1 00:00:02,240 --> 00:00:05,640 Speaker 1: From the heart of where Innovation, money and power callive 2 00:00:06,360 --> 00:00:10,920 Speaker 1: in Silicon Valley and beyond. This is Bloomberg Technology with 3 00:00:10,960 --> 00:00:26,400 Speaker 1: Emily jay I made Ludlow in New York in family 4 00:00:26,520 --> 00:00:29,520 Speaker 1: chang This is Bloomberg Technology. Coming up in the next hour. 5 00:00:29,600 --> 00:00:33,199 Speaker 1: A Bloomberg report about Apple's plans to scale back iPhone 6 00:00:33,240 --> 00:00:35,880 Speaker 1: production sends the stock down by as much as four 7 00:00:35,920 --> 00:00:38,960 Speaker 1: point six pc. The company planned to build an extra 8 00:00:39,080 --> 00:00:43,040 Speaker 1: six million phones, but the extra demand never materialized. We'll 9 00:00:43,040 --> 00:00:46,960 Speaker 1: have the details in a moment. Plus, Amazon devices get 10 00:00:47,000 --> 00:00:50,120 Speaker 1: a facelift and a good night's rest. The company unveiled 11 00:00:50,120 --> 00:00:52,720 Speaker 1: a bedside sleep tracker, as well as a new Kindle, 12 00:00:52,920 --> 00:00:56,880 Speaker 1: updated ring cameras, and echo products. I'll discuss with Amazon 13 00:00:57,000 --> 00:01:01,520 Speaker 1: Senior VP of Devices and so cause, Jeremy Alaire talks 14 00:01:01,520 --> 00:01:05,240 Speaker 1: about the latest announcements from their Converge twenty two conference, 15 00:01:05,440 --> 00:01:10,040 Speaker 1: including its new partnership with Robin Hood. Bloomberger has learned 16 00:01:10,040 --> 00:01:12,679 Speaker 1: Apple is backing off plans to increase production of its 17 00:01:12,680 --> 00:01:15,760 Speaker 1: new iPhones this year. The company had expected a surge 18 00:01:15,800 --> 00:01:19,440 Speaker 1: in demand, but that hadn't happened, according to sources. Bloomber's 19 00:01:19,480 --> 00:01:22,360 Speaker 1: Mount German joins me from l A with the details. Mark, 20 00:01:22,440 --> 00:01:26,000 Speaker 1: what is our latest reporting on what's going on? So 21 00:01:26,120 --> 00:01:30,000 Speaker 1: for two, Apple set out to build and sell through 22 00:01:30,160 --> 00:01:34,120 Speaker 1: ninety million new iPhone fourteen units. That's across the four models, 23 00:01:34,160 --> 00:01:37,480 Speaker 1: the fourteen, the fourteen plus, the Pro, and the Pro Max. 24 00:01:37,840 --> 00:01:40,360 Speaker 1: But recently they sort of had this extra credit idea 25 00:01:40,400 --> 00:01:42,880 Speaker 1: I'll call it for an extra six million phones on 26 00:01:42,959 --> 00:01:45,160 Speaker 1: top of that ninety million. But like you said, that 27 00:01:45,280 --> 00:01:49,000 Speaker 1: extra six million no longer necessary because the concerns about 28 00:01:49,000 --> 00:01:52,720 Speaker 1: that extra demand not happening in two. I would say 29 00:01:52,760 --> 00:01:55,919 Speaker 1: that probably has to do with some recession pressures inflationary 30 00:01:55,920 --> 00:01:59,440 Speaker 1: pressures as well. That people are experiencing the iPhone fourteen 31 00:01:59,480 --> 00:02:03,400 Speaker 1: and fourteen plus not significant upgrades over the thirteens, but 32 00:02:03,520 --> 00:02:05,760 Speaker 1: the pros that's where the big upgrades are. That's what 33 00:02:05,840 --> 00:02:08,160 Speaker 1: people want to buy. So I think people are holding 34 00:02:08,160 --> 00:02:10,400 Speaker 1: off on buying the phone until they're able to buy 35 00:02:10,680 --> 00:02:12,799 Speaker 1: that fourteen Pro or Pro Max for when it makes 36 00:02:12,800 --> 00:02:15,720 Speaker 1: sense for them to upgrade to those price here and 37 00:02:15,840 --> 00:02:18,880 Speaker 1: quite frankly far better versions of the device market. Seems 38 00:02:18,919 --> 00:02:22,320 Speaker 1: to be some evidence some data that consumers around the 39 00:02:22,320 --> 00:02:24,560 Speaker 1: world of going to the higher price point pro. What 40 00:02:24,639 --> 00:02:28,280 Speaker 1: have we learned about early demand. Yeah, early demand tells 41 00:02:28,320 --> 00:02:31,360 Speaker 1: us that the iPhone fourteen Pro and particularly iPhone fourteen 42 00:02:31,400 --> 00:02:34,200 Speaker 1: Pro Max, that's where it's at this year. People want 43 00:02:34,240 --> 00:02:36,839 Speaker 1: those devices. If you just look at on your over 44 00:02:36,919 --> 00:02:39,640 Speaker 1: year level, the move from the iPhone thirteen to the 45 00:02:39,680 --> 00:02:43,440 Speaker 1: fourteen and the non Pro models extremely minimal. I would 46 00:02:43,440 --> 00:02:46,440 Speaker 1: say the thirteen to the fourteen smallest upgrade in the 47 00:02:46,480 --> 00:02:51,040 Speaker 1: iPhone's history, but Pro to Pro very big upgrade. Fort 48 00:02:51,040 --> 00:02:53,960 Speaker 1: makeapixel camera on the back, the dynamic island system that 49 00:02:53,960 --> 00:02:56,160 Speaker 1: you're showing on the on the on the screen right now. 50 00:02:56,720 --> 00:02:59,800 Speaker 1: The satellite connectivity is available on both models, but some 51 00:02:59,840 --> 00:03:02,520 Speaker 1: of those video upgrades, those are all on the Pro models, 52 00:03:02,520 --> 00:03:04,440 Speaker 1: and so I think that's what people really want to 53 00:03:04,480 --> 00:03:07,600 Speaker 1: hold out for. If you look at the Apple online store, 54 00:03:08,280 --> 00:03:11,040 Speaker 1: you can see in particular there the shipment delay times 55 00:03:11,040 --> 00:03:13,959 Speaker 1: for the Pro models far longer than the regular models. 56 00:03:14,000 --> 00:03:17,240 Speaker 1: That's a very good indicator of demand. Also, this is 57 00:03:17,240 --> 00:03:20,000 Speaker 1: not an exaggeration. You go to an Apple store, there 58 00:03:20,040 --> 00:03:22,600 Speaker 1: have been lines around the block for days still for 59 00:03:22,639 --> 00:03:25,000 Speaker 1: the Pro Models. You ask people which phone are you 60 00:03:25,040 --> 00:03:28,240 Speaker 1: here to line up for? You ask fifty people, I 61 00:03:28,280 --> 00:03:30,680 Speaker 1: would say, maybe forty eight or forty nine of them 62 00:03:30,720 --> 00:03:32,920 Speaker 1: are there for the pro phones, not the regular fourteen 63 00:03:33,280 --> 00:03:35,280 Speaker 1: all right, thanks to bloombugs Matt Gum and I want 64 00:03:35,280 --> 00:03:37,640 Speaker 1: to stick with this story and bring in forest to research. 65 00:03:37,760 --> 00:03:42,880 Speaker 1: Vice president Julie asked, Julie, this is interesting because no 66 00:03:42,920 --> 00:03:46,600 Speaker 1: matter what the environment, people buy iPhones around the world. 67 00:03:46,680 --> 00:03:50,560 Speaker 1: What's your read on what bloombug reported over overnight? Yes, 68 00:03:50,840 --> 00:03:52,760 Speaker 1: thank you. So I think there's a number of factors. 69 00:03:52,800 --> 00:03:54,520 Speaker 1: So I think the first one is always you know, 70 00:03:54,600 --> 00:03:58,640 Speaker 1: we know that Apple's iPhone owners and buyers are more 71 00:03:58,720 --> 00:04:01,280 Speaker 1: affluent than the of and Android. Even if you just 72 00:04:01,280 --> 00:04:03,600 Speaker 1: look in the U S alone, the average household income 73 00:04:03,680 --> 00:04:06,680 Speaker 1: of an iPhone owner is eighty eight thousand dollars versus 74 00:04:06,680 --> 00:04:10,000 Speaker 1: seventy nine for Android. UH. Thirty two percent of households 75 00:04:10,000 --> 00:04:12,240 Speaker 1: that own an iPhone have a household income of more 76 00:04:12,280 --> 00:04:14,960 Speaker 1: than a hundred thousand dollars a year. For Android, that's 77 00:04:14,960 --> 00:04:17,880 Speaker 1: twenty three percent. UH. And final point there is, if 78 00:04:17,920 --> 00:04:19,640 Speaker 1: you look at households with an income of over three 79 00:04:20,040 --> 00:04:23,719 Speaker 1: thousand dollars annually, three percent for the iPhone and only 80 00:04:23,720 --> 00:04:26,080 Speaker 1: one percent for Android. So I think that's you know, 81 00:04:26,120 --> 00:04:27,480 Speaker 1: the top of the list. We know, and there's a 82 00:04:27,480 --> 00:04:30,360 Speaker 1: lot of data that shows that simply iPhone owners are 83 00:04:30,480 --> 00:04:35,039 Speaker 1: more affluent than those that are purchasing an Android. I 84 00:04:35,080 --> 00:04:37,040 Speaker 1: think the second thing that comes into the mix is 85 00:04:37,080 --> 00:04:40,120 Speaker 1: the upgrade cycle. Last year and this year has been 86 00:04:40,160 --> 00:04:42,280 Speaker 1: an interesting time because a lot of carriers shut down 87 00:04:42,360 --> 00:04:44,680 Speaker 1: three G and they forced an upgrade. So when we 88 00:04:44,720 --> 00:04:47,039 Speaker 1: look at our data across the United States and Europe, 89 00:04:47,040 --> 00:04:51,320 Speaker 1: anywhere from twenty five of consumers have purchased an iPhone 90 00:04:51,320 --> 00:04:53,159 Speaker 1: in the past year, and I think it's a really 91 00:04:53,200 --> 00:04:56,760 Speaker 1: substantial number, especially when you take into account that iPhone 92 00:04:56,760 --> 00:04:59,640 Speaker 1: