1 00:00:00,800 --> 00:00:05,039 Speaker 1: From the heart of where innovation, money and power collide 2 00:00:05,360 --> 00:00:10,640 Speaker 1: in Silicon Valley and beyond. This is Bloomberg Technology with 3 00:00:10,800 --> 00:00:32,240 Speaker 1: Caroline Hyde and Ed Lovelow. 4 00:00:27,400 --> 00:00:31,640 Speaker 2: Live from New York. I'm Caroline Hyde. 5 00:00:30,280 --> 00:00:33,760 Speaker 3: And I'm Mike Sheppard in Washington. This is Bloomberg Technology 6 00:00:33,800 --> 00:00:34,199 Speaker 3: coming up. 7 00:00:34,280 --> 00:00:38,159 Speaker 4: Tech CEO's flock to the inauguration of Donald Trump in Washington. 8 00:00:38,680 --> 00:00:42,640 Speaker 4: Plus President Trump gives a temporary reprieve to TikTok, granting 9 00:00:42,640 --> 00:00:45,919 Speaker 4: a seventy five day delay from a US ban. And 10 00:00:46,000 --> 00:00:48,519 Speaker 4: live from the World Economic Forum in Davos. We'll hear 11 00:00:48,560 --> 00:00:51,600 Speaker 4: from Bag of America Ceo'brian Wynihan later this hour, but 12 00:00:51,720 --> 00:00:54,080 Speaker 4: first we check in on these markets. 13 00:00:54,320 --> 00:00:56,520 Speaker 2: Look some anxiety. 14 00:00:55,960 --> 00:00:59,440 Speaker 4: Being shaken off as we see President Trump take office, 15 00:00:59,600 --> 00:01:01,960 Speaker 4: then as that pushing up, and indeed the NASAK one 16 00:01:02,040 --> 00:01:03,920 Speaker 4: hundred up about a tenth of a percent as many 17 00:01:03,920 --> 00:01:08,040 Speaker 4: looked perhaps the economic potential of this next administration. However, 18 00:01:08,120 --> 00:01:11,200 Speaker 4: on the downside hasn't been some key names. Bitcoin is 19 00:01:11,200 --> 00:01:13,080 Speaker 4: at one point three percent one hundred and three thousand 20 00:01:13,160 --> 00:01:15,600 Speaker 4: absolutely took off ahead of the inauguration. We'll get into 21 00:01:15,680 --> 00:01:17,840 Speaker 4: some of those mun coins in a moment, but let's 22 00:01:17,880 --> 00:01:20,399 Speaker 4: move on to some of the individual points drags or 23 00:01:21,080 --> 00:01:23,119 Speaker 4: indeed Apple being the key one. I want to focus 24 00:01:23,120 --> 00:01:24,920 Speaker 4: in on TSMC for a moment though. We're at one 25 00:01:24,920 --> 00:01:28,480 Speaker 4: point nine percent on its ADRs. This is its restored operations, 26 00:01:28,480 --> 00:01:31,920 Speaker 4: that factories it evacuated after a six point four magnitude 27 00:01:31,959 --> 00:01:34,640 Speaker 4: earthquake struck at the island's south look at injured four people, 28 00:01:34,760 --> 00:01:36,360 Speaker 4: key chip maker. 29 00:01:36,240 --> 00:01:39,920 Speaker 2: Fabricator, to Nvidia and indeed to Apple. But Apple being drag. 30 00:01:39,680 --> 00:01:43,039 Speaker 4: Lower the worst day we've seen since September of last year, 31 00:01:43,040 --> 00:01:44,720 Speaker 4: in fact, three point eight percent lower. 32 00:01:44,800 --> 00:01:47,680 Speaker 2: Why this is yet more downgrades. 33 00:01:47,160 --> 00:01:50,360 Speaker 4: Coming from Jeffrey's, coming from Luke Capital analyst worrying about 34 00:01:50,400 --> 00:01:54,120 Speaker 4: sales of the iPhone and in particular Chinese weakness. Look, 35 00:01:54,120 --> 00:01:56,000 Speaker 4: this is going to be top of mind for Tim Cook, 36 00:01:56,040 --> 00:01:58,760 Speaker 4: who yesterday was one of the who's who are. 37 00:01:58,640 --> 00:02:02,360 Speaker 5: The world's wealthiest people in hech elite surrounding President Donald 38 00:02:02,400 --> 00:02:04,600 Speaker 5: Trump as he took the oath of office, all gathering 39 00:02:04,640 --> 00:02:07,960 Speaker 5: and combined get this, Mike net Worth exceeding one point 40 00:02:08,000 --> 00:02:12,360 Speaker 5: three trillion dollars for the occasion, all sprinkled in among 41 00:02:12,400 --> 00:02:13,320 Speaker 5: Trump's own family. 42 00:02:14,919 --> 00:02:17,480 Speaker 3: They were not just sprinkled in, they were seated ahead 43 00:02:17,520 --> 00:02:20,720 Speaker 3: of Trump's incoming cabinet. It was striking to see how 44 00:02:20,800 --> 00:02:26,600 Speaker 3: prominently Elon Musk and others were occupying that space in 45 00:02:26,680 --> 00:02:29,840 Speaker 3: such a moment, and it really signals how much tech 46 00:02:29,880 --> 00:02:34,519 Speaker 3: has arrived with this new administration. And really something else 47 00:02:34,520 --> 00:02:38,560 Speaker 3: of note from yesterday was President Donald Trump scrapping the 48 00:02:38,560 --> 00:02:44,080 Speaker 3: Biden administration sweeping executive order regulating artificial intelligence. Let's bring 49 00:02:44,120 --> 00:02:47,160 Speaker 3: in Bloomberg's balance of how our co host Kelley Lines 50 00:02:47,240 --> 00:02:49,840 Speaker 3: to discuss this. Kelly, thanks for joining us and for 51 00:02:49,880 --> 00:02:53,600 Speaker 3: all the great reporting yesterday on the inauguration. Trump started 52 00:02:53,600 --> 00:02:56,600 Speaker 3: this with some shock and awe on the regulatory front. 53 00:02:56,880 --> 00:03:00,440 Speaker 3: Talk about the direction of travel that we see in 54 00:03:00,520 --> 00:03:01,799 Speaker 3: undoing this AI order. 55 00:03:01,960 --> 00:03:04,560 Speaker 6: Well, the direction of travel certainly is fast. Trump yesterday 56 00:03:04,600 --> 00:03:07,040 Speaker 6: sent a modern day record for a number of executive 57 00:03:07,080 --> 00:03:09,000 Speaker 6: orders in one day. There were twenty six plus four 58 00:03:09,000 --> 00:03:11,640 Speaker 6: presidential memoranda, and of course as part of that, he 59 00:03:11,720 --> 00:03:15,639 Speaker 6: rescinded seventy eight executive actions from President Biden. The executive 60 00:03:15,680 --> 00:03:18,920 Speaker 6: action regulating AI. The sweeping order was one that was 61 00:03:18,960 --> 00:03:21,240 Speaker 6: part of it. This, of course, during the Biden administration, 62 00:03:21,360 --> 00:03:25,360 Speaker 6: was intended to create safety and transparency guidelines around companies 63 00:03:25,400 --> 00:03:29,000 Speaker 6: developing this technology. It also created the AI Safety Institute 64 00:03:29,080 --> 00:03:32,680 Speaker 6: under the Department of Commerce that was essentially setting voluntary 65 00:03:32,720 --> 00:03:35,360 Speaker 6: guidelines for how the development of this technology should work. 66 00:03:35,520 --> 00:03:36,640 Speaker 2: And now that goes away. 67 00:03:36,680 --> 00:03:39,280 Speaker 6: The thing is the President, while repealing this, did not 68 00:03:39,400 --> 00:03:41,520 Speaker 6: say what is going to be replacing it, leaving a 69 00:03:41,560 --> 00:03:44,360 Speaker 6: bit of a question mark. Certainly, we could expect David Zachs, 70 00:03:44,360 --> 00:03:46,720 Speaker 6: the venture capitalist who is now the AI cryptos are 71 00:03:47,000 --> 00:03:49,000 Speaker 6: in this White House, could be playing a role in 72 00:03:49,040 --> 00:03:51,000 Speaker 6: what happens next. But it also could speak to buy 73 00:03:51,040 --> 00:03:53,800 Speaker 6: and large a kind of hands off regulatory approach this 74 00:03:53,920 --> 00:03:56,720 Speaker 6: administration seems to take. And certainly that was a message 75 00:03:56,800 --> 00:03:59,640 Speaker 6: frequently by Donald Trump yesternight and throughout the campaign. 76 00:04:00,040 --> 00:04:02,960 Speaker 4: And let's just talk about someone who's key to AI's 77 00:04:03,000 --> 00:04:05,760 Speaker 4: future is Elo Musk. And indeed it feels as though 78 00:04:05,800 --> 00:04:08,000 Speaker 4: he's been cementing his power over the last couple of 79 00:04:08,080 --> 00:04:10,240 Speaker 4: days as well well. 80 00:04:10,280 --> 00:04:12,920 Speaker 6: Absolutely, in fact, it is now solidified through one of 81 00:04:12,920 --> 00:04:15,200 Speaker 6: these executive orders, Caroline, that he will be leading this 82 00:04:15,240 --> 00:04:17,440 Speaker 6: Department of Government efficiency, and he will be doing so 83 00:04:17,640 --> 00:04:20,000 Speaker 6: by himself, as the person who was intended to be 84 00:04:20,120 --> 00:04:22,560 Speaker 6: his co head of vag Ramaswami is bowing out to 85 00:04:22,600 --> 00:04:25,320 Speaker 6: instead run for governor of Ohio in twenty twenty six. 86 00:04:25,360 --> 00:04:26,880 Speaker 6: There's been some reporting that there was a bit of 87 00:04:26,880 --> 00:04:29,760 Speaker 6: consternation between Ramaswami and mar A Lago that may have 88 00:04:29,800 --> 00:04:31,479 Speaker 6: played a factor, But it does clear the road for 89 00:04:31,520 --> 00:04:34,599 Speaker 6: Elon Musk to essentially have the greatest degree of control 90 00:04:34,680 --> 00:04:37,919 Speaker 6: over this agency, which will actually be part of the 91 00:04:37,960 --> 00:04:40,960 Speaker 6: federal government. That was not the intent originally outlined by 92 00:04:40,960 --> 00:04:43,520 Speaker 6: Donald Trump back in November, but through the EO yesterday, 93 00:04:43,800 --> 00:04:46,760 Speaker 6: he made this part of the Executive Office of the President. 94 00:04:46,800 --> 00:04:50,040 Speaker 6: Through an executive order that will rename the US Digital Service, 95 00:04:50,080 --> 00:04:52,880 Speaker 6: something that was created during the Obama administration back in 96 00:04:52,920 --> 00:04:55,960 Speaker 6: twenty thirteen, to the United States Dode Service. That means 97 00:04:56,000 --> 00:04:59,039 Speaker 6: Elon Musk is getting an actual White House email address 98 00:04:59,080 --> 00:05:01,920 Speaker 6: space in the eisenhow Our office building. It raises some 99 00:05:01,960 --> 00:05:05,360 Speaker 6: ethics concerns given Elon Musk, of course, and his companies 100 00:05:05,440 --> 00:05:08,320 Speaker 6: do contract with the United States government, and already this 101 00:05:08,360 --> 00:05:11,440 Speaker 6: is drawing lawsuits Caroline, including from the largest union representing 102 00:05:11,480 --> 00:05:14,920 Speaker 6: federal workers, saying that the Office Budget and Management Management 103 00:05:15,000 --> 00:05:18,440 Speaker 6: Budget and the White House here are violating different rules 104 00:05:18,440 --> 00:05:20,799 Speaker 6: that are supposed to govern this. But certainly Elon Musk 105 00:05:21,200 --> 00:05:23,320 Speaker 6: is going to have a close year of the president 106 00:05:23,400 --> 00:05:25,000 Speaker 6: as this administration gets going. 107 00:05:25,080 --> 00:05:27,359 Speaker 4: A controversial weekend for Edol Musk, which we'll get to 108 00:05:27,480 --> 00:05:28,560 Speaker 4: a little bit later in the show. 109 00:05:28,600 --> 00:05:31,600 Speaker 2: But Blue most Kaylee lines spectacular, thank you for joining us. 110 00:05:31,600 --> 00:05:35,840 Speaker 4: Meanwhile, TikTok Whiplash Fight Dances US services were restored after 111 00:05:35,839 --> 00:05:38,599 Speaker 4: Donald Trump acted to delay the band by seventy five days, 112 00:05:38,839 --> 00:05:42,840 Speaker 4: proposing a US China joint venture, though it's unclear if 113 00:05:42,839 --> 00:05:45,480 Speaker 4: the APPS Chinese parent can or even wants to secure 114 00:05:45,520 --> 00:05:47,880 Speaker 4: a US backer. Not to mention if this is enough 115 00:05:47,880 --> 00:05:52,240 Speaker 4: to appease Congress's national security concerns, Well, let's bring in 116 00:05:52,279 --> 00:05:56,479 Speaker 4: a US representative, Jake Olkinlass from Massachusetts. Now, you served 117 00:05:56,480 --> 00:05:59,080 Speaker 4: on the House China Select Committee last Congress, and we're 118 00:05:59,520 --> 00:06:02,640 Speaker 4: original co lead to the TikTok divestment legislation. So I 119 00:06:02,640 --> 00:06:05,200 Speaker 4: ask you this, what do you make of the extension? 