Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
Speaker 2: From Marhard We're Innovation, Money and Power Collie in.
Speaker 1: Silicon Valley, Nbon. This is Bloomberg Technology with Caroline.
Speaker 3: Hyde and Ed luved Love.
Speaker 4: From Bloomberg's London headquarters in San Francisco. This is Bloomberg
Speaker 4: Technology coming up in the next hour. Markets entering uncharted
Speaker 4: territory as President Biden drops out and passes the baton
Speaker 4: to Kamala Harris, who in tech will support her and
Speaker 4: what it means for companies and crypto.
Speaker 3: Blushares of CrowdStrike plummet again is analyst Sandy alarm after
Speaker 3: last week's widespread outages and gearing up.
Speaker 4: For big tech results Tesla, Alphabet and more prepared to
Speaker 4: kick off earning season for the Magnificent seven.
Speaker 5: Vers As checking on these marks, Ed.
Speaker 4: We are having a much better day than we did
Speaker 4: from last week. We are up the most since June,
Speaker 4: in fact, so more than a month that we've seen
Speaker 4: such outperformance on the NASDAT one point three percent high
Speaker 4: after the worst week since April last week. But we
Speaker 4: have to hone in really on the market impact of
Speaker 4: the news over the weekend.
Speaker 3: Okay, let's get to the outlook for the twenty twenty
Speaker 3: four presidential election. It took a turn this weekend as
Speaker 3: Biden announced his exit from the race, endorsing Vice President
Speaker 3: Kamala Harris to be the Democratic nominee. Bluembost Katie Lyons
Speaker 3: is in Washington, d C. I think the most logical
Speaker 3: question to ask is what happens next, because President Biden
Speaker 3: endorsing Vice President Kamala Harris is not definitive necessarily, though
Speaker 3: it was an important moment.
Speaker 6: It certainly was, and especially considering that it was followed
Speaker 6: by the endorsements of many other Democratic leaders to be
Speaker 6: a former President Bill Clinton and his wife Hillary Clinton,
Speaker 6: members of the House, in Senate, even key governors that
Speaker 6: were seen to have been potential other contenders for the
Speaker 6: nomination aside from Harris, have now come out and endorsed.
Speaker 5: Her, including today JB.
Speaker 6: Pritsker, the governor in Illinois, or Wes Moore, the governor
Speaker 6: of Maryland. That is in addition to the number that
Speaker 6: we saw come out in support of Harris in the
Speaker 6: immediate aftermath of Biden's announcement in the last twenty four hours.
Speaker 6: The other thing that we should note is that she
Speaker 6: does have a money advantage. Not only does she have
Speaker 6: access to the hundreds of millions of dollars in what
Speaker 6: was the Biden Harris campaign war chest, something that other
Speaker 6: candidates would not have the same accessibility to. We also
Speaker 6: saw in the seven hours in the aftermath of her
Speaker 6: announcing that she does intend to, in her words, earn
Speaker 6: and win the Democratic nomination, we saw fifty million dollars
Speaker 6: in grassroots funding raised, the best day ever for Act Blue,
Speaker 6: which is a key Democratic funding aggregator. So certainly it
Speaker 6: does seem that the party is very much getting in
Speaker 6: line behind Harris. But Edgar absolutely right. Nothing is a
Speaker 6: done deal yet. We still have to get to that
Speaker 6: convention which begins four weeks from today in Chicago on
Speaker 6: odds nineteenth, where the delegates are going to have to
Speaker 6: decide who they're casting a vote for, knowing ninety nine
Speaker 6: percent of them were pledged for Joe Biden, who is
Speaker 6: no longer seeking reelection.
Speaker 4: Important screen that we're looking at right now, Kaylee Reid Hoffman,
Speaker 4: key person in technology, is one of the key Democratic donors.
Speaker 4: Will this ultimately galvanized to think some of those that
Speaker 4: we see in our community and technology and what will
Speaker 4: they be looking for in any way in a change
Speaker 4: in direction of policy, or is it more of the
Speaker 4: same when it comes to Biden.
Speaker 6: Well, certainly, Reid Hoffman was one of the first yesterday
Speaker 6: in the aftermath of this announcement to come out and
Speaker 6: endorse Kamala Harris. Other big funders like George Soris have
Speaker 6: also come out for her, but notably, a number of
Speaker 6: donors have suggested to Bloomberg that they don't necessarily want
Speaker 6: this to be a coronation, that they want some kind
Speaker 6: of process to play out for Harris to actually earn
Speaker 6: the nomination or give someone else a chance to and
Speaker 6: what could theoretically be a contested election in terms of policy,
Speaker 6: that is really what Kamala Harris is going to have
Speaker 6: to define for herself. We will hear from her for
Speaker 6: the first time to the cameras since all of this
Speaker 6: went down yesterday at eleven thirty am Eastern time. We'll
Speaker 6: she'll be speaking at an NCAA Sports Day event at
Speaker 6: the White House. So those remarks just about half an
Speaker 6: hour from now, and it's going to be about the
Speaker 6: ways in which she tries to differentiate herself from Joe
Speaker 6: Biden expressed that perhaps in not all areas there will
Speaker 6: be exact policy continuity, given that that is an attack
Speaker 6: line we're already seeing from the Republican Party suggesting that
Speaker 6: essentially a Kamala Harris presidency would look very much like
Speaker 6: a Joe Biden presidency and that for everything. Republicans have
Speaker 6: faulted the Biden administration for their suggesting that Kamala Harris
Speaker 6: not only was there for it, but enabled President Biden
Speaker 6: to take all of that action. So it's going to
Speaker 6: be a question of how Kamala Harris may decide to
Speaker 6: differentiate herself from the man that she has served as
Speaker 6: vice president for the last three and a half years.
Speaker 6: And when it comes to technology, it's also worth pointing
Speaker 6: out that it's not just Democrats that need to be watched.
Speaker 6: Jade Vance, the vice presidential nominee on the Republican side,
Speaker 6: have been highly skeptical of big tech. In particular, he
Speaker 6: has been supportive of competition in anti trust efforts under
Speaker 6: the Biden administration, including the praise he's had for FTC
Speaker 6: Chair Lena Kahan, And of course there may be some
Speaker 6: alignment with the Democrats in those areas.
Speaker 3: Bloomber's Calie lines, thank you, let's get reaction from Silicon
Speaker 3: Valley and the Democratic Party. Steve Wesley is the CEO
Speaker 3: of the Wesley Group, but also a former California State
Speaker 3: Controller CFO and in two thousand and eight co chaired
Speaker 3: Barack Obama's campaign in the state of California and as
Speaker 3: back to Biden. He's also been a delegate at eight
Speaker 3: Democratic conventions. He joins us now from Menlo Park, California. Steve,
Speaker 3: good morning to you.