represents under fifty percent of share in each of those 93 00:04:59,640 --> 00:05:02,799 Speaker 1: market once you get outside of the United States. And then, finally, 94 00:05:02,880 --> 00:05:04,520 Speaker 1: to echo what Mark was saying, you know, when we 95 00:05:04,560 --> 00:05:06,360 Speaker 1: look at it, we talked to our consumers. Six one 96 00:05:06,680 --> 00:05:09,440 Speaker 1: of consumers expect that a recession is coming, and so 97 00:05:09,520 --> 00:05:12,600 Speaker 1: they are slowing spending. We've got thirty of US online 98 00:05:12,600 --> 00:05:15,440 Speaker 1: adults saying we are going to spend less on electronics 99 00:05:15,480 --> 00:05:17,280 Speaker 1: in the upcoming year. So there's a little bit of 100 00:05:17,360 --> 00:05:20,320 Speaker 1: hesitation in the market um and consumers are pulling back 101 00:05:20,320 --> 00:05:22,599 Speaker 1: on spending. Julie, we love having you on because you 102 00:05:22,640 --> 00:05:25,599 Speaker 1: crunch the numbers. Let's take a step back, let's zoom 103 00:05:25,600 --> 00:05:28,960 Speaker 1: out here. A lot of cell siders seem to be saying, well, 104 00:05:29,000 --> 00:05:36,080 Speaker 1: I was always modeling nine units anyway, So what's changed. Yeah, 105 00:05:36,240 --> 00:05:37,800 Speaker 1: I think it's it's hard to say, you know what, 106 00:05:37,960 --> 00:05:40,400 Speaker 1: you know, the analysts were modeling. I think it's um. 107 00:05:40,480 --> 00:05:42,880 Speaker 1: You know, certainly, there's always good reasons to think about 108 00:05:42,920 --> 00:05:45,960 Speaker 1: why they could have grown the market. Um, certainly. You know, 109 00:05:46,240 --> 00:05:48,120 Speaker 1: for example, one of the things that we know that 110 00:05:48,160 --> 00:05:52,120 Speaker 1: if of consumers who buy Apple products only buy Apple products. 111 00:05:52,440 --> 00:05:54,839 Speaker 1: So if they're buying a watch, if they're buying a tablet, 112 00:05:54,880 --> 00:05:57,359 Speaker 1: if they're signing up for Apple one, they're more likely 113 00:05:57,400 --> 00:05:59,039 Speaker 1: to be a smartphone owner, you know, an io as 114 00:05:59,080 --> 00:06:00,920 Speaker 1: smartphone owner. So you know, it's fair to expect that 115 00:06:00,960 --> 00:06:03,240 Speaker 1: Apple could have you know, predicted that they would have 116 00:06:03,279 --> 00:06:06,560 Speaker 1: converted more Android users this year. And they've also got 117 00:06:06,600 --> 00:06:08,520 Speaker 1: a very deep lineup that's capable of doing that and 118 00:06:08,560 --> 00:06:11,800 Speaker 1: competing at lower price points. So again, I don't know 119 00:06:11,839 --> 00:06:13,360 Speaker 1: what was going on when they did the end when 120 00:06:13,360 --> 00:06:15,960 Speaker 1: they did the forecast, but there's you know, you know, 121 00:06:16,000 --> 00:06:17,840 Speaker 1: six millions not a big number on top of ninety. 122 00:06:17,960 --> 00:06:19,920 Speaker 1: You know, it's it's more than it's more than five, 123 00:06:19,920 --> 00:06:21,520 Speaker 1: but it's not Demper said, it's not a big number. 124 00:06:22,279 --> 00:06:25,360 Speaker 1: When we talk about global technology the prospects of a recession, 125 00:06:25,760 --> 00:06:28,320 Speaker 1: we're trying to look for clues, right of what's happening 126 00:06:28,320 --> 00:06:32,120 Speaker 1: with the global consumer. What do you see broadly in 127 00:06:32,160 --> 00:06:35,800 Speaker 1: the smartphone market globally? Are their markets where the consumers weak? 128 00:06:35,920 --> 00:06:41,000 Speaker 1: Are they're spending habits that are changing? Yes, so I think, 129 00:06:41,040 --> 00:06:42,760 Speaker 1: you know, certainly when we look at the numbers and 130 00:06:42,760 --> 00:06:44,839 Speaker 1: we're talking to consumers, where are you you know what 131 00:06:45,000 --> 00:06:47,719 Speaker 1: concerns you write? Food is more expensive, you know, rents 132 00:06:47,760 --> 00:06:51,039 Speaker 1: are up all right, Right, there's a few categories you 133 00:06:51,080 --> 00:06:53,160 Speaker 1: know that I would say are certainly more essential than 134 00:06:53,200 --> 00:06:56,000 Speaker 1: having the latest and greatest smartphone. Um but again, like 135 00:06:56,080 --> 00:06:57,880 Speaker 1: you know, keep in mind, you know, the upgrades, like 136 00:06:57,880 --> 00:07:00,800 Speaker 1: these phones are amazing, amazing feats of engineering. There are 137 00:07:00,800 --> 00:07:03,640 Speaker 1: amazing devices, whether it's an iPhone device or it's you know, 138 00:07:03,680 --> 00:07:06,880 Speaker 1: one of the latest Android devices. Consumers are hanging onto 139 00:07:06,920 --> 00:07:09,800 Speaker 1: these vices for you know, two, three, four years, and 140 00:07:09,840 --> 00:07:12,760 Speaker 1: so that we saw consumers in United States buy an 141 00:07:12,760 --> 00:07:15,600 Speaker 1: iPhone in the last twelve months is astounding on its own, 142 00:07:15,600 --> 00:07:17,320 Speaker 1: and so that also could be contributing to a little 143 00:07:17,320 --> 00:07:19,720 Speaker 1: bit of softer demands at you know, all of the 144 00:07:19,760 --> 00:07:23,160 Speaker 1: price points as we go into the end of all right, 145 00:07:23,480 --> 00:07:26,760 Speaker 1: forest to Research Vice President Julie Arsk, Thank you very much. 146 00:07:27,360 --> 00:07:31,119 Speaker 1: Coming up Amazon's ambient intelligence, how the company is looking 147 00:07:31,160 --> 00:07:35,080 Speaker 1: to a more personalized and proactive future in its devices. 148 00:07:35,080 --> 00:07:39,480 Speaker 1: Our conversation with Amazon's Dave Limp. Next, This is Bloomberg. 149 00:07:50,280 --> 00:07:53,480 Speaker 1: On Wednesday, Amazon held its full Hardware event, where announced 150 00:07:53,520 --> 00:07:55,960 Speaker 1: a bunch of new gadgets. I caught up with Dave Limp, 151 00:07:56,000 --> 00:07:59,440 Speaker 1: amazon senior vice president for Devices and Services, right after 152 00:07:59,480 --> 00:08:02,320 Speaker 1: the event and also about the company's strategy. With so 153 00:08:02,400 --> 00:08:06,640 Speaker 1: much competition in the space, what we're trying to do 154 00:08:06,720 --> 00:08:10,320 Speaker 1: is build devices and services that mostly focused on the home, 155 00:08:10,360 --> 00:08:13,720 Speaker 1: although increasingly in the car. That follow the pattern of 156 00:08:13,760 --> 00:08:16,400 Speaker 1: what we call ambient intelligence, which is the ability for 157 00:08:16,800 --> 00:08:20,800 Speaker 1: devices to be very very useful to customers when they're 158 00:08:20,840 --> 00:08:22,840 Speaker 1: in the foreground and when they need it, but when 159 00:08:22,880 --> 00:08:25,280 Speaker 1: you're not using it, they kind of disappear in the background. 160 00:08:25,320 --> 00:08:27,320 Speaker 1: And when we're doing when we're at our best, we're 161 00:08:27,320 --> 00:08:30,320 Speaker 1: allowing customers to pick their heads up, enjoy the real world, 162 00:08:30,400 --> 00:08:33,480 Speaker 1: enjoy their families, and let technology help that rather than 163 00:08:33,600 --> 00:08:36,240 Speaker 1: being you know, absorbed in their phones or out in 164 00:08:36,440 --> 00:08:40,080 Speaker 1: some metaverse somewhere. With inflation such as it is around 165 00:08:40,080 --> 00:08:43,280 Speaker 1: the world, higher input costs. How conscious a decision was 166 00:08:43,360 --> 00:08:47,680 Speaker 1: that with pricing to not raise prices with certain product lines. 167 00:08:49,880 --> 00:08:51,839 Speaker 1: I think we're always trying to you know, since the 168 00:08:51,960 --> 00:08:55,120 Speaker 1: very beginning, our first Kindle, we've we have fifteen years ago, 169 00:08:55,200 --> 00:08:57,960 Speaker 1: we've tried to make our products as affordable as possible, 170 00:08:58,040 --> 00:09:00,600 Speaker 1: you know. We our strategy has been the same since 171 00:09:00,640 --> 00:09:02,560 Speaker 1: the very beginning, which is we want to make money 172 00:09:02,600 --> 00:09:05,840 Speaker 1: when customers use their products, not necessarily when they buy them. 173 00:09:05,880 --> 00:09:09,200 Speaker 1: And so uh, we we are obviously looking always looking 174 00:09:09,200 --> 00:09:12,720 Speaker 1: at commodity costs. But but part of the ability to 175 00:09:12,760 --> 00:09:16,280 Speaker 1: pass on that value to customers is that the businesses 176 00:09:16,320 --> 00:09:18,599 Speaker 1: at a scale where we can buy in volume and 177 00:09:18,720 --> 00:09:20,760 Speaker 1: and we want to give that value back to customers 178 00:09:20,760 --> 00:09:23,440 Speaker 1: wherever possible. You mentioned the Kindle. It's a bit of 179 00:09:23,440 --> 00:09:26,840 Speaker 1: a throwback, right, the first Amazon device, and you've added 180 00:09:26,840 --> 00:09:30,880 Speaker 1: a stylus interesting products. What's the strategy with that. Do 181 00:09:30,920 --> 00:09:35,080 Speaker 1: you think that this is going to be a volume seller? Well, 182 00:09:35,160 --> 00:09:38,240 Speaker 1: Kindle Scribe is in some ways, it's the Kindle we've 183 00:09:38,280 --> 00:09:40,400 Speaker 1: always wanted to build, you know, and we have some 184 00:09:40,400 --> 00:09:43,200 Speaker 1: great kindles we just announced some last last two weeks 185 00:09:43,200 --> 00:09:46,400 Speaker 1: ago that are at but this one, as you mentioned, 186 00:09:46,440 --> 00:09:49,199 Speaker 1: it's the first kindle you can write on, and it 187 00:09:49,240 --> 00:09:53,120 Speaker 1: has a ten point three inch display that's incredibly high resolution. 