120 00:06:06,960 --> 00:06:10,159 Speaker 7: The extension appears to be illegal. The law allows for 121 00:06:10,240 --> 00:06:13,520 Speaker 7: one ninety day extension if the President can demonstrate that 122 00:06:13,800 --> 00:06:16,400 Speaker 7: a sale is underway and there needs to be more 123 00:06:16,440 --> 00:06:19,479 Speaker 7: time for the negotiations. In the administration, that is not 124 00:06:19,520 --> 00:06:21,640 Speaker 7: what's happened here. What's happened here is Trump has just 125 00:06:22,000 --> 00:06:25,719 Speaker 7: declared seventy five days of a free pass for TikTok, 126 00:06:26,480 --> 00:06:28,840 Speaker 7: and there does not seem to be any statutory support 127 00:06:28,880 --> 00:06:33,560 Speaker 7: for that. This is an example of how the social 128 00:06:33,600 --> 00:06:39,200 Speaker 7: media corporations have really come to plunder the American town square. 129 00:06:39,320 --> 00:06:41,880 Speaker 7: There's an old saying in tech that if you're not paying, 130 00:06:41,920 --> 00:06:46,680 Speaker 7: you're the product. Well, big tech has productized Americans attention 131 00:06:46,760 --> 00:06:49,279 Speaker 7: spans and our social lives for the last fifteen years, 132 00:06:49,320 --> 00:06:52,640 Speaker 7: and both parties have failed to rain them in. And 133 00:06:52,680 --> 00:06:56,799 Speaker 7: now TikTok. Excuse me, now, Trump is not only inviting 134 00:06:56,800 --> 00:07:00,400 Speaker 7: American corporate abuse of the town square, he's all allowing 135 00:07:00,480 --> 00:07:01,800 Speaker 7: Chinese communist abuse of it. 136 00:07:03,520 --> 00:07:08,000 Speaker 3: Congressman, the order that Trump signed yesterday called for a 137 00:07:08,120 --> 00:07:10,840 Speaker 3: review of the intelligence surrounding. 138 00:07:10,240 --> 00:07:11,800 Speaker 8: The risk posed by TikTok. 139 00:07:12,000 --> 00:07:15,400 Speaker 3: Are you concerned at all that the incoming administration might 140 00:07:15,480 --> 00:07:19,440 Speaker 3: be glossing over or prepared to gloss over those risks 141 00:07:19,520 --> 00:07:21,920 Speaker 3: in its eagerness to try to strike a deal and 142 00:07:22,000 --> 00:07:22,840 Speaker 3: keep the app going. 143 00:07:23,720 --> 00:07:26,880 Speaker 7: Yes, And there's two core risks. One is, of course, 144 00:07:27,240 --> 00:07:31,880 Speaker 7: american's personal data, geolocation data, personal contact information than a 145 00:07:31,960 --> 00:07:34,600 Speaker 7: social graph of their lives. But the second, I think 146 00:07:34,600 --> 00:07:38,360 Speaker 7: more concerningly actually is control over the algorithm itself. What 147 00:07:38,520 --> 00:07:42,400 Speaker 7: content is suppressed, what content is amplified, That is ultimately 148 00:07:42,400 --> 00:07:44,440 Speaker 7: dictated by the Chinese Communist Party, And we need to 149 00:07:44,440 --> 00:07:46,160 Speaker 7: be very clear about this. There's a lot of handwaving 150 00:07:46,200 --> 00:07:50,560 Speaker 7: around this. Xijingping makes those decisions, and what that means 151 00:07:50,640 --> 00:07:54,360 Speaker 7: is that Chinese kids see very different content, mostly educational, 152 00:07:54,480 --> 00:07:57,520 Speaker 7: than American kids do. And I don't know why the 153 00:07:57,600 --> 00:08:01,040 Speaker 7: United States would want to outsource the education and ideological 154 00:08:01,080 --> 00:08:04,560 Speaker 7: cohesion of an entire generation to our greatest adversary. Now 155 00:08:04,680 --> 00:08:08,840 Speaker 7: you underlay this ignorance of that core risk with the 156 00:08:08,840 --> 00:08:13,640 Speaker 7: fact that Trump just issued a meme coin that basically 157 00:08:13,720 --> 00:08:17,000 Speaker 7: is the equivalent of him opening up a Swiss bank account, 158 00:08:17,560 --> 00:08:21,400 Speaker 7: inviting foreign adversaries and foreign individuals and corporate interests to 159 00:08:21,440 --> 00:08:24,120 Speaker 7: deposit money into it secretly and then show him the receipts. 160 00:08:24,520 --> 00:08:27,520 Speaker 7: That opens up the way for monumental corruption in the 161 00:08:27,520 --> 00:08:28,280 Speaker 7: sale of TikTok. 162 00:08:29,600 --> 00:08:32,959 Speaker 4: We'll talk about Trump Coin and indeed Milania's meme coin 163 00:08:33,040 --> 00:08:36,200 Speaker 4: two a little bit later. But Congressman, I go back 164 00:08:36,240 --> 00:08:38,079 Speaker 4: to the fact that you said that this extension is 165 00:08:38,160 --> 00:08:42,800 Speaker 4: ultimately illegal. Now you've also said that there's hand waving 166 00:08:43,040 --> 00:08:44,040 Speaker 4: now bite dance in. 167 00:08:44,000 --> 00:08:44,560 Speaker 2: And of itself. 168 00:08:44,600 --> 00:08:48,559 Speaker 4: Would say, look, control does not lie in China or Shijiping, 169 00:08:48,720 --> 00:08:52,400 Speaker 4: but up to TikTok in and of itself. But going 170 00:08:52,440 --> 00:08:54,719 Speaker 4: back to if indeed we did see some sort of 171 00:08:54,800 --> 00:08:58,120 Speaker 4: joint venture more US ownership of TikTok, with that in 172 00:08:58,160 --> 00:09:00,520 Speaker 4: any way a piece some of your national security consents. 173 00:09:01,960 --> 00:09:04,160 Speaker 7: As with many things, he says, I have no idea 174 00:09:04,200 --> 00:09:06,760 Speaker 7: what Trump was talking about when he said like the 175 00:09:06,880 --> 00:09:09,360 Speaker 7: US government would have a fifty percent stake or something 176 00:09:09,400 --> 00:09:13,040 Speaker 7: like that. There's about seventy five unanswered questions in between 177 00:09:13,040 --> 00:09:16,200 Speaker 7: that statement and the actuality of it. Here's what we want, though, 178 00:09:16,360 --> 00:09:18,000 Speaker 7: Here is the goal of the bill. First of all, 179 00:09:18,200 --> 00:09:20,040 Speaker 7: we don't want to ban TikTok. We don't want to 180 00:09:20,040 --> 00:09:21,720 Speaker 7: ban any of the social media. They're here to stay, 181 00:09:21,800 --> 00:09:24,800 Speaker 7: just like radio and TV before them. But what we 182 00:09:24,840 --> 00:09:27,640 Speaker 7: do want to do is reclaim control of the digital 183 00:09:27,679 --> 00:09:31,240 Speaker 7: town square from this Chinese communist and American corporate malfeasance. 184 00:09:31,520 --> 00:09:33,640 Speaker 7: And to do that we need TikTok to answer to 185 00:09:33,760 --> 00:09:36,640 Speaker 7: US law. And then the second step is Congress needs 186 00:09:36,640 --> 00:09:39,680 Speaker 7: to pierce Section two thirty and establish a duty of 187 00:09:39,720 --> 00:09:43,120 Speaker 7: care for all of these social media corporations. That means 188 00:09:43,480 --> 00:09:46,840 Speaker 7: that we can allow them to host things like deep 189 00:09:46,880 --> 00:09:51,120 Speaker 7: fake pornography, which ninety eight percent of online deep fake 190 00:09:51,200 --> 00:09:55,280 Speaker 7: videos or pornographic content targeting women non consensually. These tech 191 00:09:55,320 --> 00:09:57,280 Speaker 7: CEOs don't care. They don't have to care. They're not 192 00:09:57,360 --> 00:09:59,040 Speaker 7: liable for it. Congress needs to end that. 193 00:10:01,240 --> 00:10:04,520 Speaker 4: When we're thinking therefore about the next steps. 194 00:10:04,200 --> 00:10:05,440 Speaker 2: You seem to be going more broadly. 195 00:10:05,480 --> 00:10:09,680 Speaker 4: We've had steps being taken by the CEO of Matter 196 00:10:09,760 --> 00:10:13,000 Speaker 4: as well to reduce fact checking here in the United States. 197 00:10:13,280 --> 00:10:15,079 Speaker 4: How has that been a cause of anxiety for you 198 00:10:15,200 --> 00:10:17,840 Speaker 4: or is that something that you feel. Ultimately, yes, we 199 00:10:17,920 --> 00:10:23,200 Speaker 4: could see more community focus on preserving what is said 200 00:10:23,280 --> 00:10:24,200 Speaker 4: on the internet or not. 201 00:10:25,840 --> 00:10:30,280 Speaker 7: So, I'm actually sympathetic to Zuckerberg's claim that fact checking 202 00:10:30,360 --> 00:10:32,959 Speaker 7: was not proving effective. Now we can debate how accurate 203 00:10:32,960 --> 00:10:34,720 Speaker 7: the fact checking was, but the point is that people 204 00:10:34,720 --> 00:10:37,800 Speaker 7: didn't believe the fact checking, and ultimately truth has to 205 00:10:37,840 --> 00:10:41,720 Speaker 7: be communally acknowledged and so moving towards community notes, if 206 00:10:41,760 --> 00:10:44,440 Speaker 7: he can demonstrate that that's more effective and building trust 207 00:10:44,480 --> 00:10:49,520 Speaker 7: and building shared consensus about the facts, I'm receptive to that. 208 00:10:49,800 --> 00:10:52,040 Speaker 7: But the underlying point here is that any Web two 209 00:10:52,120 --> 00:10:55,000 Speaker 7: point zero approach to doing this is ultimately going to 210 00:10:55,000 --> 00:10:58,520 Speaker 7: be ineffectual because these are walled gardens controlled by corporations, 211 00:10:58,520 --> 00:11:02,439 Speaker 7: and ultimately, these corporations monetize the attention span of Americans 212 00:11:02,679 --> 00:11:06,080 Speaker 7: and sell off that product to the highest advertising bidder. 213 00:11:06,200 --> 00:11:08,040 Speaker 7: And for so long as that is the case, they're 214 00:11:08,080 --> 00:11:10,480 Speaker 7: always going to amplify the seven Deadly sins, things that 215 00:11:10,520 --> 00:11:13,680 Speaker 7: foment pride and greed and lust and end be because. 216 00:11:13,480 --> 00:11:14,440 Speaker 8: That's what people click on. 217 00:11:14,800 --> 00:11:17,439 Speaker 7: We need a Web three point zero transition where people 218 00:11:17,480 --> 00:11:19,800 Speaker 7: have more custody of their personal data and where the 219 00:11:19,840 --> 00:11:23,760 Speaker 7: algorithms are answerable to communities in a pluralistic fashion, the 220 00:11:23,760 --> 00:11:26,120 Speaker 7: way that Taiwan has done so under the leadership of 221 00:11:26,160 --> 00:11:26,920 Speaker 7: the Digital Minister. 222 00:11:28,480 --> 00:11:31,480 Speaker 3: Congressman, do you see any role for government in trying 223 00:11:31,520 --> 00:11:34,680 Speaker 3: to help in this area of moderation? We've seen the 224 00:11:34,760 --> 00:11:38,120 Speaker 3: direction of travel in Washington move far away from that. 225 00:11:38,360 --> 00:11:39,560 Speaker 8: What do you see. 226 00:11:41,720 --> 00:11:46,120 Speaker 7: Government needs to revoke Section two thirty so the tech 227 00:11:46,240 --> 00:11:49,720 Speaker 7: industry will claim that Section two thirty protects free expression, 228 00:11:50,000 --> 00:11:53,360 Speaker 7: and it's just laughable. James Madison did not write Section 229 00:11:53,400 --> 00:11:55,600 Speaker 7: two thirty. It was wrapped in the nineteen nineties, and 230 00:11:55,679 --> 00:11:59,000 Speaker 7: it is an industry specific shield for the social media 231 00:11:59,040 --> 00:12:03,319 Speaker 7: corporations and not be liable for toxicity, for defamation, for cyberstocking, 232 00:12:03,320 --> 00:12:04,800 Speaker 7: and intimate privacy violations. 233 00:12:04,840 --> 00:12:06,200 Speaker 8: Things that are already illegal. 