WEBVTT - More From Day One at Milken Global Conference

0:00:00.160 --> 0:00:04.200
<v Speaker 1>This is Bloomberg Business Week with Carol Masser and Bloomberg

0:00:04.280 --> 0:00:08.440
<v Speaker 1>Quick Takes Tim Stinovic from Bloomberg Radio. Late last month,

0:00:08.440 --> 0:00:10.520
<v Speaker 1>though you might have noticed that Toro, the digital stock

0:00:10.520 --> 0:00:13.480
<v Speaker 1>broker delaying it's ten point four billion dollars back listing.

0:00:13.520 --> 0:00:16.000
<v Speaker 1>We'll get into that for an update on the business

0:00:16.400 --> 0:00:19.200
<v Speaker 1>here at Milk, and let's bring in Yoni Ascia. Did

0:00:19.200 --> 0:00:21.160
<v Speaker 1>I say it right? I'm trying to co founder and

0:00:21.200 --> 0:00:24.000
<v Speaker 1>CEO of Toro, the company, pointing out it is the

0:00:24.000 --> 0:00:26.480
<v Speaker 1>world's largest trading network right here at Milk and normally

0:00:26.520 --> 0:00:28.240
<v Speaker 1>based in Israel, but doing a little bit of traveling

0:00:28.240 --> 0:00:30.640
<v Speaker 1>now that the world is opening up. How are you

0:00:31.200 --> 0:00:33.560
<v Speaker 1>very good? Very good? Excited to being away for first

0:00:33.600 --> 0:00:37.280
<v Speaker 1>and twenty five years. Really yeah. I used to spend

0:00:37.320 --> 0:00:39.800
<v Speaker 1>here a lot as a kid, but I have I

0:00:39.840 --> 0:00:41.600
<v Speaker 1>haven't been here for a while. A lot of things

0:00:41.600 --> 0:00:44.160
<v Speaker 1>have changed a little bit. Well, I'm just just here.

0:00:46.560 --> 0:00:48.599
<v Speaker 1>Let's talk about Toro and what's been going on. We're

0:00:48.640 --> 0:00:51.960
<v Speaker 1>gonna get into um your listing, but in the meantime,

0:00:52.000 --> 0:00:54.080
<v Speaker 1>talk about the business and the growth. What are you seeing. Well,

0:00:54.120 --> 0:00:57.440
<v Speaker 1>we've seen explosive growth over the past eighteen months, really

0:00:57.680 --> 0:01:01.400
<v Speaker 1>starting as we talked about before, with with the beginning

0:01:01.400 --> 0:01:04.200
<v Speaker 1>of the pyndemic, just at inflection point in the rise

0:01:04.280 --> 0:01:08.160
<v Speaker 1>of retail investors, with a whole new generation across the world,

0:01:08.280 --> 0:01:11.280
<v Speaker 1>millennials realizing that they want to invest in the markets,

0:01:11.280 --> 0:01:14.600
<v Speaker 1>whether it's stock markets, whether it's US stock markets, or

0:01:14.600 --> 0:01:18.639
<v Speaker 1>whether it's crypto markets, just increased interest all around the world.

0:01:18.760 --> 0:01:20.640
<v Speaker 1>We founded the company in two thousand seven with a

0:01:20.720 --> 0:01:23.600
<v Speaker 1>vision of opening the global markets for everyone to trade

0:01:23.560 --> 0:01:28.280
<v Speaker 1>investment as simpler and transparent way. And up until twenty twenty,

0:01:28.319 --> 0:01:30.920
<v Speaker 1>beginning of twenty twenty, we had about twelve million registered

0:01:31.000 --> 0:01:33.840
<v Speaker 1>users and since then we added more than eleven a

0:01:33.880 --> 0:01:37.200
<v Speaker 1>new million registered users by the end of the first

0:01:37.240 --> 0:01:41.360
<v Speaker 1>half one, so basically we double the company, more than

0:01:41.400 --> 0:01:46.600
<v Speaker 1>double the company. So twenty three million registered users worldwide

0:01:46.640 --> 0:01:49.280
<v Speaker 1>grew by five point six million mergisitry users the first

0:01:49.280 --> 0:01:53.000
<v Speaker 1>six month this year, after growing about five million registered

0:01:53.120 --> 0:01:57.360
<v Speaker 1>users the entire of last year. We've so we've grown

0:01:57.360 --> 0:02:00.160
<v Speaker 1>significantly our business and we've seen the shift for the

0:02:00.200 --> 0:02:03.160
<v Speaker 1>first crypto rally in two thousand and seventeen, we've seen

0:02:03.160 --> 0:02:06.280
<v Speaker 1>our business grow rapidly from sixty million dollar commission to

0:02:06.360 --> 0:02:10.799
<v Speaker 1>three million dollars from two thousand and sixteen, really driven

0:02:10.840 --> 0:02:14.280
<v Speaker 1>by the first Crypto Rally, and then we saw Crypto Winter,

0:02:14.360 --> 0:02:17.360
<v Speaker 1>and then Crypto Winter we sort of drove, We drove

0:02:17.400 --> 0:02:20.000
<v Speaker 1>our customers who came to it Toro to trade back

0:02:20.040 --> 0:02:23.799
<v Speaker 1>then you know, x rap Etherium to diversify into equities

0:02:24.120 --> 0:02:26.880
<v Speaker 1>through the social network where they can actually see what

0:02:27.040 --> 0:02:30.400
<v Speaker 1>other people are trading and see each other's performance and

