WEBVTT - Biden Drops Out and CrowdStrike Plunges 0:00:00.120 --> 0:00:10.120 Bloomberg Audio Studios, podcasts, radio news. 0:00:08.640 --> 0:00:12.400 From Marhard We're Innovation, Money and Power Collie in. 0:00:12.440 --> 0:00:17.480 Silicon Valley, Nbon. This is Bloomberg Technology with Caroline. 0:00:17.040 --> 0:00:18.520 Hyde and Ed luved Love. 0:00:32.520 --> 0:00:35.800 From Bloomberg's London headquarters in San Francisco. This is Bloomberg 0:00:35.840 --> 0:00:39.080 Technology coming up in the next hour. Markets entering uncharted 0:00:39.159 --> 0:00:42.560 territory as President Biden drops out and passes the baton 0:00:42.720 --> 0:00:45.400 to Kamala Harris, who in tech will support her and 0:00:45.400 --> 0:00:47.280 what it means for companies and crypto. 0:00:47.720 --> 0:00:51.080 Blushares of CrowdStrike plummet again is analyst Sandy alarm after 0:00:51.159 --> 0:00:54.440 last week's widespread outages and gearing up. 0:00:54.400 --> 0:00:57.080 For big tech results Tesla, Alphabet and more prepared to 0:00:57.120 --> 0:01:00.120 kick off earning season for the Magnificent seven. 0:01:00.480 --> 0:01:01.960 Vers As checking on these marks, Ed. 0:01:02.280 --> 0:01:05.160 We are having a much better day than we did 0:01:05.480 --> 0:01:08.280 from last week. We are up the most since June, 0:01:08.400 --> 0:01:10.399 in fact, so more than a month that we've seen 0:01:10.440 --> 0:01:12.720 such outperformance on the NASDAT one point three percent high 0:01:12.800 --> 0:01:15.840 after the worst week since April last week. But we 0:01:15.920 --> 0:01:18.360 have to hone in really on the market impact of 0:01:18.400 --> 0:01:19.440 the news over the weekend. 0:01:20.760 --> 0:01:23.120 Okay, let's get to the outlook for the twenty twenty 0:01:23.200 --> 0:01:26.200 four presidential election. It took a turn this weekend as 0:01:26.240 --> 0:01:30.600 Biden announced his exit from the race, endorsing Vice President 0:01:30.640 --> 0:01:34.360 Kamala Harris to be the Democratic nominee. Bluembost Katie Lyons 0:01:34.440 --> 0:01:36.480 is in Washington, d C. I think the most logical 0:01:36.560 --> 0:01:41.400 question to ask is what happens next, because President Biden 0:01:41.520 --> 0:01:46.360 endorsing Vice President Kamala Harris is not definitive necessarily, though 0:01:46.520 --> 0:01:47.840 it was an important moment. 0:01:49.440 --> 0:01:52.520 It certainly was, and especially considering that it was followed 0:01:52.520 --> 0:01:55.320 by the endorsements of many other Democratic leaders to be 0:01:55.360 --> 0:01:57.960 a former President Bill Clinton and his wife Hillary Clinton, 0:01:58.000 --> 0:02:01.760 members of the House, in Senate, even key governors that 0:02:01.920 --> 0:02:04.600 were seen to have been potential other contenders for the 0:02:04.640 --> 0:02:07.680 nomination aside from Harris, have now come out and endorsed. 0:02:07.320 --> 0:02:08.359 Her, including today JB. 0:02:08.440 --> 0:02:11.680 Pritsker, the governor in Illinois, or Wes Moore, the governor 0:02:11.720 --> 0:02:13.840 of Maryland. That is in addition to the number that 0:02:13.880 --> 0:02:16.120 we saw come out in support of Harris in the 0:02:16.120 --> 0:02:19.760 immediate aftermath of Biden's announcement in the last twenty four hours. 0:02:19.800 --> 0:02:21.440 The other thing that we should note is that she 0:02:21.520 --> 0:02:24.080 does have a money advantage. Not only does she have 0:02:24.160 --> 0:02:26.400 access to the hundreds of millions of dollars in what 0:02:26.560 --> 0:02:29.440 was the Biden Harris campaign war chest, something that other 0:02:29.520 --> 0:02:33.040 candidates would not have the same accessibility to. We also 0:02:33.200 --> 0:02:35.600 saw in the seven hours in the aftermath of her 0:02:35.639 --> 0:02:38.560 announcing that she does intend to, in her words, earn 0:02:38.680 --> 0:02:42.760 and win the Democratic nomination, we saw fifty million dollars 0:02:42.760 --> 0:02:46.320 in grassroots