234 00:12:06,200 --> 00:12:07,440 Speaker 7: I want to be clear about this, things that are 235 00:12:07,440 --> 00:12:10,480 Speaker 7: already towards under civil and criminal law. They are not 236 00:12:10,520 --> 00:12:13,560 Speaker 7: susceptible for a duty of care. To prevent them, we 237 00:12:13,640 --> 00:12:16,679 Speaker 7: need to make them liable for it. And then we 238 00:12:16,760 --> 00:12:21,920 Speaker 7: need to bring in the blockchain industry under regulatory clarity 239 00:12:22,200 --> 00:12:24,160 Speaker 7: so that we can transition to a Web three point 240 00:12:24,200 --> 00:12:27,440 Speaker 7: zero approach to social media governance. Because what's working in 241 00:12:27,480 --> 00:12:30,240 Speaker 7: Web two point zero has worked well for the tech CEOs, 242 00:12:30,240 --> 00:12:31,960 Speaker 7: it has not worked well for American children. 243 00:12:33,320 --> 00:12:36,160 Speaker 3: Those are both pretty ambitious goals. Congressmen, do you see 244 00:12:36,240 --> 00:12:39,680 Speaker 3: enough of a consensus in this Congress between Democrats and 245 00:12:39,760 --> 00:12:43,440 Speaker 3: Republicans to be able to get both of those things done, 246 00:12:43,559 --> 00:12:47,120 Speaker 3: Especially with respect to Section two thirty, which we've been 247 00:12:47,280 --> 00:12:48,360 Speaker 3: hearing about for so long. 248 00:12:50,040 --> 00:12:52,160 Speaker 7: You're certainly right to the tech lobby has been effective 249 00:12:52,160 --> 00:12:56,319 Speaker 7: at crushing even marginal steps towards revoking Section two thirty. 250 00:12:56,320 --> 00:12:59,240 Speaker 7: I will note, though, that last Congress the chair and 251 00:12:59,320 --> 00:13:01,760 Speaker 7: ranking member of the Energy and Commerce Committee on which 252 00:13:01,760 --> 00:13:04,600 Speaker 7: I said, and which has jurisdiction over the tech industry, 253 00:13:04,880 --> 00:13:07,079 Speaker 7: jointly wrote an outbed in The Wall Street Journal calling 254 00:13:07,120 --> 00:13:08,960 Speaker 7: for the sun setting of Section two thirty. Now it 255 00:13:08,960 --> 00:13:11,720 Speaker 7: didn't happen last term, but that is a significant step 256 00:13:11,760 --> 00:13:15,040 Speaker 7: forward where you see bipartisan leadership towards revoking it. I 257 00:13:15,120 --> 00:13:17,720 Speaker 7: think we are hitting an inflection point where Americans are 258 00:13:17,760 --> 00:13:21,439 Speaker 7: tired of having toxicity pumped into the national discourse by 259 00:13:21,440 --> 00:13:24,040 Speaker 7: people who get richer the more time their kids spend 260 00:13:24,040 --> 00:13:26,400 Speaker 7: scrolling on their smartphones. It is time for us to 261 00:13:26,440 --> 00:13:28,959 Speaker 7: move away from this phone based childhood towards a play 262 00:13:29,000 --> 00:13:31,880 Speaker 7: based childhood. But to do that, we've got to reclaim 263 00:13:31,920 --> 00:13:35,120 Speaker 7: ownership over how we talk to each other. Section two 264 00:13:35,200 --> 00:13:37,199 Speaker 7: thirty is the first step, and I do think we're 265 00:13:37,200 --> 00:13:38,760 Speaker 7: building bipartisan support for it. 266 00:13:39,440 --> 00:13:41,400 Speaker 4: I hate you, but there was a lot of bipartisan 267 00:13:41,960 --> 00:13:44,560 Speaker 4: support to ban TikTok, and then suddenly, as the hour 268 00:13:44,640 --> 00:13:47,960 Speaker 4: drew near, we saw some real one eighties from across 269 00:13:48,000 --> 00:13:50,960 Speaker 4: the aisle. Congressman and I go back to the TikTok case, 270 00:13:50,960 --> 00:13:53,600 Speaker 4: in particular because the fact they keep on talking about 271 00:13:53,600 --> 00:13:57,160 Speaker 4: web three point zero. You're talking about decentralization here, Well, 272 00:13:57,160 --> 00:13:59,160 Speaker 4: we've heard that from a pitch of one of the 273 00:13:59,160 --> 00:14:02,880 Speaker 4: wanna be owners, Frank McCourt, and indeed, working with Kevin O'Leary, 274 00:14:02,920 --> 00:14:07,440 Speaker 4: they want to be seeing potentially this project liberty. What 275 00:14:07,440 --> 00:14:10,440 Speaker 4: are you thinking more broadly about their particular offer, because 276 00:14:10,480 --> 00:14:13,560 Speaker 4: they don't want the algorithm. 277 00:14:14,000 --> 00:14:14,200 Speaker 9: Yeah. 278 00:14:14,240 --> 00:14:17,439 Speaker 7: Web three point zero fundamentally is about open governance. It's 279 00:14:17,480 --> 00:14:22,200 Speaker 7: about creating pluralism and creating a sense of community ownership 280 00:14:22,280 --> 00:14:25,320 Speaker 7: over this. In the same way that Americans insist that 281 00:14:25,360 --> 00:14:29,680 Speaker 7: our actual town squares are places where communities have an 282 00:14:29,720 --> 00:14:34,160 Speaker 7: interest in upholding order and providing freedom of expression, we 283 00:14:34,240 --> 00:14:36,200 Speaker 7: need the same thing for our digital town square, because 284 00:14:36,200 --> 00:14:38,760 Speaker 7: that's where Americans are spending four to six hours every 285 00:14:38,800 --> 00:14:41,560 Speaker 7: day taking in news, information, and entertainment. 286 00:14:41,760 --> 00:14:43,160 Speaker 8: I think too many Americans just. 287 00:14:43,120 --> 00:14:45,720 Speaker 7: Assume that the status quo over the last fifteen years 288 00:14:46,360 --> 00:14:49,400 Speaker 7: is all that we can expect from social media. But 289 00:14:49,400 --> 00:14:51,720 Speaker 7: if you look back at every other media innovation from 290 00:14:51,720 --> 00:14:54,200 Speaker 7: the printing press in the fifteen hundreds all the way 291 00:14:54,240 --> 00:14:56,440 Speaker 7: through TV and radio, you will see that there was 292 00:14:56,480 --> 00:14:59,400 Speaker 7: a moment of disruption and then new norms, conventions, and 293 00:14:59,480 --> 00:15:03,880 Speaker 7: laws where established to help bring some harmony to this 294 00:15:04,720 --> 00:15:08,800 Speaker 7: new way of disseminating information. The challenge here with social 295 00:15:08,880 --> 00:15:11,520 Speaker 7: media is that we've had to digest this tech innovation 296 00:15:11,680 --> 00:15:13,480 Speaker 7: in a much shorter amount of time. We've had less 297 00:15:13,520 --> 00:15:15,400 Speaker 7: than half a generation to do it, and so the 298 00:15:15,440 --> 00:15:18,200 Speaker 7: disruption has been even greater. But I do think that 299 00:15:18,240 --> 00:15:19,960 Speaker 7: we are hitting an inflection point where we're going to 300 00:15:19,960 --> 00:15:22,320 Speaker 7: start to adopt new roles in governance structures. 301 00:15:24,200 --> 00:15:29,520 Speaker 3: US Representative Jacocinclaus from Massachusetts, Thank you. Coming up, we'll 302 00:15:29,560 --> 00:15:33,320 Speaker 3: hear from Bank of America's CEO, Brian moynihan out of Davos. 303 00:15:33,400 --> 00:15:35,280 Speaker 8: Next, this is Bloomberg. 304 00:15:37,280 --> 00:15:40,280 Speaker 4: Bloomberg is live at Davos, and Bloomberg's Jonathan Faraoh and 305 00:15:40,280 --> 00:15:43,600 Speaker 4: Lisa Bromwitz are sat down with the Bank of America's CEO. 306 00:15:45,400 --> 00:15:47,600 Speaker 10: Hey guys, great to be with you, day two of 307 00:15:47,680 --> 00:15:50,960 Speaker 10: the World Economic Forum here in Davos, Switzerland, minds firmly 308 00:15:50,960 --> 00:15:52,520 Speaker 10: elsewhere in Washington, d C. 309 00:15:52,800 --> 00:15:53,200 Speaker 8: Isn't that right? 310 00:15:53,320 --> 00:15:55,840 Speaker 10: Least twenty four hours of conversations about how great America 311 00:15:55,960 --> 00:15:57,680 Speaker 10: is and how the rest of the world will struggle 312 00:15:57,880 --> 00:15:59,360 Speaker 10: with the incoming President Donald Trump. 313 00:15:59,440 --> 00:16:03,080 Speaker 11: Yeah, station here at Davos has been what's America going 314 00:16:03,120 --> 00:16:05,960 Speaker 11: to do? How can I leverage myself to be in 315 00:16:05,960 --> 00:16:09,240 Speaker 11: the best position possible? And oh yeah, what's the latest headline? 316 00:16:09,280 --> 00:16:12,240 Speaker 10: Brom Monahan alongside us, the chairman of CEO of Bank 317 00:16:12,240 --> 00:16:14,200 Speaker 10: for America. We're going to cover all of that through 318 00:16:14,200 --> 00:16:16,400 Speaker 10: the next eight minutes or so. There's an important occasion 319 00:16:16,440 --> 00:16:19,000 Speaker 10: to mark fifteen years at the top of Bank for America. 320 00:16:19,080 --> 00:16:20,840 Speaker 12: Now, it's been an honor lead to company and we've 321 00:16:20,840 --> 00:16:23,920 Speaker 12: had some fun and it was interesting to start. For 322 00:16:23,960 --> 00:16:26,120 Speaker 12: the last ten years or so, we've been on a 323 00:16:26,160 --> 00:16:28,320 Speaker 12: role just producing responsible growth and the team does a 324 00:16:28,320 --> 00:16:30,400 Speaker 12: great job and we can take pride we've put the 325 00:16:30,440 --> 00:16:30,880 Speaker 12: company to. 326 00:16:30,880 --> 00:16:32,760 Speaker 13: Where it should be. Is one of the great companies 327 00:16:32,760 --> 00:16:33,200 Speaker 13: in the world. 328 00:16:33,360 --> 00:16:34,440 Speaker 8: Beyond interesting. 329 00:16:34,480 --> 00:16:37,280 Speaker 10: Fifteen years ago it was the absorption of Countrywide Financial. 330 00:16:37,360 --> 00:16:38,000 Speaker 8: It was Meyril. 331 00:16:38,000 --> 00:16:40,040 Speaker 10: It's a very very different bank and a very very 332 00:16:40,040 --> 00:16:42,200 Speaker 10: different moment. That phrase you use is one you've used 333 00:16:42,200 --> 00:16:45,600 Speaker 10: so many times, responsible growth. There is a feeling that 334 00:16:45,640 --> 00:16:47,600 Speaker 10: maybe we moved towards something house in the world of 335 00:16:47,640 --> 00:16:49,560 Speaker 10: banking over the next few years. Some might say it's 336 00:16:49,560 --> 00:16:51,440 Speaker 10: sort of reckless growth, which is going to go for it? 337 00:16:51,480 --> 00:16:52,800 Speaker 10: How would you describe the future. 338 00:16:53,200 --> 00:16:56,920 Speaker 12: So what you're hearing is enthusiasm for in the investment 339 00:16:56,920 --> 00:16:59,400 Speaker 12: banking side, it particularly transactions. Right, for a long time, 340 00:16:59,560 --> 00:17:02,000 Speaker 12: for last couple of years, it's been hard to get 341 00:17:02,040 --> 00:17:04,960 Speaker 12: a transaction through. And what stops a seller from selling 342 00:17:05,000 --> 00:17:07,160 Speaker 12: or buyer from buying is this thing is delayed. 343 00:17:07,200 --> 00:17:09,280 Speaker 13: I'm exposed and so what they'll do is they'll push 344 00:17:09,320 --> 00:17:10,119 Speaker 13: it through. So there's a lot of. 345 00:17:10,160 --> 00:17:12,760 Speaker 12: Enthusiasm that they'll be better growth United States. There a 346 00:17:12,840 --> 00:17:15,199 Speaker 12: lot of enthusiasm by the bankers saying these deals can 347 00:17:15,240 --> 00:17:17,200 Speaker 12: get done, so I can go have this future conversation. 348 00:17:17,480 --> 00:17:19,960 Speaker 12: It's just not another idea that goes through the system 349 00:17:20,000 --> 00:17:22,240 Speaker 12: and everybody says, that's a great idea, But that can 350 00:17:22,240 --> 00:17:24,159 Speaker 12: be a great idea, let's go do it, or a 351 00:17:24,160 --> 00:17:25,000 Speaker 12: great idea, I don't. 352 00:17:24,880 --> 00:17:25,280 Speaker 13: Want to do it. 353 00:17:25,320 --> 00:17:27,159 Speaker 12: But it's a more of a substance space than it 354 00:17:27,200 --> 00:17:29,160 Speaker 12: is more of a worry about the environment. 