0:02:30.440 --> 0:02:33.480
<v Speaker 1>copy the most successful investors. And and then we saw

0:02:33.520 --> 0:02:36.959
<v Speaker 1>Crypto Winter shifted the business into equities and commission free

0:02:36.960 --> 0:02:40.760
<v Speaker 1>stock trading worldwide, and then started this year with Crypto

0:02:40.880 --> 0:02:44.280
<v Speaker 1>Rally two point which is just an amazing rally. Only

0:02:44.320 --> 0:02:46.080
<v Speaker 1>I hear what you're saying and imagine some of our

0:02:46.080 --> 0:02:47.840
<v Speaker 1>listeners are thinking of themselves. Wait a second. This is

0:02:47.840 --> 0:02:49.880
<v Speaker 1>a similar story as to what propelled robin Hood to

0:02:49.919 --> 0:02:52.600
<v Speaker 1>the public markets in a relatively short time into such

0:02:52.639 --> 0:02:56.280
<v Speaker 1>massive growth in RWY one. But we are seeing that

0:02:56.560 --> 0:02:59.360
<v Speaker 1>robin had chairs are down more partly due to some

0:02:59.440 --> 0:03:02.280
<v Speaker 1>softness with company referred to as seasonality earlier this year.

0:03:02.320 --> 0:03:05.079
<v Speaker 1>Are you seeing any of that decline in activity, any

0:03:05.080 --> 0:03:07.519
<v Speaker 1>of that seasonality that we heard from robin Hood so

0:03:07.600 --> 0:03:09.840
<v Speaker 1>sensitive to the fact that during the word process of

0:03:09.919 --> 0:03:12.800
<v Speaker 1>transforming from a private company to a public company. I

0:03:12.800 --> 0:03:15.440
<v Speaker 1>can only share companies data relevant for the first six

0:03:15.480 --> 0:03:18.680
<v Speaker 1>month which we published, which were very good. We did

0:03:18.760 --> 0:03:21.800
<v Speaker 1>update the markets that Q three, and this is something

0:03:21.800 --> 0:03:24.880
<v Speaker 1>you can look at exchange data. So equities have been

0:03:24.919 --> 0:03:27.760
<v Speaker 1>software in Q three if you look just an exchange data,

0:03:27.840 --> 0:03:33.600
<v Speaker 1>options data, volumes and equities and volatility have gone down

0:03:33.680 --> 0:03:37.600
<v Speaker 1>generally in the markets. Uh. And now we're seeing obviously

0:03:38.000 --> 0:03:42.040
<v Speaker 1>crypto rally two point oh the longest crypto rally in

0:03:42.160 --> 0:03:46.600
<v Speaker 1>crypto history in Q four, sort of returning with a roar,

0:03:46.720 --> 0:03:50.640
<v Speaker 1>so hoping to see Bitcoin reach all time high. Already

0:03:50.720 --> 0:03:54.160
<v Speaker 1>peaked and touched actually market cap all time high over

0:03:54.200 --> 0:03:57.360
<v Speaker 1>the last forty eight hours. So very interesting to see

0:03:57.600 --> 0:04:01.040
<v Speaker 1>what's happening in crypto in Q four. You who are

0:04:01.080 --> 0:04:03.800
<v Speaker 1>you competing against? Is it robin Hood? Is it all

0:04:03.840 --> 0:04:06.520
<v Speaker 1>of the online trading platforms, even the establishment? Who is it?

0:04:06.880 --> 0:04:08.880
<v Speaker 1>So the way we see it, and again we're very

0:04:08.920 --> 0:04:15.119
<v Speaker 1>global and uh, we have our businesses Europe, US, Asia,

0:04:15.520 --> 0:04:20.800
<v Speaker 1>Latin America, Middle East were regulated across the world and

0:04:20.880 --> 0:04:24.200
<v Speaker 1>in every single country. What we see is the discount

0:04:24.200 --> 0:04:28.480
<v Speaker 1>brokerage one point was very much consolidated by the local banks.

0:04:28.480 --> 0:04:30.880
<v Speaker 1>So here you know schwab Bot t D Morgan Stanley

0:04:30.920 --> 0:04:33.640
<v Speaker 1>bought e Trade and we see the same in Germany

0:04:33.640 --> 0:04:38.320
<v Speaker 1>and Italy and Spain, in the UK everywhere. But who

0:04:38.320 --> 0:04:42.600
<v Speaker 1>were really competing in against is those super apps, right,

0:04:42.839 --> 0:04:46.480
<v Speaker 1>apps like Toro, who are attractive to a new audience,

0:04:47.240 --> 0:04:52.440
<v Speaker 1>new customers, customers that are beginning their trading activity are

0:04:52.480 --> 0:04:55.280
<v Speaker 1>looking for new tools for ways to engage and learn,

0:04:55.640 --> 0:04:58.479
<v Speaker 1>how to trade the markets, how to participate in the markets,

0:04:58.520 --> 0:05:01.680
<v Speaker 1>and a lot of great company needs just expending the

0:05:01.720 --> 0:05:04.599
<v Speaker 1>audience and expending the markets. You know, you mentioned that

0:05:04.680 --> 0:05:06.760
<v Speaker 1>you're in the process of transitioning from a private company

0:05:06.800 --> 0:05:08.520
<v Speaker 1>to a public company. Is it's still going to happen

0:05:08.520 --> 0:05:11.360
<v Speaker 1>in the fourth quarter. We are currently expecting the de