188 00:09:54,040 --> 00:09:56,959 Speaker 1: I but also as a stylist, and one that doesn't 189 00:09:56,960 --> 00:09:59,160 Speaker 1: have a battery. You don't have to sink. It just works. 190 00:09:59,480 --> 00:10:03,640 Speaker 1: And when write on Kindle Scribe, it really does feel 191 00:10:03,640 --> 00:10:06,320 Speaker 1: like you're writing on paper. It's something that's amazing. You 192 00:10:06,400 --> 00:10:08,920 Speaker 1: kind of have to try it to see it. And uh, 193 00:10:08,960 --> 00:10:12,000 Speaker 1: you know, I never try to predict volumes. Uh. What 194 00:10:12,040 --> 00:10:13,959 Speaker 1: we try to do is build great products and let 195 00:10:14,000 --> 00:10:16,920 Speaker 1: customers speak for themselves. I know for sure that I 196 00:10:16,960 --> 00:10:19,319 Speaker 1: will be buying one of these, You'll be buying one. 197 00:10:19,360 --> 00:10:22,360 Speaker 1: But around the world that the consumer is feeling pain 198 00:10:22,559 --> 00:10:26,040 Speaker 1: and at the same time there's evidence that consumer is 199 00:10:26,080 --> 00:10:28,480 Speaker 1: all still spending at the higher end of the market. 200 00:10:28,520 --> 00:10:31,160 Speaker 1: What are you saying in the markets that you operate 201 00:10:31,200 --> 00:10:33,600 Speaker 1: in and the spending habits of consumers where they are 202 00:10:33,960 --> 00:10:40,360 Speaker 1: putting cash awar to holding back. Yeah, obviously, we our 203 00:10:40,400 --> 00:10:42,840 Speaker 1: first signal was a couple of months ago with Prime Day. 204 00:10:42,920 --> 00:10:45,400 Speaker 1: We had we had a good Prime day. For my 205 00:10:45,520 --> 00:10:50,040 Speaker 1: part of Amazon's business, we uh. I think customers tend 206 00:10:50,120 --> 00:10:54,440 Speaker 1: to look for value in times when the economy is tougher. 207 00:10:54,920 --> 00:10:57,400 Speaker 1: It's hard to predict what's going to happen as we 208 00:10:57,440 --> 00:10:59,520 Speaker 1: go into queue four. There's no question that there is 209 00:10:59,600 --> 00:11:03,160 Speaker 1: tightening in the economy. Um, But I think what the 210 00:11:03,200 --> 00:11:05,040 Speaker 1: best thing we can do is get our inputs right 211 00:11:05,160 --> 00:11:07,440 Speaker 1: and build products that we think customers are gonna love. 212 00:11:07,480 --> 00:11:11,199 Speaker 1: Price them, as you mentioned earlier, crisply so that they're affordable, 213 00:11:11,679 --> 00:11:14,000 Speaker 1: and then you know the rest is going to be 214 00:11:14,080 --> 00:11:17,719 Speaker 1: up to up to the consumer. But I have I'm 215 00:11:17,800 --> 00:11:21,040 Speaker 1: internal optimists, but I have a high level conviction there's 216 00:11:21,040 --> 00:11:23,360 Speaker 1: going to be a lot of echoes and kindles and 217 00:11:23,440 --> 00:11:25,840 Speaker 1: other products under people's trees this year. The deal with 218 00:11:25,920 --> 00:11:28,599 Speaker 1: I Robot, I think we've got used last week that 219 00:11:28,679 --> 00:11:33,400 Speaker 1: the FTC has made a second request for additional information. 220 00:11:33,880 --> 00:11:37,000 Speaker 1: How optimistic are you that deal gets done and how 221 00:11:37,040 --> 00:11:42,000 Speaker 1: important is I Robot. Well, obviously we have to go 222 00:11:42,040 --> 00:11:44,920 Speaker 1: through approve the approval cycles around the world, and until 223 00:11:44,960 --> 00:11:47,600 Speaker 1: we do get through, those will continue to operate at 224 00:11:47,720 --> 00:11:51,240 Speaker 1: arm's length as separate companies. But you know, I wouldn't 225 00:11:51,800 --> 00:11:54,839 Speaker 1: have ever kind of sat down with Colin, if we 226 00:11:54,880 --> 00:11:57,160 Speaker 1: didn't have optimism that we could get the get the 227 00:11:57,240 --> 00:12:01,320 Speaker 1: transaction done. Colin, who's the CEO of I Robot, is 228 00:12:01,360 --> 00:12:04,800 Speaker 1: the kind of the most missionary entrepreneur, one of the 229 00:12:04,840 --> 00:12:07,480 Speaker 1: most missionary entrepreneurs I've ever met, and I look forward 230 00:12:07,520 --> 00:12:11,000 Speaker 1: to once we consummate the transaction to working with them 231 00:12:11,000 --> 00:12:15,760 Speaker 1: even closer. You have really expanded the devices offering in 232 00:12:15,800 --> 00:12:18,480 Speaker 1: recent years. There's so many product lines, product type. We 233 00:12:18,520 --> 00:12:21,400 Speaker 1: didn't even get onto the new TVs um and some 234 00:12:21,480 --> 00:12:23,520 Speaker 1: of the other devices aimed at kids. But all that 235 00:12:23,559 --> 00:12:27,120 Speaker 1: makes me think about your manufacturing footprint print globally. Now 236 00:12:28,040 --> 00:12:31,320 Speaker 1: let's talk semiconductors. You know, how is supply chain for you? 237 00:12:31,400 --> 00:12:34,760 Speaker 1: How is manufacturing and how are access to key chips 238 00:12:34,800 --> 00:12:39,160 Speaker 1: that you need to go into these devices. I think 239 00:12:39,200 --> 00:12:42,160 Speaker 1: we're coming out at the other end of at least 240 00:12:42,160 --> 00:12:45,840 Speaker 1: for the products that are under my purview, of the 241 00:12:45,880 --> 00:12:48,839 Speaker 1: worst of the supply train crisis. I don't think it's 242 00:12:48,880 --> 00:12:52,160 Speaker 1: by any means over We still see disruptions in the 243 00:12:52,160 --> 00:12:56,720 Speaker 1: worldwide transportation network, especially if you're throwing things on ocean. 244 00:12:57,360 --> 00:13:02,240 Speaker 1: UH and certain chip sets are still in shorter supply, 245 00:13:02,679 --> 00:13:05,880 Speaker 1: but some of the more critical components, UH, you know, 246 00:13:06,240 --> 00:13:09,120 Speaker 1: systems on a chip, the actual processors and our products. 247 00:13:09,800 --> 00:13:12,520 Speaker 1: The supply looks brighter for them. When you look at 248 00:13:12,640 --> 00:13:16,000 Speaker 1: UH display panels for things like tablets and TVs, that 249 00:13:16,120 --> 00:13:19,640 Speaker 1: supply looks better than it did a year ago. So again, 250 00:13:19,679 --> 00:13:21,880 Speaker 1: I don't think we're through it, but I can start 251 00:13:21,960 --> 00:13:25,000 Speaker 1: seeing a light at the end of the tunnel. That 252 00:13:25,120 --> 00:13:28,640 Speaker 1: was Amazon's Dave Limp. Let's stick with Amazon's product unvailing 253 00:13:28,679 --> 00:13:31,600 Speaker 1: and bring in Tom Forte if d a Davidson Tom 254 00:13:31,600 --> 00:13:33,839 Speaker 1: a lot of products, some of them are faceless, right 255 00:13:33,960 --> 00:13:36,400 Speaker 1: upgrades to existing lines. Some of them are You did 256 00:13:36,400 --> 00:13:39,560 Speaker 1: any of that move the needle for you? Sure? So 257 00:13:39,640 --> 00:13:41,959 Speaker 1: when I think about their strategy, I think of them 258 00:13:42,000 --> 00:13:44,280 Speaker 1: as the low cost or one of the low cost 259 00:13:44,360 --> 00:13:48,199 Speaker 1: providers of hardware and the consumer electronics space. I think 260 00:13:48,200 --> 00:13:49,960 Speaker 1: it's about time, and I think it should be a 261 00:13:50,040 --> 00:13:54,080 Speaker 1: very popular product that they're adding a stylus to the Kindle. 262 00:13:54,600 --> 00:13:57,800 Speaker 1: When I think of their different lines of consumer electronics products, 263 00:13:57,920 --> 00:14:03,040 Speaker 1: Kindle's probably probably we're we would say Amazon is most dominant. Otherwise, 264 00:14:03,040 --> 00:14:05,240 Speaker 1: when you think about a lot of their echo devices. 