355 00:17:29,200 --> 00:17:29,400 Speaker 3: Right. 356 00:17:29,600 --> 00:17:31,880 Speaker 11: Are you basically saying that there's more enthusiasm, that there 357 00:17:31,920 --> 00:17:34,000 Speaker 11: is conviction and will to actually get stuff done. 358 00:17:34,119 --> 00:17:36,399 Speaker 12: Yeah, I think you saw some deals getting announced and 359 00:17:36,440 --> 00:17:38,840 Speaker 12: you'll see more deals getting announced in our sector in banking, 360 00:17:39,000 --> 00:17:42,400 Speaker 12: especially in the United States. The consolidation is still far 361 00:17:42,440 --> 00:17:43,400 Speaker 12: away from being. 362 00:17:45,160 --> 00:17:45,560 Speaker 13: Done. 363 00:17:45,880 --> 00:17:47,880 Speaker 12: They'll always be big banks or always be small banks, 364 00:17:47,920 --> 00:17:49,840 Speaker 12: but you'll let people make a decision what they. 365 00:17:49,680 --> 00:17:49,960 Speaker 13: Want to do. 366 00:17:49,960 --> 00:17:51,679 Speaker 12: And there haven't been a lot of bank deals done. 367 00:17:51,880 --> 00:17:54,240 Speaker 12: Bank to bank deals we can't do them, it's not legal, 368 00:17:54,280 --> 00:17:57,040 Speaker 12: but as investment banking we can help other people do them, 369 00:17:57,040 --> 00:17:58,679 Speaker 12: and it haven't been a lot done because just uncertain 370 00:17:58,720 --> 00:18:01,280 Speaker 12: you're getting caught in a transaction and having issues. So 371 00:18:01,320 --> 00:18:04,480 Speaker 12: the belief that they should promote the banks consolidate and 372 00:18:04,480 --> 00:18:06,680 Speaker 12: getting more efficient, passing that through to customers, passing that 373 00:18:06,800 --> 00:18:10,280 Speaker 12: through to small businesses, et cetera is different. 374 00:18:10,320 --> 00:18:11,080 Speaker 13: Will be a change. 375 00:18:11,119 --> 00:18:13,800 Speaker 11: Well, there's the banking sector specifically and some of the 376 00:18:13,840 --> 00:18:16,520 Speaker 11: deregulation and whether some of these mergers and consolidation will 377 00:18:16,560 --> 00:18:17,480 Speaker 11: be a looted, and. 378 00:18:17,440 --> 00:18:18,760 Speaker 14: Then there's a broader corporate sector. 379 00:18:18,760 --> 00:18:20,800 Speaker 11: As some of the enthusiasm we've seen and we've heard 380 00:18:20,840 --> 00:18:23,639 Speaker 11: from the cities, a head of banking from JP Morgan, 381 00:18:24,920 --> 00:18:27,520 Speaker 11: how much do you see that being maybe a little 382 00:18:27,720 --> 00:18:31,080 Speaker 11: premature based on some of the policies coming down the 383 00:18:31,119 --> 00:18:34,480 Speaker 11: pike and the uncertainty around debt, deficit and rates. 384 00:18:34,920 --> 00:18:37,720 Speaker 12: Well, I think you have to divorce a little bit 385 00:18:37,800 --> 00:18:40,560 Speaker 12: some of the fiscal work that has to be done, 386 00:18:40,560 --> 00:18:43,080 Speaker 12: and in coming Treasury or Secretary and others have to 387 00:18:43,080 --> 00:18:45,080 Speaker 12: take very seriously this question of how do we manage 388 00:18:45,240 --> 00:18:47,720 Speaker 12: the revenue stream, the expense stream, and the amount of 389 00:18:47,760 --> 00:18:50,560 Speaker 12: debt and get it all to work out. That one 390 00:18:50,600 --> 00:18:52,240 Speaker 12: of the ways that that becomes easier if you have 391 00:18:52,320 --> 00:18:55,119 Speaker 12: more activity and more things going on. 392 00:18:55,240 --> 00:18:56,920 Speaker 13: So I think the enthusiasm. 393 00:18:56,600 --> 00:18:59,399 Speaker 12: Here from the bankers is more structurally. The belief is 394 00:18:59,600 --> 00:19:04,359 Speaker 12: that even starting yesterday, you don't have you don't have 395 00:19:04,400 --> 00:19:06,360 Speaker 12: the constraint that you have, so you can go. If 396 00:19:06,400 --> 00:19:10,080 Speaker 12: there's more that enables more, that's good stuff, but right 397 00:19:10,119 --> 00:19:12,240 Speaker 12: now it'll stop it going in the wrong direction and 398 00:19:12,480 --> 00:19:16,280 Speaker 12: look hard. Medium small sized businesses their biggest complaint last summer. 399 00:19:16,359 --> 00:19:18,280 Speaker 13: Last time I was here and we. 400 00:19:18,400 --> 00:19:22,160 Speaker 12: Talked to the administration about it was the biggest complaint 401 00:19:22,200 --> 00:19:24,800 Speaker 12: was you're in my pocket. You're slow me down. I 402 00:19:24,840 --> 00:19:27,080 Speaker 12: can't get things done. I want to permit to do something, 403 00:19:27,080 --> 00:19:30,040 Speaker 12: it takes forever. I want your labor rules. All this 404 00:19:30,040 --> 00:19:31,680 Speaker 12: stuff was going on just over and over, and small 405 00:19:31,760 --> 00:19:34,320 Speaker 12: medium sized business don't have the thousands of people that 406 00:19:34,359 --> 00:19:36,440 Speaker 12: big companies have to figure it all out and they're 407 00:19:36,480 --> 00:19:38,800 Speaker 12: figuring out their own The same person's running the business 408 00:19:38,920 --> 00:19:40,960 Speaker 12: at nice sitting Anders say, so, what does this new 409 00:19:40,960 --> 00:19:43,439 Speaker 12: taxation strategy on so security mean to me? 410 00:19:44,080 --> 00:19:45,520 Speaker 13: How does it apply? How I have to change all 411 00:19:45,560 --> 00:19:46,080 Speaker 13: my systems? 412 00:19:46,119 --> 00:19:48,800 Speaker 12: And so they're just saying, if you just stop, you know, 413 00:19:49,359 --> 00:19:50,120 Speaker 12: things will get better. 414 00:19:50,200 --> 00:19:52,240 Speaker 10: So you're on the number one lene to small businesses 415 00:19:52,359 --> 00:19:54,760 Speaker 10: in the United States, give us the read on things 416 00:19:54,960 --> 00:19:57,400 Speaker 10: right now? Are they already making those decisions to make 417 00:19:57,440 --> 00:19:59,280 Speaker 10: a move to make those investments that they were on 418 00:19:59,600 --> 00:20:02,159 Speaker 10: hold over the last four years doing? Are they already 419 00:20:02,160 --> 00:20:03,000 Speaker 10: making that most so. 420 00:20:02,960 --> 00:20:04,920 Speaker 12: If you come over the last say, six eight months 421 00:20:05,000 --> 00:20:08,760 Speaker 12: or so that it went from regulation and inflation, the 422 00:20:08,800 --> 00:20:11,360 Speaker 12: inflation has kind of come down as their worry. Right now, 423 00:20:11,640 --> 00:20:14,600 Speaker 12: what's actually interesting is they're going back to labor shortages 424 00:20:14,840 --> 00:20:17,240 Speaker 12: and rightly now the interesting thing about that that has 425 00:20:17,600 --> 00:20:19,840 Speaker 12: a question about immigration and all this stuff going on. 426 00:20:20,200 --> 00:20:21,560 Speaker 13: But what they're feeling that is demand. 427 00:20:21,800 --> 00:20:24,880 Speaker 12: I need people to do things, and so they're starting 428 00:20:24,920 --> 00:20:28,320 Speaker 12: to feel the demand steady. They remember when the Fed 429 00:20:28,440 --> 00:20:30,520 Speaker 12: was raising rates high, their cost of barring went up 430 00:20:30,560 --> 00:20:33,280 Speaker 12: a lot. They went from three hundred basis points over 431 00:20:33,320 --> 00:20:35,280 Speaker 12: an index that went up by five hundred basis points. 432 00:20:35,320 --> 00:20:38,000 Speaker 12: That's a big number, and so that caused them to say, 433 00:20:38,080 --> 00:20:40,879 Speaker 12: let me be careful and then if as the rates 434 00:20:40,880 --> 00:20:42,520 Speaker 12: come download but they feel a little better and now 435 00:20:42,600 --> 00:20:44,760 Speaker 12: let's say, Okay, I have the opportunity to grow, but 436 00:20:45,119 --> 00:20:46,800 Speaker 12: can I get the people? And remember that was the 437 00:20:46,840 --> 00:20:50,200 Speaker 12: twenty twenty one twenty two timeframe, so in there there's 438 00:20:50,200 --> 00:20:53,080 Speaker 12: got to be a solution this immigration. It doesn't constrain 439 00:20:53,119 --> 00:20:54,960 Speaker 12: those small medium sized business for growing or they're going 440 00:20:55,000 --> 00:20:55,600 Speaker 12: to start letting. 441 00:20:55,640 --> 00:20:57,040 Speaker 10: Would you say, just to jump in, would you say 442 00:20:57,080 --> 00:20:59,320 Speaker 10: we are supply constrained? Do you think we are prone 443 00:20:59,440 --> 00:21:00,520 Speaker 10: to have these in flight? 444 00:21:02,240 --> 00:21:03,360 Speaker 13: Yes? And no, And. 445 00:21:04,960 --> 00:21:09,200 Speaker 12: We don't know honestly because because the stimulus after the pandemic, 446 00:21:09,640 --> 00:21:11,320 Speaker 12: there was so much more than there maybe had to 447 00:21:11,400 --> 00:21:14,960 Speaker 12: be by technical economic discussion, you know, it's hard to 448 00:21:15,000 --> 00:21:17,320 Speaker 12: say whether we're supply constrained and other things. 449 00:21:17,480 --> 00:21:18,800 Speaker 13: And it were supply constraints because it. 450 00:21:18,800 --> 00:21:22,480 Speaker 12: Cut off a supply and the stoppage of goods coming 451 00:21:22,480 --> 00:21:24,199 Speaker 12: in a country and shipping and all that stuff that 452 00:21:24,240 --> 00:21:26,040 Speaker 12: we went through. So you haven't gotten to a real 453 00:21:26,119 --> 00:21:29,080 Speaker 12: normalized side of that yet. But that's the blame for 454 00:21:29,080 --> 00:21:32,800 Speaker 12: the current thing. I think the supply shortages can mitigate. 455 00:21:33,240 --> 00:21:34,639 Speaker 12: If you know, we got to be a little care 456 00:21:34,760 --> 00:21:36,399 Speaker 12: about labor supply, We've got to be a little care 457 00:21:36,440 --> 00:21:37,360 Speaker 12: for about the. 458 00:21:37,359 --> 00:21:39,040 Speaker 13: Terriffs impacting supply and things. 459 00:21:39,040 --> 00:21:41,680 Speaker 12: But I think people the second sourcing's gone on, people 460 00:21:41,680 --> 00:21:42,919 Speaker 12: are finding places to get stuff. 461 00:21:43,160 --> 00:21:45,639 Speaker 13: So I'm not quite sure that's going to be the issue. 462 00:21:45,760 --> 00:21:47,359 Speaker 12: But a lot of what we think it was the 463 00:21:47,400 --> 00:21:50,000 Speaker 12: issue is actually the pandemic, the stimulus and the impact 464 00:21:50,000 --> 00:21:52,560 Speaker 12: the pandemic on supply that's worth the sort of system. 465 00:21:52,680 --> 00:21:54,399 Speaker 11: So John started with the fact that you've been in 466 00:21:54,440 --> 00:21:57,320 Speaker 11: Bank of America for fifteen years. We keep hearing about 467 00:21:57,320 --> 00:22:00,480 Speaker 11: succession plans in different places. What's your success should plan? 468 00:22:00,880 --> 00:22:02,720 Speaker 13: But you're trying to throw me out, No. 469 00:22:02,640 --> 00:22:03,120 Speaker 15: Not at all. 470 00:22:03,200 --> 00:22:05,200 Speaker 11: I'm just wondering because this is something that we. 471 00:22:08,560 --> 00:22:08,800 Speaker 10: Lost. 472 00:22:08,880 --> 00:22:13,520 Speaker 12: Questions the way, the fascination with all this is interesting, 473 00:22:13,600 --> 00:22:15,359 Speaker 12: and one just means we're all getting older. 