Speaker 7: Your reaction in.
Speaker 3: The first instance to President Biden endorsing Kamala Harris as nominee.
Speaker 8: Well, first, you've got to give Joe Biden credit.
Speaker 9: It's an extraordinary act of selflessness for him to step
Speaker 9: down having won the nomination and to do what he
Speaker 9: thinks is right for the country, to basically say I'm
Speaker 9: going to step down. It's time to bring in a
Speaker 9: new generation and to throw things open. Now he's endorsed
Speaker 9: Kamala Harris, but there's still going to be a process
Speaker 9: and what would see now, I think is quite exciting.
Speaker 9: Everybody in the world is watching what's going to happen next.
Speaker 8: There's going to be some.
Speaker 9: New blood in the Democratic Party. Is it going to
Speaker 9: be Kamala Harris, who's terrific or is it going to
Speaker 9: be someone else? And I think there's going to be
Speaker 9: at least one, maybe two other people that come into
Speaker 9: the race. I think it's going to add a lot
Speaker 9: of excitement to the race. I think it's going to
Speaker 9: mobilize Democratic voters. Everybody's going to be tuning into the convention.
Speaker 8: It's just what she wants.
Speaker 3: If you're a part Steve, you are in a large
Speaker 3: group of Silicon Valley or technologists, DEM donors and backers
Speaker 3: who are doing the math, and you're trying to calculate
Speaker 3: who can win against Trump vance.
Speaker 7: Do you think that Kamala Harris can win.
Speaker 8: Absolutely.
Speaker 10: She's a known entity, she's got high voter ID, she's
Speaker 10: an articulate presenter, a former prosecute she will do very
Speaker 10: well in the debate, and she fire her she's all
Speaker 10: over high energy.
Speaker 8: But there are other candidates like that too.
Speaker 9: I think the one who is most mentioned, Discretion Whitmer
Speaker 9: of Michigan, will see I'm guessing who knows what. I'm
Speaker 9: guessing there'll be at least one other candidate in the race.
Speaker 9: And I think it's just what the Democratic Party needs
Speaker 9: is to eject some new blood to run against a
Speaker 9: seventy eight year old candidate who seems to be fuzzy
Speaker 9: on a lot of the issues. I think it's a
Speaker 9: big opportunity for the Democrats, a lot of energy.
Speaker 4: Everybody's going to be watching, Steve, what about the opportunity
Speaker 4: to finance the Democrats right now? How much do you
Speaker 4: think this is going to inspire well more of Silicon
Speaker 4: Valley to start speaking out about who they endorse them
Speaker 4: with their money.
Speaker 9: Well, look, first, there's going to be enormous amounts of
Speaker 9: money that come in on both sides. In terms of
Speaker 9: Silicon Valley, I can just tell you right now, Silicon
Speaker 9: Valley has gone roughly eighty twenty for Democrats over the
Speaker 9: past two or three or four elections.
Speaker 8: I think it's going to be the same this time.
Speaker 9: If you look at the current administration's support of the
Speaker 9: Chips Act, the Infrastructure Bill, the Inflation Reduction Act, the
Speaker 9: largest green energy stimulus in the history of the planet,
Speaker 9: Nobody other than by could have gotten this stock market
Speaker 9: historic highs, unemployment historic lows. And if there's one thing
Speaker 9: at Silicon Valum and the business in general, really looks
Speaker 9: for its stability, I think the Democrats have provided that
Speaker 9: I don't think anybody could say that that is mister
Speaker 9: Trump's strength.
Speaker 8: So we'll see how that involves.
Speaker 9: But I expect Solicon Valley to go strongly for the Democrat,
Speaker 9: whoever it is.
Speaker 4: Steve thus Far a man you know well, having been
Speaker 4: on the board of Tesla, having supported.
Speaker 5: El on Us companies in the past.
Speaker 4: He's given forty five million a month, we understand to
Speaker 4: a pack that supports Trump. Whereas we look to the
Speaker 4: previous full screen and read Hoffman was the biggest donor
Speaker 4: previously with a twenty five million dollar check. How do
Speaker 4: you see those sorts of numbers adding up. Will there
Speaker 4: be someone who can match that sort of huge, huge
Speaker 4: gift that we see coming from the world's wealthiest man.
Speaker 9: Absolutely, Look, there's going to be huge amounts of money
Speaker 9: that come in on both sides. But there are a
Speaker 9: lot of people Ms Gains and Bezos, many of the
Speaker 9: wealthiest people in the world are strong Democrats, and I
Speaker 9: think you're going to see equal many match, if not
Speaker 9: more coming in on the Democratic side. And again with
Speaker 9: the Democrats are provided over the last four years, historically
Speaker 9: high stock market race, historically low unemployment. I mean, this
Speaker 9: is a good story to campaign on. And if you
Speaker 9: can wrap all that together with a strong new candidate,
Speaker 9: whether it's Tamala Harris or someone else, I think that's
Speaker 9: a winning package for the Democratic Party.
Speaker 7: Steve.
Speaker 3: A criticism of President Biden's term in office has been
Speaker 3: his attitude toward and lack of engagement with Elon Musk
Speaker 3: in the context of electric vehicles and space as well.
Speaker 3: Do you expect Kamala Harris or whoever the Democratic nominee
Speaker 3: ends up being to change policy there.
Speaker 8: Not for a moment.
Speaker 9: I think the Biden administration has been a champion not
Speaker 9: only for green energy, but to stimulate this boom and
Speaker 9: electric vehicles. And the great news is, not only are
Speaker 9: electric vehicles becoming cheaper every year, they're creating huge jobs.
Speaker 9: Battery plants ev plants being built around the country in
Speaker 9: blue and red stags. But for the first time this year,
Speaker 9: you're going to see evs, a parody for control of
Speaker 9: combustion engine vehicles. This is something that's wildly popular, especially
Speaker 9: for young people. Biden administration and I think any of
Speaker 9: the Democratic nominees are going to be strongly in favor
Speaker 9: of the new green economy and the fifteen million jobs
Speaker 9: that the administration is creator over the last four years.
Speaker 9: I think Trump may be the odd guy out to
Speaker 9: be holding on embracing introlock combustion engine vehicles at a
Speaker 9: climb when they're less popular than.
Speaker 8: They have been in the past.
Speaker 5: Steve, great to catch up with you.
Speaker 4: Thank you so much for your time today, Steve Wesley,
Speaker 4: CEO of the Wesley Group.
Speaker 7: Let's talk more about CrowdStrike.
