WEBVTT - Zuckerberg's $71B Wipeout and Apple's Quiet Influence 0:00:02.240 --> 0:00:05.560 From the heart of where innovation, money and power collive 0:00:06.360 --> 0:00:10.880 in Silicon Valley and beyond. This is Bloomberg technology with 0:00:10.920 --> 0:00:29.360 Emily Jay. I'm emily check in San Francisco and this 0:00:29.560 --> 0:00:32.680 is Bloomberg Technology, coming up live in the next hour. 0:00:32.960 --> 0:00:36.440 It has been a tough year for tech titans everywhere, 0:00:36.440 --> 0:00:39.680 but there's one mega stand out and that is Mark Zuckerberg, 0:00:39.800 --> 0:00:43.360 his seventy one billion dollar wealth wipe out and how 0:00:43.440 --> 0:00:47.320 much the metaverse weighs on that loss. This hour plus 0:00:47.360 --> 0:00:50.600 how apple is quietly backing an association that brands itself 0:00:50.720 --> 0:00:54.000 is giving a voice to small business APP developers. They says. 0:00:54.040 --> 0:00:58.760 Big Tech comes under increasing scrutiny in Washington, and climate 0:00:58.760 --> 0:01:00.840 week is now underway in New York City. We're gonna 0:01:00.840 --> 0:01:03.160 take a look at one tech company helping other businesses 0:01:03.200 --> 0:01:06.240 fight climate change by taking a harder look at their 0:01:06.280 --> 0:01:09.759 own carbon footprint. I want to bring in Brent Thille 0:01:10.080 --> 0:01:13.360 of Jeffreys. Brent, we were just talking earlier about the 0:01:13.400 --> 0:01:16.319 big personal cost this has come when it comes to 0:01:16.400 --> 0:01:22.200 mark Zuckerberg's wealth. Um, you know what? Are you gonna realize? 0:01:22.600 --> 0:01:24.679 What are you going to decide if this pivot was 0:01:24.720 --> 0:01:28.679 really worth it? It's still years out. Emily, I think 0:01:28.720 --> 0:01:31.080 they've said the road to the men versus going to take, 0:01:31.760 --> 0:01:34.720 you know, multiple, multiple years. And it's not just facebook, 0:01:34.800 --> 0:01:38.479 it's the whole technico system that's gonna drive this forward. 0:01:38.560 --> 0:01:41.120 So this isn't going to be an overnight success. And 0:01:41.160 --> 0:01:45.080 then remember you have the the economy, which is pointing back. 0:01:45.200 --> 0:01:47.960 The first thing companies do when the macro economy gets 0:01:48.000 --> 0:01:54.120 tougher as they cut their AD dollars. So all social media, snap, twitter, facebook, 0:01:54.160 --> 0:01:56.320 you go across the board. Right they're all feeling the pain. 0:01:56.920 --> 0:01:59.480 As a global macro dims, you're going to see less 0:01:59.520 --> 0:02:02.560 ad dollar flow. So there's a double whammy right now. 0:02:02.600 --> 0:02:05.720 The metaverse investment combined with the headwind of of the 0:02:05.760 --> 0:02:08.640 macro and and I think for many in tech right 0:02:08.680 --> 0:02:12.680 now it's a it's it's a tough road ahead. Obviously 0:02:12.720 --> 0:02:14.280 a lot of the stocks already embedded a lot of 0:02:14.280 --> 0:02:17.320 the bad news, but what we're finding in this market 0:02:17.400 --> 0:02:20.040 is that the more bad news that keeps coming, these 0:02:20.040 --> 0:02:23.480 stocks really aren't embedding ahead of time. They continue the 0:02:23.560 --> 0:02:26.600 drift lower, and that's across tech. This isn't just a 0:02:26.639 --> 0:02:29.680 Meta issue. So that continues to be a big drag 0:02:30.480 --> 0:02:32.600 for tech in the in the short term. DO THE 0:02:32.760 --> 0:02:39.160 MEDICINE CONSIDER SPINNING OFF businesses like Instagram, for example, where 0:02:39.600 --> 0:02:44.520 there's just seemingly potentially a more reliable future profit engine? 0:02:45.160 --> 0:02:48.639 I don't think spinning is gonna change anything. I think, 0:02:48.639 --> 0:02:50.680 you know, many of asked on Amazon, why Dodn't they 0:02:50.680 --> 0:02:54.040 just spend any of the US off? And ultimately you 0:02:54.080 --> 0:02:56.320 don't want to. You know the analogy if you don't 0:02:56.320 --> 0:02:58.919 want to lose your star student in your household because 0:02:58.919 --> 0:03:01.360 it helps other other kids in the house right so 0:03:01.440 --> 0:03:03.880 if you think about either of us and Amazon or, 0:03:03.919 --> 0:03:07.720 for for facebook with with Instagram, it's their star right now. 0:03:08.080 --> 0:03:09.800 So I don't think they necessarily want to lose the 0:03:09.880 --> 0:03:13.000 star at this point. I don't think that's a a 0:03:13.360 --> 0:03:17.400 primary driver. At this point. It's a it's a possibility 0:03:17.440 --> 0:03:20.080 and certainly you can make the case, you know, for many, 0:03:20.160 --> 0:03:22.840 many tech comes that they could consider that at this point. 