474 00:22:15,400 --> 00:22:18,160 Speaker 13: So what they're out is we run. 475 00:22:18,400 --> 00:22:20,600 Speaker 12: We run across in our company through the top three layers, 476 00:22:20,600 --> 00:22:24,040 Speaker 12: including for the CEO succession. Every six months, we go 477 00:22:24,080 --> 00:22:26,680 Speaker 12: through everything who the media successors for every one of 478 00:22:26,680 --> 00:22:29,040 Speaker 12: our teammates jobs, and we have a slate, and we 479 00:22:29,640 --> 00:22:31,160 Speaker 12: go from a slip because if we run a company, 480 00:22:31,240 --> 00:22:35,359 Speaker 12: people leave for a whole, they retire, they get another job, whatever, 481 00:22:35,440 --> 00:22:36,560 Speaker 12: and you're always filling jobs. 482 00:22:36,560 --> 00:22:38,280 Speaker 13: And so with the way the board will make a 483 00:22:38,359 --> 00:22:38,840 Speaker 13: choice at. 484 00:22:38,720 --> 00:22:41,960 Speaker 12: Some point, I'm not going anywhere unless they throw me out. 485 00:22:41,960 --> 00:22:43,080 Speaker 13: They know that. 486 00:22:43,280 --> 00:22:45,359 Speaker 12: But my job, and one of the biggest jobs I have, 487 00:22:45,560 --> 00:22:48,800 Speaker 12: is preparing people for the what it would be like 488 00:22:48,840 --> 00:22:52,040 Speaker 12: to run this company out there and and and then 489 00:22:52,240 --> 00:22:53,960 Speaker 12: and and that's important. So we do a lot with 490 00:22:54,000 --> 00:22:55,879 Speaker 12: our team to get them used to experiences and get 491 00:22:55,920 --> 00:22:57,639 Speaker 12: them to learn more about the trade offs you have 492 00:22:57,640 --> 00:22:58,960 Speaker 12: to make at the top of the house, because if 493 00:22:58,960 --> 00:23:01,119 Speaker 12: you come through a business or come through a function, 494 00:23:01,359 --> 00:23:03,760 Speaker 12: you haven't made those trails. That's part of our general strategy. 495 00:23:03,760 --> 00:23:05,680 Speaker 12: And so we talked to our board. But you'll never 496 00:23:05,680 --> 00:23:08,239 Speaker 12: hear us discuss A is in and B is not. 497 00:23:08,800 --> 00:23:10,359 Speaker 12: That to me is the worst thing you can do. 498 00:23:10,400 --> 00:23:12,119 Speaker 12: I went through that process in the end of two 499 00:23:12,119 --> 00:23:14,800 Speaker 12: thousand and nine. Whether it's day to day speculation, that's. 500 00:23:14,600 --> 00:23:15,360 Speaker 13: Not the way to do it. 501 00:23:15,480 --> 00:23:16,560 Speaker 2: Well, thank you for that very much. 502 00:23:16,680 --> 00:23:17,520 Speaker 13: You'll be the first first one. 503 00:23:17,560 --> 00:23:18,159 Speaker 14: Okay, thank you. 504 00:23:18,240 --> 00:23:19,080 Speaker 8: I appreciate that. 505 00:23:19,080 --> 00:23:21,080 Speaker 11: We only have about thirty seconds. You said something to 506 00:23:21,160 --> 00:23:23,639 Speaker 11: us when we were at Bank of America that AI 507 00:23:24,040 --> 00:23:27,160 Speaker 11: would basically keep the staff the same size but increase 508 00:23:27,400 --> 00:23:28,440 Speaker 11: the footprint of business. 509 00:23:28,640 --> 00:23:29,439 Speaker 14: Do you stand by that? 510 00:23:29,920 --> 00:23:33,119 Speaker 13: Yeah, there are two facts I'll give you. One is 511 00:23:33,160 --> 00:23:34,280 Speaker 13: we run the company. 512 00:23:33,960 --> 00:23:36,520 Speaker 12: On the nominal amount of dollars of expenses we did 513 00:23:36,640 --> 00:23:39,640 Speaker 12: ten years ago almost now, nominal or not not inflation 514 00:23:39,760 --> 00:23:41,879 Speaker 12: just and we run it on thirty thousand less people. 515 00:23:42,000 --> 00:23:46,200 Speaker 12: That is all digitization, and AI is an extension of automation, 516 00:23:46,320 --> 00:23:50,880 Speaker 12: digitization models, et cetera, automating work, taking out work and automated. 517 00:23:50,920 --> 00:23:53,080 Speaker 13: Therefore you don't need and I think AI keeps going. 518 00:23:53,480 --> 00:23:56,200 Speaker 12: The idea is, if we're good, we'll keep adjusting where 519 00:23:56,320 --> 00:23:58,000 Speaker 12: the teammates end up. So it might not be the 520 00:23:58,000 --> 00:24:00,800 Speaker 12: same two hundred twelve thousand people two hundred and thirteen 521 00:24:00,800 --> 00:24:03,000 Speaker 12: thousand people doing the same thing ten years from now. Yeah, 522 00:24:03,040 --> 00:24:04,920 Speaker 12: but my guess is that our employment levels will stay 523 00:24:04,960 --> 00:24:07,320 Speaker 12: relatively said if you work towards stuff that can't be 524 00:24:07,400 --> 00:24:08,480 Speaker 12: replicated near turn by. 525 00:24:08,440 --> 00:24:10,760 Speaker 10: Air Bran and you've been super generous with your time, 526 00:24:10,800 --> 00:24:12,280 Speaker 10: and you show me up every year because you always 527 00:24:12,280 --> 00:24:14,080 Speaker 10: come out here with a suit jacket on and I'm 528 00:24:14,119 --> 00:24:16,840 Speaker 10: sitting here with like a winter jacket. Yeah, but yeah, 529 00:24:16,840 --> 00:24:18,760 Speaker 10: I know, I know you've been influenced by Brian. 530 00:24:18,880 --> 00:24:21,439 Speaker 11: No, it's actually just a lot more Thanks for. 531 00:24:21,440 --> 00:24:23,920 Speaker 10: America CEO and chairman. Bye, Thank you guys Banks. 532 00:24:23,920 --> 00:24:27,879 Speaker 4: See you ending in artificial intelligence. We so appreciate it 533 00:24:28,080 --> 00:24:39,080 Speaker 4: out in Davos. Fantastic conversation. Welcome back to bluemog Technology. 534 00:24:39,119 --> 00:24:41,560 Speaker 4: I'm Caroline Hyde in New York and. 535 00:24:41,480 --> 00:24:42,880 Speaker 8: I'm Mike Sheppard in Washington. 536 00:24:43,080 --> 00:24:45,680 Speaker 4: Quick check on these markets, Mike, because look, we've got 537 00:24:45,720 --> 00:24:47,879 Speaker 4: a little bit of a reprieve in the markets as 538 00:24:48,000 --> 00:24:50,960 Speaker 4: we try to digest a whole host of executive orders 539 00:24:50,960 --> 00:24:54,440 Speaker 4: and moves made by the new administration as Trump takes office. 540 00:24:54,440 --> 00:24:56,800 Speaker 4: We're currently up two ten percent on the NASAK one hundred, 541 00:24:56,880 --> 00:24:59,760 Speaker 4: investors wanting to see the growth potential rather than some 542 00:24:59,840 --> 00:25:02,679 Speaker 4: of the the trade hindrances for now. But Apple in 543 00:25:02,760 --> 00:25:05,679 Speaker 4: the spotlight down more than four point three percent. This 544 00:25:05,720 --> 00:25:09,320 Speaker 4: is the worst day since August of last year. It's 545 00:25:09,320 --> 00:25:12,560 Speaker 4: currently training in the lowest September twenty twenty four. This 546 00:25:12,640 --> 00:25:16,920 Speaker 4: again is China anxiety. Apple intelligence not really feeding through 547 00:25:16,920 --> 00:25:20,080 Speaker 4: in demand for the iPhone as much as analyst anticipated, 548 00:25:20,119 --> 00:25:24,280 Speaker 4: Loop Capital and Jeffrey's cut their overall view of Apple 549 00:25:24,600 --> 00:25:27,119 Speaker 4: from a hold or indeed one indeed saying to a 550 00:25:27,240 --> 00:25:29,200 Speaker 4: cell let's move on and have a look at what's 551 00:25:29,480 --> 00:25:29,960 Speaker 4: happening in the. 552 00:25:29,960 --> 00:25:32,080 Speaker 2: World of crypto as well, because no executive order. 553 00:25:32,080 --> 00:25:33,919 Speaker 4: When it comes to bitcoin, I'm afraid we're up two 554 00:25:33,960 --> 00:25:36,320 Speaker 4: point nine percent, but we're still above one hundred and 555 00:25:36,320 --> 00:25:38,160 Speaker 4: five thousand dollars micro strategy. 556 00:25:38,160 --> 00:25:40,080 Speaker 2: On the downside, a lot of the crypto exposed. 557 00:25:39,800 --> 00:25:41,600 Speaker 4: Names are on the fact that maybe we didn't get 558 00:25:41,640 --> 00:25:44,040 Speaker 4: an EO out the gate when it comes to the 559 00:25:44,119 --> 00:25:48,280 Speaker 4: approval of bitcoin and cryptocurrencies more broadly by. 560 00:25:48,160 --> 00:25:49,000 Speaker 2: The new administration. 561 00:25:49,040 --> 00:25:52,000 Speaker 4: Microstratuy, you're by two when it's buying yet more bitcoin 562 00:25:52,080 --> 00:25:55,119 Speaker 4: as we know an eleventh consecutive week. But there was 563 00:25:55,160 --> 00:25:58,080 Speaker 4: good news over the weekend into the inauguration for many 564 00:25:58,119 --> 00:26:02,640 Speaker 4: crypto holders. Let's go to it, Blu MiGs Isabelle Lee, 565 00:26:02,760 --> 00:26:06,800 Speaker 4: is here an extraordinary announcement coming from the incoming at 566 00:26:06,800 --> 00:26:10,320 Speaker 4: that point President Trump. Now is President Trump and Milania 567 00:26:10,440 --> 00:26:13,720 Speaker 4: both having a mean coin? What does this mean for 568 00:26:13,760 --> 00:26:14,199 Speaker 4: the space? 569 00:26:14,280 --> 00:26:15,760 Speaker 16: I really thought it was a joke when I saw 570 00:26:15,760 --> 00:26:17,800 Speaker 16: it online, because you see a lot of parodies, but 571 00:26:17,880 --> 00:26:19,520 Speaker 16: then it was real. I mean, now we don't know 572 00:26:19,600 --> 00:26:21,760 Speaker 16: yet if this is related to Trump or not. His 573 00:26:21,840 --> 00:26:23,960 Speaker 16: team is behind it, but we have his son Eric 574 00:26:24,000 --> 00:26:26,560 Speaker 16: Trump saying that this is quote, the greatest digital meme 575 00:26:26,760 --> 00:26:28,679 Speaker 16: on earth. So what to make of this? 576 00:26:28,800 --> 00:26:29,359 Speaker 2: Two things? 577 00:26:29,400 --> 00:26:33,280 Speaker 16: Really, On one hand, it's a great thing. It's really 578 00:26:33,320 --> 00:26:35,879 Speaker 16: signifies a new regime, the fact that you have a 579 00:26:35,920 --> 00:26:39,639 Speaker 16: coin named after Trump and also Milania. When Milanna was 580 00:26:39,720 --> 00:26:42,040 Speaker 16: launch launch, by the way, it sucked some of the 581 00:26:42,080 --> 00:26:43,879 Speaker 16: air out of the Trump point, but still at one 582 00:26:43,880 --> 00:26:45,800 Speaker 16: point it was as high as sixty billion. 583 00:26:46,160 --> 00:26:46,720 Speaker 14: That's great. 584 00:26:46,840 --> 00:26:48,159 Speaker 2: But on the other you have if you're long in 585 00:26:48,160 --> 00:26:49,840 Speaker 2: the space, it's great, yes, yes, But. 586 00:26:49,840 --> 00:26:53,240 Speaker 16: On the other you have people saying this highlights the 587 00:26:53,280 --> 00:26:56,600 Speaker 16: memification of the industry. How will the traditional finance people 588 00:26:56,840 --> 00:26:58,919 Speaker 16: take us seriously? Because what is a meme coin? What 589 00:26:59,000 --> 00:27:01,520 Speaker 16: is a meme style? It's just really a joke. So 590 00:27:01,640 --> 00:27:05,960 Speaker 16: it has no underlying asset. They're speculative, they're volatile, it's 591 00:27:06,119 --> 00:27:09,000 Speaker 16: like what is doage coin? You know, but still the 592 00:27:09,040 --> 00:27:11,480 Speaker 16: whole market is one hundred million in valuation, so it's 593 00:27:11,520 --> 00:27:14,960 Speaker 16: an expensive joke. But well this last who knows? So 594 00:27:15,040 --> 00:27:19,000 Speaker 16: it's really interesting, but lots of activity and billions of 595 00:27:19,000 --> 00:27:20,200 Speaker 16: dollars changing hands at. 596 00:27:20,080 --> 00:27:24,560 Speaker 3: That Isabelle, Are you sensing any bruise feelings in the 597 00:27:24,640 --> 00:27:27,880 Speaker 3: industry from not seeing an executive order on day one 598 00:27:28,040 --> 00:27:32,080 Speaker 3: from Trump on crypto or even a mention during his 599 00:27:32,119 --> 00:27:33,960 Speaker 3: inaugural address after being sworn in. 600 00:27:34,200 --> 00:27:34,680 Speaker 2: Absolutely. 