Speaker 3: Carro is just pointing out in the session the stock
Speaker 3: down almost eleven percent. It fell eleven percent Friday following
Speaker 3: its botched patch or software update that caused an outage
Speaker 3: impacting eight point five million Microsoft Windows PCs around the world.
Speaker 3: A number of firms downgrading the stock after the outage
Speaker 3: real quick on a two day basis, Caroline, It's a
Speaker 3: stock that's facing its biggest two day drop on record.
Speaker 3: And I think you and I were wondering Friday, how
Speaker 3: does this have legs? How severe is this? And the
Speaker 3: industry is talking about it. Let's get the latest and
Speaker 3: bring in Sanjay Merchandani, CEO of Convolt Cyber Resilient Solutions provider.
Speaker 3: Stock continues to have reaction, Your industry continues to have
Speaker 3: reaction as well. What's the lasting effect of the outage
Speaker 3: we leave.
Speaker 11: You know, we live in an extremely interconnected world right now,
Speaker 11: cloud devices, servers, and.
Speaker 1: Croudstrike is a popular technology.
Speaker 11: We use it as well, and so when something like
Speaker 11: this happens, there is a long tail and it.
Speaker 1: Has to be you know, it has to be cleaned up.
Speaker 11: The lessons here and the fix for the most part
Speaker 11: was fairly manual, so it took time. It wasn't a
Speaker 11: complicated fix, but it took time, and I think we're
Speaker 11: coming out of it.
Speaker 1: But there's a lot of learnings that we're also getting
Speaker 1: out of this process.
Speaker 4: Sandra, did you have any cause for concern ahead of
Speaker 4: this about prior updates that crowd strike could run? Then
Speaker 4: there might have been anything that would signal that such
Speaker 4: an event could occur.
Speaker 11: They're a security company, you trust, You tend to trust
Speaker 11: security company and the you know, and so there was
Speaker 11: no there was nothing before this specifically about crowd strike
Speaker 11: that would be of concern. What is always of concern
Speaker 11: when you have a large number of patches and a
Speaker 11: large number of connected systems and dependencies is your ability
Speaker 11: to really stage a patch test it in your particular environment.
Speaker 11: Because no two environments are the same and then once
Speaker 11: you know that you've got it working where you need it,
Speaker 11: to push it out. Now, with security, the window that
Speaker 11: you have between a critical patch and your ability to deploy.
Speaker 1: It is very, very small, and so you tend to
Speaker 1: trust more and push faster.
Speaker 4: We have heard from across industries, particularly from the airline industry,
Speaker 4: the Delta CEO coming out and apologizing because still today
Speaker 4: there are issues that are affecting their ability to serve customers. Sanjay,
Speaker 4: when it comes to business continuity, what could a company
Speaker 4: like Delta have done to prevent the fallout that we
Speaker 4: now see was two thousand and five h plus cancelations
Speaker 4: on Saturday.
Speaker 1: You know, Caroline, it's it's about resilience.
Speaker 11: And people use the word resilience instead of a broad way,
Speaker 11: But for us, it's about business's ability to get back
Speaker 11: to life, regardless of the catastrophic event.
Speaker 1: It could have been human error in this case, possibly
Speaker 1: human error.
Speaker 11: It could be malicious, it could be internal external malicious,
Speaker 11: it could be a natural disaster. So what we do
Speaker 11: is help our customers build a capability, build a platform,
Speaker 11: build a muscle through repeated testing and scale so that
Speaker 11: in the event.
Speaker 1: That something goes sideways.
Speaker 11: You've tried and tested the ability for your business to
Speaker 11: come back to life. And I think, I think everything
Speaker 11: we've got going on as enterprises, not enough time is
Speaker 11: spent on practical capabilities of resilience and more. Sort of
Speaker 11: you tend to lean on on the academic thought process. Yes,
Speaker 11: we've got this list, we've done this, we've we've written
Speaker 11: this up. But how much of your enterprise have you
Speaker 11: actually tested with a deep degree of confidence?
Speaker 1: And that's what we try to enable our customers to do.
Speaker 3: Sanjay I wrote in my Tech Daily column this morning
Speaker 3: about concentration risk, the idea that so many corporates and
Speaker 3: government entities relied on CrowdStrike, but also that eight point
Speaker 3: five million computers it was the most critical of computers
Speaker 3: that were impacted. How could have that been mitigated or prevented?
Speaker 1: Think of it as a warning shot.
Speaker 11: We've all been sort of sitting back and saying, Okay,
Speaker 11: so what does my fleet look like, what do my
Speaker 11: servers look like?
Speaker 1: What does you know? What are my users working with?
Speaker 11: And it almost makes you take a step back and say,
Speaker 11: we need to have a very calculated mix so that
Speaker 11: you're not over reliant or over dependent on any one environment,
Speaker 11: because that's part of resilience.
Speaker 1: You know, that is exactly part of resilience.
Speaker 11: And I think for everyone this weekend's been a bit
Speaker 11: of a wake up call to say, Okay, where am
Speaker 11: I overdependent or don't have enough control or it could
Speaker 11: be more resilient. And I think that you know, for
Speaker 11: all the negative outcome of something like this, the positive takeaway,
Speaker 11: if you can is let's go back and make sure
Speaker 11: we're very calculated about how we build out the enterprise landscape.
Speaker 1: The av a man.
Speaker 4: List analyst getting more calculated on what their price targets
Speaker 4: are in the company in Sanjay Merchant and is saying
Speaker 4: getting more calculated or using as well, CEO of Convolt,
Speaker 4: we really appreciate your perspective on CrowdStrike. Coming up, we're
Speaker 4: going to be joined by Michelle Grider, CEO of CRACK
Speaker 4: Institute for Tech Diplomacy over at Purdue for her read
Speaker 4: on the impact of.
Speaker 5: China US relations on the tech sector.
Speaker 4: And I'm also looking as we go to break on
Speaker 4: a share that you need to keep an eye on,
Speaker 4: down some six percent. Verizon comes out with its earnings
Speaker 4: operating revenue missed Animal's estimates a few people basically upgrading
Speaker 4: their wireless equipment. Total operating revenue thirty two point eight billion,
Speaker 4: less than one percent from a year ago, up less
Speaker 4: than one percent from a year ago, and a bit
Speaker 4: of a miss when the market wanted to see some
Speaker 4: week overall growth, asking some actural games in wireless filone customers.
Speaker 5: Though this is Blue Meg technology.
Speaker 3: Take some profit on the AI boom. That's the message
Speaker 3: to investors from Morgan Stanley, who lowered their view on
Speaker 3: Asian and emerging market tech names and cut KEYAI chip
Speaker 3: names like TSMC from.
Speaker 7: Their focus list.