0:05:11.440 --> 0:05:14.640
<v Speaker 1>spec process in Q four and very excited about this

0:05:14.720 --> 0:05:17.320
<v Speaker 1>transition at a ten point four billion dollar valuations. Still

0:05:17.320 --> 0:05:20.919
<v Speaker 1>with Betty Cohen's back fintech acquisition. Yes, yes, f TCV,

0:05:21.200 --> 0:05:24.080
<v Speaker 1>f d c V, it's gonna happen. It's gonna happen

0:05:24.120 --> 0:05:27.160
<v Speaker 1>in Q four, currently in progress. I think could you

0:05:27.240 --> 0:05:31.080
<v Speaker 1>derail it? You know, I come from capital markets. There's

0:05:31.120 --> 0:05:35.000
<v Speaker 1>always probabilities of something happening somewhere sometime, but bitcoin is

0:05:35.000 --> 0:05:37.640
<v Speaker 1>also here to stay. One last question twenty seconds here.

0:05:37.720 --> 0:05:40.320
<v Speaker 1>Is it a younger demo that definitely is using the platform?

0:05:40.320 --> 0:05:42.280
<v Speaker 1>Is that who it is? Or is it it's younger

0:05:42.320 --> 0:05:45.279
<v Speaker 1>demo versus the incumbents? For sure the media and agenty

0:05:45.279 --> 0:05:48.599
<v Speaker 1>tour is thirty four versus sixty plus and some of

0:05:48.680 --> 0:05:51.560
<v Speaker 1>the incumbents stay in touch. We want to talk with you,

0:05:51.640 --> 0:05:55.200
<v Speaker 1>especially when you go through um your growing public in

0:05:55.240 --> 0:05:57.240
<v Speaker 1>the fourth quarter. Yoni, thank you so much, Thank you

0:05:57.320 --> 0:05:59.640
<v Speaker 1>very much. He is co found or CEO of E

0:05:59.760 --> 0:06:02.480
<v Speaker 1>Tour Road joining us here at the Milk and Institute

0:06:02.480 --> 0:06:06.119
<v Speaker 1>Global Conference. Uh. Fascinating right in terms of the growth,

0:06:06.240 --> 0:06:08.040
<v Speaker 1>really fascinating you on you've got to come visit us

0:06:08.040 --> 0:06:12.200
<v Speaker 1>in New York too, Yes, alright, November. We're gonna hold

0:06:12.240 --> 0:06:14.560
<v Speaker 1>you do it. You're listening to Bloomberg Business Week Carl Master,

0:06:14.720 --> 0:06:18.080
<v Speaker 1>Tim Stanovic and this is Bloomberg. Well, earlier today we

0:06:18.120 --> 0:06:22.159
<v Speaker 1>spoke with Bridgewater Associate Sustainability co c i O Karen

0:06:22.320 --> 0:06:26.120
<v Speaker 1>Carneal Tambore at the Milk and Global Conference, and this excerpt.

0:06:26.240 --> 0:06:28.760
<v Speaker 1>Karen told us all about how investors are increasingly more

0:06:28.800 --> 0:06:31.880
<v Speaker 1>interested in having portfolios aligned with E s G. Check

0:06:31.920 --> 0:06:35.360
<v Speaker 1>it out. The revolution that I feel like has occurred

0:06:35.400 --> 0:06:37.640
<v Speaker 1>is that a few years ago, a very very small

0:06:37.680 --> 0:06:40.800
<v Speaker 1>subset investors really wanted to talk about this issue, and

0:06:40.839 --> 0:06:45.080
<v Speaker 1>now predominant number of investors say, I care about this issue.

0:06:45.120 --> 0:06:46.960
<v Speaker 1>My stakehold does care about this issue. I want my

0:06:47.040 --> 0:06:49.479
<v Speaker 1>capital aligned. Now, what does it mean? How do you

0:06:49.520 --> 0:06:51.520
<v Speaker 1>measure it? How do you actually do it at a

0:06:51.560 --> 0:06:55.200
<v Speaker 1>whole portfolio level. That's evolving very quickly, from very nasons

0:06:55.240 --> 0:06:58.320
<v Speaker 1>to developing very quickly. And one of the biggest shifts

0:06:58.320 --> 0:06:59.760
<v Speaker 1>you're seeing is, you know, people went from kind of

0:06:59.839 --> 0:07:01.520
<v Speaker 1>knock caring about it, to let's do it with like

0:07:01.560 --> 0:07:03.280
<v Speaker 1>a tiny part of my portfolio, have a couple of

0:07:03.279 --> 0:07:05.960
<v Speaker 1>really awesome projects to write about my annual report, to

0:07:06.120 --> 0:07:08.000
<v Speaker 1>wait a minute, if this actually matters. It matters at

0:07:08.000 --> 0:07:09.920
<v Speaker 1>a whole portfolio level. I need to see a top

0:07:09.960 --> 0:07:12.560
<v Speaker 1>down across all the asset classes. Think about my strategic

0:07:12.560 --> 0:07:15.440
<v Speaker 1>acid allocation? How do you think about measuring it? So

0:07:15.560 --> 0:07:18.200
<v Speaker 1>we are a systematic fund. We do everything systematically. So

0:07:18.280 --> 0:07:20.040
<v Speaker 1>when I started approaching this issue with my team, we

0:07:20.040 --> 0:07:21.600
<v Speaker 1>were sort of saying, we have to find a way