601 00:27:34,760 --> 00:27:37,080 Speaker 16: We have bitcoin soaring to a record high on Monday, 602 00:27:37,080 --> 00:27:38,959 Speaker 16: and then it paired back some of those gains from 603 00:27:39,000 --> 00:27:41,120 Speaker 16: one hundred and nine plus thousand, it became one hundred 604 00:27:41,160 --> 00:27:42,720 Speaker 16: and three. And I asked some of that analysts because 605 00:27:42,720 --> 00:27:44,399 Speaker 16: I was on on Monday. I was like, why is 606 00:27:44,440 --> 00:27:47,320 Speaker 16: bitcoin pairing its games? And they were like, because Trump 607 00:27:47,320 --> 00:27:48,000 Speaker 16: didn't mention. 608 00:27:47,880 --> 00:27:48,720 Speaker 2: It in this speech. 609 00:27:48,840 --> 00:27:49,680 Speaker 14: But take note of that. 610 00:27:49,760 --> 00:27:53,960 Speaker 16: The fact that bitcoin faithful, their crypto enthusiasts are expecting 611 00:27:53,960 --> 00:27:56,440 Speaker 16: Trump and the incoming president at that point, the president 612 00:27:56,440 --> 00:27:58,959 Speaker 16: of the United States, they're expecting him to mention it 613 00:27:59,280 --> 00:28:02,399 Speaker 16: in his inaugural speech is already one thing that really 614 00:28:02,440 --> 00:28:04,800 Speaker 16: just means that crypto is becoming mainstream, or if it 615 00:28:04,880 --> 00:28:06,280 Speaker 16: isn't mainstream, t you just yet. 616 00:28:06,480 --> 00:28:07,560 Speaker 2: So it's really something. 617 00:28:07,600 --> 00:28:09,879 Speaker 16: But you know, with Trump focused on tarriffs and energy 618 00:28:09,920 --> 00:28:13,000 Speaker 16: and trade, but they were really hoping and banking on 619 00:28:13,040 --> 00:28:15,280 Speaker 16: the fact that Trump will say something about bitcoin. 620 00:28:16,640 --> 00:28:18,680 Speaker 8: Bloomberg isabell ye, thank you. 621 00:28:19,320 --> 00:28:22,800 Speaker 3: Heading back to Dabos Now, where mistraw AI CEO Arthur 622 00:28:22,920 --> 00:28:26,680 Speaker 3: Mench spoke with Bloomberg TV's Frendcine Lac about the company's 623 00:28:26,720 --> 00:28:30,719 Speaker 3: expansion plans and about his thoughts on Europe's regulatory and 624 00:28:30,800 --> 00:28:32,240 Speaker 3: competitive landscape. 625 00:28:32,920 --> 00:28:34,760 Speaker 17: I like to look at it from a positive point 626 00:28:34,760 --> 00:28:37,200 Speaker 17: of view. Europe has a lot of strength. In particular, 627 00:28:37,359 --> 00:28:39,520 Speaker 17: the talent poolt has access to. The people that are 628 00:28:39,520 --> 00:28:42,480 Speaker 17: building AI, including in the US, are actually mostly Europeans, 629 00:28:42,760 --> 00:28:45,040 Speaker 17: and so the opportunity we had, and that's also the 630 00:28:45,080 --> 00:28:47,920 Speaker 17: thing that we provide to our customers, is the expertise. 631 00:28:48,240 --> 00:28:51,480 Speaker 17: And I think Europe can come together today and realize 632 00:28:51,520 --> 00:28:54,680 Speaker 17: that we've been innovators. We're continent of innovators. We need 633 00:28:54,720 --> 00:28:58,120 Speaker 17: to keep being innovators, and AI is an opportunity to 634 00:28:58,160 --> 00:29:01,080 Speaker 17: continuously innovate. There's a lot of other companies that are 635 00:29:01,120 --> 00:29:03,400 Speaker 17: building that. I'm thinking of ace Email and thinking of 636 00:29:03,760 --> 00:29:05,600 Speaker 17: all of the AI startups that we're working with in 637 00:29:05,640 --> 00:29:08,960 Speaker 17: France and in London, and so let's not look at 638 00:29:09,120 --> 00:29:11,440 Speaker 17: the bad things. Effectively, we have a tendency to play 639 00:29:11,480 --> 00:29:14,040 Speaker 17: a little too much referee in the trillion dollar raise. 640 00:29:14,840 --> 00:29:17,960 Speaker 17: But we have the strength and we just need to 641 00:29:17,960 --> 00:29:21,800 Speaker 17: have the will to create in Europe and to innovate 642 00:29:21,800 --> 00:29:22,640 Speaker 17: and create value there. 643 00:29:22,960 --> 00:29:25,040 Speaker 11: Do you think that there's a first mover advantage in 644 00:29:25,080 --> 00:29:28,560 Speaker 11: this industry or is it really execution and innovation. 645 00:29:28,200 --> 00:29:28,800 Speaker 2: That will win. 646 00:29:29,120 --> 00:29:31,360 Speaker 17: I mean, as in any industry, you have first move 647 00:29:31,480 --> 00:29:35,680 Speaker 17: or advantage. But the AI is going to be a revolution. 648 00:29:35,760 --> 00:29:37,600 Speaker 17: It's going to be long lasting revolution. It's going to 649 00:29:37,640 --> 00:29:40,680 Speaker 17: take decades to actually be rolled fully to enterprises role 650 00:29:40,720 --> 00:29:43,000 Speaker 17: fully to the way we actually behave and the way 651 00:29:43,000 --> 00:29:46,680 Speaker 17: we actually deal with computers, so and a lot of things. 652 00:29:46,680 --> 00:29:49,160 Speaker 17: And we are realizing that enterprises are a bit struggling 653 00:29:49,200 --> 00:29:51,959 Speaker 17: with realizing the value of AI. And that's where you 654 00:29:52,000 --> 00:29:54,320 Speaker 17: need to partner deeply with someone that can help you 655 00:29:54,760 --> 00:29:58,800 Speaker 17: get the expertise, distill the expertise of your company into 656 00:29:58,880 --> 00:30:01,480 Speaker 17: AI systems that can then help you drive the productivity 657 00:30:01,480 --> 00:30:04,640 Speaker 17: that you're expecting. So the we're only we're only five 658 00:30:04,680 --> 00:30:07,760 Speaker 17: percent there, and so everything that is sitting on top 659 00:30:07,800 --> 00:30:10,080 Speaker 17: of model, all of the orchestration part, all of the 660 00:30:10,440 --> 00:30:12,800 Speaker 17: managing data, all of the customization part of things that 661 00:30:12,800 --> 00:30:14,440 Speaker 17: we still need to figure out, and I think we 662 00:30:14,440 --> 00:30:15,960 Speaker 17: have a very good headstart there. 663 00:30:17,440 --> 00:30:21,880 Speaker 4: I was mis Rasieo Arthur Mench along with Francin Laqua. Meanwhile, 664 00:30:21,880 --> 00:30:24,440 Speaker 4: another closely watched interview at Davos was the Open AI 665 00:30:24,600 --> 00:30:28,160 Speaker 4: CFO Sarah Fry. She's spent with Bluemoks showing Fari about 666 00:30:28,360 --> 00:30:31,040 Speaker 4: rising enterprise use of chatchipt and the company's growth. 667 00:30:31,040 --> 00:30:31,480 Speaker 2: Take listen. 668 00:30:32,520 --> 00:30:35,200 Speaker 18: We have had to do an extraordinary amount of fundraising. 669 00:30:35,800 --> 00:30:38,840 Speaker 18: Luckily we also have a business model that supports it. 670 00:30:39,160 --> 00:30:42,400 Speaker 18: I already talked about chat ChiPT for consumer over three 671 00:30:42,480 --> 00:30:46,800 Speaker 18: hundred million users today and it's a workhourse when it 672 00:30:46,840 --> 00:30:50,800 Speaker 18: comes to revenue, revenue growth and ultimately profitability. But we 673 00:30:50,880 --> 00:30:56,600 Speaker 18: are seeing now enterprises of every size embraces technology, and 674 00:30:56,640 --> 00:31:00,400 Speaker 18: we really see ourselves also as the enterprise company. There's 675 00:31:00,400 --> 00:31:04,680 Speaker 18: a really good symbiosis between those two areas because often 676 00:31:05,040 --> 00:31:06,840 Speaker 18: when I meet customers, and I'm meeting a lot of 677 00:31:06,920 --> 00:31:09,840 Speaker 18: them here in Davas, it's actually their personal experience they 678 00:31:09,880 --> 00:31:11,680 Speaker 18: start with. When I say, hey, how are you using 679 00:31:11,720 --> 00:31:15,520 Speaker 18: chat GPT, They'll actually give me a personal anecdote first. 680 00:31:15,880 --> 00:31:18,480 Speaker 18: And for those of you who sell into enterprises, you 681 00:31:18,560 --> 00:31:21,200 Speaker 18: know that if you've won your customer heart in just 682 00:31:21,240 --> 00:31:23,360 Speaker 18: their day to day, being able to go in and 683 00:31:23,360 --> 00:31:26,680 Speaker 18: then sell them into their enterprise environment gets an awful 684 00:31:26,720 --> 00:31:30,080 Speaker 18: lot easier. And so that enterprise model is really building 685 00:31:30,200 --> 00:31:33,320 Speaker 18: across every sector of the economy, every type of company, 686 00:31:33,320 --> 00:31:35,920 Speaker 18: every scale of company, And I'd be happy to talk 687 00:31:35,960 --> 00:31:39,920 Speaker 18: through examples. Morgan Stanley is a great example, since we're 688 00:31:39,920 --> 00:31:42,360 Speaker 18: talking financing, and they're also a good partner in that front, 689 00:31:42,680 --> 00:31:45,360 Speaker 18: but they're using our technology and areas like wealth management, 690 00:31:46,120 --> 00:31:48,320 Speaker 18: in areas like even their investment banking, and they've been 691 00:31:48,320 --> 00:31:51,920 Speaker 18: doing it now for multiple years. So in terms of 692 00:31:51,960 --> 00:31:55,080 Speaker 18: the future from a financing perspective, I suspect we will 693 00:31:55,160 --> 00:31:58,000 Speaker 18: continue to have to finance at pace, but we will 694 00:31:58,000 --> 00:32:00,720 Speaker 18: do that on the merits of our business as well. 695 00:32:02,080 --> 00:32:05,200 Speaker 6: How about an IPO, what would that look like for 696 00:32:05,240 --> 00:32:05,720 Speaker 6: open ai? 697 00:32:06,960 --> 00:32:09,440 Speaker 2: You mentioned profitability? You know, how far do you think 698 00:32:09,480 --> 00:32:11,080 Speaker 2: we are from that? What are you know? You're someone 699 00:32:11,080 --> 00:32:14,240 Speaker 2: who's taken two companies public. What would the steps be 700 00:32:14,320 --> 00:32:16,080 Speaker 2: for open ai to get there? And how far are 701 00:32:16,120 --> 00:32:17,120 Speaker 2: we from profitability? 702 00:32:17,480 --> 00:32:17,800 Speaker 13: Yeah? 703 00:32:17,840 --> 00:32:20,880 Speaker 18: So, as I've told every company I've been associated with 704 00:32:21,080 --> 00:32:25,280 Speaker 18: on an IPO, it's it's not a destination. An IPO 705 00:32:25,520 --> 00:32:27,680 Speaker 18: is just a marker on a journey, and if you 706 00:32:27,720 --> 00:32:30,880 Speaker 18: get wrapped around the idea that the IPO is a destination, 707 00:32:31,400 --> 00:32:33,360 Speaker 18: is a very kind of dangerous world to live in 708 00:32:33,360 --> 00:32:37,560 Speaker 18: because there's a feeling of finality and maniland, going public 709 00:32:37,680 --> 00:32:41,960 Speaker 18: is just the beginning of another very interesting part of 710 00:32:42,000 --> 00:32:43,880 Speaker 18: your journey, like what are the positives? 711 00:32:43,880 --> 00:32:45,040 Speaker 2: And IPO number one. 712 00:32:45,080 --> 00:32:48,200 Speaker 18: I think it's a very strong credentializing moment for any company. 713 00:32:48,560 --> 00:32:50,920 Speaker 18: I love that moment of sunlight, of being able to 714 00:32:50,960 --> 00:32:54,560 Speaker 18: show your financials externally, to show how your business is building. 715 00:32:55,360 --> 00:32:59,320 Speaker 18: It's the best disinfectant in any room. It's a great 716 00:32:59,320 --> 00:33:02,680 Speaker 18: way to fundraise because it opens the door not just 717 00:33:02,880 --> 00:33:06,440 Speaker 18: to equity and selling your equity in that moment, but 718 00:33:06,560 --> 00:33:09,440 Speaker 18: it also starts opening the door to many more areas 719 00:33:09,520 --> 00:33:13,440 Speaker 18: of financing, starting with mezzanine debt, structured debt, and so 720 00:33:13,520 --> 00:33:15,440 Speaker 18: on and again. In a world where we're buying a 721 00:33:15,480 --> 00:33:18,080 Speaker 18: lot of compute, we need to get there fast because 722 00:33:18,360 --> 00:33:21,320 Speaker 18: equity is an expensive way to raise capital and to 723 00:33:21,400 --> 00:33:23,960 Speaker 18: deploy capital. We need to make sure we continue to 724 00:33:23,960 --> 00:33:26,600 Speaker 18: bring down that weighted average cost of capital. 