Speaker 3: The call triggered a rough session for tech in Asia,
Speaker 3: trading overnight, top of mind for the firm, tougher US
Speaker 3: curbs on tech sales to China, and a red hot
Speaker 3: AI market that might have got too hot. So the
Speaker 3: first time ms has downgraded the sector since his overweight
Speaker 3: call in October of twenty twenty two. Let's get the
Speaker 3: perspective of Michelle Geider.
Speaker 7: She's the CEO of the.
Speaker 3: Cruck Institute for Tech Depotacy at Purdue, an organization dedicated
Speaker 3: to accelerating the innovation and adoption of trusted technology. Going story,
Speaker 3: but it is not going away. The United States with
Speaker 3: its current administration limiting China's access to key semiconductor technology.
Speaker 3: In the context of China, how long and sustained will
Speaker 3: that policy be things ed?
Speaker 2: This is turned from being at first a Trump administration
Speaker 2: policy toward China to Abide administration policy toward China, and
Speaker 2: it's becoming clear now that this is the American policy
Speaker 2: toward China. There's a lot of bipartisan consensus from the
Speaker 2: US Congress as well, and not to mention many of
Speaker 2: our partners and allies across the world. So there has
Speaker 2: been tremendous volatility and uncertainty with regard to the political election, even.
Speaker 8: Just over the past ten days.
Speaker 2: But if you're a CEO of a tech company, the
Speaker 2: one thing that you can be certain of, the one
Speaker 2: thing that will be stable, is going to be American
Speaker 2: policy toward China when it comes to our own tech
Speaker 2: security and our economic competitiveness.
Speaker 5: Is it the right policy, Michelle.
Speaker 2: Well, let's start with the ultimate end goal, and the
Speaker 2: ultimate end goal is that the United States and our
Speaker 2: partners and allies across the world have to have competitiveness
Speaker 2: and superiority when it comes to technology, because whoever leads
Speaker 2: in technology is going to dictate the values and the
Speaker 2: standards and the regulations that oversee our militaries, our economies,
Speaker 2: the financial system, our culture, and the information space, and
Speaker 2: so the imperatives for the United States and our partners
Speaker 2: and allies to lead in technology. That means we have
Speaker 2: to innovate faster, smarter, and better, and we have to
Speaker 2: make sure that our companies are not contributing to China's
Speaker 2: ability to beat us in technologies like artificial intelligence.
Speaker 3: Michelle Nvidia, for example, is off session highs but up
Speaker 3: significantly this morning. There were reports that it's preparing a
Speaker 3: specific product that would be within the bounds of current restrictions.
Speaker 3: That seems such an interesting policy. How severe do you
Speaker 3: expect the reaction from the administration of the policy sides
Speaker 3: be if corporate it's elect to do that, just to
Speaker 3: adjust their product so that they're within codified rules.
Speaker 2: Like this, this is sort of the new reality that
Speaker 2: we're in here in twenty twenty four and then through
Speaker 2: twenty forty four, which is that companies and governments have
Speaker 2: to be working closely together to ensure that companies are
Speaker 2: able to be competitive and ensure their business success at
Speaker 2: the same time that they're contributing to and not working
Speaker 2: against US and allied national security. That's what tech diplomacy is,
Speaker 2: That's what the CROC Institute is focused on, and it
Speaker 2: really is a new requirement for this contested technological and
Speaker 2: geopolitical space. So we're seeing that push and pull between
Speaker 2: companies and governments, But the long term trajectory of this
Speaker 2: is that companies need to be acting in the national
Speaker 2: security of the United States. There's a way to be competitive,
Speaker 2: there's a way to make money, and there's also a
Speaker 2: way to ensure that we're advancing national security.
Speaker 8: So this is a and scenario, not.
Speaker 1: A one or the other.
Speaker 4: Michelle, you mentioned allies, and much of recent report has
Speaker 4: been focused on how the administration is going to lean
Speaker 4: on the Dutch, the Japanese. How will that differ between
Speaker 4: a Trump versus potential Harris.
Speaker 2: Look In the previous administration, one of the things that
Speaker 2: the founders of the Croak Institute had focused on was
Speaker 2: building a historic clean network to secure five G that
Speaker 2: included sixty countries and two hundred telecommunications companies.
Speaker 7: That worked together across.
Speaker 2: All of our countries in order to secure five G
Speaker 2: and make sure that we are only using trusted vendors
Speaker 2: that ultimately stopped Huawei in its tracks from becoming the
Speaker 2: dominant global five G provider. That has continued in this
Speaker 2: administration and whatever the next administration and into the next
Speaker 2: twenty years. Really the imperative is for the US and
Speaker 2: all of our allies to.
Speaker 8: Be working together.
Speaker 2: And we had talked about chips at the very beginning.
Speaker 2: Here you see a lot of the same trajectory from
Speaker 2: our partners and allies when it comes to chip. The
Speaker 2: EU is focused on government subsidies to advance their chip
Speaker 2: self sufficiency. The same thing with Japan Korea. Many of
Speaker 2: our partners and allies are on the same path.
Speaker 4: Michelle Geider, CEO of the Kark Institute for Tech Diplomacy,
Speaker 4: have heard you. We thank you so much this blombog Techology.
Speaker 4: Welcome back to bloembogo Techology. I'm Caroline Hyde in London
Speaker 4: and I'm.
Speaker 3: Ed loved Loo in San Franciscoing Sure, as the sun
Speaker 3: rises and sets, Carro, there are financial markets to talk about,
Speaker 3: and then as.
Speaker 5: Like one hundred coming off of it's highs.
Speaker 4: At the moment, Ed, we're just up by seven tenths
Speaker 4: of a percent, best move since July.
Speaker 5: The tenth. But look, we're in the green and that's
Speaker 5: not where.
Speaker 4: We were last week, worst week that we had on
Speaker 4: the NASTAG. More broadly, since April, we're seeing CrowdStrike pulling
Speaker 4: to the downside almost thirteen percent actually now trading even
Speaker 4: more significantly than it did on Friday when we first
Speaker 4: learned of the outage that was sparked by an upgrade
Speaker 4: that went horribly wrong for CrowdStrike and eight and a
Speaker 4: half million device users. We keep an eye on that company.
Speaker 4: We also keep an eye on digital assets now. Actually,
Speaker 4: we did see spike higher amid the political news and
Speaker 4: trying to digest ultimating what a Harris versus Trump, and indeed,
Speaker 4: if it does remain Kamala Harris leading and vuying for
Speaker 4: the nomination for the Democrats, what would that mean for
Speaker 4: crypto Actually, the crypto market is kind of thinking that
Speaker 4: it's better chances still for Trump, who is a pro
Speaker 4: crypto candidate. We're up three and a half percent, but
Speaker 4: notably we're just a little bit on the downside today.