0:07:21.640 --> 0:07:24.160
<v Speaker 1>to systematically measure it, and I think the systemization matters

0:07:24.240 --> 0:07:26.360
<v Speaker 1>even more here than in other issues because you have

0:07:26.400 --> 0:07:28.920
<v Speaker 1>so much personal opinions. You don't want to rely on

0:07:28.960 --> 0:07:30.480
<v Speaker 1>you know, someone in the morning saying I think this

0:07:30.520 --> 0:07:32.640
<v Speaker 1>company is good, I think it's bad. So we basically

0:07:32.640 --> 0:07:35.800
<v Speaker 1>try to build a process that goes through thousands of

0:07:35.840 --> 0:07:39.840
<v Speaker 1>securities around the world and assesses their alignment to the

0:07:39.920 --> 0:07:42.400
<v Speaker 1>United Nations s TGS. What is the connection that you

0:07:42.520 --> 0:07:48.000
<v Speaker 1>found between that measure and returns? I think the most

0:07:48.480 --> 0:07:50.560
<v Speaker 1>valuable way for investors to think about it is that

0:07:50.600 --> 0:07:53.640
<v Speaker 1>there's sort of two dimensions or even three dimensions you

0:07:53.640 --> 0:07:55.800
<v Speaker 1>want to think about investing. There's the part that's just

0:07:55.840 --> 0:07:59.040
<v Speaker 1>about returns, where all you need to do is look

0:07:59.040 --> 0:08:00.680
<v Speaker 1>at what's happening in the world right now, with the

0:08:00.760 --> 0:08:03.920
<v Speaker 1>energy crisis, with what's happening in fiscal policy, to say, clearly,

0:08:04.240 --> 0:08:06.240
<v Speaker 1>if my job as an investor is to imagine what's

0:08:06.240 --> 0:08:08.400
<v Speaker 1>going to happen in the world relevant to what's priced in,

0:08:08.800 --> 0:08:11.520
<v Speaker 1>I can't ignore these issues. It's obviously causing big changes

0:08:11.520 --> 0:08:13.320
<v Speaker 1>and assets and so on and so forth, and going

0:08:13.360 --> 0:08:16.640
<v Speaker 1>to drive our broad outlook. There's the risk side, which

0:08:16.680 --> 0:08:19.120
<v Speaker 1>is you know, typical risk controls are not walking figured

0:08:19.160 --> 0:08:21.040
<v Speaker 1>to think about what if we have a bad climate

0:08:21.040 --> 0:08:23.280
<v Speaker 1>outcome or a fast climate transition. But then you have

0:08:23.320 --> 0:08:26.800
<v Speaker 1>this third dimension, which is just impact saying, yeah, I

0:08:26.840 --> 0:08:29.720
<v Speaker 1>could maybe find ways to make money that are unaligned

0:08:29.760 --> 0:08:32.000
<v Speaker 1>with this, but I actually want my money aligned with this.

0:08:32.160 --> 0:08:34.800
<v Speaker 1>Beyond just thinking about returns. I want to be contributing

0:08:34.920 --> 0:08:37.360
<v Speaker 1>to these issues. Karen, tim and I talk all this

0:08:37.440 --> 0:08:39.000
<v Speaker 1>time that you know, here we are going through quarterly

0:08:39.000 --> 0:08:41.480
<v Speaker 1>earnings and you know we're looking at margins, top, bottom line,

0:08:41.480 --> 0:08:43.520
<v Speaker 1>all these different metrics, like we get this right and

0:08:43.520 --> 0:08:46.240
<v Speaker 1>and investors get this. Shouldn't there be some kind of

0:08:46.400 --> 0:08:49.480
<v Speaker 1>E S G metric? How do we find a way

0:08:49.480 --> 0:08:52.600
<v Speaker 1>to let the companies make that transition that might have

0:08:52.679 --> 0:08:55.920
<v Speaker 1>a financial impact. Does the SEC need to come up

0:08:55.920 --> 0:08:59.120
<v Speaker 1>with symmetrics that says every quarter, we want to know revenues,

0:08:59.120 --> 0:09:00.480
<v Speaker 1>we want to know earnings. But we also went into

0:09:00.520 --> 0:09:02.360
<v Speaker 1>the E S G metric and that's gonna matter. Well,

0:09:02.400 --> 0:09:04.160
<v Speaker 1>I think E S G is a really broad universe

0:09:04.240 --> 0:09:06.679
<v Speaker 1>and every environmental or social issue this is going to develop.

0:09:06.679 --> 0:09:08.600
<v Speaker 1>But let me take the one that's furthest along, which

0:09:08.640 --> 0:09:11.319
<v Speaker 1>is carbon. Because you have this world where basically every

0:09:11.360 --> 0:09:13.720
<v Speaker 1>government in the world has said I want to find

0:09:13.720 --> 0:09:16.640
<v Speaker 1>a way to transition my economy to have net zero emissions.

0:09:17.040 --> 0:09:19.480
<v Speaker 1>And now there's a very clear path of for every

0:09:19.480 --> 0:09:22.360
<v Speaker 1>company you can actually say, well, what are they responsible for?