265 00:14:05,720 --> 00:14:07,880 Speaker 1: The good news is that Amazon makes a lot of 266 00:14:07,920 --> 00:14:12,280 Speaker 1: devices that leverage Alexa, but a lot of other consumer 267 00:14:12,280 --> 00:14:15,320 Speaker 1: electronic companies do too, So I think when you think 268 00:14:15,320 --> 00:14:18,360 Speaker 1: about the products that are leveraging Alexa, it isn't just 269 00:14:18,559 --> 00:14:21,240 Speaker 1: what Amazon is doing on the Echo device line, but 270 00:14:21,320 --> 00:14:24,440 Speaker 1: the fact that so many manufacturers think so Nos as 271 00:14:24,440 --> 00:14:28,880 Speaker 1: an example, are making products integrated with Alexa. That's the 272 00:14:28,880 --> 00:14:31,240 Speaker 1: important thing there. So that was kind of my initial 273 00:14:31,280 --> 00:14:34,560 Speaker 1: take on their new hardware offering. And I'm fascinated at 274 00:14:34,560 --> 00:14:36,920 Speaker 1: the Astro and I'm glad you talked to him about 275 00:14:36,920 --> 00:14:40,120 Speaker 1: the i robot acquisition. So what is it about the 276 00:14:40,200 --> 00:14:43,800 Speaker 1: roomba that attracted Amazon and why does it feel like 277 00:14:43,840 --> 00:14:46,680 Speaker 1: it needed to make an acquisition there rather than extend 278 00:14:46,720 --> 00:14:49,480 Speaker 1: what it's already doing with the Astro line up. The 279 00:14:49,560 --> 00:14:52,800 Speaker 1: timing of this is interesting because we've just had news 280 00:14:52,880 --> 00:14:56,680 Speaker 1: of a second Prime Day essentially next month. Do you 281 00:14:56,720 --> 00:14:59,480 Speaker 1: expect consume is right now around the world to rush 282 00:14:59,480 --> 00:15:04,880 Speaker 1: out and alot these Amazon devices? Yes and no. So 283 00:15:04,880 --> 00:15:07,400 Speaker 1: so let's start with the second prime Day in one 284 00:15:07,520 --> 00:15:10,600 Speaker 1: calendar year. So it's a long time student of Amazon. 285 00:15:10,840 --> 00:15:13,960 Speaker 1: I remember when they had the first Prime Day and 286 00:15:14,000 --> 00:15:16,320 Speaker 1: it was in July, and the reason was they wanted 287 00:15:16,360 --> 00:15:19,080 Speaker 1: to test their logistics to see if they were ready 288 00:15:19,120 --> 00:15:23,080 Speaker 1: for their big sales days Black Friday Cyber Monday. So, 289 00:15:23,160 --> 00:15:27,720 Speaker 1: in my opinion, having two Prime days encounter is actually 290 00:15:27,720 --> 00:15:29,920 Speaker 1: a sign of weakness. It means that they need a 291 00:15:29,960 --> 00:15:32,120 Speaker 1: sale because their sales are not doing as well as 292 00:15:32,120 --> 00:15:34,560 Speaker 1: they hope for. I also think they want to leverage 293 00:15:34,600 --> 00:15:37,160 Speaker 1: their logistics to get as much of a return on 294 00:15:37,200 --> 00:15:40,600 Speaker 1: that investment. So do I think investors or consumers rather 295 00:15:40,600 --> 00:15:43,880 Speaker 1: will gobble up their consumer electronics devices at a second 296 00:15:43,880 --> 00:15:47,960 Speaker 1: Prime Day? Generally speaking, they do well with Amazon devices 297 00:15:48,000 --> 00:15:50,400 Speaker 1: on Prime Day, but as it pertains to the sales 298 00:15:50,400 --> 00:15:52,760 Speaker 1: trends in general on the stock, I'm concerned that they're 299 00:15:52,760 --> 00:15:54,840 Speaker 1: having two sales in one year. I think that's a 300 00:15:54,840 --> 00:15:58,440 Speaker 1: negative sign. Tom. I wouldn't you give me an explanation 301 00:15:58,480 --> 00:16:01,720 Speaker 1: of why we care about Amazon devices business. They price 302 00:16:01,800 --> 00:16:04,920 Speaker 1: them competitively, right, But it seems to me the idea 303 00:16:04,960 --> 00:16:07,840 Speaker 1: here is just to bring more people into Prime, more 304 00:16:07,880 --> 00:16:11,200 Speaker 1: people using Alecta products. They're not actually so focused on 305 00:16:11,280 --> 00:16:14,200 Speaker 1: making money through the hardware, are they. You know, they're 306 00:16:14,200 --> 00:16:17,960 Speaker 1: definitely the opposite of Apple, where Apple makes the majority 307 00:16:17,960 --> 00:16:21,480 Speaker 1: of its revenue from its hardware sales. For Amazon hardware 308 00:16:21,520 --> 00:16:24,600 Speaker 1: is essentially an enabler. What can I give a consumer 309 00:16:24,920 --> 00:16:27,080 Speaker 1: that will make it easier for them to buy products 310 00:16:27,080 --> 00:16:29,560 Speaker 1: on Amazon? What can I give a consumer that will 311 00:16:29,600 --> 00:16:33,520 Speaker 1: make it easier for them to watch videos on Amazon? So, 312 00:16:33,760 --> 00:16:37,440 Speaker 1: in that regard, not the profit neutle mover. Certainly it 313 00:16:37,600 --> 00:16:40,360 Speaker 1: is for Apple, but it can have a positive impact 314 00:16:40,440 --> 00:16:43,040 Speaker 1: on their e commerce sales to the extent that everything 315 00:16:43,040 --> 00:16:44,880 Speaker 1: they do makes it easier for the consumers to buy 316 00:16:44,920 --> 00:16:48,560 Speaker 1: products through Amazon. Hey, Tom, really quickly, you were concerned 317 00:16:48,600 --> 00:16:51,120 Speaker 1: about the mixed reception for Rings of Power. I've been 318 00:16:51,160 --> 00:16:54,800 Speaker 1: watching Rings of Power. Have the episode so far changed 319 00:16:54,800 --> 00:16:57,960 Speaker 1: your mind? Okay, So I'm publishing a note tomorrow where 320 00:16:57,960 --> 00:17:00,440 Speaker 1: I'm gonna talk about how I essentially felt sleep in 321 00:17:00,440 --> 00:17:03,960 Speaker 1: episodes one, three, and four, and have a much episode five. Yet, 322 00:17:04,359 --> 00:17:08,400 Speaker 1: So with approval rating and written Tomatoes, I'm very concerned 323 00:17:08,440 --> 00:17:13,000 Speaker 1: about the billion dollars investment been made. Tom Forte, harsh 324 00:17:13,080 --> 00:17:16,120 Speaker 1: critic of d A. Davidson. Of course, thank you very much. 325 00:17:24,800 --> 00:17:28,040 Speaker 1: Elon Musk asked a federal appeals court to throw out 326 00:17:28,080 --> 00:17:31,359 Speaker 1: the deal he made with the SEC in eighteen over 327 00:17:31,359 --> 00:17:36,160 Speaker 1: a so called Twitter sitter. Since a Tesla lawyer has 328 00:17:36,200 --> 00:17:40,399 Speaker 1: screened all of Musque company related tweets. We believe after 329 00:17:40,440 --> 00:17:44,439 Speaker 1: a tweet about taking Tesla private forced the SEC to act. 330 00:17:44,920 --> 00:17:47,919 Speaker 1: Musk calls the Twitter Sitter agreement and a legal effort 331 00:17:47,960 --> 00:17:51,960 Speaker 1: to muzzle him, adding that it's hindering his freedom of speech. 332 00:17:52,160 --> 00:17:55,560 Speaker 1: A judge refused Musque's last plea to end the Twitter 333 00:17:55,680 --> 00:18:00,440 Speaker 1: sist a deal back in April, and Tesla's did Joe 334 00:18:00,440 --> 00:18:03,479 Speaker 1: Gibier as a board member. Gabier is the co founder 335 00:18:03,480 --> 00:18:07,040 Speaker 1: of Airbnb and last fourteen years has helped launch Airbnb's 336 00:18:07,080 --> 00:18:11,719 Speaker 1: design studio and airbnb dot org, the company's nonprofit foundation. 337 00:18:12,080 --> 00:18:14,280 Speaker 1: He recently stepped back from his full time role in 338 00:18:14,320 --> 00:18:18,960 Speaker 1: operations to pursue other ventures. Gibier replaces Larry Ellison on 339 00:18:19,000 --> 00:18:22,720 Speaker 1: the board, and General Mills, the maker of Cinnamon Toast 340 00:18:22,760 --> 00:18:26,800 Speaker 1: Crunch and Annie's Box Pastors, is backing food tech startup 341 00:18:27,040 --> 00:18:30,040 Speaker 1: grub Market. San Francisco based grub Market has raised a 342 00:18:30,160 --> 00:18:32,880 Speaker 1: hundred and twenty million dollars in new equity from General 343 00:18:32,920 --> 00:18:36,400 Speaker 1: Mills and other investors, including Tiger Global, and a two 344 00:18:36,440 --> 00:18:39,919 Speaker 1: billion dollar valuation. The startup offers software and an e 345 00:18:39,920 --> 00:18:44,440 Speaker 1: commerce platform connecting farmers and key food suppliers with customers. 346 00:18:44,680 --> 00:18:48,800 Speaker 1: Grub Market operates all across the US, South America, Asia, Europe, 347 00:18:48,800 --> 00:18:51,119 Speaker 1: and Africa, and i p O could also be on 348 00:18:51,160 --> 00:18:54,679 Speaker 1: the horizon with grub Market holding talks with underwriters. Bloomberg 349 00:18:54,840 --> 00:19:05,919 Speaker 1: has reported this is Bloomberg Technology. I'm Ed Ludlow in 350 00:19:05,920 --> 00:19:09,320 Speaker 1: New York. The popular messaging platform WhatsApp is more than 351 00:19:09,359 --> 00:19:12,879 Speaker 1: just an encryptive messaging app connecting people worldwide. It's become 352 00:19:13,160 --> 00:19:16,800 Speaker 1: a major part of Wall Street communication. That's why regulators 353 00:19:16,800 --> 00:19:19,800 Speaker 1: reach settlements with a dozen banks for failing to monitor 354 00:19:19,840 --> 00:19:24,640 Speaker 1: employees communications on on unauthorized messaging apps like WhatsApp. Wall 355 00:19:24,680 --> 00:19:26,960 Speaker 1: Street has been hit with more than two billion dollars 356 00:19:27,000 --> 00:19:31,479 Speaker 1: of fines and what's become called the WhatsApp investigation. Goldman Sachs, 357 00:19:31,520 --> 00:19:34,920 Speaker 1: Bank of America and City Group were among those penalized. 358 00:19:34,920 --> 00:19:38,359 Speaker 1: Bloomberg Street are Naturation is covering this story. Let's go 359 00:19:38,359 --> 00:19:41,160 Speaker 1: back to the beginning. What is the activity and which 360 00:19:41,200 --> 00:19:43,600 Speaker 1: apps are we talking about here? Again? And that's important 361 00:19:43,640 --> 00:19:45,920 Speaker 1: because why we call it the WhatsApp problem. It's important 362 00:19:45,960 --> 00:19:48,800 Speaker 1: that listeners understand that what we're really talking about is 363 00:19:48,840 --> 00:19:53,080 Speaker 1: something that's dubbed or WhatsApp broke effectively, regulators want banks 364 00:19:53,080 --> 00:19:56,320 Speaker 1: to ensure that they're monitoring all these messaging apps. They 365 00:19:56,320 --> 00:19:58,840 Speaker 1: are worried about the unauthorized use of these apps. So 366 00:19:59,160 --> 00:20:01,680 Speaker 1: WhatsApp is one prominent example, but it could be Signal, 367 00:20:01,760 --> 00:20:03,960 Speaker 1: could be telegramed, it could be any one of these 368 00:20:04,000 --> 00:20:07,160 Speaker 1: apps that have gotten pop so popular in recent years. 