Speaker 7: Let's take a look.
Speaker 3: At who in the digital asset world might benefit the
Speaker 3: most from a potential second Donald Trump term in office
Speaker 3: and who might lose the most Let's break it little
Speaker 3: down blue Verhali Bassex here.
Speaker 7: I mean there are.
Speaker 3: Actually two layers to it, right that in the moment,
Speaker 3: the market kind of saying, well, we think Trump is
Speaker 3: the more likely outcome, but at the same time he's
Speaker 3: the more pro crypto candidate, and trying to make sense
Speaker 3: of that on an asset class that trades twenty four
Speaker 3: to seven has been quite a lot of fun for you.
Speaker 12: Well since early June. You just think about the rise
Speaker 12: that bitcoin has seen after it was in an early
Speaker 12: summer slump. Remember you and I about a month or
Speaker 12: two ago, we're talking about how difficult it was for
Speaker 12: this cryptocurrency to get out of that slump. But now
Speaker 12: we're in a position where, yes, on the hopes of
Speaker 12: a more friendly president here to the crypto industry, you
Speaker 12: have seen Bitcoin rise something to the tune of ten
Speaker 12: percent since when early kind of indications here of Biden
Speaker 12: losing some steam when you saw him address the public
Speaker 12: in different ways, and certainly even more so when he
Speaker 12: stepped down from the nomination yesterday. But you also had,
Speaker 12: for example, the likes of many bitcoin minors surge even
Speaker 12: more than bitcoin itself, and a lot of people This
Speaker 12: is a really interesting one here too, because remember it's
Speaker 12: not just the presidential rhetoric that we're talking about here,
Speaker 12: it's also this idea that you may expect an approval
Speaker 12: of an ethereum filing this week and those ethereum spotytfs
Speaker 12: to trade as well. So yes, has Gary Gensler under
Speaker 12: the Biden administration come down very hard on the crypto community. Absolutely,
Speaker 12: has it left an overhang on crypto related stocks, particularly exchanges. Also,
Speaker 12: has the Biden White House overturned bills, that bipartisan bill
Speaker 12: in particularly that would have changed the way crypto has
Speaker 12: accounted for. Also Yes, But then again you have seen
Speaker 12: also pivotal moments in the bitcoin industry and new record
Speaker 12: highs under the Biden administration as well. So a little
Speaker 12: unclear here as to how much more pro crypto Trump
Speaker 12: would be than the Biden administration.
Speaker 4: And of course whether or not it will be Harris
Speaker 4: who Harris would be accompanied by. But Shanani Molbroney, I mean,
Speaker 4: have we ever heard VP Harris speak particularly about crypto?
Speaker 4: Have we haven't sort of tried to Gana ultimately you've
Speaker 4: spoken to Mike Novelgrats and the like.
Speaker 5: He really was pushing for this change of the god.
Speaker 12: He was pushing for the change of the guard. But
Speaker 12: I think also just as interesting here, Caroline, is this
Speaker 12: idea that he wants to see a race. He is
Speaker 12: one of the billionaires that did speak to Bloomberg about
Speaker 12: the idea that she's going to have to win that
Speaker 12: ticket going into that Democratic National Convention.
Speaker 5: In mid August.
Speaker 12: He did not flat out say she should have it
Speaker 12: on day one, and so there is more support for
Speaker 12: Kamala Harris. And remember it's not that the Trump administration
Speaker 12: is all in on crypto as well. Remember Jake Clayton
Speaker 12: was Treasury sorry Security is an Exchange Commission chair under
Speaker 12: a Trump administration, and crypto did face some hurdles in
Speaker 12: that time as well.
Speaker 5: If you remember, the other thing.
Speaker 12: Under a Trump administration that would come under very significant
Speaker 12: concern is an idea of a central bank digital currency,
Speaker 12: this idea that the government itself could surveil payments in
Speaker 12: a broader way. So it's a nuanced view here, and
Speaker 12: there are still a lot of holdouts in the crypto
Speaker 12: community that don't say the Republican Party is the only
Speaker 12: one for crypto, though it is leaning that way of late.
Speaker 4: Shanata basek always twenty four seven for us as well
Speaker 4: when it comes to crypto, we so appreciate it. Let's
Speaker 4: speak to someone who's deep within the crypto ecosystem about
Speaker 4: political change, but also that ETF that we're all llwing
Speaker 4: to go live this week might be she's with a
Speaker 4: CEO a bit go and you'll read on this ultimately
Speaker 4: whether there will be a sudden clearer path for regulation
Speaker 4: when it comes to crypto if we did have Trump,
Speaker 4: or indeed if we did.
Speaker 13: Have Harris, Well, we're going to find out really soon,
Speaker 13: aren't we. Harris is a little bit unknown so far
Speaker 13: in terms of what her individual views are, but for
Speaker 13: the most part, I think she's probably going to echo
Speaker 13: what Biden has done. And while people are focused a
Speaker 13: lot on whether or not this is a party issue,
Speaker 13: I think what it's really about is who are the
Speaker 13: heads of the various agencies. The regulators have tremendous power here,
Speaker 13: and I'm talking about you know, not just the SEC,
Speaker 13: but also the FDI C and the OCC and to
Speaker 13: a lesser extent, you know some of the I R
Speaker 13: S and the FTC. Obviously, Secretary of Treasury is huge.
Speaker 13: So whoever's in those seats greatly dictates what happens. And
Speaker 13: let's be realistic here, Crypto, while a very important issue,
Speaker 13: is not the biggest issue for most political political minds,
Speaker 13: So you know they're going to be picking those seats
Speaker 13: based on other factors, and yet who they put into
Speaker 13: those positions can turn on or off crypto leg a
Speaker 13: light switch.
Speaker 3: Mike, one of the voices quoted in the Bloomberg News
Speaker 3: Bitcoin rap talks about how if Trump is elected to office,
Speaker 3: theres an asset class crypto becomes more investible. Is that
Speaker 3: because of what you just said about regulators, that if
Speaker 3: Trump comes to office with a clear pro crypto stance,
Speaker 3: the rest of the market kind of follows suits.
Speaker 13: Well, Trump has been very clear in certainly in the
Speaker 13: last six months now. You can go back to twenty
Speaker 13: nineteen and he had a different view, but you know,
Speaker 13: he's consistent now. And I think what's happened is he's
Speaker 13: actually learned the market has evolved by four years. We've
Speaker 13: got tremendous infrastructure that we did not have four years ago.