0:09:22.440 --> 0:09:24.720
<v Speaker 1>What are their emissions? And if you take seriously that

0:09:24.800 --> 0:09:27.000
<v Speaker 1>governments through time will find a way to transition and

0:09:27.000 --> 0:09:29.280
<v Speaker 1>put the policies in place, whether it's incentives or taxes

0:09:29.360 --> 0:09:31.920
<v Speaker 1>or whatnot, companies that don't do it are going to

0:09:31.920 --> 0:09:34.480
<v Speaker 1>have a problem. And so with carbon I think we

0:09:34.520 --> 0:09:36.520
<v Speaker 1>have the clear path of this is literally what needs

0:09:36.520 --> 0:09:38.800
<v Speaker 1>to be measured. I think most companies know they're gonna

0:09:38.840 --> 0:09:40.920
<v Speaker 1>be forced to report their carbon footprint. They're going to

0:09:40.920 --> 0:09:42.680
<v Speaker 1>be forced to report it in different ways. There's a

0:09:42.679 --> 0:09:44.360
<v Speaker 1>couple of different templates that have been created out there

0:09:44.360 --> 0:09:46.960
<v Speaker 1>of what that reporting is like, and it's giving investors

0:09:46.960 --> 0:09:49.760
<v Speaker 1>a very clear roadmap between kind of government commitments, this

0:09:49.800 --> 0:09:52.040
<v Speaker 1>is what we want the economy to do, to specific

0:09:52.080 --> 0:09:54.319
<v Speaker 1>company reports of whether or not they're aligned with that,

0:09:54.640 --> 0:09:57.920
<v Speaker 1>what's the penalty then ultimately, well just look at the

0:09:57.960 --> 0:10:01.240
<v Speaker 1>amount of capital all around the world that shifting. Investors

0:10:01.240 --> 0:10:04.679
<v Speaker 1>are pretty clearly saying that they want to be aligned

0:10:04.800 --> 0:10:07.760
<v Speaker 1>with putting their capital towards where we'll be aligned with

0:10:07.720 --> 0:10:09.800
<v Speaker 1>an zero transition. How many people have made a commitment

0:10:09.800 --> 0:10:11.439
<v Speaker 1>saying I want my portfolio to be net zero, but

0:10:11.480 --> 0:10:14.199
<v Speaker 1>they'll give up some performance because of that. Well, with

0:10:14.320 --> 0:10:16.760
<v Speaker 1>you're a large institution and you have a multi decade

0:10:16.760 --> 0:10:20.880
<v Speaker 1>commitment to being aligned with a zero, that's a bindyconstraint.

0:10:21.040 --> 0:10:22.720
<v Speaker 1>You don't really have any choice. You've got to go

0:10:22.800 --> 0:10:28.520
<v Speaker 1>meet that commitment, alright. That was Karen Carnel Tambor. She

0:10:28.800 --> 0:10:30.760
<v Speaker 1>is the co c i O for sustainability of our

0:10:30.800 --> 0:10:33.840
<v Speaker 1>Bridgewater Associates. We caught up with her here at the

0:10:34.040 --> 0:10:36.560
<v Speaker 1>Milk and Institute Global Conference. Keep in mind, folks, we

0:10:36.600 --> 0:10:39.600
<v Speaker 1>know this. You know this. We talk about it sustainable investment.

0:10:40.080 --> 0:10:43.280
<v Speaker 1>It is growing assets, in fact, up to thirty five

0:10:43.320 --> 0:10:46.960
<v Speaker 1>point three trillion dollars globally last year, amid mounting concerns

0:10:46.960 --> 0:10:50.200
<v Speaker 1>about societal inequities and climate change. We're seeing him so

0:10:50.320 --> 0:10:52.480
<v Speaker 1>much money go into this area. I go, we see

0:10:52.520 --> 0:10:53.640
<v Speaker 1>a lot of money going into it. But I go

0:10:53.679 --> 0:10:55.120
<v Speaker 1>back to the question that you and I ask over

0:10:55.120 --> 0:10:56.960
<v Speaker 1>and over again about metrics and about you know what

0:10:57.000 --> 0:10:59.880
<v Speaker 1>moves Netflix is stock tomorrow? Is it Netflix's comments about

0:11:00.160 --> 0:11:03.800
<v Speaker 1>s G it's Netflix's comments about subscribers in the most

0:11:03.840 --> 0:11:06.440
<v Speaker 1>recent quarter and how they're thinking about this current quarter.

0:11:06.559 --> 0:11:08.240
<v Speaker 1>And I got what she said about you know, being

0:11:08.320 --> 0:11:11.960
<v Speaker 1>carbon neutral, right or net neutral in terms of what

0:11:12.000 --> 0:11:14.040
<v Speaker 1>governments are requiring companies to do. But I do feel

0:11:14.080 --> 0:11:15.960
<v Speaker 1>like that I wonder if the metrics need to be

0:11:16.000 --> 0:11:17.840
<v Speaker 1>amped up a little bit and what do those metrics

0:11:17.840 --> 0:11:21.079
<v Speaker 1>look like? Yeah, exactly, because there a standardization of them, exactly.

0:11:21.160 --> 0:11:24.400
<v Speaker 1>But it's definitely an investment area, she said. People are

0:11:24.440 --> 0:11:26.640
<v Speaker 1>talking about it and dealing with it a lot more

0:11:26.679 --> 0:11:28.800
<v Speaker 1>than they ever were. Are You're listening to Bloomberg Business

0:11:28.840 --> 0:11:31.960
<v Speaker 1>Week watching us on YouTube, and this is Bloomberg Radio

0:11:32.960 --> 0:11:36.200
<v Speaker 1>Carol Masterton Stanovich live at the Milk and Institute Global

0:11:36.240 --> 0:11:38.920
<v Speaker 1>Conference in Beverly Hills here and on the West Coast.