0:03:23.160 --> 0:03:25.960 But again, I think what we're dealing with is a 0:03:26.400 --> 0:03:30.840 global text storm that's impacting everyone and this isn't going 0:03:30.919 --> 0:03:34.160 to change, you know, anything in the short term. Investors 0:03:34.240 --> 0:03:36.720 Right now are out of the space. They want to 0:03:36.720 --> 0:03:40.200 see signs of recovery and and so I think this 0:03:40.280 --> 0:03:44.920 is a broader topic that goes beyond just just just facebook. 0:03:44.920 --> 0:03:46.960 But I don't I don't think in instagram split off 0:03:47.000 --> 0:03:52.600 is in the works right. But what is apple, Amazon, Microsoft, alphabet? 0:03:52.720 --> 0:03:55.560 What do they have that Meta doesn't have? Amazon's got 0:03:55.560 --> 0:03:58.400 a powerhouse and software. When you think about either of us, 0:03:58.440 --> 0:04:00.680 it's their profit engine, it's their get starts of growth 0:04:00.720 --> 0:04:04.880 and it's the most durable piece of the business. And 0:04:04.880 --> 0:04:06.800 and so why would you want to lose that business 0:04:07.480 --> 0:04:09.680 and spend it off? We can see it, we know 0:04:09.760 --> 0:04:13.000 the numbers. It's embedded in the business. We can see it. 0:04:13.040 --> 0:04:16.240 I think the challenge for for Instagram is we don't 0:04:16.240 --> 0:04:19.360 know all the exact numbers and so that's what's hard 0:04:19.400 --> 0:04:21.920 to ascribe the value forward and some of the parts. 0:04:23.160 --> 0:04:25.000 And so I think that that is the difference that 0:04:26.160 --> 0:04:30.520 Amazon for Microsoft, you know many of their clouds are intertwined, 0:04:30.560 --> 0:04:34.200 between the operating system and the cloud azure office. A 0:04:34.240 --> 0:04:36.400 lot of these clouds are intertwined. They're not going to 0:04:36.480 --> 0:04:39.640 spend many a talk when they spend the entertainment business off. 0:04:39.720 --> 0:04:42.120 I think they're pretty clear they're keeping it. So I 0:04:42.320 --> 0:04:44.480 don't think we're going to see a big shake up 0:04:44.480 --> 0:04:48.000 in terms of spinoffs because the market's gone down. This 0:04:48.080 --> 0:04:51.039 is a global macro pullback. The tech industry has to 0:04:51.279 --> 0:04:54.320 to to you know whether the storm, if you will, 0:04:54.360 --> 0:04:56.080 in the short term, and I think many of the 0:04:56.160 --> 0:04:59.400 multiples have already been been impaired Um. So perhaps we 0:04:59.400 --> 0:05:02.000 can see it at some point, but that's not really 0:05:02.040 --> 0:05:05.119 been a question we've been getting from investors at this point. 0:05:05.240 --> 0:05:07.240 I think the number one question is when does this 0:05:07.279 --> 0:05:10.839 thing turn around? And I think many still believe we 0:05:10.880 --> 0:05:12.960 can be in for a wild ride for tech into 0:05:13.040 --> 0:05:18.039 early twenty three, before technology comes really acknowledge the weakness 0:05:18.080 --> 0:05:22.000 in the overall global environment. Many have have not. They 0:05:22.000 --> 0:05:24.960 have not taken down guidance, they have not lowered the bar, 0:05:25.320 --> 0:05:27.880 and until the bars lowered, no investor wants to jump 0:05:27.920 --> 0:05:31.080 in the pool until they know the pools say so, Brett, 0:05:31.120 --> 0:05:33.080 we've got our big Bloomberg Tech siment coming up in 0:05:33.120 --> 0:05:36.680 London and we're gathering some content for our markets live blog. 0:05:37.080 --> 0:05:39.440 I have a question for you for that. Do you 0:05:39.520 --> 0:05:41.880 believe in the metaverse and do you believe it will 0:05:41.960 --> 0:05:45.560 change how businesses and people interact with each other in 0:05:45.640 --> 0:05:48.520 two years that's the time frame? Yes or no? No, 0:05:48.880 --> 0:05:50.760 do you know? I think