Speaker 13: So I think he is ready to help make you know,
Speaker 13: a crypto and avestable asset, and frankly, regardless of which
Speaker 13: political side you're on. You know, digital assets crypto are
Speaker 13: about money for the people and about freedom of choice. Now,
Speaker 13: these are two virtues that both parties of spouse to
Speaker 13: be in favor of. However, you know, some political leaders
Speaker 13: tend to lean more towards give the power to the banks, right,
Speaker 13: So I think there's a real challenge of there's a
Speaker 13: there's a fight going on behind the scenes for power,
Speaker 13: you know, kind of in the financial institution system, and
Speaker 13: are you going to give that to the banks or
Speaker 13: are you're going to actually open it up with freedom
Speaker 13: and let people decide. So Trump has definitely said the
Speaker 13: latter Biden put in people that were more in favor of,
Speaker 13: you know, kind of the existing banking system. And that's
Speaker 13: the question that we have in front of us, is
Speaker 13: you know what's going to happen next.
Speaker 3: I guess the joy of crypto markets is it trades
Speaker 3: twenty four to seven. And just like everyone else, I
Speaker 3: was looking at bitcoin over the weekend, is the political
Speaker 3: headlines here? Do you read much into the minute by
Speaker 3: minute move when a news event like this past weekend happens.
Speaker 3: Does the market tell you anything about popular sentiment?
Speaker 7: It does?
Speaker 13: I mean, you always have to take away a grain
Speaker 13: of salt. It's really hard to read the tea leaves
Speaker 13: and not a trader. I think some people put too
Speaker 13: much emphasis on small term, short short movements. But no,
Speaker 13: we do see pops, you know, when people are seeing
Speaker 13: a more positive outlook. And I think right now, you know,
Speaker 13: the Trump administration, if you were to come in clearly
Speaker 13: signals are more favorable approach to crypto, and we'll see
Speaker 13: what happens if it's anything else. But you know, of
Speaker 13: course Biden and then Harris by kind of by proximity
Speaker 13: would also likely be putting in the same types of
Speaker 13: candidates and will probably look pretty negative for crypto.
Speaker 5: Mike.
Speaker 4: This weekend, we're anticipating Trump to speak at a big
Speaker 4: bitcoin conference over in Nashville, likely to be seeing some
Speaker 4: more money coming from the crypto ecosystem into his own
Speaker 4: coffers for fundraising.
Speaker 5: What about the people you speak to about.
Speaker 4: Whether they're going to be making money or donations to
Speaker 4: a Harris led Democratic Party.
Speaker 13: Look, I've been a single issue voter. I think a
Speaker 13: lot of crypto people are, I mean BICCO. Where we
Speaker 13: stand in the ecosystem, I think actually our clients expect
Speaker 13: us to be this way, So we're really looking out
Speaker 13: for how do we make digitalized it's better. We do
Speaker 13: think it is systemically important for the United States to
Speaker 13: be competitive in financial markets that we have solid digital assets.
Speaker 13: So in general, Look, there's still a lot of momentum
Speaker 13: behind Trump. Prior to Trump coming in and really declaring that, hey,
Speaker 13: this is an important issue.
Speaker 8: For America's future.
Speaker 13: You know, the current administration didn't seem to have any
Speaker 13: inkling that that was true at all and has been
Speaker 13: punitive on the good news side, Look, I don't think
Speaker 13: this is Republican versus Democrats. Seventy one Democrats voted for
Speaker 13: the FIT twenty one bill. I mean this is a
Speaker 13: bipartisan approach. So well, there's a few people in each party,
Speaker 13: maybe a little bit more in the Democratic Party, but
Speaker 13: a few that don't like crypto. In general, this is
Speaker 13: good for America, it's good for people, it's good for freedom.
Speaker 13: Every politician should be standing up right now for bitcoin
Speaker 13: and digital assets.
Speaker 3: You have to talk about Vance JD Vance. Then if
Speaker 3: you're going to talk about regulation, party versus party, do
Speaker 3: you have a clear sense of his attitude toward the
Speaker 3: cryptocurrency markets.
Speaker 13: Well, good, good news, there is I mean his proximity
Speaker 13: to Silicon Valley, has you know, past relationships with founders
Speaker 13: Fund Peter thiel And and the others. He understands technology
Speaker 13: just a heck of a lot better than the octogenarians
Speaker 13: that have been running the show here in America for
Speaker 13: the last few years. So I think it's refreshing to
Speaker 13: have somebody from the younger generation. I mean, remember of
Speaker 13: the you know, millennial millionaires out there, one hundred percent
Speaker 13: of them own bitcoin.
Speaker 1: So you know, if you.
Speaker 13: Want to talk to the younger generation, they obviously want
Speaker 13: to have a conversation about bitcoin, and and I think
Speaker 13: jd Vance hits that a lot better than the than
Speaker 13: the elder folks do.
Speaker 3: One idea in a Trump presidency from a regulatory standpoint, Mike,
Speaker 3: is to hand responsibility back to the States on a
Speaker 3: number of issues. I'm not saying that there is any
Speaker 3: certainty or even reporting that crypto would be caught into
Speaker 3: that basket, but do you see that being a point
Speaker 3: of tension a state bite state policy toward crit so
Speaker 3: currency markets and consumer adoption versus a sort of federal level.
Speaker 13: Look, Look, partly, I think that'd be great. I've been saying,
Speaker 13: you know, We kind of have a Thomas Jefferson versus
Speaker 13: Alexander Hamilton thing going on right now when it comes
Speaker 13: to crypto, and you've got one for the Fed power
Speaker 13: on the Hamilton's side and the other one for the
Speaker 13: state's federation Jefferson. However, you know, America as a political
Speaker 13: and economic system has a lot of federal ties. So
Speaker 13: even if you are a state chartered bank, remember you
Speaker 13: probably are carrying FDIC, which is the Federal Depository Insurance, right,
Speaker 13: So the federal insurance is very difficult and has definitely
Speaker 13: been told to lock out crypto. So whether you're a
Speaker 13: federally chartered institution through the OCC or a state chartered one,
Speaker 13: you're probably looking an FDIC and the Federal Reserve, the
Speaker 13: fd I C has tremendous power over all of those banks.
Speaker 13: So anyway, I would I would like to see more
Speaker 13: competition across states to get all this stuff going. However,
Speaker 13: remember there's federal hooks everywhere.
Speaker 3: Mike Belchi bitgo CEO and co founder, thank you. You're
Speaker 3: looking at live pictures from the White House. That is
Speaker 3: the championship teams of the National Collegiate Athletic Association gathering
Speaker 3: at the podium, we await Vice President Harris, who's due
Speaker 3: to deliver remarks very quickly. Go out to Washington, DC.
Speaker 3: Bloomberg's Kaylee lines and you know, we talked about it.
Speaker 3: They're the focus of policy, one candidate versus another.