funding raised, the best day ever for Act Blue, 0:02:46.320 --> 0:02:49.840 which is a key Democratic funding aggregator. So certainly it 0:02:49.840 --> 0:02:51.960 does seem that the party is very much getting in 0:02:52.000 --> 0:02:54.640 line behind Harris. But Edgar absolutely right. Nothing is a 0:02:54.680 --> 0:02:56.280 done deal yet. We still have to get to that 0:02:56.360 --> 0:02:59.680 convention which begins four weeks from today in Chicago on 0:02:59.680 --> 0:03:02.160 odds nineteenth, where the delegates are going to have to 0:03:02.200 --> 0:03:04.560 decide who they're casting a vote for, knowing ninety nine 0:03:04.600 --> 0:03:07.560 percent of them were pledged for Joe Biden, who is 0:03:07.560 --> 0:03:08.799 no longer seeking reelection. 0:03:09.919 --> 0:03:12.920 Important screen that we're looking at right now, Kaylee Reid Hoffman, 0:03:13.200 --> 0:03:17.440 key person in technology, is one of the key Democratic donors. 0:03:18.280 --> 0:03:21.240 Will this ultimately galvanized to think some of those that 0:03:21.280 --> 0:03:24.119 we see in our community and technology and what will 0:03:24.120 --> 0:03:26.080 they be looking for in any way in a change 0:03:26.080 --> 0:03:28.240 in direction of policy, or is it more of the 0:03:28.280 --> 0:03:29.440 same when it comes to Biden. 0:03:30.760 --> 0:03:33.079 Well, certainly, Reid Hoffman was one of the first yesterday 0:03:33.080 --> 0:03:34.920 in the aftermath of this announcement to come out and 0:03:35.000 --> 0:03:38.720 endorse Kamala Harris. Other big funders like George Soris have 0:03:38.800 --> 0:03:41.320 also come out for her, but notably, a number of 0:03:41.400 --> 0:03:44.160 donors have suggested to Bloomberg that they don't necessarily want 0:03:44.160 --> 0:03:46.120 this to be a coronation, that they want some kind 0:03:46.160 --> 0:03:48.280 of process to play out for Harris to actually earn 0:03:48.320 --> 0:03:50.640 the nomination or give someone else a chance to and 0:03:50.680 --> 0:03:55.000 what could theoretically be a contested election in terms of policy, 0:03:55.040 --> 0:03:56.960 that is really what Kamala Harris is going to have 0:03:57.000 --> 0:03:59.200 to define for herself. We will hear from her for 0:03:59.280 --> 0:04:01.840 the first time to the cameras since all of this 0:04:01.920 --> 0:04:04.680 went down yesterday at eleven thirty am Eastern time. We'll 0:04:04.720 --> 0:04:07.240 she'll be speaking at an NCAA Sports Day event at 0:04:07.240 --> 0:04:09.720 the White House. So those remarks just about half an 0:04:09.720 --> 0:04:11.600 hour from now, and it's going to be about the 0:04:11.640 --> 0:04:14.200 ways in which she tries to differentiate herself from Joe 0:04:14.240 --> 0:04:16.960 Biden expressed that perhaps in not all areas there will 0:04:17.000 --> 0:04:20.400 be exact policy continuity, given that that is an attack 0:04:20.400 --> 0:04:23.400 line we're already seeing from the Republican Party suggesting that 0:04:23.520 --> 0:04:27.000 essentially a Kamala Harris presidency would look very much like 0:04:27.000 --> 0:04:29.520 a Joe Biden presidency and that for everything. Republicans have 0:04:29.560 --> 0:04:33.080 faulted the Biden administration for their suggesting that Kamala Harris 0:04:33.440 --> 0:04:36.119 not only was there for it, but enabled President Biden 0:04:36.200 --> 0:04:38.159 to take all of that action. So it's going to 0:04:38.160 --> 0:04:40.560 be a question of how Kamala Harris may decide to 0:04:40.600 --> 0:04:44.280 differentiate herself from the man that she has served as 0:04:44.400 --> 0:04:46.400 vice president for the last three and a half years. 0:04:46.400 --> 0:04:48.400 And when it comes to technology, it's also worth pointing 0:04:48.400 --> 0:04:50.799 out that it's not just Democrats that need to be watched. 