it's gonna be longer out. 0:05:51.279 --> 0:05:53.160 I think it's gonna take time for the rest of 0:05:53.200 --> 0:05:56.520 the year. Go ahead. Yeah, I think that that this 0:05:56.600 --> 0:05:59.520 is a multi year journey. And and remember it's, you know, 0:05:59.600 --> 0:06:02.520 this is the remaking the Internet. It's it's the remaking 0:06:02.560 --> 0:06:05.760 of these experiences. It's, you know, ways that we can 0:06:05.760 --> 0:06:09.359 engage are as in business. Is the way that doctors 0:06:09.360 --> 0:06:12.360 and patients can engage as the way that the contractors 0:06:12.360 --> 0:06:15.560 and their their clients getting engage on on on the site. 0:06:15.600 --> 0:06:18.480 I mean there there is elements of the menams today 0:06:18.520 --> 0:06:20.560 that that that makes sense, but I think it's so 0:06:20.800 --> 0:06:23.520 long ways out. Often, I think when the investors here 0:06:24.040 --> 0:06:27.120 a new a new wave is coming, they suddenly throwing 0:06:27.160 --> 0:06:29.640 on their model and think it's going to be immediate overnight. 0:06:29.920 --> 0:06:33.039 I'm I'm very bolish about the opportunity said, but I'm 0:06:33.120 --> 0:06:35.840 actually think the opportunity is gonna take longer to come 0:06:37.240 --> 0:06:39.880 into the fold. UH, and they'll take it'll take time. 0:06:40.080 --> 0:06:42.240 That that's it'll take longer than two years first to 0:06:42.279 --> 0:06:44.480 really see this in a big way. All right, Brett, 0:06:44.520 --> 0:06:47.680 Phil Jeffrey's Tech Sector Leader Brett, always going to have 0:06:47.720 --> 0:06:58.560 you with us. Thank you for stopping by. Thank you. 0:06:59.279 --> 0:07:02.120 Now the major cinching ever closer. You might be able 0:07:02.120 --> 0:07:05.760 to bet on them and make real money. It has 0:07:05.800 --> 0:07:08.320 been years in the making, and now the CFTC is 0:07:08.360 --> 0:07:10.800 weighing a plan that could let people place as much 0:07:10.800 --> 0:07:15.400 as twenty thousand dollars on which political party will control Congress. 0:07:15.440 --> 0:07:18.640 That's the proposal from the predictions market operator cal she, 0:07:19.280 --> 0:07:22.400 the first regulated exchange for trading on events. It's Co 0:07:22.520 --> 0:07:27.680 founder and CEO, Tarik Manstor, joins me now. So why 0:07:27.680 --> 0:07:31.760 do you want to get into election betting, CARC? It's 0:07:31.760 --> 0:07:34.800 a great question, emily, and thanks for having me today. Um, so, 0:07:35.040 --> 0:07:39.440 election markets, or elections more broadly, are the single, one 0:07:39.440 --> 0:07:41.920 of the single biggest sources of economic risk of the country. 0:07:41.920 --> 0:07:44.920 And going back to calcy's mission, our mission is democratizing 0:07:45.000 --> 0:07:48.000 access to hedging tools, basically tools and financial instruments that 0:07:48.000 --> 0:07:50.960 allow people in small businesses to hedge risks that relate 0:07:51.000 --> 0:07:55.080 to their day to day there's nothing that exposes people 0:07:55.080 --> 0:07:59.360 in individual businesses to risk like an election. So that's 0:07:59.360 --> 0:08:03.520 how we're going for it. You could place as much 0:08:03.520 --> 0:08:06.800 as twenty five Tho dollars on which party wins Congress. 0:08:07.640 --> 0:08:09.520 That's a lot of money. Talk to me about how 0:08:09.640 --> 0:08:13.280 you think this plays out. Say this gets approved ahead 0:08:13.280 --> 0:08:17.160 of the mid terms. It's actually a very interesting, uh point. Um. 0:08:17.240 --> 0:08:18.760 So I'll go back a little bit to the history 0:08:18.960 --> 0:08:21.880 and how how we started CALCI so Um. You know, 0:08:21.880 --> 0:08:24.240 one of the idea came from one of my time 0:08:24.280 --> 0:08:29.360 at Goldman in sen where we actually structured derivative or 0:08:29.360 --> 0:08:32.920 exotic products that allowed big institutions to hedge election risks. 