725 00:33:28,360 --> 00:33:37,520 Speaker 3: That was open AICFO Sarah Freyer from Davos. 726 00:33:39,520 --> 00:33:40,960 Speaker 19: So one of the things that we shared, as you 727 00:33:41,000 --> 00:33:42,960 Speaker 19: said at the beginning, is that we are moving away 728 00:33:43,000 --> 00:33:46,240 Speaker 19: from the way that we were utilizing third party independent 729 00:33:46,320 --> 00:33:48,760 Speaker 19: fact checkers and moving now to much more of a 730 00:33:48,800 --> 00:33:52,680 Speaker 19: community notes program. We're starting that in the US and 731 00:33:52,720 --> 00:33:54,760 Speaker 19: then we'll see how that goes as we move it 732 00:33:54,760 --> 00:33:56,680 Speaker 19: out over the years. So nothing changing in the rest 733 00:33:56,680 --> 00:33:58,720 Speaker 19: of the world at the moment. We're still working with 734 00:33:58,760 --> 00:34:01,080 Speaker 19: those fact checkers around the world, but in the US 735 00:34:01,200 --> 00:34:02,400 Speaker 19: that's that's the direction of. 736 00:34:02,360 --> 00:34:05,320 Speaker 4: Travel to start with Meta's head of Global Business Group, 737 00:34:05,440 --> 00:34:08,120 Speaker 4: Nikola Mendelson in Davos, and as is, the company is 738 00:34:08,120 --> 00:34:10,719 Speaker 4: gearing up to remove third party fact checking here in 739 00:34:10,760 --> 00:34:11,440 Speaker 4: the United States. 740 00:34:11,440 --> 00:34:14,040 Speaker 2: But Blue Mugs Kat Wagner is joining us now to talk. 741 00:34:13,920 --> 00:34:16,320 Speaker 4: About the timing of all of this, because just last 742 00:34:16,320 --> 00:34:19,520 Speaker 4: week a lawyer representing Meta quit accusing the CEO, Mark 743 00:34:19,600 --> 00:34:22,719 Speaker 4: Zuckerberg of what he called a descent into toxic masculinity 744 00:34:23,040 --> 00:34:26,680 Speaker 4: and neo Nazi madness. Then there's a controversy swirling around 745 00:34:26,840 --> 00:34:29,759 Speaker 4: gestures made by Elon Musk this inauguration. We can this 746 00:34:29,920 --> 00:34:33,120 Speaker 4: feels as though conspiracy theories are kind of running wild 747 00:34:33,160 --> 00:34:34,840 Speaker 4: at the same time as fact checking is taking a 748 00:34:34,880 --> 00:34:35,439 Speaker 4: stand back. 749 00:34:36,960 --> 00:34:39,480 Speaker 20: Yeah, and that's just unfortunately the reality of what's going 750 00:34:39,520 --> 00:34:41,480 Speaker 20: to happen. When you take away fact checking, you sort 751 00:34:41,480 --> 00:34:45,040 Speaker 20: of open the door for you know, inaccurate information to 752 00:34:45,080 --> 00:34:48,600 Speaker 20: spread pretty wildly on the platform, right, And so I 753 00:34:48,600 --> 00:34:50,719 Speaker 20: don't think that's going to be a coincidence. I don't 754 00:34:50,719 --> 00:34:54,399 Speaker 20: think this is the end of that reality for us, right, 755 00:34:54,480 --> 00:34:56,520 Speaker 20: I don't. I think community notes is sort of an 756 00:34:56,520 --> 00:35:00,319 Speaker 20: interesting concept. I don't think it is a fool proof 757 00:35:00,360 --> 00:35:02,799 Speaker 20: concept when it comes to fact checking at scale, and 758 00:35:02,880 --> 00:35:04,719 Speaker 20: so I'm sure the metal will learn that, you know, 759 00:35:05,160 --> 00:35:08,520 Speaker 20: if not already then certainly over time. I think the 760 00:35:08,600 --> 00:35:12,040 Speaker 20: interesting thing about this fact checking timing for them is 761 00:35:12,080 --> 00:35:15,600 Speaker 20: that you know, clearly they usually test things outside of 762 00:35:15,640 --> 00:35:17,440 Speaker 20: the US and then bring them to the US when 763 00:35:17,440 --> 00:35:19,440 Speaker 20: they are ready for prime time, because this is the 764 00:35:19,440 --> 00:35:22,279 Speaker 20: most valuable market. It's interesting that in this case they're 765 00:35:22,280 --> 00:35:24,200 Speaker 20: doing the test here in the US and leaving it 766 00:35:24,200 --> 00:35:25,600 Speaker 20: in the rest of the world. To me, that's a 767 00:35:25,640 --> 00:35:28,400 Speaker 20: signal that this is more of a political decision for 768 00:35:28,440 --> 00:35:31,200 Speaker 20: them right to appease the Trump administration than it is 769 00:35:31,280 --> 00:35:34,000 Speaker 20: a reality that the fact checking was a major problem 770 00:35:34,040 --> 00:35:36,040 Speaker 20: to begin with I see this more as you know, 771 00:35:36,120 --> 00:35:40,000 Speaker 20: something that they're doing to appease the Trump administration more 772 00:35:40,040 --> 00:35:43,200 Speaker 20: so than this was a huge ding or knock on 773 00:35:43,280 --> 00:35:46,920 Speaker 20: the you know, the platform's ability to thrive. 774 00:35:48,480 --> 00:35:52,480 Speaker 3: Bloomberg's Kurt Wagner, thank you. Sticking with Meta. Remember this 775 00:35:52,600 --> 00:35:55,720 Speaker 3: moment from a Facebook town hall back in twenty eleven. 776 00:35:57,200 --> 00:36:00,520 Speaker 20: My name is Barack Obama, and I'm the guy who got. 777 00:36:00,239 --> 00:36:02,640 Speaker 13: Mark to wear a jacket and time. 778 00:36:06,920 --> 00:36:10,640 Speaker 3: That was former President Barack Obama joking with Meta CEO 779 00:36:10,760 --> 00:36:14,600 Speaker 3: Mark Zuckerberg. Things certainly have changed for the Facebook founder 780 00:36:14,719 --> 00:36:18,080 Speaker 3: and other tech leaders, as we saw during yesterday's inauguration. 781 00:36:18,520 --> 00:36:21,480 Speaker 3: For more in the industry's relationship with politicians, we are 782 00:36:21,560 --> 00:36:25,200 Speaker 3: joined now by Margaret O'Mara, Professor of American History at 783 00:36:25,239 --> 00:36:28,520 Speaker 3: the University of Washington. Margaret, I have to ask you, 784 00:36:28,600 --> 00:36:31,360 Speaker 3: how are we going to look back at this moment 785 00:36:31,480 --> 00:36:35,600 Speaker 3: yesterday where we saw such a lineup of tech leaders 786 00:36:35,600 --> 00:36:40,640 Speaker 3: and billionaires at the inauguration, seated so prominently, what. 787 00:36:40,760 --> 00:36:41,839 Speaker 14: Was really extraordinary? 788 00:36:42,080 --> 00:36:44,600 Speaker 15: I mean, it remains to be seen how the relationship 789 00:36:44,600 --> 00:36:48,560 Speaker 15: between tech and the Trump administration will evolve over time, 790 00:36:49,080 --> 00:36:52,720 Speaker 15: but we have never in American history seen a lineup 791 00:36:52,880 --> 00:36:57,920 Speaker 15: of business tycoons occupying a place of honor at a 792 00:36:57,960 --> 00:37:01,560 Speaker 15: presidential inauguration like we did yesterday. 793 00:37:01,800 --> 00:37:04,600 Speaker 14: Silicon Valley has long had ties. 794 00:37:04,200 --> 00:37:08,040 Speaker 15: With Washington and different presidential administrations, but this does feel 795 00:37:08,080 --> 00:37:09,320 Speaker 15: like uncharted territory. 796 00:37:10,840 --> 00:37:13,759 Speaker 3: And how does this translate into the priority list that 797 00:37:13,840 --> 00:37:17,439 Speaker 3: each of these CEOs may be bringing to the administration. 798 00:37:17,640 --> 00:37:19,600 Speaker 3: How much does that proximity count. 799 00:37:21,480 --> 00:37:22,319 Speaker 14: It counts a lot. 800 00:37:23,000 --> 00:37:26,400 Speaker 15: And look, we've again we've seen Silicon Valley leaders have 801 00:37:26,600 --> 00:37:30,520 Speaker 15: very close relationships with the Obama administration, the Clinton administration, 802 00:37:30,760 --> 00:37:33,560 Speaker 15: with other administrations other than Trump. 803 00:37:33,920 --> 00:37:40,480 Speaker 14: So this again is not entirely unknown, but there are really. 804 00:37:40,400 --> 00:37:45,400 Speaker 15: High stakes, and we see both on the regulatory side 805 00:37:45,480 --> 00:37:47,120 Speaker 15: and in the spending and. 806 00:37:47,239 --> 00:37:48,200 Speaker 14: Tax policy side. 807 00:37:48,280 --> 00:37:50,640 Speaker 15: On the regulatory side, the promise to have a light 808 00:37:50,719 --> 00:37:55,240 Speaker 15: hand on AI regulation, as well as Trump's boosting of crypto, 809 00:37:55,560 --> 00:38:00,640 Speaker 15: underscored by his and the First Lady's personal involvement issuance 810 00:38:00,680 --> 00:38:02,120 Speaker 15: of their own coins in. 811 00:38:02,080 --> 00:38:05,400 Speaker 14: The last couple of days, is something. 812 00:38:05,040 --> 00:38:08,160 Speaker 15: That is a real sea change for the industry, of 813 00:38:08,239 --> 00:38:12,360 Speaker 15: real difference in attitude than what the Biden administration had approached. 814 00:38:12,400 --> 00:38:13,719 Speaker 14: And then also we. 815 00:38:13,760 --> 00:38:17,600 Speaker 15: Have the promise of tax policy being corporate friendly generally, 816 00:38:17,680 --> 00:38:22,240 Speaker 15: and also things like defense contracting, which is the Defense 817 00:38:22,280 --> 00:38:24,799 Speaker 15: Department and the National Security Establishment does a lot of 818 00:38:24,840 --> 00:38:28,720 Speaker 15: business with Silicon Valley companies, and that only seems poised. 819 00:38:28,360 --> 00:38:32,480 Speaker 4: To increase Margaret, take us back from a historical perspective, 820 00:38:32,960 --> 00:38:36,239 Speaker 4: have there been as many ethical questions when we've seen 821 00:38:36,360 --> 00:38:40,800 Speaker 4: such relationships, perhaps not so flamboyantly demonstrated, but certainly close 822 00:38:40,840 --> 00:38:45,040 Speaker 4: and previous administrations there haven't. 823 00:38:45,040 --> 00:38:47,080 Speaker 14: Well, there have been questions, but they have been resolved. 824 00:38:47,120 --> 00:38:49,480 Speaker 15: And let me point to a really interesting example from 825 00:38:49,560 --> 00:38:54,120 Speaker 15: Silicon Valley's past. David Packard, the founder of Hewlett Packard 826 00:38:54,120 --> 00:38:58,000 Speaker 15: now HP, kind of a legendary Silicon Valley founder. He 827 00:38:58,080 --> 00:39:01,960 Speaker 15: actually joined the Nixon administry as Deputy Secretary of Defense 828 00:39:02,200 --> 00:39:05,480 Speaker 15: in nineteen sixty nine, and he was a very wealthy man, 829 00:39:06,160 --> 00:39:09,080 Speaker 15: and he famously put his wealth in a blind trust 830 00:39:09,200 --> 00:39:12,800 Speaker 15: while he was in office to resolve any ethical questions 831 00:39:12,840 --> 00:39:16,960 Speaker 15: there might be about HP profiting from defense contracts. 832 00:39:16,520 --> 00:39:19,680 Speaker 14: Which it did have while he was at the Defense Department. 833 00:39:20,560 --> 00:39:21,279 Speaker 2: Let's just I. 834 00:39:21,200 --> 00:39:23,960 Speaker 4: Mean, thinking of what you've written, in particular, the code 835 00:39:24,000 --> 00:39:27,840 Speaker 4: Silicon Valley and the remaking of America is Silicon Valley 836 00:39:28,320 --> 00:39:32,839 Speaker 4: aren't the tech leaders that we see remaking America from 837 00:39:32,840 --> 00:39:35,560 Speaker 4: a political perspective right now, Margaret, I say that with 838 00:39:35,800 --> 00:39:38,520 Speaker 4: the words of the previous administration still bringing on O 839 00:39:38,760 --> 00:39:40,279 Speaker 4: is that this is some sort of oligarchy. 