0:04:50.880 --> 0:04:53.640 Jade Vance, the vice presidential nominee on the Republican side, 0:04:53.680 --> 0:04:56.960 have been highly skeptical of big tech. In particular, he 0:04:57.000 --> 0:05:00.840 has been supportive of competition in anti trust efforts under 0:05:00.839 --> 0:05:04.039 the Biden administration, including the praise he's had for FTC 0:05:04.240 --> 0:05:06.240 Chair Lena Kahan, And of course there may be some 0:05:06.320 --> 0:05:09.440 alignment with the Democrats in those areas. 0:05:10.160 --> 0:05:13.640 Bloomber's Calie lines, thank you, let's get reaction from Silicon 0:05:13.720 --> 0:05:16.840 Valley and the Democratic Party. Steve Wesley is the CEO 0:05:16.920 --> 0:05:19.920 of the Wesley Group, but also a former California State 0:05:20.000 --> 0:05:22.960 Controller CFO and in two thousand and eight co chaired 0:05:23.120 --> 0:05:26.280 Barack Obama's campaign in the state of California and as 0:05:26.320 --> 0:05:28.920 back to Biden. He's also been a delegate at eight 0:05:29.440 --> 0:05:33.719 Democratic conventions. He joins us now from Menlo Park, California. Steve, 0:05:33.720 --> 0:05:35.520 good morning to you. 0:05:35.520 --> 0:05:36.400 Your reaction in. 0:05:36.360 --> 0:05:43.080 The first instance to President Biden endorsing Kamala Harris as nominee. 0:05:44.560 --> 0:05:46.920 Well, first, you've got to give Joe Biden credit. 0:05:47.160 --> 0:05:49.839 It's an extraordinary act of selflessness for him to step 0:05:49.880 --> 0:05:52.440 down having won the nomination and to do what he 0:05:52.520 --> 0:05:57.360 thinks is right for the country, to basically say I'm 0:05:57.360 --> 0:05:59.240 going to step down. It's time to bring in a 0:05:59.279 --> 0:06:02.839 new generation and to throw things open. Now he's endorsed 0:06:02.880 --> 0:06:05.600 Kamala Harris, but there's still going to be a process 0:06:05.680 --> 0:06:07.839 and what would see now, I think is quite exciting. 0:06:08.000 --> 0:06:11.360 Everybody in the world is watching what's going to happen next. 0:06:11.440 --> 0:06:12.200 There's going to be some. 0:06:12.160 --> 0:06:14.599 New blood in the Democratic Party. Is it going to 0:06:14.600 --> 0:06:17.240 be Kamala Harris, who's terrific or is it going to 0:06:17.279 --> 0:06:19.599 be someone else? And I think there's going to be 0:06:19.640 --> 0:06:22.440 at least one, maybe two other people that come into 0:06:22.520 --> 0:06:25.240 the race. I think it's going to add a lot 0:06:25.279 --> 0:06:26.839 of excitement to the race. I think it's going to 0:06:26.839 --> 0:06:30.560 mobilize Democratic voters. Everybody's going to be tuning into the convention. 0:06:31.640 --> 0:06:32.760 It's just what she wants. 0:06:32.839 --> 0:06:36.360 If you're a part Steve, you are in a large 0:06:36.360 --> 0:06:41.680 group of Silicon Valley or technologists, DEM donors and backers 0:06:41.920 --> 0:06:44.800 who are doing the math, and you're trying to calculate 0:06:45.160 --> 0:06:47.440 who can win against Trump vance. 0:06:48.160 --> 0:06:49.880 Do you think that Kamala Harris can win. 0:06:51.120 --> 0:06:51.760 Absolutely. 0:06:52.120 --> 0:06:57.560 She's a known entity, she's got high voter ID, she's 0:06:57.600 --> 0:07:01.440 an articulate presenter, a former prosecute she will do very 0:07:01.480 --> 0:07:03.720 well in the debate, and she fire her she's all 0:07:03.760 --> 0:07:04.839 over high energy. 0:07:05.160 --> 0:07:07.320 But there are other candidates like that too. 0:07:07.360 --> 0:07:10.440 I think the one who is most mentioned, Discretion Whitmer 0:07:10.520 --> 0:07:14.240 of Michigan, will see I'm guessing who knows what. I'm 0:07:14.240 --> 0:07:17.040 guessing there'll be at least one other candidate in the race. 0:07:17.400 --> 0:07:19.720 And I think it's just what the Democratic Party needs 0:07:19.800 --> 0:07:22.800 is to eject some new blood to run against a 0:07:22.880 --> 0:07:25.840 seventy eight year old candidate who seems to be fuzzy 0:07:25.920 --> 0:07:27.600 on a lot of the issues. I think it's a 0:07:27.600 --> 0:07:30.320 big opportunity for the Democrats, a lot of energy. 