0:11:38.920 --> 0:11:40.720
<v Speaker 1>We've got a really great guest to wrap up our

0:11:40.760 --> 0:11:45.080
<v Speaker 1>first day here. His company founded in eighteen and they

0:11:45.120 --> 0:11:48.199
<v Speaker 1>are leveraging software, a software first approach, if you will,

0:11:48.240 --> 0:11:52.200
<v Speaker 1>when it comes to how we manufacture things. We're talking

0:11:52.200 --> 0:11:54.800
<v Speaker 1>about industrial automation. We're so delighted to have with us.

0:11:55.000 --> 0:11:58.080
<v Speaker 1>Bright Machines CEO and co founder Amar haunts Ball. He's

0:11:58.160 --> 0:12:00.120
<v Speaker 1>with us here at Milk and welcome to bloomberg Is

0:12:00.160 --> 0:12:02.080
<v Speaker 1>this week. Thank you for having me, so tell us

0:12:02.120 --> 0:12:04.920
<v Speaker 1>about what you're doing. I'm fascinating because increasingly we know

0:12:05.000 --> 0:12:07.000
<v Speaker 1>so much in our world has been automated. You're taking

0:12:07.040 --> 0:12:09.160
<v Speaker 1>it to another level. Yeah. We What we do is

0:12:09.200 --> 0:12:12.720
<v Speaker 1>we build autonomous assembly lines. So you think of autonomous cars,

0:12:13.080 --> 0:12:15.360
<v Speaker 1>you can imagine them, you know, kind of driving themselves.

0:12:15.360 --> 0:12:18.760
<v Speaker 1>So we're doing kind of the same idea but applying

0:12:18.760 --> 0:12:22.240
<v Speaker 1>it to building products. So we call ourselves bright Machines

0:12:22.280 --> 0:12:26.320
<v Speaker 1>because we're giving eyes and brains to machines and using

0:12:26.320 --> 0:12:30.560
<v Speaker 1>that intelligence, if you will, to create these, uh, what

0:12:30.920 --> 0:12:34.480
<v Speaker 1>used to be labor centric assembly lines and replacing them

0:12:34.480 --> 0:12:38.959
<v Speaker 1>with entirely machine powered, software powered ways of assembling products. MA,

0:12:39.000 --> 0:12:40.760
<v Speaker 1>if you look at any product, the ones that are

0:12:40.760 --> 0:12:43.120
<v Speaker 1>surrounding us right now, it's kind of like if you

0:12:43.160 --> 0:12:46.080
<v Speaker 1>imagine the imagine all the piece parts of these products.

0:12:46.400 --> 0:12:49.520
<v Speaker 1>They're made by machines, but they're assembled by humans. And

0:12:49.559 --> 0:12:52.640
<v Speaker 1>we're changing that so that they're even assembled by humans

0:12:52.960 --> 0:12:57.080
<v Speaker 1>assembled by machines, so the entire process is automated. What

0:12:57.120 --> 0:13:00.240
<v Speaker 1>are some examples of processes that you've been able to

0:13:00.240 --> 0:13:03.760
<v Speaker 1>automate that until you showed up at bright machines or

0:13:03.920 --> 0:13:07.720
<v Speaker 1>created bright machines, were processes that companies require people for.

0:13:08.080 --> 0:13:10.800
<v Speaker 1>I would say assembly in particular. So you think of

0:13:10.920 --> 0:13:13.160
<v Speaker 1>the look at the products surrounding us. So you think

0:13:13.240 --> 0:13:17.120
<v Speaker 1>think of the network infrastructure that's connecting our computers to

0:13:17.160 --> 0:13:23.000
<v Speaker 1>the internet. You think of the the the electric vehicles,

0:13:23.040 --> 0:13:26.319
<v Speaker 1>all the components that go in them, all those pieces.

0:13:26.320 --> 0:13:28.439
<v Speaker 1>So let's take a piece of network infrastructure. You look

0:13:28.480 --> 0:13:34.160
<v Speaker 1>at a modern day router um Assembling that router used

0:13:34.160 --> 0:13:36.000
<v Speaker 1>to be done by hand in a place like China

0:13:36.080 --> 0:13:39.800
<v Speaker 1>or Mexico. That's the thing that we have replaced using

0:13:39.800 --> 0:13:43.000
<v Speaker 1>our autonomous assembly lines or robots and other machines are

0:13:43.000 --> 0:13:46.840
<v Speaker 1>basically putting all the pieces in place and building network boxes.

0:13:46.920 --> 0:13:49.440
<v Speaker 1>And we're doing that. I think that's what was kind

0:13:49.440 --> 0:13:51.640
<v Speaker 1>of surprising, kind of reading in for this, so that

0:13:51.840 --> 0:13:54.800
<v Speaker 1>I think I had thought so much was already automated.

0:13:55.480 --> 0:13:57.520
<v Speaker 1>Give us you are snaps out of what you see.