Speaker 7: And what Harris may or may not say.
Speaker 6: Yeah, and I mean this will be the first introduction
Speaker 6: to Vice President Kamala Harris is not just the Vice president,
Speaker 6: but as a Democrat seeking the nomination just in a
Speaker 6: matter of weeks from now. This is her first official
Speaker 6: event since announcing that she does intend to win and
Speaker 6: earn that nomination.
Speaker 5: This is going to be a very.
Speaker 6: High profile for her, and I would point out this
Speaker 6: is not the only time that Harris will be at
Speaker 6: an event today. She just tweeted or posted on x
Speaker 6: that in this first full day of our campaign, in
Speaker 6: her words, she will be heading to Wilmington, Delaware to
Speaker 6: say hello to the staff in headquarters. She says, one
Speaker 6: day down, one hundred and five to go. She says, together,
Speaker 6: we're going to win this, and we're going to hear
Speaker 6: her in just moments as she walks now onto the
Speaker 6: stage at the White House at this NCAA Sports Day event,
Speaker 6: of course, not something that was intended to be a
Speaker 6: campaign event, but given the events of the last twenty
Speaker 6: four hours, is very much becoming one. As we await
Speaker 6: the Vice president to give remarks after this first speaker.
Speaker 4: Yeah, we do anticipate, and all to be said, I mean,
Speaker 4: when they are already signed up to make speeches, recauding sport,
Speaker 4: recording in a competition, how much do we think she
Speaker 4: really can jump in the future policy making that she's
Speaker 4: already thinking around, Well.
Speaker 6: This isn't likely to be a speech that is going
Speaker 6: to outline everything that she would like to do politically
Speaker 6: as President Caroline. But of course, with only one hundred
Speaker 6: and five days until the election, in just a matter
Speaker 6: of weeks until the Democratic Convention in Chicago, which begins
Speaker 6: August nineteenth, she frankly cannot afford to miss any opportunity
Speaker 6: to plead her case as to why she should be
Speaker 6: elevated from Vice President of the United States to President
Speaker 6: of the United States. And given that this is the
Speaker 6: first time she will be addressing cameras directly, not just
Speaker 6: putting out statements in the written form to announce her candidacy,
Speaker 6: to say that she doesn't tend to earn the Democratic nomination,
Speaker 6: She's likely not going to go without saying that. But
Speaker 6: of course, because the event is not a campaign event,
Speaker 6: this is happening on the White House lawn as we speak,
Speaker 6: it is likely to not be as steeped in policy
Speaker 6: as that otherwise could have been, and many strategists have
Speaker 6: spoken with in the last twenty four hours suggests that
Speaker 6: Harris is probably between now in the convention beginning in
Speaker 6: mid August, going to have to do some kind of
Speaker 6: formal announcement of what her policy platform will be and
Speaker 6: how it could be differentiated from Joe Biden, knowing that
Speaker 6: Republicans are already on the attack trying to tie her
Speaker 6: directly to the policies of this administration, given that she
Speaker 6: has served this administration as Vice president for the last
Speaker 6: three and a half years.
Speaker 4: It's interesting as a technology show, we've obviously been trying
Speaker 4: to gone a the interest from social media users, whether
Speaker 4: they be in China, and it feels as though thus
Speaker 4: far the Chinese community and government doesn't see much of
Speaker 4: a tone shift coming from Biden passing a baton over
Speaker 4: to Kamala Harris in a view that indeed she would
Speaker 4: still be unlikely to beat out a Trump that seemingly
Speaker 4: also ringing out in the crypto marketers. We're just speaking
Speaker 4: what about donors here at the moment. I know we
Speaker 4: spoke about it briefly, Kaylee, but has there been any
Speaker 4: new update about support coming from a monetary perspective.
Speaker 5: Well, the donors continue to pour in.
Speaker 6: Act Blue, which of course is an aggregator of democratic donations,
Speaker 6: had fifty million dollars raised from grassroot donors in just
Speaker 6: the seven hours after Biden's announcement. In Harris's subsequent announcement
Speaker 6: that she was seeking the nomination, are understanding is those
Speaker 6: are continuing to roll in and that figure is taking higher.
Speaker 6: We also have seen a number of high profile donors,
Speaker 6: including rereied Hoffman, of course well known to the technology industry,
Speaker 6: who came out to endorse Harris. George Soros has done
Speaker 6: the same. Others, according to our reporting at Bloomberg, are
Speaker 6: still remaining on the sidelines for now, as many are
Speaker 6: not eager to see what could be an anointment, if
Speaker 6: you will, or an actual coronation of Harris without a
Speaker 6: full process here, but the Vice President is now at
Speaker 6: the podium, so let's listen to her words.
Speaker 14: To support these extraordinary student athletes, and it is good
Speaker 14: to be here with so many leaders, including of course
Speaker 14: members of Congress, members of our administration, and are extraordinary athletes.
Speaker 14: Our President Joe Biden wanted to be here today. He
Speaker 14: is feeling much better and recovering fast, and he looks
Speaker 14: forward to getting back on the road. And I wanted
Speaker 14: to say a few words about our President. Joe Biden's
Speaker 14: legacy of accomplishment over the past three years is unmatched
Speaker 14: in modern history. In one term, he has already yes,
Speaker 14: you may laugh, in one term, he has already surpassed
Speaker 14: the legacy of most presidents who have served two in office.
Speaker 14: And I first came to know President Biden through his
Speaker 14: son Bo. We work together as attorneys general in our states,
Speaker 14: and back then, Beau would often tell me stories about
Speaker 14: his dad. He would talk about the kind of father
Speaker 14: and the kind of man that Joe Biden is. The
Speaker 14: qualities that Bau revered in his father are the same
Speaker 14: qualities that I have seen every day in our President.
Speaker 14: His honesty, his integrity, his commitment to his faith and
Speaker 14: his family, his big heart, and his love deep love
Speaker 14: of our country. And I am first hand witness that
Speaker 14: every day our President Joe Biden fights for the American people,
Speaker 14: and we are deeply, deeply grateful for his service to
Speaker 14: our nation.
Speaker 5: And so with that on.
Speaker 14: Behalf of our President and doctor Biden, I am honored
Speaker 14: to welcome all of you to the White House to
Speaker 14: celebrate the achievements of these great athletes. Every one of
Speaker 14: them is a national champion. A national champion in America,
Speaker 14: tens of millions of people play a sport as a child,
Speaker 14: and the best of the best grow up to become
Speaker 14: national champions. Here today we have seven undefeated teams, eleven
Speaker 14: repeat champions, and twenty first time winners. Up about you all,
Speaker 14: Some of you have represented our nation on the internationals.