0:07:30.440 --> 0:07:33.480 Everybody's going to be watching, Steve, what about the opportunity 0:07:33.960 --> 0:07:37.200 to finance the Democrats right now? How much do you 0:07:37.240 --> 0:07:39.880 think this is going to inspire well more of Silicon 0:07:39.960 --> 0:07:42.520 Valley to start speaking out about who they endorse them 0:07:42.560 --> 0:07:43.200 with their money. 0:07:44.200 --> 0:07:46.840 Well, look, first, there's going to be enormous amounts of 0:07:46.840 --> 0:07:49.280 money that come in on both sides. In terms of 0:07:49.520 --> 0:07:53.480 Silicon Valley, I can just tell you right now, Silicon 0:07:53.560 --> 0:07:56.200 Valley has gone roughly eighty twenty for Democrats over the 0:07:56.240 --> 0:07:58.280 past two or three or four elections. 0:07:58.320 --> 0:08:00.000 I think it's going to be the same this time. 0:08:00.280 --> 0:08:03.640 If you look at the current administration's support of the 0:08:03.720 --> 0:08:07.680 Chips Act, the Infrastructure Bill, the Inflation Reduction Act, the 0:08:07.760 --> 0:08:10.680 largest green energy stimulus in the history of the planet, 0:08:11.320 --> 0:08:14.840 Nobody other than by could have gotten this stock market 0:08:14.920 --> 0:08:19.000 historic highs, unemployment historic lows. And if there's one thing 0:08:19.040 --> 0:08:22.760 at Silicon Valum and the business in general, really looks 0:08:22.760 --> 0:08:25.960 for its stability, I think the Democrats have provided that 0:08:26.080 --> 0:08:29.520 I don't think anybody could say that that is mister 0:08:29.560 --> 0:08:30.240 Trump's strength. 0:08:30.280 --> 0:08:31.560 So we'll see how that involves. 0:08:31.560 --> 0:08:34.120 But I expect Solicon Valley to go strongly for the Democrat, 0:08:34.320 --> 0:08:35.040 whoever it is. 0:08:36.559 --> 0:08:39.440 Steve thus Far a man you know well, having been 0:08:39.960 --> 0:08:42.959 on the board of Tesla, having supported. 0:08:42.440 --> 0:08:44.080 El on Us companies in the past. 0:08:44.400 --> 0:08:48.160 He's given forty five million a month, we understand to 0:08:48.200 --> 0:08:50.760 a pack that supports Trump. Whereas we look to the 0:08:50.760 --> 0:08:53.439 previous full screen and read Hoffman was the biggest donor 0:08:53.440 --> 0:08:56.040 previously with a twenty five million dollar check. How do 0:08:56.080 --> 0:08:58.040 you see those sorts of numbers adding up. Will there 0:08:58.080 --> 0:09:00.360 be someone who can match that sort of huge, huge 0:09:00.400 --> 0:09:03.040 gift that we see coming from the world's wealthiest man. 0:09:04.720 --> 0:09:08.000 Absolutely, Look, there's going to be huge amounts of money 0:09:08.240 --> 0:09:10.480 that come in on both sides. But there are a 0:09:10.480 --> 0:09:15.080 lot of people Ms Gains and Bezos, many of the 0:09:15.080 --> 0:09:18.480 wealthiest people in the world are strong Democrats, and I 0:09:18.520 --> 0:09:21.240 think you're going to see equal many match, if not 0:09:21.360 --> 0:09:25.000 more coming in on the Democratic side. And again with 0:09:25.160 --> 0:09:28.800 the Democrats are provided over the last four years, historically 0:09:28.880 --> 0:09:33.559 high stock market race, historically low unemployment. I mean, this 0:09:33.600 --> 0:09:36.280 is a good story to campaign on. And if you 0:09:36.320 --> 0:09:40.680 can wrap all that together with a strong new candidate, 0:09:40.720 --> 0:09:43.360 whether it's Tamala Harris or someone else, I think that's 0:09:43.400 --> 0:09:45.240 a winning package for the Democratic Party. 0:09:46.960 --> 0:09:47.280 Steve. 0:09:48.040 --> 0:09:53.640 A criticism of President Biden's term in office has been 0:09:53.679 --> 0:09:58.000 his attitude toward and lack of engagement with Elon Musk 0:09:58.679 --> 0:10:02.079 in the context of electric vehicles and space as well. 0:10:02.640 --> 0:10:05.720 Do you expect Kamala Harris or whoever the Democratic nominee 0:10:05.760 --> 0:10:08.439 ends up being to change policy there. 0:10:10.400 --> 0:10:11.920 Not for a moment. 