369 00:20:07,320 --> 00:20:10,000 Speaker 1: A lot of the communication between bankers and traders, their 370 00:20:10,000 --> 00:20:14,119 Speaker 1: clients just inside the film has gravitated to these platforms. 371 00:20:14,160 --> 00:20:17,840 Speaker 1: But archiving these chats, monitoring these chats, and compliance has 372 00:20:17,880 --> 00:20:20,520 Speaker 1: not kept pace with the growth and technology. There is 373 00:20:20,520 --> 00:20:22,960 Speaker 1: this a pandemic story where we're all sort of at home, 374 00:20:23,040 --> 00:20:25,040 Speaker 1: out of your office and communicating with each other in 375 00:20:25,080 --> 00:20:28,320 Speaker 1: new ways. Or does it pre date that the pandemic 376 00:20:28,400 --> 00:20:30,520 Speaker 1: is an accelerator for sure, But I think it's more 377 00:20:30,520 --> 00:20:33,720 Speaker 1: of a technology story. You have just gotten used to 378 00:20:33,800 --> 00:20:36,520 Speaker 1: the idea that people are just more comfortable using these 379 00:20:36,560 --> 00:20:39,760 Speaker 1: apps to communicate. Even someone sitting two seats down from you, 380 00:20:39,760 --> 00:20:42,119 Speaker 1: you're more likely to send them a message rather than 381 00:20:42,160 --> 00:20:44,840 Speaker 1: pick up the phone and call them or email them. 382 00:20:44,880 --> 00:20:47,320 Speaker 1: That's why there's so much focus on these apps. And 383 00:20:47,359 --> 00:20:49,679 Speaker 1: of course the pandemic played a role because you had 384 00:20:49,720 --> 00:20:53,080 Speaker 1: a disparate situation where everyone left the officers, the officers 385 00:20:53,160 --> 00:20:55,920 Speaker 1: emptied out, and everyone is at home. And when you're 386 00:20:55,920 --> 00:20:58,159 Speaker 1: at home, you're more likely to be more comfortable with 387 00:20:58,200 --> 00:21:00,440 Speaker 1: the kind of apps you use anywhere when you're outside 388 00:21:00,440 --> 00:21:04,479 Speaker 1: your usual eight to six schedule. These fines, seeing big, 389 00:21:04,720 --> 00:21:09,040 Speaker 1: big numbers, why so hefty? It's extraordinary? Two billion dollars 390 00:21:09,040 --> 00:21:12,159 Speaker 1: cost your mind. Eight years back, when Mark Zuckerberg wanted 391 00:21:12,200 --> 00:21:14,919 Speaker 1: to buy WhatsApp, we were all scratching our heads as 392 00:21:14,920 --> 00:21:17,000 Speaker 1: to why they would buy something like that for twenty 393 00:21:17,000 --> 00:21:20,359 Speaker 1: billion dollars in two Now we're talking about a fine 394 00:21:20,400 --> 00:21:23,399 Speaker 1: that cruise as much as two billion dollars that in 395 00:21:23,480 --> 00:21:26,920 Speaker 1: some ways it's truly crazy, because the previous highest fine 396 00:21:26,960 --> 00:21:30,040 Speaker 1: for something like this, which is effectively a record keeping laps, 397 00:21:30,480 --> 00:21:33,880 Speaker 1: was fifteen million dollars one five for Morgan Stanley back 398 00:21:33,880 --> 00:21:35,880 Speaker 1: in two thousand and six. Now each and every bank, 399 00:21:35,920 --> 00:21:37,679 Speaker 1: at least the big banks are coming out there and 400 00:21:37,680 --> 00:21:40,680 Speaker 1: paying two million dollars. This is the kind of fine 401 00:21:40,720 --> 00:21:43,680 Speaker 1: you play pay when you find some sort of wrongdoing, 402 00:21:43,880 --> 00:21:46,960 Speaker 1: when you bring down an insider trading cartel or something 403 00:21:47,040 --> 00:21:51,240 Speaker 1: like that. But this, honestly is the reflection of the 404 00:21:51,280 --> 00:21:55,080 Speaker 1: reality today, which is the Biden administration's approach to regulation. 405 00:21:55,280 --> 00:21:57,320 Speaker 1: And that's what you're saying, playing out some of those 406 00:21:57,440 --> 00:22:00,800 Speaker 1: fines somewhat eye wars ring so bigger than others. I 407 00:22:00,800 --> 00:22:02,320 Speaker 1: guess they like you see it on your screen. There 408 00:22:02,359 --> 00:22:05,920 Speaker 1: there's a big institutions right that we're talking about the 409 00:22:06,119 --> 00:22:08,000 Speaker 1: kind of paying the price for this. I guess the 410 00:22:08,080 --> 00:22:10,760 Speaker 1: question is what happens next? What's the reaction? Tell me 411 00:22:10,800 --> 00:22:14,680 Speaker 1: about the WhatsApp cop? Is a WhatsApp cop on wool Street. 412 00:22:14,720 --> 00:22:17,040 Speaker 1: That's a mouthful that that certainly seems to be the 413 00:22:17,040 --> 00:22:20,320 Speaker 1: funny byproduct of the saga. But we've created a new 414 00:22:20,359 --> 00:22:23,440 Speaker 1: compliance roll. All the banks that have that are part 415 00:22:23,440 --> 00:22:25,960 Speaker 1: of the settlement have agreed with their SEC and CFTC 416 00:22:26,400 --> 00:22:30,240 Speaker 1: to install a new confluence official whose role, effectively is 417 00:22:30,320 --> 00:22:32,640 Speaker 1: to make sure that there are archiving and monitoring these 418 00:22:32,680 --> 00:22:35,720 Speaker 1: communications properly. And we're more than happy to dub that 419 00:22:35,920 --> 00:22:39,440 Speaker 1: role as the WhatsApp cop. What was the frustrations within 420 00:22:39,480 --> 00:22:41,920 Speaker 1: the banks themselves? I think you know, they would argue, 421 00:22:41,920 --> 00:22:44,800 Speaker 1: perhaps this is kind of a commonplace practice, but there's 422 00:22:44,800 --> 00:22:47,480 Speaker 1: a caution retail as well. It is it is a 423 00:22:47,520 --> 00:22:50,040 Speaker 1: cautionary deal and of course, you can see the frustration, 424 00:22:50,160 --> 00:22:52,720 Speaker 1: right Look look at everything that the regulators have put 425 00:22:52,720 --> 00:22:55,800 Speaker 1: out there. When they talk about the messages they found, 426 00:22:55,800 --> 00:22:58,960 Speaker 1: they talk about the great volume of messages. But it's 427 00:22:58,960 --> 00:23:01,560 Speaker 1: not like the unearthed some sort of fraud. It could 428 00:23:01,680 --> 00:23:04,840 Speaker 1: very well have been everyday communication, could have been about work, 429 00:23:05,200 --> 00:23:09,440 Speaker 1: but just that a regular everyday communication, whether it's about 430 00:23:09,440 --> 00:23:11,680 Speaker 1: a new bond deal or something else that's going on. 431 00:23:11,920 --> 00:23:15,360 Speaker 1: They shifted the platform from an email or an ib 432 00:23:15,520 --> 00:23:18,439 Speaker 1: that they would normally use to these messaging apps. The 433 00:23:18,480 --> 00:23:22,280 Speaker 1: regulators frustrations came through because they've got't necessarily monitor it 434 00:23:22,560 --> 00:23:25,200 Speaker 1: and they just want to make sure that banks are safe. 435 00:23:25,280 --> 00:23:28,800 Speaker 1: And sorry, right well, Bloomberg, trida natarada, naturaja, and thank 436 00:23:28,840 --> 00:23:32,080 Speaker 1: you very much. The European Union's foreign policy chief is 437 00:23:32,119 --> 00:23:35,760 Speaker 1: warning of retaliation for any attack on Europe's energy networks. 438 00:23:35,800 --> 00:23:39,440 Speaker 1: The EU suspects damage to two nord Stream underwater natural 439 00:23:39,480 --> 00:23:43,600 Speaker 1: gas pipelines running from Russia to Germany was sabotage and 440 00:23:43,600 --> 00:23:47,960 Speaker 1: that they will support any investigation. Meanwhile, the CEO of 441 00:23:48,080 --> 00:23:51,200 Speaker 1: dark Trace, one of the largest cyber security firms in Europe, 442 00:23:51,240 --> 00:23:54,960 Speaker 1: says there is significant demand for business since the Russian 443 00:23:54,960 --> 00:23:58,160 Speaker 1: War in Ukraine. Here's some of what Poppy Good Stuffson 444 00:23:58,440 --> 00:24:04,280 Speaker 1: told Bloomberg's Tom mckenn in London. Critical infrastructure is an 445 00:24:04,320 --> 00:24:07,359 Speaker 1: area that absolutely has to be right at the cutting 446 00:24:07,400 --> 00:24:10,080 Speaker 1: edge of adopting sort of cyberth principles because they are 447 00:24:10,160 --> 00:24:13,400 Speaker 1: so so many businesses rely on their their products, whether 448 00:24:13,440 --> 00:24:16,480 Speaker 1: that's energy or other sort of supplies, and this isn't 449 00:24:16,480 --> 00:24:18,879 Speaker 1: something that new that's necessarily come out today, even with 450 00:24:18,960 --> 00:24:21,280 Speaker 1: things like sort of Russia and crane earlier in the year, 451 00:24:21,440 --> 00:24:24,600 Speaker 1: we have had seen significant demand for our products from 452 00:24:24,680 --> 00:24:28,160 Speaker 1: the critical