Speaker 3: That was Vice President Kamala Harris speaking publicly for the
Speaker 3: first time since President Biden ended his reelection bid and
Speaker 3: endorsed Vice President Harris to be the Democratic nominee. Let's
Speaker 3: go back to be based Katie Lines in Washington, d C.
Speaker 3: I mean, I was listening intently to what Vice President
Speaker 3: Harris was saying. I think a lot of it was
Speaker 3: noted already in the statement she put out Sunday.
Speaker 7: Your analysis, Kayley.
Speaker 6: Yeah, interesting that she chose not to speak about her
Speaker 6: own qualifications to be president of the United States, now
Speaker 6: that she has declared that she does intend to earn
Speaker 6: the Democratic nomination, but instead to begin her remarks at
Speaker 6: the White House in her first official event since all
Speaker 6: of this went down yesterday, to talk about Joe Biden's legacy,
Speaker 6: describing him as having in one term, saying that the
Speaker 6: audience could clap for this, he has already surpassed the
Speaker 6: legacy of most presidents who'd served two terms in office,
Speaker 6: talking about honesty and integrity and faith. Deeply grateful, she said,
Speaker 6: for his service to our nation. So she's not necessarily
Speaker 6: making this about her today. She is talking about Joe
Speaker 6: Biden and the legacy he will leave behind, knowing that
Speaker 6: he is going to be a one term president in
Speaker 6: his decision not to seek re election, and even as
Speaker 6: he has suggested he would like to see the baton
Speaker 6: or the torch passed to her, she didn't take this moment,
Speaker 6: at least initially, to plead her own case and treat
Speaker 6: this like a campaign event. She moved right from talking
Speaker 6: about Joe Biden's legacy to commending the athletes who are
Speaker 6: gathered on the stage behind her. It's an interesting choice
Speaker 6: and does suggest that perhaps she's going to save most
Speaker 6: of the campaigning for a later event. Again, I would
Speaker 6: remind you she just announced a few minutes ago that
Speaker 6: she will be heading Wilmington, Delaware later today to meet
Speaker 6: with the campaign headquarters there. As she notes, there's just
Speaker 6: one hundred and five days to go until the election,
Speaker 6: and then.
Speaker 4: As and when President Biden is fully recovered able to
Speaker 4: be back in front of cameras, what do we expect
Speaker 4: the relationship to become like over the next few months.
Speaker 6: Well, Joe Biden, in his statement announcing he wouldn't seek
Speaker 6: reelection yesterday, said that he does think it's in the
Speaker 6: best interest of the party in the nation to focus
Speaker 6: solely on continuing out the rest of his term and
Speaker 6: his duties as president. To me, that does suggest that
Speaker 6: he may not be super active in the actual ongoing
Speaker 6: presidential campaign, But ultimately that's likely a decision that would
Speaker 6: be left to Kamala Harris or whoever is a top
Speaker 6: the Democratic ticket to what extent they want to attach
Speaker 6: themselves to Joe Biden and have Joe Biden campaigning on
Speaker 6: their behalf, knowing that there will be a Republican effort
Speaker 6: to tie Kamala Harris directly to the policies of the
Speaker 6: Biden administration, suggests that she is essentially just a continuation
Speaker 6: of the same. You could see how she may want
Speaker 6: to distance herself a bit from that. It of course
Speaker 6: remains to be seen. Joe Biden just days ago, as
Speaker 6: we all know, was talking about returning to the campaign
Speaker 6: trail when he recovers from COVID this week, and all
Speaker 6: of a sudden his decision had very much changed, as
Speaker 6: he backed out suddenly yesterday. So we know that things
Speaker 6: are evolving in real time. And it looks like the
Speaker 6: Vice President has just wrapped up her remarks without saying
Speaker 6: much about her candidacy whatsoever.
Speaker 4: Maybe later in Wilmington. I know that you'll be ontel
Speaker 4: of that. Kaylie Nines, We thank you so much. Meanwhile,
Speaker 4: coming up, we get back to tech and what to
Speaker 4: expect from this week's earnings.
Speaker 5: This is Brumbag Technology.
Speaker 4: Let's look ahead to this week's tech earnings what to expect,
Speaker 4: starting with SAP today Germany, Spotify, Google, Tesla reporting tomorrow.
Speaker 4: Ran Dostellica is with us to run us through well
Speaker 4: whether we can live up to some valuations.
Speaker 15: Ryan, Yes, absolutely, that's the key question. This quarter, a
Speaker 15: lot of Magnificent and seven companies are expected to deliver
Speaker 15: a deceleration in earnings. Earnings will still be pretty strong.
Speaker 15: Growth will still be pretty strong, but slower than we've
Speaker 15: seen in past quarters. And given how much these stocks
Speaker 15: have run up so far this year, even with the
Speaker 15: recent fultility we've seen in this sector, that's the key question.
Speaker 15: How much are these companies able to justify how much
Speaker 15: they've moved.
Speaker 7: Up this year.
Speaker 3: Tuesday gonna be big, Alphabet Tesla. Is there a calendar
Speaker 3: second quarter story across all of tech you're watching, Ryan.
Speaker 15: I think the main issues are going to be how
Speaker 15: much of these companies going to continue spending on their
Speaker 15: AI initiatives and what kind of return on in investment
Speaker 15: are they seeing from these persitions. I think Alphabet's going
Speaker 15: to be particularly important with that, We're going to be
Speaker 15: watching how star of the cloud business is there, and
Speaker 15: then more Brawley, We're just going to be looking to
Speaker 15: see what the state of the digital advertising market looks like.
Speaker 15: We already saw some of that from Netflix last week
Speaker 15: as they talked about their ad here, but I think
Speaker 15: for Alphabet and then Meta next week, those are going
Speaker 15: to be the key focuses. How much are they've seen
Speaker 15: from the benefit from AI, how much they spinning on
Speaker 15: it and will that be enough? Kind of justifies doctor
Speaker 15: that the Bold up pretty strongly.
Speaker 4: This year, in particular in video Ryan, so great to
Speaker 4: get your perspective, Roan Vestelica, We appreciate it now. That
Speaker 4: does it for this edition of bluebour Technology. A lot
Speaker 4: of earnings to anticipate.
Speaker 3: There for Ed you start the week with a presidential race,
Speaker 3: earnings and the biggest outage in history.
Speaker 7: Makes for a good show for recapping on the podcast.
Speaker 3: You know where to find it Terminal, Apple, Spotify, iHeart
Speaker 3: Caroline's in London this week I'm in San Francisco. It's
Speaker 3: an amazing week to tune in learn about what's going
Speaker 3: on in the world of technology. This is Bloomberg Technology
Speaker 1: On the