0:10:12.160 --> 0:10:15.560 I think the Biden administration has been a champion not 0:10:15.600 --> 0:10:20.120 only for green energy, but to stimulate this boom and 0:10:20.200 --> 0:10:23.360 electric vehicles. And the great news is, not only are 0:10:23.360 --> 0:10:27.400 electric vehicles becoming cheaper every year, they're creating huge jobs. 0:10:27.440 --> 0:10:30.760 Battery plants ev plants being built around the country in 0:10:30.840 --> 0:10:33.959 blue and red stags. But for the first time this year, 0:10:34.120 --> 0:10:37.640 you're going to see evs, a parody for control of 0:10:37.679 --> 0:10:41.520 combustion engine vehicles. This is something that's wildly popular, especially 0:10:41.559 --> 0:10:44.640 for young people. Biden administration and I think any of 0:10:44.679 --> 0:10:47.199 the Democratic nominees are going to be strongly in favor 0:10:47.240 --> 0:10:50.880 of the new green economy and the fifteen million jobs 0:10:50.880 --> 0:10:53.480 that the administration is creator over the last four years. 0:10:53.760 --> 0:10:56.160 I think Trump may be the odd guy out to 0:10:56.280 --> 0:11:02.000 be holding on embracing introlock combustion engine vehicles at a 0:11:02.080 --> 0:11:04.160 climb when they're less popular than. 0:11:04.080 --> 0:11:05.199 They have been in the past. 0:11:05.880 --> 0:11:07.800 Steve, great to catch up with you. 0:11:07.960 --> 0:11:10.120 Thank you so much for your time today, Steve Wesley, 0:11:10.240 --> 0:11:11.840 CEO of the Wesley Group. 0:11:20.320 --> 0:11:21.760 Let's talk more about CrowdStrike. 0:11:21.800 --> 0:11:23.839 Carro is just pointing out in the session the stock 0:11:23.920 --> 0:11:27.880 down almost eleven percent. It fell eleven percent Friday following 0:11:28.400 --> 0:11:32.000 its botched patch or software update that caused an outage 0:11:32.040 --> 0:11:36.599 impacting eight point five million Microsoft Windows PCs around the world. 0:11:37.200 --> 0:11:40.920 A number of firms downgrading the stock after the outage 0:11:41.720 --> 0:11:44.000 real quick on a two day basis, Caroline, It's a 0:11:44.040 --> 0:11:46.320 stock that's facing its biggest two day drop on record. 0:11:46.320 --> 0:11:48.840 And I think you and I were wondering Friday, how 0:11:48.880 --> 0:11:51.720 does this have legs? How severe is this? And the 0:11:51.800 --> 0:11:53.760 industry is talking about it. Let's get the latest and 0:11:53.800 --> 0:11:58.720 bring in Sanjay Merchandani, CEO of Convolt Cyber Resilient Solutions provider. 0:12:00.080 --> 0:12:03.600 Stock continues to have reaction, Your industry continues to have 0:12:03.640 --> 0:12:08.840 reaction as well. What's the lasting effect of the outage 0:12:09.040 --> 0:12:09.360 we leave. 0:12:09.480 --> 0:12:14.160 You know, we live in an extremely interconnected world right now, 0:12:14.320 --> 0:12:17.440 cloud devices, servers, and. 0:12:19.000 --> 0:12:21.280 Croudstrike is a popular technology. 0:12:21.320 --> 0:12:23.800 We use it as well, and so when something like 0:12:23.840 --> 0:12:27.240 this happens, there is a long tail and it. 0:12:27.160 --> 0:12:29.319 Has to be you know, it has to be cleaned up. 0:12:29.960 --> 0:12:34.160 The lessons here and the fix for the most part 0:12:34.200 --> 0:12:37.440 was fairly manual, so it took time. It wasn't a 0:12:37.440 --> 0:12:40.679 complicated fix, but it took time, and I think we're 0:12:40.720 --> 0:12:41.400 coming out of it. 0:12:41.720 --> 0:12:43.520 But there's a lot of learnings that we're also getting 0:12:43.520 --> 0:12:44.320 out of this process. 0:12:45.640 --> 0:12:48.480 Sandra, did you have any cause for concern ahead of 0:12:48.480 --> 0:12:52.280 this about prior updates that crowd strike could run? Then 0:12:52.320 --> 0:12:55.240 there might have been anything that would signal that such 0:12:55.240 --> 0:12:56.120 an event could occur. 