national infrastructure sector purely for that reason because 453 00:24:28,200 --> 00:24:30,800 Speaker 1: they are at heightened risk and there is such a 454 00:24:30,840 --> 00:24:33,760 Speaker 1: dependence from that on their supply to so many other businesses, 455 00:24:33,880 --> 00:24:37,280 Speaker 1: which particular areas isn't utility companies as energy companies and 456 00:24:37,320 --> 00:24:39,560 Speaker 1: one of the specific demands that they need, the specific 457 00:24:39,600 --> 00:24:42,119 Speaker 1: challenges they need addressed. It's all of the about just 458 00:24:42,160 --> 00:24:44,520 Speaker 1: think about how many businesses depends on the services that 459 00:24:44,560 --> 00:24:47,800 Speaker 1: they supply, so utilities and energy. We have seen heightened 460 00:24:47,840 --> 00:24:50,919 Speaker 1: demand in CROs in terms of Europe and in US, 461 00:24:50,960 --> 00:24:53,240 Speaker 1: and that's because they're an easy target. If you are 462 00:24:53,760 --> 00:24:56,800 Speaker 1: operating a business that typically can be reliant on very 463 00:24:56,880 --> 00:25:00,280 Speaker 1: old legacy systems that have been around for decades. They're 464 00:25:00,320 --> 00:25:03,359 Speaker 1: not necessarily at the cutting edge of capability. But also, 465 00:25:03,400 --> 00:25:07,600 Speaker 1: if you are looking to enact your cyber gains and 466 00:25:07,760 --> 00:25:10,080 Speaker 1: use that to the nefarious reasons, there are a very 467 00:25:10,200 --> 00:25:13,479 Speaker 1: high profile target where the consequences can be felt very 468 00:25:13,600 --> 00:25:15,800 Speaker 1: very quietly, and therefore it makes a sort of ideal 469 00:25:15,920 --> 00:25:19,160 Speaker 1: victim feeling you seeing you monitor this obviously on a daily, 470 00:25:19,200 --> 00:25:21,920 Speaker 1: hourly basis, are you seeing a tick up of attacks 471 00:25:22,040 --> 00:25:26,280 Speaker 1: emanating from Russia. We're not in the business of attribution necessarily, 472 00:25:26,320 --> 00:25:28,359 Speaker 1: so we're not necessarily saying this is coming from one 473 00:25:28,440 --> 00:25:31,760 Speaker 1: nation or the other. But since the invasion of Ukraine 474 00:25:31,800 --> 00:25:34,560 Speaker 1: we have seen an optic and attacks across the critical 475 00:25:34,760 --> 00:25:37,960 Speaker 1: infrastructure sectors, particularly in Europe and the US in this 476 00:25:38,160 --> 00:25:42,080 Speaker 1: environment of higher interest rates and slower growth recession concerns. 477 00:25:42,160 --> 00:25:45,679 Speaker 1: Are you seeing reluctance from clients and customs? Are you 478 00:25:45,720 --> 00:25:49,680 Speaker 1: start need to see that? Ever way, I've answered, because 479 00:25:49,680 --> 00:25:51,600 Speaker 1: I'm in past, I think to be honest, we are 480 00:25:51,880 --> 00:25:55,720 Speaker 1: as a business, we're still quite a poor indicator of demands. 481 00:25:55,720 --> 00:25:58,879 Speaker 1: More broadly, because we are still very much as supply 482 00:25:59,040 --> 00:26:01,800 Speaker 1: constraint rather to man's constraints. So the our business growth 483 00:26:01,800 --> 00:26:03,439 Speaker 1: so quick that I bring people in, so we're not 484 00:26:03,480 --> 00:26:06,320 Speaker 1: necessarily a good proxy about what is happening in the market. 485 00:26:06,320 --> 00:26:09,520 Speaker 1: More broadly, mark perspective, we're still seeing very strong demand 486 00:26:09,560 --> 00:26:13,240 Speaker 1: for our acquisition costs. Are they inevitably going to be 487 00:26:13,359 --> 00:26:17,000 Speaker 1: moving higher in this environment? I think you're seeing inflating 488 00:26:17,040 --> 00:26:19,480 Speaker 1: costs that are all over predominantly in terms of you 489 00:26:19,520 --> 00:26:24,080 Speaker 1: see that in terms of employee costs and things like that. Okay, 490 00:26:24,520 --> 00:26:28,040 Speaker 1: a few months ago Toma Bravo was in conversations with them, 491 00:26:28,040 --> 00:26:30,760 Speaker 1: of course about the potential takeover. It didn't come to pass. 492 00:26:31,400 --> 00:26:33,520 Speaker 1: Can you give us some some detail as to why 493 00:26:33,840 --> 00:26:36,760 Speaker 1: ultimately they walked away? I mean I had to be 494 00:26:36,800 --> 00:26:39,000 Speaker 1: some fair as you can understand them phonily limited about 495 00:26:39,040 --> 00:26:41,440 Speaker 1: what I can and can't say. But what I will 496 00:26:41,480 --> 00:26:43,720 Speaker 1: say is we've loved being a public company and there's 497 00:26:43,720 --> 00:26:47,680 Speaker 1: a whole ton of ideas. Was a question of pricing 498 00:26:47,760 --> 00:26:49,359 Speaker 1: or do they find something that they didn't like? I 499 00:26:49,400 --> 00:26:53,040 Speaker 1: would say it's no. These conversations leaked at the very 500 00:26:54,040 --> 00:26:57,240 Speaker 1: very earlier stage of engagement with Tom Bravo that unfortunately 501 00:26:57,240 --> 00:26:59,760 Speaker 1: became public, and you know, in September we said that 502 00:26:59,760 --> 00:27:03,119 Speaker 1: those conversations had ended. We have a legal obligation to 503 00:27:03,200 --> 00:27:05,040 Speaker 1: explore any such office. But you know, if I was 504 00:27:05,080 --> 00:27:07,399 Speaker 1: st where Termer Bravo is, I'll be looking across at 505 00:27:07,440 --> 00:27:09,359 Speaker 1: the UK thinking, you know, it's a very cheap area 506 00:27:09,400 --> 00:27:11,639 Speaker 1: to be able to come protect you decent takeover. Does 507 00:27:11,720 --> 00:27:14,560 Speaker 1: the collapse of the pound make you a more attractive target? 508 00:27:14,600 --> 00:27:17,800 Speaker 1: And arguing conversations with anyone else, I would speculate that 509 00:27:17,840 --> 00:27:19,440 Speaker 1: if I was in the U S side looking over 510 00:27:19,440 --> 00:27:21,439 Speaker 1: here at the UK, I would say, yeah, the the 511 00:27:21,560 --> 00:27:24,160 Speaker 1: UK does look cheap. But from my perspective and from 512 00:27:24,160 --> 00:27:28,200 Speaker 1: my business, we're just really prioritizing or exploring all of 513 00:27:28,200 --> 00:27:30,000 Speaker 1: the opportunities that we see ahead of us, and we've 514 00:27:30,040 --> 00:27:32,200 Speaker 1: got a whole bunch of ideas, a whole bunch of innovation. 515 00:27:32,280 --> 00:27:34,520 Speaker 1: We had new product launch over the summer and we're 516 00:27:34,560 --> 00:27:38,240 Speaker 1: just really excited to get back to businesses year. That 517 00:27:38,359 --> 00:27:41,800 Speaker 1: was Dark Tray CEO Poppy gas Staffson that the Bloomberg 518 00:27:41,880 --> 00:27:45,040 Speaker 1: Text Summit in London coming up. Circle and robin Hood 519 00:27:45,080 --> 00:27:47,920 Speaker 1: team up to offer its stable coin to retail traders. 520 00:27:48,040 --> 00:27:52,119 Speaker 1: Will discuss with the CEO of Circle next this is 521 00:27:52,119 --> 00:28:08,600 Speaker 1: Bloomberg time now for our crypto report. Today we have 522 00:28:08,680 --> 00:28:11,400 Speaker 1: the CEO behind one of the most populous stable coins 523 00:28:11,600 --> 00:28:16,920 Speaker 1: in circulation. For that, we turned to Bloomberg's crypto contributor Sali. 524 00:28:17,160 --> 00:28:19,520 Speaker 1: Thank you so much, Ed. And today we have Circle 525 00:28:19,560 --> 00:28:22,359 Speaker 1: founder and CEO Jeremy Alaire. Thank you so much for 526 00:28:22,440 --> 00:28:25,600 Speaker 1: joining us because you have this new deal. You've struck 527 00:28:25,640 --> 00:28:28,639 Speaker 1: this partnership with robin Hood. And I'm wondering, you're somebody 528 00:28:28,680 --> 00:28:31,600 Speaker 1: that already works with so many institutions, what does this 529 00:28:31,800 --> 00:28:36,200 Speaker 1: do to really add to your base of retail customers. Yeah, thanks, 530 00:28:36,280 --> 00:28:38,800 Speaker 1: thanks so much for having me on. Um, we we 531 00:28:38,880 --> 00:28:42,240 Speaker 1: announced a broad partnership with robin Hood. Here today it 532 00:28:42,360 --> 00:28:45,920 Speaker 1: converge our first platform ecosystem conference. We've got thousands of 533 00:28:45,960 --> 00:28:48,480 Speaker 1: people here in San Francisco, which we're pretty excited about. 534 00:28:48,520 --> 00:28:52,280 Speaker 1: And UM, this morning, UM, you know, on stage, uh, 535 00:28:52,520 --> 00:28:56,480 Speaker 1: Robin Hood CTO you know, talked about this and what 536 00:28:56,520 --> 00:28:58,479 Speaker 1: I can say is, you know, robin Hood is an 537 00:28:58,480 --> 00:29:01,600 Speaker 1: amazing retail in best or platform. They have twenty three 538 00:29:01,640 --> 00:29:06,680 Speaker 1: million users. UM. It really is sort of represents the 539 00:29:06,920 --> 00:29:11,480 Speaker 1: kind of mainstream user participating in this more democratized financial system. 540 00:29:11,600 --> 00:29:14,880 Speaker 1: And what we've done with robin Hood is a few things. 