0:08:33.200 --> 0:08:35.360 These products were trading and the hundreds of millions, sometimes 0:08:35.400 --> 0:08:37.880 billions of dollars. Right. So, when you compared to that 0:08:38.520 --> 0:08:41.280 is actually quite a small number, Um, when you compared 0:08:41.280 --> 0:08:43.240 to to sort of the big amounts are currently and 0:08:43.240 --> 0:08:46.600 at the time and currently being traded on elections. You know, 0:08:46.679 --> 0:08:49.480 the hedging needs of people and businesses are big. You know, 0:08:49.600 --> 0:08:52.040 right now we're starting with a smaller sub set of 0:08:52.040 --> 0:08:54.400 the population, which is individual and small businesses, with smaller 0:08:54.400 --> 0:08:57.640 hedging needs, and we felt like an appropriate limit to 0:08:57.640 --> 0:09:03.920 to basically go for ahead of the mid terms. There's 0:09:03.960 --> 0:09:06.960 a broader Philical, philosophical question at play here, which is 0:09:07.080 --> 0:09:10.600 do you think betting on elections is good for democracy 0:09:10.720 --> 0:09:14.240 and could it influence the democratic process at all in 0:09:14.640 --> 0:09:17.280 a negative way? It's a great question. So, you know, 0:09:17.320 --> 0:09:20.360 any financial innovation since you know, I would say, dawn 0:09:20.440 --> 0:09:23.320 of time had had ethical considerations. Right Insurance, when it 0:09:23.360 --> 0:09:25.000 came in, it was like, Oh, is this? This? Is 0:09:25.000 --> 0:09:27.319 it okreated to bet on human lives, as the insurance 0:09:27.320 --> 0:09:28.679 is very important today, it was the same thing with 0:09:28.720 --> 0:09:31.960 great futures at the time in dres let's talk about elections. 0:09:32.440 --> 0:09:36.280 Elections are actually very broadly traded in democracies like the UK, Ireland, 0:09:36.480 --> 0:09:40.320 New Zealand and Australia, without any evidence at all of 0:09:40.400 --> 0:09:43.880 any sort of negative impacts. We've also had the platforms 0:09:43.880 --> 0:09:46.280 like predicted, which for eight years in the US, have 0:09:46.320 --> 0:09:48.520 a lot of people to trade on elections. Also no 0:09:48.720 --> 0:09:52.280 clear evidence of bad or negative impact. On the contrary, 0:09:52.720 --> 0:09:54.760 the things that we've seen, and you know this is why, 0:09:54.840 --> 0:09:56.600 you know, our proposal has been getting a lot of 0:09:56.640 --> 0:10:02.440 support and positive comments from organizations, economic economic professors and 0:10:02.480 --> 0:10:06.120 academics and others. What we've seen is that the markets 0:10:06.120 --> 0:10:09.480 are used because there is source of truth Um about 0:10:09.559 --> 0:10:11.600 what is actually happening with the mid terms and with polling. 0:10:11.640 --> 0:10:14.599 Average accuracy decreasing over the last ten years. This is 0:10:14.640 --> 0:10:17.000 a mechanism that allows us to actually get more informed, 0:10:17.040 --> 0:10:19.160 allow people to get more informed about what actually is 0:10:19.160 --> 0:10:22.680 about to happen and would allow to reduce polarization. Actually, 0:10:22.679 --> 0:10:24.880 one interesting comment that I want to mention is from 0:10:24.880 --> 0:10:28.480 Professor Jason Furman at Harvard, who under, who serve under 0:10:28.480 --> 0:10:31.120 the Obama Administration and talked in this comment letter about 0:10:31.120 --> 0:10:34.280 how the administration under Obama used these markets to inform 0:10:34.320 --> 0:10:38.520 public policy and forecast different outcomes based on the decisions 0:10:38.559 --> 0:10:43.400 they were making. Interesting. So you think this would be 0:10:43.400 --> 0:10:48.520 better than polls for democracy? I think. I definitely think 0:10:48.559 --> 0:10:50.680 this can be better than polls. And actually, you know, 0:10:50.720 --> 0:10:52.439 people don't need to believe me. They can see. The 0:10:52.440 --> 0:10:55.040 proof is in the putting Um. One example is our 0:10:55.120 --> 0:11:00.000 inflation markets over the last year have outperformed the economists 0:11:00.000 --> 0:11:03.480 survey well pretty much nine out of the last ten times, 0:11:03.840 --> 0:11:06.760 and so these markets are more accurate, accurate than polls, 0:11:06.920 --> 0:11:10.040 because in polls people can say anything and obviously the 0:11:10.080 --> 0:11:12.400 samples can be biased, etcetera, and we're seeing that with 0:11:12.440 --> 0:11:14.560 the elections. You know, the polls are contradicting each other 0:11:14.880 --> 0:11:18.240 and other things, whereas with the marketplace, like any