0:12:57.040 --> 0:12:59.200 They're a security company, you trust, You tend to trust 0:12:59.240 --> 0:13:02.560 security company and the you know, and so there was 0:13:02.600 --> 0:13:05.240 no there was nothing before this specifically about crowd strike 0:13:05.320 --> 0:13:09.840 that would be of concern. What is always of concern 0:13:09.920 --> 0:13:12.040 when you have a large number of patches and a 0:13:12.120 --> 0:13:16.199 large number of connected systems and dependencies is your ability 0:13:16.240 --> 0:13:21.600 to really stage a patch test it in your particular environment. 0:13:21.640 --> 0:13:24.440 Because no two environments are the same and then once 0:13:24.480 --> 0:13:27.000 you know that you've got it working where you need it, 0:13:27.640 --> 0:13:30.120 to push it out. Now, with security, the window that 0:13:30.200 --> 0:13:34.040 you have between a critical patch and your ability to deploy. 0:13:33.760 --> 0:13:35.959 It is very, very small, and so you tend to 0:13:36.000 --> 0:13:37.200 trust more and push faster. 0:13:39.080 --> 0:13:43.800 We have heard from across industries, particularly from the airline industry, 0:13:43.880 --> 0:13:47.280 the Delta CEO coming out and apologizing because still today 0:13:47.679 --> 0:13:51.440 there are issues that are affecting their ability to serve customers. Sanjay, 0:13:51.559 --> 0:13:54.880 when it comes to business continuity, what could a company 0:13:54.920 --> 0:13:58.040 like Delta have done to prevent the fallout that we 0:13:58.160 --> 0:14:01.400 now see was two thousand and five h plus cancelations 0:14:01.400 --> 0:14:02.000 on Saturday. 0:14:03.120 --> 0:14:05.960 You know, Caroline, it's it's about resilience. 0:14:06.120 --> 0:14:08.440 And people use the word resilience instead of a broad way, 0:14:08.480 --> 0:14:11.120 But for us, it's about business's ability to get back 0:14:11.160 --> 0:14:13.920 to life, regardless of the catastrophic event. 0:14:14.000 --> 0:14:16.560 It could have been human error in this case, possibly 0:14:16.679 --> 0:14:17.280 human error. 0:14:17.679 --> 0:14:21.920 It could be malicious, it could be internal external malicious, 0:14:21.960 --> 0:14:25.640 it could be a natural disaster. So what we do 0:14:25.760 --> 0:14:28.640 is help our customers build a capability, build a platform, 0:14:28.680 --> 0:14:32.480 build a muscle through repeated testing and scale so that 0:14:32.680 --> 0:14:33.760 in the event. 0:14:33.640 --> 0:14:35.880 That something goes sideways. 0:14:37.000 --> 0:14:39.560 You've tried and tested the ability for your business to 0:14:39.600 --> 0:14:42.840 come back to life. And I think, I think everything 0:14:42.840 --> 0:14:45.920 we've got going on as enterprises, not enough time is 0:14:45.920 --> 0:14:51.000 spent on practical capabilities of resilience and more. Sort of 0:14:51.040 --> 0:14:55.520 you tend to lean on on the academic thought process. Yes, 0:14:55.560 --> 0:14:58.200 we've got this list, we've done this, we've we've written 0:14:58.240 --> 0:15:01.000 this up. But how much of your enterprise have you 0:15:01.240 --> 0:15:05.000 actually tested with a deep degree of confidence? 0:15:05.120 --> 0:15:08.040 And that's what we try to enable our customers to do. 0:15:09.080 --> 0:15:11.840 Sanjay I wrote in my Tech Daily column this morning 0:15:11.840 --> 0:15:14.720 about concentration risk, the idea that so many corporates and 0:15:14.760 --> 0:15:19.960 government entities relied on CrowdStrike, but also that eight point 0:15:19.960 --> 0:15:23.080 five million computers it was the most critical of computers 0:15:23.080 --> 0:15:26.520 that were impacted. How could have that been mitigated or prevented? 0:15:28.560 --> 0:15:29.640 Think of it as a warning shot. 0:15:29.680 --> 0:15:31.800 We've all been sort of sitting back and saying, Okay, 0:15:31.880 --> 0:15:33.960 so what does my fleet look like, what do my 0:15:34.000 --> 0:15:34.880 servers look like? 0:15:34.960 --> 0:15:37.680 What does you know? What are my users working with? 0:15:38.000 --> 0:15:40.520 And it almost makes you take a step back and say, 0:15:40.520 --> 0:15:43.240 we need to have a very calculated mix so that 0:15:43.280 --> 0:15:46.840 you're not over reliant or over dependent on any one environment, 0:15:47.280 --> 0:15:49.040 because that's part of resilience. 