541 00:29:15,000 --> 00:29:18,240 Speaker 1: I think the first is just making USDC one of 542 00:29:18,280 --> 00:29:21,280 Speaker 1: the digital currencies that people can trade on on robin Hood. 543 00:29:21,320 --> 00:29:23,680 Speaker 1: They started with some of the you know, kind of 544 00:29:23,840 --> 00:29:27,560 Speaker 1: traditional popular cryptocurrencies, but USDC has just become such a 545 00:29:27,640 --> 00:29:31,480 Speaker 1: critical part of anyone that's operating in the digital assets space, 546 00:29:31,480 --> 00:29:35,200 Speaker 1: whether you're using exchanges while it's defy and so just 547 00:29:35,240 --> 00:29:37,640 Speaker 1: having that built into robin hood and their twenty three 548 00:29:37,640 --> 00:29:41,320 Speaker 1: million users is really powerful. The second thing really was, 549 00:29:41,720 --> 00:29:44,920 Speaker 1: you know, they've launched a new wallet, a Web three wallet, 550 00:29:45,080 --> 00:29:47,760 Speaker 1: and you know they're really trying to bring that huge 551 00:29:47,840 --> 00:29:50,760 Speaker 1: user base they have into Web three and you know, 552 00:29:50,840 --> 00:29:53,840 Speaker 1: making fiction lists fast and easy payments is a is 553 00:29:53,880 --> 00:29:55,320 Speaker 1: a core part of what people want to be able 554 00:29:55,360 --> 00:29:58,240 Speaker 1: to do in Web three and USDC is a core 555 00:29:58,320 --> 00:30:00,880 Speaker 1: part of that value proposition and and built in part 556 00:30:00,880 --> 00:30:02,520 Speaker 1: of that. Well, for me, as you think about how 557 00:30:02,560 --> 00:30:05,360 Speaker 1: core USDC is and the stable coin ecosystem is when 558 00:30:05,360 --> 00:30:09,480 Speaker 1: it comes to the linkage between the traditional financial system 559 00:30:09,520 --> 00:30:12,680 Speaker 1: and the crypto world, let's quick listen to her of 560 00:30:12,680 --> 00:30:14,760 Speaker 1: what that church your own parallel had to say. Given 561 00:30:14,800 --> 00:30:17,000 Speaker 1: that there's so much regulatory attention to take a listen 562 00:30:17,040 --> 00:30:21,440 Speaker 1: to this sound bite. There's a real need for more 563 00:30:21,440 --> 00:30:26,800 Speaker 1: appropriate regulation so that as as a DeFi expands and 564 00:30:26,880 --> 00:30:30,040 Speaker 1: starts to touch more and more retail customers and that 565 00:30:30,160 --> 00:30:33,880 Speaker 1: sort of thing. Uh, so that appropriate regulation is in place. 566 00:30:35,520 --> 00:30:37,360 Speaker 1: And I'm really curious here, who do you think is 567 00:30:37,360 --> 00:30:40,240 Speaker 1: going to take the biggest lead here and really stepping 568 00:30:40,280 --> 00:30:42,480 Speaker 1: in and setting the groundwork for the US And how 569 00:30:42,600 --> 00:30:45,880 Speaker 1: soon do you expect it? Well, I mean, I think 570 00:30:45,880 --> 00:30:48,920 Speaker 1: this is a critical issue, and I think there's bipartisan 571 00:30:49,000 --> 00:30:52,360 Speaker 1: support for this idea that payment stable coins such as 572 00:30:52,440 --> 00:30:55,480 Speaker 1: U s DC are a critical piece of how the 573 00:30:55,520 --> 00:30:58,960 Speaker 1: dollar is going to compete on the Internet. And the 574 00:30:59,040 --> 00:31:03,520 Speaker 1: focus of policymakers, regulators like the FED and Treasury and 575 00:31:03,560 --> 00:31:06,440 Speaker 1: others is we need to have a clear set of 576 00:31:06,480 --> 00:31:09,680 Speaker 1: statutes for dollar stable coins in the United States, both 577 00:31:09,720 --> 00:31:12,200 Speaker 1: to manage the risks but also to make it clear 578 00:31:12,560 --> 00:31:15,280 Speaker 1: that this is a new model for using dollars on 579 00:31:15,320 --> 00:31:17,520 Speaker 1: the Internet. And I think that with that is going 580 00:31:17,560 --> 00:31:21,440 Speaker 1: to come tremendous legitimacy for not just stable coins, but 581 00:31:21,600 --> 00:31:24,239 Speaker 1: for the advancement of of digital assets as a as 582 00:31:24,240 --> 00:31:26,640 Speaker 1: a core part of the financial system, core part of 583 00:31:26,640 --> 00:31:29,080 Speaker 1: the financial system, and think about what's happening in China 584 00:31:29,120 --> 00:31:31,160 Speaker 1: and hundreds of millions of accounts when it comes to 585 00:31:31,200 --> 00:31:34,680 Speaker 1: the digital one already very early to really get behind 586 00:31:34,840 --> 00:31:37,760 Speaker 1: a central bank digital currency. Do you think the US 587 00:31:37,880 --> 00:31:41,240 Speaker 1: is falling behind? You know, we like to say that 588 00:31:41,360 --> 00:31:44,720 Speaker 1: the US is already winning the digital currency space race. 589 00:31:45,480 --> 00:31:49,400 Speaker 1: Dollar digital currencies are the most widely used digital currencies 590 00:31:49,480 --> 00:31:52,240 Speaker 1: on the Internet today, which says something which is the 591 00:31:52,280 --> 00:31:55,920 Speaker 1: preference for the dollar, the power of the open innovation 592 00:31:55,960 --> 00:31:59,320 Speaker 1: of blockchains, the power of private sector innovation in the space. 593 00:31:59,360 --> 00:32:02,120 Speaker 1: That's all. He created a leadership position for the dollar 594 00:32:02,240 --> 00:32:04,640 Speaker 1: and for the United States. Now, what the United States 595 00:32:04,640 --> 00:32:07,840 Speaker 1: needs to do is codify that and and solidify that 596 00:32:07,960 --> 00:32:11,400 Speaker 1: so that these digital currency dollars like USDC and others 597 00:32:11,440 --> 00:32:14,880 Speaker 1: that many other firms will likely issue, can become the 598 00:32:14,960 --> 00:32:18,360 Speaker 1: foundation for how financial products and services and payments and 599 00:32:18,360 --> 00:32:20,080 Speaker 1: commerce are going to work on the Internet. And so 600 00:32:20,600 --> 00:32:22,720 Speaker 1: really this is an opportunity for the U S who 601 00:32:22,760 --> 00:32:26,080 Speaker 1: sees that existing leadership position and strengthen it. Well, we're 602 00:32:26,080 --> 00:32:28,360 Speaker 1: also coming at this conversation at a time of just 603 00:32:28,440 --> 00:32:31,440 Speaker 1: tremendous strength in the dollar. And if you look at 604 00:32:31,480 --> 00:32:35,920 Speaker 1: something that Sam bankmen, Freed tweeted just earlier this week, Boy, 605 00:32:36,000 --> 00:32:38,880 Speaker 1: would the world be thinking differently about crypto price moves 606 00:32:38,920 --> 00:32:42,120 Speaker 1: if they measured it for verse is world currency baskets 607 00:32:42,160 --> 00:32:45,520 Speaker 1: instead of just US dollars. I'm wondering how you interpret 608 00:32:45,720 --> 00:32:49,000 Speaker 1: that and what that means for currencies around the world 609 00:32:49,000 --> 00:32:52,320 Speaker 1: in relationship cryptocurrency. I mean, look, it's a it's a 610 00:32:52,400 --> 00:32:55,880 Speaker 1: fascinating time from a macro perspective. UM, I'm gonna be 611 00:32:55,960 --> 00:32:58,120 Speaker 1: talking in a few minutes here. It converged with Larry 612 00:32:58,160 --> 00:33:00,480 Speaker 1: Summers about that macro outlook and out the role of 613 00:33:00,480 --> 00:33:03,200 Speaker 1: the dollar and what role the dollar is playing not 614 00:33:03,280 --> 00:33:05,760 Speaker 1: just in currency markets today, but the role that the 615 00:33:05,760 --> 00:33:08,040 Speaker 1: dollar is going to play on the internet. UM. I 616 00:33:08,080 --> 00:33:11,280 Speaker 1: think right now it's a pretty it's a pretty pivotal moment. 617 00:33:11,400 --> 00:33:15,920 Speaker 1: And um, I think the structure of the international monetary 618 00:33:15,920 --> 00:33:19,760 Speaker 1: system is at stake, and there's a new kind of 619 00:33:19,800 --> 00:33:23,400 Speaker 1: competition that's happening in currencies. And I think, you know, 620 00:33:23,960 --> 00:33:28,080 Speaker 1: payment stable coins and this form of digital currency aligns 621 00:33:28,120 --> 00:33:31,840 Speaker 1: with these kind of changing macro dynamics, and so I 622 00:33:31,880 --> 00:33:34,720 Speaker 1: think play together give us some more specificity here, what 623 00:33:34,760 --> 00:33:37,240 Speaker 1: does the future look like in a world where currencies 624 00:33:37,240 --> 00:33:39,360 Speaker 1: have been kind of all over the place more recently, 625 00:33:39,760 --> 00:33:42,040 Speaker 1: A lot of people really worry about the value of 626 00:33:42,080 --> 00:33:44,840 Speaker 1: what they're holding. So what role very specifically does a 627 00:33:44,880 --> 00:33:50,240 Speaker 1: stable coin play. Especially outside of the US, We've we've 628 00:33:50,280 --> 00:33:54,840 Speaker 1: seen an incredible amount of adoption of dollar digital currencies 629 00:33:54,840 --> 00:33:58,480 Speaker 1: like USDC all around the world. The demand for being 630 00:33:58,480 --> 00:34:01,760 Speaker 1: able to transact in the dollar and using it as 631 00:34:01,800 --> 00:34:04,440 Speaker 1: a medium of exchange on the internet is very high. 632 00:34:04,640 --> 00:34:06,720 Speaker 1: I think that says a lot about the strength of 633 00:34:06,720 --> 00:34:11,080 Speaker 1: the dollar as an