financial marketplace, 0:11:18.280 --> 0:11:20.959 people have skin in the game and they're more incentivized 0:11:20.960 --> 0:11:24.480 to say the truth, which makes these markets essentially more 0:11:24.480 --> 0:11:29.840 accurate than any other alternatives. Now, one of your competitors, predicted, 0:11:29.960 --> 0:11:33.440 had an application for elections betting that, I believe, was 0:11:33.800 --> 0:11:37.840 rejected by the CFTC. What makes you think the CFTC 0:11:38.000 --> 0:11:41.040 is going to approve yours and what kind of questions 0:11:41.320 --> 0:11:43.960 have they been asking you? It's a great question. Actually, 0:11:43.960 --> 0:11:45.800 that company was innate X in two thousand and twelve 0:11:46.480 --> 0:11:48.840 Um and I think you know, over the last decade 0:11:49.120 --> 0:11:51.199 things have changed. A lot of the assumptions of the 0:11:51.240 --> 0:11:54.520 commission had made at the time have been sort of invalidated, 0:11:54.559 --> 0:11:56.760 but a lot of the activity that has been happening 0:11:56.800 --> 0:11:59.880 over the last ten years on the platform predicted, which 0:12:00.000 --> 0:12:02.040 has shown that actually none of the negative consequences that 0:12:02.040 --> 0:12:04.560 would come from these markets would happen and the contrary, 0:12:04.600 --> 0:12:07.120 these markets are in the public interest because of this 0:12:07.520 --> 0:12:09.960 forecast that they're bringing to the marketplace and because they're 0:12:09.960 --> 0:12:13.520 because they're allowing people and businesses to hedge risks that 0:12:13.640 --> 0:12:17.280 tie them to the elections and industries like energy, healthcare, 0:12:17.760 --> 0:12:23.480 climate and other types of industries. All right. So if 0:12:23.520 --> 0:12:26.960 this gets approved, when do you think that happens and 0:12:26.960 --> 0:12:30.000 and what are the odds? That's a great question. Um. 0:12:30.040 --> 0:12:34.240 So the CFC set to make a decision by October. Um, 0:12:34.520 --> 0:12:37.560 things are trending in the right direction. The common period 0:12:37.600 --> 0:12:41.080 and the comment letters have been overwhelmingly positive towards this proposal. 0:12:41.559 --> 0:12:43.959 Things have changed, you know. I'm going to quote a 0:12:43.960 --> 0:12:46.560 professor of Commonstrom that talks about this in an article 0:12:46.760 --> 0:12:49.560 where he says that investors are ready, the public is ready. 0:12:49.600 --> 0:12:52.240 It's really a question about whether regulators are ready. Um, 0:12:52.280 --> 0:12:54.040 I can all talk specifically about the odds. We're going 0:12:54.040 --> 0:12:56.760 through the regulatory, regulatory process, but I do hope that 0:12:56.800 --> 0:12:58.880 regulators already and we'll be ready to go, at least 0:12:58.880 --> 0:13:03.120 on the country side, once this get approved, and give 0:13:03.200 --> 0:13:05.360 us a sense of just how big the call sheet 0:13:05.360 --> 0:13:08.440 platform is today and how much bigger you think it 0:13:08.720 --> 0:13:11.840 can get, you know, by expanding into some of these 0:13:11.840 --> 0:13:14.439 additional areas. So, as you know, we've been launched for 0:13:14.440 --> 0:13:16.680 a little less than a year and I really feels 0:13:16.679 --> 0:13:20.360 like we're just getting started. We've listed over four thousand 0:13:20.360 --> 0:13:23.880 markets so far, so I would say we're probably the fastest, 0:13:23.960 --> 0:13:28.000 or definitely the fastest, derivers exchange in terms of listening markets. Uh, 0:13:28.040 --> 0:13:30.640 this last month we've reached ten million contracts traded on 0:13:30.640 --> 0:13:33.160 the exchange and we've been going really fast. Obviously, with 0:13:33.200 --> 0:13:35.880 the upcoming elections, these numbers are going to, you know, 0:13:36.480 --> 0:13:39.040 go up by fewers of magnitude. So really excited for 0:13:39.080 --> 0:13:43.360 what's ahead. All right, well, we'll be watching call sheet 0:13:43.400 --> 0:13:46.280 co founder and CEO, Tark Man stor. Thank you for 0:13:46.440 --> 0:13:50.800 joining us. While instacar reportedly plans to focus this I 0:13:50.880 --> 0:13:56.160 po on selling employee shares instead of raising capital for itself, 0:13:56.280 --> 0:13:58.599 according to The Wall Shereet Journal, Insta car executives have 0:13:58.720 --> 0:14:01.960 told perspective investor they don't plan an issue many new 0:14:02.080 --> 0:14:05.840 shares in the public offering. The company provides online grocery 0:14:06.080 --> 0:14:09.840 shopping services. And coming up, we're gonna take a deep 0:14:09.880 --> 0:14:13.080 dive into apple's influence over a trade group that represents 0:14:13.080 --> 0:14:17.560 APP developers and how it's lobbying agenda tracks very closely 0:14:18.040 --> 0:14:21.440 with that of Apple. What does it mean? That's next? 0:14:21.760 --> 0:14:51.400 This is Bloomberg. The APP Association brands itself as the 0:14:51.480 --> 0:14:54.320 leading voice for thousands of APP developers around the world. 0:14:54.480 --> 0:14:57.400 In fact, however, the vast majority of its funding comes 0:14:57.760 --> 0:15:00.800 from apple and the iphonemaker plays a eminent behind the 0:15:00.800 --> 0:15:04.000 scenes role in shaping the group's policy positions. BLOOMER's emily 0:15:04.000 --> 0:15:07.040 burr mom has been diving deep into this and joins 0:15:07.120 --> 0:15:09.240 us now for more so emily first of all talked 0:15:09.280 --> 0:15:12.240 to us why this APP Association and understanding its role 0:15:12.280 --> 0:15:17.680 in the broader Washington lobbying ecosystem matters. I think that Um, 0:15:17.840 --> 0:15:22.200 the APP Association and Apple's power over the group is 0:15:22.240 --> 0:15:26.800 representative of a larger trend in UH lobbying by the 0:15:26.800 --> 0:15:29.800 big tech companies. As they come under greater scrutiny from Washington, 0:15:30.160 --> 0:15:33.840 they're pouring more and more money into these you know, nonprofits, 0:15:33.920 --> 0:15:37.840 quote unquote grassroots groups. You know groups that represent more 0:15:37.960 --> 0:15:42.400 sympathetic Um characters than some of the largest and richest 0:15:42.440 --> 0:15:46.920 companies in the world. Um, and you know, apple's relationship 0:15:47.000 --> 0:15:50.320 with the AP Association is only a small Um sliver 0:15:50.440 --> 0:15:52.480 of it, but it is representative of how a lot 0:15:52.520 --> 0:15:57.680 of lobbying looks right now. So and talked to us 0:15:57.720 --> 0:16:03.240 about apple's role, how much funding they provide and how 0:16:03.320 --> 0:16:08.480 much influence they exert. So Um. I spoke with a 0:16:08.520 --> 0:16:11.560 lot of former employees and people who are familiar with 0:16:11.680 --> 0:16:16.200 the dynamics within the group and Um. They confirmed that Um, 0:16:16.240 --> 0:16:21.160 apple makes up more than half of their um annual contributions. 0:16:21.280 --> 0:16:25.120 Um and in that means that apple was giving at 0:16:25.240 --> 0:16:28.320 least Um, you know, four point five million dollars, and 0:16:28.520 --> 0:16:30.960 that is a pretty large price tag when it comes 0:16:31.000 --> 0:16:34.480 to Washington trade associations. Even the highest end are usually 0:16:34.480 --> 0:16:38.040 between one to two million dollars. Um and UH, former 0:16:38.040 --> 0:16:42.040 employees I spoke to said the percentage of their contributions 0:16:42.120 --> 0:16:46.400 probably much higher. Um and you know, in my conversations 0:16:46.520 --> 0:16:50.360 I learned that Um apple lobbyists and lawyers regularly weigh 0:16:50.440 --> 0:16:53.160 in on, you know, policy positions that the group should take, 0:16:53.200 --> 0:16:55.920 policy areas the group should focus on. If you look 0:16:56.000 --> 0:16:59.200 at Um, you know what the group advocates on. The 0:16:59.240 --> 0:17:04.679 most antitrust obviously the top priority for apple. Patents, you 0:17:04.720 --> 0:17:08.720 know certain kinds of patent reforms that apple has prioritized, 0:17:08.800 --> 0:17:12.720 such as something called Frand Um. Broadband also something apple's 0:17:12.800 --> 0:17:15.200 interested in. So Um there's pretty much a one to 0:17:15.280 --> 0:17:20.440 one relationship between their policy priorities and apples. Now, of course, 0:17:20.560 --> 0:17:25.600 all big tech companies have pretty immense lobbing operations. How 0:17:25.640 --> 0:17:29.800 does apple, in your experience, differ from, you know, an 0:17:29.800 --> 0:17:34.080 alphabet or a Meta or an Amazon? Apple, Um for 0:17:34.240 --> 0:17:37.760 years has distinguished itself from the other big tech companies 0:17:38.000 --> 0:17:42.359 by having a much more muted Washington presence. Um, you know, 0:17:42.480 --> 0:17:47.199 when Steve Jobs even was overseeing the first kind of 0:17:47.320 --> 0:17:50.159 entry into Washington, he said, I think our products will 0:17:50.200 --> 0:17:52.480 speak for themselves in the halls of Congress. You know, 0:17:52.560 --> 0:17:55.280 I don't think we have to play Um. Tim Cook 0:17:55.359 --> 0:17:57.080 has also carried this forward. I don't think we have 0:17:57.119 --> 0:18:00.479 to pay play the dirty Washington Game Games. You know, 0:18:00.680 --> 0:18:03.920 they don't have a pack, they don't give direct campaign contributions. 0:18:03.960 --> 0:18:06.399 But these last couple of years, in which apples come 0:18:06.480 --> 0:18:09.000 under the limelight, have really shown that they have to 0:18:09.040 --> 0:18:11.280 get engaged and they have to be, you know, uh, 0:18:11.359 --> 0:18:13.479 telling their story in Washington. They have to be spending 0:18:13.480 --> 0:18:16.000 money and now they're just kind of catching up with 0:18:16.080 --> 0:18:21.000 their peers. So what are you going to be following, 0:18:21.080 --> 0:18:25.359 especially as we get closer to mid terms? There's obviously legislation, 0:18:25.400 --> 0:18:30.800 important legislation, moving through Congress on big tech quickly. Yeah, Um, 0:18:30.880 --> 0:18:34.800 so it's becoming pretty clear that legislation is not coming 0:18:34.840 --> 0:18:37.639 to a vote before the mid terms. They're leaving open 0:18:37.840 --> 0:18:40.680 the possibility that it might come to a vote, Um, 0:18:40.680 --> 0:18:42.840 in the lame duck, you know, after the mid terms. 0:18:42.960 --> 0:18:46.560 That is incredibly unlikely. So Um, you know, if Republicans 0:18:46.560 --> 0:18:49.520 retake the house, as polls suggests they might, Um, probably 0:18:49.560 --> 0:18:52.720 antitrust will fall back, Um, you know, to back of 0:18:52.760 --> 0:18:56.360 the shelf and content moderation and censorship claims will come 0:18:56.400 --> 0:18:59.320 to the floor. So that's what I'm really looking at. Okay, 0:18:59.560 --> 0:19:03.159 I'm like and appreciate your perspective on all of us. 0:19:03.200 --> 0:19:15.879 As always. Thank you so much for joining us. Welcome 0:19:15.880 --> 0:19:18.080 back to bomore technology. I'm emily checking in San Francisco. 0:19:18.160 --> 0:19:20.639 Let's get back to the markets and our own lad 0:19:20.800 --> 0:19:24.120 who has been keeping an eye on Netflix and yeah, 0:19:24.119 --> 0:19:27.040 it was a really volatile session for Netflix, really pushing 0:19:27.119 --> 0:19:29.800 higher at the open, then swinging back down to a 0:19:29.840 --> 0:19:32.240 loss in the middle of the session, ultimately closing up 0:19:32.520 --> 0:19:34.680 one and a half percent. Of Catalyst, at least in 0:19:34.720 --> 0:19:37.800 the early part of this session, was an upgrade from Oppenheimer, 0:19:37.840 --> 0:19:40.399 the third upgrade we've seen from analysts this month, and 0:19:40.480 --> 0:19:41.920 I don't think you'll be surprised to hear them that 0:19:41.960 --> 0:19:45.560 they're really focused in on the potential for an advertising 0:19:45.720 --> 0:19:51.720 based tier of subscription price target three dollars, raising Netflix 0:19:51.760 --> 0:19:54.399 to outperform and there is a bit of momentum behind 0:19:54.440 --> 0:19:56.880 the stock in that sense. So that you come means 0:19:56.920 --> 0:19:59.000 my bloombow terminal. I've started this pay a lot of 0:19:59.080 --> 0:20:01.920 tension this because, give some context, Netflix is a stock. 