360 Speaker 14: in Steve Davis, who was the head of Boring Company, 783 00:40:29,400 --> 00:40:30,560 Speaker 14: and he was sort of the guy who did the 784 00:40:30,600 --> 00:40:33,160 Speaker 14: initial cost cuts when Elon took over, and he sort. 785 00:40:33,000 --> 00:40:34,760 Speaker 2: Of relooked at the books. He relooked. 786 00:40:34,760 --> 00:40:37,880 Speaker 14: There were some layoffs that happened again. So I do 787 00:40:38,040 --> 00:40:39,759 Speaker 14: think that they're at this place where they're sort of 788 00:40:39,960 --> 00:40:42,800 Speaker 14: still trying to level set the business. And you know, 789 00:40:42,920 --> 00:40:45,360 Speaker 14: it's now been coming up on two years. It's not 790 00:40:45,480 --> 00:40:48,200 Speaker 14: a super encouraging sign when they're still out there really 791 00:40:48,239 --> 00:40:52,680 Speaker 14: slashing costs two years into this new venture bloom Vers. 792 00:40:52,800 --> 00:40:55,160 Speaker 4: Kurt Wagner, thank you, and I apologize. I didn't mean 793 00:40:55,160 --> 00:40:57,000 Speaker 4: to put you on the spot. Actually, since we've been 794 00:40:57,080 --> 00:41:00,480 Speaker 4: on air, Elon Musk has been posting on it at 795 00:41:01,040 --> 00:41:04,560 Speaker 4: EU officials. The short of the story is the Elon 796 00:41:04,680 --> 00:41:07,520 Speaker 4: Musk social media platform X has been hit with a 797 00:41:07,640 --> 00:41:11,960 Speaker 4: warning from the EU for deceiving users into engaging with 798 00:41:12,080 --> 00:41:15,799 Speaker 4: potentially harmful content, which prompted that little back and forth 799 00:41:15,840 --> 00:41:18,960 Speaker 4: with Elon Musk himself on X The Blocks regulators say 800 00:41:18,960 --> 00:41:22,279 Speaker 4: they're worried that blue check marks for verified accounts are 801 00:41:22,400 --> 00:41:26,759 Speaker 4: tricking users into believing these are safe when quote there 802 00:41:26,920 --> 00:41:30,680 Speaker 4: is evidence of motivated malicious actors abusing the check mark system. 803 00:41:30,719 --> 00:41:33,880 Speaker 4: I just say, Caro. I wrote to Linda Yakarino this morning, 804 00:41:34,200 --> 00:41:36,160 Speaker 4: along with some other staff at S and Not, offered 805 00:41:36,200 --> 00:41:38,440 Speaker 4: them the opportunity to come on the show to respond 806 00:41:38,520 --> 00:41:41,560 Speaker 4: to the EU's prelim warning, but no response. 807 00:41:42,040 --> 00:41:45,480 Speaker 3: Maybe my Monday meanwhile, Maybe got a lot to pass 808 00:41:45,600 --> 00:41:48,160 Speaker 3: over this weekend. You and I have got a pretty 809 00:41:48,239 --> 00:41:51,680 Speaker 3: integral soccer stroke football match to watch. But for now, 810 00:41:51,760 --> 00:41:53,960 Speaker 3: that does it for this edition of Blue Med Technology. 811 00:41:54,280 --> 00:41:57,200 Speaker 4: The Euros and Copper America. I'm excited for Monday. It 812 00:41:57,320 --> 00:41:59,120 Speaker 4: was a shorter week for us. We missed two days 813 00:41:59,160 --> 00:42:01,680 Speaker 4: of shows because of fed chair Pal. But there was 814 00:42:01,800 --> 00:42:04,280 Speaker 4: so much happening in the show, so recap on the podcast. 815 00:42:04,560 --> 00:42:07,440 Speaker 4: You know exactly where to find it, Apple, Spotify, iHeart, 816 00:42:07,520 --> 00:42:11,200 Speaker 4: and the Bloomberg platforms. Good luck to England for those 817 00:42:11,239 --> 00:42:13,520 Speaker 4: of you that are supporting, and good luck to all 818 00:42:13,520 --> 00:42:16,320 Speaker 4: the other teams playing this weekend. This is Bloomberg Technology