0:15:49.240 --> 0:15:51.200 You know, that is exactly part of resilience. 0:15:51.240 --> 0:15:54.640 And I think for everyone this weekend's been a bit 0:15:54.680 --> 0:15:56.960 of a wake up call to say, Okay, where am 0:15:56.960 --> 0:16:01.360 I overdependent or don't have enough control or it could 0:16:01.400 --> 0:16:04.560 be more resilient. And I think that you know, for 0:16:05.520 --> 0:16:09.840 all the negative outcome of something like this, the positive takeaway, 0:16:09.840 --> 0:16:12.240 if you can is let's go back and make sure 0:16:12.240 --> 0:16:15.880 we're very calculated about how we build out the enterprise landscape. 0:16:16.560 --> 0:16:17.600 The av a man. 0:16:17.520 --> 0:16:20.960 List analyst getting more calculated on what their price targets 0:16:20.960 --> 0:16:22.840 are in the company in Sanjay Merchant and is saying 0:16:22.880 --> 0:16:25.360 getting more calculated or using as well, CEO of Convolt, 0:16:25.360 --> 0:16:28.720 we really appreciate your perspective on CrowdStrike. Coming up, we're 0:16:28.760 --> 0:16:31.080 going to be joined by Michelle Grider, CEO of CRACK 0:16:31.160 --> 0:16:34.000 Institute for Tech Diplomacy over at Purdue for her read 0:16:34.120 --> 0:16:34.880 on the impact of. 0:16:34.880 --> 0:16:37.400 China US relations on the tech sector. 0:16:38.360 --> 0:16:41.440 And I'm also looking as we go to break on 0:16:41.480 --> 0:16:42.840 a share that you need to keep an eye on, 0:16:42.880 --> 0:16:45.600 down some six percent. Verizon comes out with its earnings 0:16:45.960 --> 0:16:49.040 operating revenue missed Animal's estimates a few people basically upgrading 0:16:49.040 --> 0:16:52.280 their wireless equipment. Total operating revenue thirty two point eight billion, 0:16:52.360 --> 0:16:55.080 less than one percent from a year ago, up less 0:16:55.080 --> 0:16:56.360 than one percent from a year ago, and a bit 0:16:56.400 --> 0:16:58.960 of a miss when the market wanted to see some 0:16:59.000 --> 0:17:02.400 week overall growth, asking some actural games in wireless filone customers. 0:17:02.400 --> 0:17:13.560 Though this is Blue Meg technology. 0:17:18.720 --> 0:17:21.440 Take some profit on the AI boom. That's the message 0:17:21.440 --> 0:17:24.280 to investors from Morgan Stanley, who lowered their view on 0:17:24.359 --> 0:17:28.120 Asian and emerging market tech names and cut KEYAI chip 0:17:28.240 --> 0:17:29.960 names like TSMC from. 0:17:29.880 --> 0:17:30.680 Their focus list. 0:17:30.800 --> 0:17:33.680 The call triggered a rough session for tech in Asia, 0:17:33.720 --> 0:17:36.480 trading overnight, top of mind for the firm, tougher US 0:17:36.560 --> 0:17:39.160 curbs on tech sales to China, and a red hot 0:17:39.200 --> 0:17:41.760 AI market that might have got too hot. So the 0:17:41.800 --> 0:17:45.000 first time ms has downgraded the sector since his overweight 0:17:45.040 --> 0:17:48.040 call in October of twenty twenty two. Let's get the 0:17:48.040 --> 0:17:49.679 perspective of Michelle Geider. 0:17:49.800 --> 0:17:50.520 She's the CEO of the. 0:17:50.480 --> 0:17:54.800 Cruck Institute for Tech Depotacy at Purdue, an organization dedicated 0:17:55.000 --> 0:18:01.040 to accelerating the innovation and adoption of trusted technology. Going story, 0:18:01.560 --> 0:18:05.159 but it is not going away. The United States with 0:18:05.240 --> 0:18:10.280 its current administration limiting China's access to key semiconductor technology. 