0:20:02.080 --> 0:20:04.280 There's down six you see that on the white line 0:20:04.320 --> 0:20:07.359 in my screen behind me, and it's trading very close 0:20:07.560 --> 0:20:11.639 to the average twelve twelve month analyst price target. In 0:20:11.680 --> 0:20:14.360 other words, if you're down and you're trading at where 0:20:14.359 --> 0:20:16.920 the street thinks you'll be on a twelve month basis, 0:20:16.960 --> 0:20:19.520 there isn't much room for upside. So I think it's 0:20:19.520 --> 0:20:21.520 gonna be really interesting to keep an eye on Netflix 0:20:21.760 --> 0:20:24.440 and how much momentum does get behind this stock as 0:20:24.480 --> 0:20:27.480 we move towards an ad based tier for Netflix. I 0:20:27.520 --> 0:20:32.280 don't know if I'm I don't know about ads. M Yes, 0:20:32.359 --> 0:20:35.280 it's certainly would change the netflix experience. I got to 0:20:35.320 --> 0:20:39.760 think about that one. Okay, ed. Thank you. Meantime, Climate 0:20:39.760 --> 0:20:43.240 Week has now kicked off in New York City. This summit, 0:20:43.359 --> 0:20:47.760 taking place alongside the UN General Assembly, brings together international 0:20:47.840 --> 0:20:52.000 leaders from business, government and civil society to showcase global 0:20:52.320 --> 0:20:55.640 climate action talk about how tech can help with that. 0:20:55.760 --> 0:20:58.639 Christian Anderson, Co founder of watershed, of software platform that 0:20:58.720 --> 0:21:03.760 helps businesses get to net zero carbon faster, is with 0:21:03.840 --> 0:21:06.160 us now. Christian, thank you so much for joining us. 0:21:06.200 --> 0:21:09.720 So you know, the bigger questions. Are these big companies, 0:21:09.720 --> 0:21:13.400 tech companies in particular, actually making these hard decisions, making 0:21:13.440 --> 0:21:17.320 compromise and compromises to get to net zero faster? So 0:21:17.440 --> 0:21:22.560 watershed works with these large companies across industries, across geographies. 0:21:22.960 --> 0:21:26.000 That's tech companies like AIRBNB and door Dash. That's also 0:21:26.040 --> 0:21:29.679 big companies in other industries like Walmart, world's largest retailer, 0:21:30.280 --> 0:21:34.280 like some of the largest asset firms by assets under management. 0:21:34.640 --> 0:21:37.159 And our focus with these companies is take a data 0:21:37.280 --> 0:21:40.800 driven approach to their own supply chains. So for a 0:21:40.840 --> 0:21:45.920 long time corporate climate was synonymous with low quality offsets 0:21:46.000 --> 0:21:49.480 and not with actual reduction work on the company's own footprint, 0:21:49.680 --> 0:21:53.360 and that's where our customers are focusing. So our companies 0:21:53.400 --> 0:21:57.200 making hard choices. Sometimes, when you gather that data, uh, 0:21:57.520 --> 0:22:00.600 you might not like what it looks like. It is 0:22:00.800 --> 0:22:04.720 definitely true that every company who's new to climate work 0:22:04.920 --> 0:22:08.600 is surprised by something they learned in the data. But actually, 0:22:08.640 --> 0:22:13.359 I'd say on the positive side, where for companies, both 0:22:13.800 --> 0:22:18.800 cost reduction and investment in long term lower risk and 0:22:18.920 --> 0:22:22.600 better quality technology tend to go hand in hand with 0:22:22.640 --> 0:22:25.400 their climate work. Now, I think it takes the data 0:22:25.600 --> 0:22:28.280 to see that. But these companies I was mentioning, like 0:22:28.480 --> 0:22:32.359 Walmart or large asset managers, these are these are sophisticated 0:22:32.359 --> 0:22:36.960 businesses who are known for making business first decisions and 0:22:37.000 --> 0:22:40.359 who have chosen to double down and triple down on 0:22:40.400 --> 0:22:44.480 their climate work because these are positive investments for the 0:22:44.560 --> 0:22:49.080 company over the three plus year time horizon. So you 0:22:49.080 --> 0:22:52.720 would say that these companies are making those tough calls 0:22:52.800 --> 0:22:57.040 when faced with the choice. I would say so. I 0:22:57.080 --> 0:23:00.880 think the climate action that most companies are gonna take 0:23:01.680 --> 0:23:04.399 is the climate action that is in the intersection of 0:23:04.600 --> 0:23:07.480 good for the business and the return on investment for 0:23:07.520 --> 0:23:10.720 the business on the one hand, and also good for 0:23:10.760 --> 0:23:14.400 the climate on the other handling companies the the good 0:23:14.440 --> 0:23:17.680 news on climate now versus ten years ago? Is it 0:23:17.800 --> 0:23:21.119 ten years ago there just was not enough climate action 0:23:21.160 --> 0:23:23.720 that was in the money for businesses. A company that 0:23:23.800 --> 0:23:26.879