0:13:57.600 --> 0:14:00.760
<v Speaker 1>I mean, the reality is less than eight percent of

0:14:00.840 --> 0:14:04.520
<v Speaker 1>the assembly lines in the world are automated. And you

0:14:04.559 --> 0:14:06.840
<v Speaker 1>see all you know, robots moving around for forty years,

0:14:07.240 --> 0:14:09.800
<v Speaker 1>but the reality has been that to set up these

0:14:09.840 --> 0:14:13.200
<v Speaker 1>systems takes so much time and cost so much and

0:14:13.280 --> 0:14:16.200
<v Speaker 1>requires the level of expertise that only you know, the

0:14:16.240 --> 0:14:20.000
<v Speaker 1>big automotive or the big aerospace companies that have lots

0:14:20.000 --> 0:14:22.200
<v Speaker 1>of money and a five year product cycles have been

0:14:22.240 --> 0:14:24.960
<v Speaker 1>able to automate. You look at the you know, any

0:14:25.080 --> 0:14:28.680
<v Speaker 1>kitchen appliance in your house that's not automated because it

0:14:28.720 --> 0:14:31.720
<v Speaker 1>takes too long to configure or cost too much. I say,

0:14:31.960 --> 0:14:35.080
<v Speaker 1>bullet that I used to make my shape a good example.

0:14:35.200 --> 0:14:38.960
<v Speaker 1>Really it's not automated. It's again the like you look

0:14:39.000 --> 0:14:41.640
<v Speaker 1>at that bullet. Pieces of the steel and the plastic

0:14:41.680 --> 0:14:43.680
<v Speaker 1>are made by machines, but they're all assembled by hand.

0:14:44.000 --> 0:14:46.200
<v Speaker 1>And that's the kind of thing that when you you know,

0:14:46.280 --> 0:14:49.280
<v Speaker 1>and and you bring it, you bring technology like arts

0:14:49.320 --> 0:14:53.360
<v Speaker 1>to bear, you can you know, assemble that using a

0:14:53.440 --> 0:14:57.440
<v Speaker 1>modern When ultimately we reached the point where humans are

0:14:57.440 --> 0:15:01.240
<v Speaker 1>replaced on automation, you knew we were going to there,

0:15:02.080 --> 0:15:04.600
<v Speaker 1>then it creates a massive it's a transformational shift when

0:15:04.640 --> 0:15:06.480
<v Speaker 1>it comes to labor market. It's something we talked about

0:15:06.720 --> 0:15:09.840
<v Speaker 1>earlier with David hunted Piga. Right, you know, this is

0:15:09.880 --> 0:15:12.400
<v Speaker 1>the type of thing that that can actually prevent inflation

0:15:12.400 --> 0:15:15.560
<v Speaker 1>from getting out of control exactly. But yeah, when does

0:15:15.600 --> 0:15:17.640
<v Speaker 1>that happen? And what is what is the massive shifts?

0:15:17.720 --> 0:15:19.640
<v Speaker 1>So let me give you three parts of the ends.

0:15:19.680 --> 0:15:22.320
<v Speaker 1>First of all, this kind of high level of automation

0:15:22.320 --> 0:15:25.480
<v Speaker 1>has happened in other industries, and bank banks are a

0:15:25.520 --> 0:15:28.120
<v Speaker 1>great example. When a t m S came, it didn't

0:15:28.640 --> 0:15:32.600
<v Speaker 1>result in like unemployment for all the people that you know,

0:15:32.680 --> 0:15:39.280
<v Speaker 1>you automated the most repetitive and kind of mind taxing

0:15:40.040 --> 0:15:44.160
<v Speaker 1>um work. And that's what's happening in manufacturing. If you

0:15:44.200 --> 0:15:47.680
<v Speaker 1>think about people, and this is it's not meant to

0:15:47.720 --> 0:15:50.680
<v Speaker 1>be dystopian, but when you go into factories today, there

0:15:50.720 --> 0:15:53.760
<v Speaker 1>are robots everywhere, but the robots are humans, and you'd

0:15:53.840 --> 0:15:58.240
<v Speaker 1>see humans in factories doing the same operation a hundred

0:15:58.240 --> 0:16:02.600
<v Speaker 1>thousand times literally in a screws you know, for screws

0:16:02.640 --> 0:16:05.880
<v Speaker 1>into a box and screw like that is my numbing work, right,

0:16:06.160 --> 0:16:08.400
<v Speaker 1>And so that's the kind of thing that the systems

0:16:08.440 --> 0:16:12.000
<v Speaker 1>like us replaces. But you're right, when we do that,

0:16:12.040 --> 0:16:16.120
<v Speaker 1>there is somebody that's affected. But what we've seen our

0:16:16.120 --> 0:16:20.120
<v Speaker 1>customers do is that this they look at automation as

0:16:20.200 --> 0:16:24.080
<v Speaker 1>an augmentation exercise that they're increasing the ability of a

0:16:24.120 --> 0:16:27.520
<v Speaker 1>single person to do multiple, you know, more work, or

0:16:27.600 --> 0:16:31.360
<v Speaker 1>have them do more valuable work like better customer service,

0:16:31.480 --> 0:16:34.920
<v Speaker 1>to better engineering, do better design. And that's what I

0:16:34.960 --> 0:16:38.320
<v Speaker 1>think will happen. It will take definitely you go through

0:16:38.320 --> 0:16:40.800
<v Speaker 1>a curve where people need to be retrained. But on

0:16:40.840 --> 0:16:43.440
<v Speaker 1>the other side of it, it's a much better experience

0:16:43.480 --> 0:16:45.040
<v Speaker 1>for everybody. But it's safe to say that they're going

0:16:45.080 --> 0:16:49.680
<v Speaker 1>to be people who are doing that repetitive work today

0:16:49.720 --> 0:16:52.480
<v Speaker 1>that we won't need those jobs in the future, right