international currency. And I think the 634 00:34:11,120 --> 00:34:13,960 Speaker 1: growth of these networks, the growth of these blockchain networks, 635 00:34:14,000 --> 00:34:16,560 Speaker 1: the proliferation of more and more of these digital wallets 636 00:34:16,640 --> 00:34:19,200 Speaker 1: like robin Hood or coin base or so many other 637 00:34:19,719 --> 00:34:22,920 Speaker 1: products that are out there. Um are are you know, 638 00:34:22,960 --> 00:34:26,320 Speaker 1: are going to make these kinds of fiat digital currency 639 00:34:26,360 --> 00:34:28,839 Speaker 1: is even more popular in the world, And I think 640 00:34:28,880 --> 00:34:30,680 Speaker 1: that's you know, I think that's a you know, it's 641 00:34:30,680 --> 00:34:34,240 Speaker 1: a tremendous opportunity for the United States. Now, A question 642 00:34:34,360 --> 00:34:36,560 Speaker 1: for you just about circle itself. Do you have any 643 00:34:36,600 --> 00:34:39,200 Speaker 1: fundraising plans? What's next for you guys as you grow, 644 00:34:39,360 --> 00:34:43,359 Speaker 1: and what's the status of going public? Yeah, so, um 645 00:34:43,440 --> 00:34:47,480 Speaker 1: circles in a really strong financial position. We've been growing 646 00:34:47,880 --> 00:34:50,920 Speaker 1: pretty rapidly over the past couple of years. You can 647 00:34:50,920 --> 00:34:53,120 Speaker 1: see that in in sort of the growth in USDC. 648 00:34:53,360 --> 00:34:56,320 Speaker 1: The company's more than doubling in size this year, and 649 00:34:56,600 --> 00:34:58,879 Speaker 1: we're we're in in the best financial position that we've 650 00:34:58,880 --> 00:35:02,279 Speaker 1: really ever been in. We are in a registration process 651 00:35:02,320 --> 00:35:05,040 Speaker 1: with the SEC to become a public company, and we 652 00:35:05,080 --> 00:35:08,239 Speaker 1: continue to go through that process of becoming qualified to 653 00:35:08,280 --> 00:35:10,440 Speaker 1: be listed on the New York Stock Exchange and and 654 00:35:10,480 --> 00:35:14,120 Speaker 1: hopefully we'll get there in the near future. What's the 655 00:35:14,160 --> 00:35:17,600 Speaker 1: competitive landscape here? Do you think that USDC we'll look 656 00:35:17,600 --> 00:35:22,439 Speaker 1: see us d T very soon tether in market cap? 657 00:35:22,480 --> 00:35:24,120 Speaker 1: Why do you think that hasn't happened yet? And when 658 00:35:24,120 --> 00:35:27,239 Speaker 1: will it happen? Do you think? Yeah, I don't like 659 00:35:27,280 --> 00:35:30,120 Speaker 1: to make you know, timeframe predictions or things like that. 660 00:35:30,200 --> 00:35:33,719 Speaker 1: I think we've always just been very heads down focused 661 00:35:33,760 --> 00:35:37,520 Speaker 1: on building something with a lot of trust and transparency, 662 00:35:37,600 --> 00:35:42,120 Speaker 1: doing it in a regulated environment, partnering with great institutions, 663 00:35:42,200 --> 00:35:45,040 Speaker 1: with great companies to continue to build this out, working 664 00:35:45,040 --> 00:35:47,960 Speaker 1: with the developer community to grow this and I think 665 00:35:48,080 --> 00:35:50,239 Speaker 1: if we continue to do that, the rest the rest 666 00:35:50,239 --> 00:35:52,000 Speaker 1: of the work kind of gets done and so we're 667 00:35:52,000 --> 00:35:55,440 Speaker 1: in the very early stages of the adoption of of 668 00:35:55,480 --> 00:35:58,080 Speaker 1: dollar stable coins and technology like this. You know, we 669 00:35:58,120 --> 00:36:00,920 Speaker 1: think the total addressable market for this kind of technology 670 00:36:00,960 --> 00:36:03,319 Speaker 1: is M two money, which is in the tens of 671 00:36:03,320 --> 00:36:06,839 Speaker 1: trillions of dollars globally, and so it's super early stage. UM, 672 00:36:06,920 --> 00:36:09,680 Speaker 1: We're just focused on just trying to build infrastructure that 673 00:36:09,719 --> 00:36:13,720 Speaker 1: works for developers, businesses, people, users all around the world, 674 00:36:13,760 --> 00:36:17,919 Speaker 1: and we'll just keep trying to improve that. Jeremy Lair, 675 00:36:18,080 --> 00:36:20,840 Speaker 1: that Circle's founder and CEO, on the heels of a 676 00:36:20,880 --> 00:36:22,839 Speaker 1: new big deal with Robin Hood. Thank you so much 677 00:36:22,880 --> 00:36:25,320 Speaker 1: for your time. Add back to you. Thanks so Nali. 678 00:36:33,239 --> 00:36:36,120 Speaker 1: Now to the latest with Congress is battle to regulate 679 00:36:36,200 --> 00:36:39,640 Speaker 1: big tech. Supporters of a landmark bill to restrict Internet 680 00:36:39,680 --> 00:36:42,680 Speaker 1: giants from favoring their own products has a tough road 681 00:36:42,680 --> 00:36:45,919 Speaker 1: ahead now lawmakers are trying to jam the legislation through 682 00:36:45,960 --> 00:36:49,600 Speaker 1: the brief lane duck period after the elections. Here to 683 00:36:49,680 --> 00:36:52,960 Speaker 1: discuss is Bloomberg's Emily burn Baum. Emily, why haven't we 684 00:36:53,040 --> 00:36:58,200 Speaker 1: voted on this yet? Hi? Thanks so much for having me. UM. 685 00:36:58,880 --> 00:37:03,279 Speaker 1: Majority Leader Chuck Schumer pledged earlier this year that he 686 00:37:03,320 --> 00:37:08,800 Speaker 1: would put this legislation on the floor for obviously been months, 687 00:37:08,840 --> 00:37:15,719 Speaker 1: and that Um, we're hearing that he simply doesn't think 688 00:37:15,800 --> 00:37:18,640 Speaker 1: it has the votes. The supporters of the legislation, such 689 00:37:18,680 --> 00:37:22,160 Speaker 1: as Minnesota Democrat Amy Klobshar, say they absolutely do have 690 00:37:22,200 --> 00:37:24,279 Speaker 1: the votes. You just have to put it on the 691 00:37:24,280 --> 00:37:27,560 Speaker 1: floor to test that. Um. Schumer is uncomfortable with that. 692 00:37:27,640 --> 00:37:31,960 Speaker 1: He doesn't want people vote ahead of the mid term. 693 00:37:32,360 --> 00:37:36,480 Speaker 1: So that's why it has gone this long without going 694 00:37:36,520 --> 00:37:38,840 Speaker 1: to a vote. Emily, I'm reading your story on the 695 00:37:38,880 --> 00:37:42,360 Speaker 1: Bloomberg terminal on bloomberg dot com title big text fos 696 00:37:42,440 --> 00:37:46,120 Speaker 1: Pin fading antitrust hope on Lane Duck vote. Now, I 697 00:37:46,200 --> 00:37:48,719 Speaker 1: think I'm right in saying that this final push for 698 00:37:48,840 --> 00:37:55,440 Speaker 1: legislation was plotted over pretzels and beer. Give me the background. Yeah, 699 00:37:55,680 --> 00:38:00,400 Speaker 1: So there was an October Fest, theamed Happy Hour gathering 700 00:38:00,920 --> 00:38:06,400 Speaker 1: UM last week. Basically, Uh, it was activist UM Congressional 701 00:38:06,400 --> 00:38:11,319 Speaker 1: Aid supporting the legislation, FTC chair Lena Cohn, d O 702 00:38:11,480 --> 00:38:15,880 Speaker 1: j ANTI Trust head Jonathan Cantor so some of the 703 00:38:15,920 --> 00:38:18,800 Speaker 1: most important people in the Biden administration and in Congress, 704 00:38:19,120 --> 00:38:22,120 Speaker 1: as well as Elizabeth Warren UM plotting out how are 705 00:38:22,160 --> 00:38:24,160 Speaker 1: we going to get this bill across the finish line 706 00:38:24,200 --> 00:38:27,440 Speaker 1: before the end of the year. UM. It looks likely 707 00:38:27,480 --> 00:38:30,279 Speaker 1: that the GOP is going to retake the House. UM, 708 00:38:30,320 --> 00:38:32,359 Speaker 1: the GOP is not going to take up this bill 709 00:38:32,360 --> 00:38:36,919 Speaker 1: in its current form, especially under a potential speaker Kevin McCarthy. 710 00:38:37,040 --> 00:38:42,600 Speaker 1: So they they were just trying to strategize and get together. 711 00:38:43,000 --> 00:38:48,280 Speaker 1: Well quickly, Emily, how do they regroup? So are really 712 00:38:48,320 --> 00:38:52,440 Speaker 1: pushing for the lame duck vote? They think, fine, have 713 00:38:52,920 --> 00:38:56,319 Speaker 1: the mid terms pass and then there's no reason for 714 00:38:56,400 --> 00:38:59,280 Speaker 1: vulnerable Democrats not to want to take this vote. They're 715 00:38:59,320 --> 00:39:01,600 Speaker 1: going to spend the next couple of months firming up 716 00:39:01,800 --> 00:39:05,040 Speaker 1: the whip count UM and getting people on the record 717 00:39:05,080 --> 00:39:08,520 Speaker 1: saying I support this legislation. UM, in a lastic effort. 718 00:39:08,880 --> 00:39:12,240 Speaker 1: All right, Bloomberg's Emily burn Boum, thank you for that. 719 00:39:12,239 --> 00:39:15,120 Speaker 1: That does it For this edition of Bloomberg Technology Thursday, 720 00:39:15,200 --> 00:39:18,680 Speaker 1: we have Desmond Limb from Workstream to talk employment, particularly 721 00:39:18,719 --> 00:39:22,120 Speaker 1: with frontline workers. Don't forget you can check out our podcasts. 722 00:39:22,239 --> 00:39:24,160 Speaker 1: You can find it on the terminal as well as 723 00:39:24,160 --> 00:39:28,240 Speaker 1: online on Apple, Spotify and also on I Heart Radio. 724 00:39:28,520 --> 00:39:30,520 Speaker 1: This is Bloomberg