840 00:39:41,800 --> 00:39:44,839 Speaker 14: Yeah, I think that they are trying to. 841 00:39:44,920 --> 00:39:47,399 Speaker 15: I mean, what certainly is the case and hasn't been 842 00:39:47,400 --> 00:39:50,200 Speaker 15: the case in the past, is that the platforms that 843 00:39:50,239 --> 00:39:53,439 Speaker 15: they control just thinks solely about the people who were 844 00:39:53,440 --> 00:39:58,680 Speaker 15: on the inaugural dais yesterday in the Capitol rotunda, Mark Zuckerberg, Sunderbushai, 845 00:39:59,360 --> 00:40:03,759 Speaker 15: Jeff bezo Elon Musk, that they have such an outsized 846 00:40:03,840 --> 00:40:09,960 Speaker 15: influence over online communication, on online commerce, that there already 847 00:40:09,960 --> 00:40:12,680 Speaker 15: is such an immense consolidation of power that again there 848 00:40:12,680 --> 00:40:15,840 Speaker 15: have been you know, big power structures and successful companies 849 00:40:15,920 --> 00:40:17,600 Speaker 15: in the valley before, but this. 850 00:40:17,520 --> 00:40:21,719 Speaker 14: Is the next level. You know, the influence is tremendous. 851 00:40:22,920 --> 00:40:26,600 Speaker 3: Margaret, last question thirty seconds. These companies have a position 852 00:40:26,719 --> 00:40:29,759 Speaker 3: to shape history as we will be reading it later. 853 00:40:29,920 --> 00:40:32,960 Speaker 8: Talk about that unique role they. 854 00:40:32,840 --> 00:40:36,160 Speaker 15: Do, just as the history textbooks now have Andrew Carnegie 855 00:40:36,200 --> 00:40:38,360 Speaker 15: and John Rockefeller and them, and people around the world 856 00:40:38,400 --> 00:40:40,960 Speaker 15: know those names, you know, regardless of what happens next 857 00:40:41,080 --> 00:40:43,960 Speaker 15: we a century from now, probably people are going to 858 00:40:44,000 --> 00:40:46,280 Speaker 15: be reading about Mark Zuckerberg and Jeff Bezos and Elon 859 00:40:46,360 --> 00:40:50,200 Speaker 15: Musk And I think with great power comes from great responsibility. 860 00:40:50,280 --> 00:40:52,680 Speaker 15: This is part of the criticism that has been levied 861 00:40:52,719 --> 00:40:56,080 Speaker 15: at tech over the last decade about what the you know, 862 00:40:56,080 --> 00:40:57,759 Speaker 15: the ripple effects of their platforms might be. 863 00:40:57,920 --> 00:41:00,040 Speaker 14: Now, again, these are businesses, these. 864 00:40:59,880 --> 00:41:02,680 Speaker 15: Are people in the you know, these are for profit companies, 865 00:41:02,719 --> 00:41:05,360 Speaker 15: and I think there also is a very important public 866 00:41:05,440 --> 00:41:08,320 Speaker 15: sector government regulatory role that has been absent. 867 00:41:08,440 --> 00:41:10,080 Speaker 14: So that's one of the reasons that they have become 868 00:41:10,160 --> 00:41:10,680 Speaker 14: this large. 869 00:41:10,719 --> 00:41:12,600 Speaker 15: So I think it needs to be a balance and 870 00:41:12,640 --> 00:41:16,240 Speaker 15: we need to think more broadly about how this shakes out. 871 00:41:16,640 --> 00:41:19,880 Speaker 4: Margaret Omara, Professor of American History at the University of Washington. 872 00:41:20,160 --> 00:41:23,880 Speaker 4: So appreciate your time coming up streaming jant Netflix and 873 00:41:23,920 --> 00:41:26,360 Speaker 4: set to report it results after the closing bell, and 874 00:41:26,440 --> 00:41:28,960 Speaker 4: look at what we can expect next, there's a bluemog 875 00:41:29,000 --> 00:41:41,879 Speaker 4: technology Netflix. Oh, it's set to report earnings after the bell. 876 00:41:42,160 --> 00:41:45,439 Speaker 4: What can we expect? Let's bring in Lucas Shaw and 877 00:41:45,680 --> 00:41:48,120 Speaker 4: the shares had a phenomenal twenty twenty four. How was 878 00:41:48,200 --> 00:41:50,920 Speaker 4: Q four from a profit and revenue perspective. 879 00:41:51,520 --> 00:41:53,439 Speaker 9: Well, we'll find out at the end of the day, 880 00:41:53,480 --> 00:41:55,279 Speaker 9: but people are expecting. 881 00:41:55,000 --> 00:41:56,080 Speaker 13: A very strong quarter. 882 00:41:56,280 --> 00:41:58,680 Speaker 9: You know, they had the Mike Tyson Jake Paul fight 883 00:41:58,719 --> 00:42:00,879 Speaker 9: in the quarter, which was the big live event they've 884 00:42:00,880 --> 00:42:03,160 Speaker 9: ever done, one of the most watched things they've ever 885 00:42:03,200 --> 00:42:05,719 Speaker 9: put out, and I believe due to according to some 886 00:42:05,760 --> 00:42:08,440 Speaker 9: third party researchers, led to the biggest one day of 887 00:42:08,719 --> 00:42:09,120 Speaker 9: spike and. 888 00:42:09,160 --> 00:42:10,600 Speaker 13: New customers they've had in years. 889 00:42:10,920 --> 00:42:13,560 Speaker 9: You know, they also had NFL on Christmas Day, they 890 00:42:13,560 --> 00:42:15,760 Speaker 9: had season two of Squid Game, they had new seasons 891 00:42:15,800 --> 00:42:17,919 Speaker 9: for a bunch of other hit shows. So most people 892 00:42:17,960 --> 00:42:20,080 Speaker 9: are expecting it to be a very strong quarter, which 893 00:42:20,120 --> 00:42:22,680 Speaker 9: will be, unfortunately for us, the last one in which 894 00:42:22,719 --> 00:42:24,200 Speaker 9: they report their subscriber numbers. 895 00:42:24,640 --> 00:42:26,600 Speaker 4: Yeah, we suddenly have to read Teelee's in a whole 896 00:42:26,640 --> 00:42:30,680 Speaker 4: new way. We are expecting strength coming from the live 897 00:42:30,760 --> 00:42:33,560 Speaker 4: side of the equation, and I mean the market capitalization 898 00:42:33,640 --> 00:42:34,440 Speaker 4: reflects that. 899 00:42:34,880 --> 00:42:36,600 Speaker 2: How much more strings. 900 00:42:36,160 --> 00:42:39,120 Speaker 4: Do they have to pull to outperform going into what 901 00:42:39,440 --> 00:42:41,440 Speaker 4: analysts are pretty buoyant on the company. 902 00:42:42,080 --> 00:42:44,600 Speaker 9: Yeah, I mean it's pretty crazy to think that Netflix 903 00:42:44,680 --> 00:42:47,439 Speaker 9: is now worth almost four hundred million dollars it's more 904 00:42:47,480 --> 00:42:51,920 Speaker 9: than Disney and several other big media companies combined, and 905 00:42:52,120 --> 00:42:54,759 Speaker 9: you have to figure that there should be some kind 906 00:42:54,840 --> 00:42:57,400 Speaker 9: of ceiling on this. But look, the Netflix position is 907 00:42:57,400 --> 00:43:00,160 Speaker 9: going to be you know, these live events were going 908 00:43:00,160 --> 00:43:02,239 Speaker 9: big into that area and it's going to boost our 909 00:43:02,280 --> 00:43:04,560 Speaker 9: advertising business, which is one of the reasons that they 910 00:43:04,560 --> 00:43:07,279 Speaker 9: want to stop reporting subscriber numbers because they believe that 911 00:43:07,280 --> 00:43:09,759 Speaker 9: their revenue growth and their profits are going to look 912 00:43:09,800 --> 00:43:12,919 Speaker 9: really good going forward. It just won't be as many 913 00:43:13,000 --> 00:43:14,759 Speaker 9: new subscribers quarter after quarter. 914 00:43:15,360 --> 00:43:20,080 Speaker 4: And how technically robust has the live offering been. 915 00:43:21,280 --> 00:43:24,600 Speaker 9: Well, Look, they had well documented problems during the Tyson 916 00:43:24,640 --> 00:43:28,440 Speaker 9: Paul fag that was largely due to too much demand, 917 00:43:28,560 --> 00:43:31,240 Speaker 9: which is a good thing if you're trying to attract 918 00:43:31,280 --> 00:43:34,240 Speaker 9: an audience. They didn't have a lot of problems during 919 00:43:34,280 --> 00:43:37,080 Speaker 9: the NFL match. I think, you know, these live events 920 00:43:37,080 --> 00:43:39,919 Speaker 9: on streaming tend to have the same life cycle where 921 00:43:39,960 --> 00:43:42,840 Speaker 9: there are issues early on where the company is newer 922 00:43:42,880 --> 00:43:45,920 Speaker 9: to it and they have some issues usually when they 923 00:43:45,920 --> 00:43:47,960 Speaker 9: put on something that people really want to watch, and 924 00:43:48,000 --> 00:43:49,439 Speaker 9: then they figure it out over time. 925 00:43:49,520 --> 00:43:51,280 Speaker 13: Right, you know, we stream all sorts. 926 00:43:51,080 --> 00:43:54,120 Speaker 9: Of things live these days, so I think long term, 927 00:43:54,160 --> 00:43:55,680 Speaker 9: it's going to be fine for them. The question is 928 00:43:55,800 --> 00:43:58,040 Speaker 9: what are the events that they are going to collect 929 00:43:58,200 --> 00:44:01,239 Speaker 9: that deliver or attract a big enough audience if they're 930 00:44:01,280 --> 00:44:03,600 Speaker 9: not a major buyer of sports rights because they're trying 931 00:44:03,640 --> 00:44:05,920 Speaker 9: to create their own events. But look, they just had 932 00:44:05,960 --> 00:44:08,719 Speaker 9: the WWE debut. Everyone at Netflix is really happy with 933 00:44:08,760 --> 00:44:11,759 Speaker 9: it so far. We'll see in three, six, nine months 934 00:44:11,760 --> 00:44:12,760 Speaker 9: if that remains the case. 935 00:44:12,920 --> 00:44:15,640 Speaker 4: Don't even get our producers started on her love for 936 00:44:15,719 --> 00:44:17,960 Speaker 4: all blimogs, Lucas Shaw brilliant. 937 00:44:17,640 --> 00:44:18,319 Speaker 2: Thank you very much. 938 00:44:18,320 --> 00:44:21,320 Speaker 4: Indeed, meanwhile, look and unlikely win it in the TikTok 939 00:44:21,360 --> 00:44:24,000 Speaker 4: band saga of late has been JEWELINGO. Here's what the 940 00:44:24,000 --> 00:44:26,120 Speaker 4: CEO had to say earlier on belie their open interest. 941 00:44:26,640 --> 00:44:28,920 Speaker 13: We do have a good number of people learning Manderin. 942 00:44:29,200 --> 00:44:31,800 Speaker 21: It's not our most popular language, but but it's definitely 943 00:44:31,840 --> 00:44:34,000 Speaker 21: a popular language. Is among the top eight languages that 944 00:44:34,120 --> 00:44:38,040 Speaker 21: people are learning, and we did see a huge spikes, 945 00:44:38,080 --> 00:44:42,120 Speaker 21: and it's mainly because people who are When they thought 946 00:44:42,160 --> 00:44:44,200 Speaker 21: that TikTok was going to be banned, they started trying 947 00:44:45,040 --> 00:44:46,880 Speaker 21: some Chinese apps like red Note, and as soon as 948 00:44:46,880 --> 00:44:49,440 Speaker 21: they showed up, most of the things were in Chinese, 949 00:44:49,719 --> 00:44:52,520 Speaker 21: so they came and wanted to learn Chinese undoolingo because 950 00:44:52,560 --> 00:44:54,640 Speaker 21: of that jewelingo CEO. 951 00:44:54,680 --> 00:44:56,480 Speaker 4: There are a reminder that many of the apps that 952 00:44:56,560 --> 00:44:59,680 Speaker 4: TikTok uses flocked to during the quick US ban and 953 00:44:59,719 --> 00:45:04,320 Speaker 4: turn around Mandarin based, so Luis van Hahn optimistic that 954 00:45:04,440 --> 00:45:08,160 Speaker 4: actually the users will stick around even though TikTok back online. 955 00:45:08,400 --> 00:45:10,200 Speaker 4: We start with TikTok, we end with TikTok. That does 956 00:45:10,280 --> 00:45:12,440 Speaker 4: it for this edition of Bloomberg Technology. Don't forget to 957 00:45:12,520 --> 00:45:14,480 Speaker 4: check out our podcast. You can find it on the 958 00:45:14,520 --> 00:45:17,280 Speaker 4: terminal as well as online on Apple, Spotify, an iHeart. 959 00:45:17,520 --> 00:45:18,680 Speaker 2: This is Bloomberg Technology.