0:18:10.560 --> 0:18:14.440 In the context of China, how long and sustained will 0:18:14.440 --> 0:18:16.399 that policy be things ed? 0:18:17.040 --> 0:18:21.000 This is turned from being at first a Trump administration 0:18:21.080 --> 0:18:25.359 policy toward China to Abide administration policy toward China, and 0:18:25.400 --> 0:18:28.240 it's becoming clear now that this is the American policy 0:18:28.320 --> 0:18:31.600 toward China. There's a lot of bipartisan consensus from the 0:18:31.680 --> 0:18:34.439 US Congress as well, and not to mention many of 0:18:34.440 --> 0:18:37.359 our partners and allies across the world. So there has 0:18:37.440 --> 0:18:42.600 been tremendous volatility and uncertainty with regard to the political election, even. 0:18:42.520 --> 0:18:44.560 Just over the past ten days. 0:18:44.840 --> 0:18:46.960 But if you're a CEO of a tech company, the 0:18:47.040 --> 0:18:49.240 one thing that you can be certain of, the one 0:18:49.240 --> 0:18:51.840 thing that will be stable, is going to be American 0:18:51.880 --> 0:18:54.960 policy toward China when it comes to our own tech 0:18:55.040 --> 0:18:57.400 security and our economic competitiveness. 0:18:57.920 --> 0:19:00.399 Is it the right policy, Michelle. 0:19:00.200 --> 0:19:02.480 Well, let's start with the ultimate end goal, and the 0:19:02.520 --> 0:19:04.600 ultimate end goal is that the United States and our 0:19:04.600 --> 0:19:08.960 partners and allies across the world have to have competitiveness 0:19:09.000 --> 0:19:11.960 and superiority when it comes to technology, because whoever leads 0:19:11.960 --> 0:19:15.600 in technology is going to dictate the values and the 0:19:15.640 --> 0:19:20.240 standards and the regulations that oversee our militaries, our economies, 0:19:20.280 --> 0:19:23.480 the financial system, our culture, and the information space, and 0:19:23.520 --> 0:19:25.760 so the imperatives for the United States and our partners 0:19:25.800 --> 0:19:28.359 and allies to lead in technology. That means we have 0:19:28.400 --> 0:19:31.080 to innovate faster, smarter, and better, and we have to 0:19:31.080 --> 0:19:34.360 make sure that our companies are not contributing to China's 0:19:34.400 --> 0:19:38.520 ability to beat us in technologies like artificial intelligence. 0:19:39.960 --> 0:19:44.000 Michelle Nvidia, for example, is off session highs but up 0:19:44.200 --> 0:19:48.080 significantly this morning. There were reports that it's preparing a 0:19:48.119 --> 0:19:51.919 specific product that would be within the bounds of current restrictions. 0:19:52.760 --> 0:19:55.960 That seems such an interesting policy. How severe do you 0:19:56.080 --> 0:19:59.120 expect the reaction from the administration of the policy sides 0:19:59.160 --> 0:20:01.399 be if corporate it's elect to do that, just to 0:20:01.400 --> 0:20:05.000 adjust their product so that they're within codified rules. 0:20:05.080 --> 0:20:07.240 Like this, this is sort of the new reality that 0:20:07.280 --> 0:20:09.520 we're in here in twenty twenty four and then through 0:20:09.560 --> 0:20:13.280 twenty forty four, which is that companies and governments have 0:20:13.359 --> 0:20:17.000 to be working closely together to ensure that companies are 0:20:17.000 --> 0:20:20.520 able to be competitive and ensure their business success at 0:20:20.520 --> 0:20:22.800 the same time that they're contributing to and not working 0:20:22.880 --> 0:20:26.600 against US and allied national security. That's what tech diplomacy is, 0:20:26.640 --> 0:20:28.560 That's what the CROC Institute is focused on, and it 0:20:28.600 --> 0:20:31.600 really is a new requirement for this contested technological and 0:20:31.640 --> 0:20:36.720 geopolitical space. So we're seeing that push and pull between 0:20:36.760 --> 0:20:39.520 companies and governments, But the long term trajectory of this 0:20:40.040 --> 0:20:43.439 is that companies need to be acting in the national 0:20:43.440 --> 0:20:46.200 security of the United States. There's a way to be competitive, 0:20:46.320 --> 0:20:48.520 there's a way to make money, and there's also a 0:20:48.560 --> 0:20:51.320 way to ensure that we're advancing national security. 0:20:51.400 --> 0:20:53.960 So this is a and scenario, not. 0:20:54.040 --> 0:20:55.240