0:16:52.600 --> 0:16:55.040
<v Speaker 1>And in fact, I would say one of the things

0:16:55.040 --> 0:16:59.120
<v Speaker 1>that you see today is there are unfilled manufacturing jobs

0:16:59.160 --> 0:17:02.080
<v Speaker 1>around the world for that very reason. Some people don't

0:17:02.160 --> 0:17:06.240
<v Speaker 1>want those jobs. In the United States, there's four manufacturing

0:17:06.320 --> 0:17:10.159
<v Speaker 1>jobs that are open that are unfilled because it's actually

0:17:10.200 --> 0:17:12.840
<v Speaker 1>hard to find either they require a very high level

0:17:12.840 --> 0:17:15.000
<v Speaker 1>of skill or the kind of skill they requires, So

0:17:15.040 --> 0:17:17.080
<v Speaker 1>basically people don't want those you're hearing in the background,

0:17:17.080 --> 0:17:19.520
<v Speaker 1>those people who don't want those jobs, they're getting ready

0:17:19.520 --> 0:17:21.960
<v Speaker 1>for another event here. No, but it is interesting, So

0:17:22.240 --> 0:17:24.240
<v Speaker 1>it's to me, it's it makes such sense, like why

0:17:24.240 --> 0:17:28.760
<v Speaker 1>wouldn't everybody just automate everything? Why aren't people Is it expensive? Yeah,

0:17:28.880 --> 0:17:30.919
<v Speaker 1>it's I would say up until now, you know, I

0:17:30.960 --> 0:17:35.240
<v Speaker 1>think it's been daunting to to automate, and it's always

0:17:35.240 --> 0:17:38.920
<v Speaker 1>been a from an expense perspective, from a time perspective,

0:17:38.960 --> 0:17:41.040
<v Speaker 1>and that you know, when companies like Artists shows up

0:17:41.080 --> 0:17:44.120
<v Speaker 1>and changes the economics of automation, I think people get

0:17:44.119 --> 0:17:46.720
<v Speaker 1>more ready. The other thing that has happened is there

0:17:46.800 --> 0:17:48.920
<v Speaker 1>has been a perfect storm in the last two years

0:17:49.000 --> 0:17:53.160
<v Speaker 1>between the pandemic, between tariff wars and then a little

0:17:53.200 --> 0:17:58.399
<v Speaker 1>bit of security concerns that have really accelerated people's interest

0:17:58.400 --> 0:18:02.359
<v Speaker 1>in automation. How do you future proof these assembly lines?

0:18:02.560 --> 0:18:04.800
<v Speaker 1>If the customer makes a big purchase, it's a good

0:18:04.800 --> 0:18:06.840
<v Speaker 1>point that automates it. How do they know two years

0:18:06.840 --> 0:18:09.080
<v Speaker 1>from now it's gonna be so good? So glad you

0:18:09.119 --> 0:18:12.040
<v Speaker 1>asked that questions. Software is a secret sauce because what

0:18:12.119 --> 0:18:17.320
<v Speaker 1>we do through software is make our lines programmable so effectively.

0:18:17.400 --> 0:18:21.960
<v Speaker 1>Since our our secret sources, we use software to configure

0:18:22.000 --> 0:18:25.639
<v Speaker 1>and run these machines. That software can be used to

0:18:25.800 --> 0:18:28.960
<v Speaker 1>modify the same line to build a different product. So

0:18:29.000 --> 0:18:32.960
<v Speaker 1>it's so we can upgrade. The software doesn't impact the hardware.

0:18:33.000 --> 0:18:36.280
<v Speaker 1>The existing hardware if you completely change the product, let's

0:18:36.280 --> 0:18:39.200
<v Speaker 1>say you're building your bullet and now you're going to

0:18:39.280 --> 0:18:41.840
<v Speaker 1>build a network rowder. Yes, you need to change the

0:18:41.960 --> 0:18:44.240
<v Speaker 1>end of armed grippers and some of the feeding systems.

0:18:44.400 --> 0:18:47.320
<v Speaker 1>But if you're you know, you're upgrading the bullet or

0:18:47.320 --> 0:18:49.520
<v Speaker 1>you're doing a second model of that, then you don't

0:18:49.520 --> 0:18:51.240
<v Speaker 1>need to do this. So you're gonna go public this year.

0:18:51.600 --> 0:18:55.680
<v Speaker 1>That is the plan. We announced ours transaction, yeah and

0:18:55.880 --> 0:18:59.640
<v Speaker 1>uh seventeenth of May or a SPAC merger, and we're

0:18:59.680 --> 0:19:02.080
<v Speaker 1>in the process of these packing. We filed our s

0:19:02.160 --> 0:19:04.560
<v Speaker 1>for today and you know, when the SEC gives us

0:19:04.600 --> 0:19:07.080
<v Speaker 1>to go ahead, then we shall be a public company.

0:19:07.200 --> 0:19:09.200
<v Speaker 1>Come back and talk to us. Well, we would love

0:19:09.240 --> 0:19:12.240
<v Speaker 1>to continue this conversation. Lamar, thank you, my pleasure. Thanks

0:19:12.240 --> 0:19:15.520
<v Speaker 1>for having Lamar Puntsball. He is Bright Machines CEO and

0:19:15.560 --> 0:19:17.359
<v Speaker 1>co founder with us here at Milkine. We did it.

0:19:17.400 --> 0:19:19.320
<v Speaker 1>One day down, one day, two more to go, two

0:19:19.359 --> 0:19:21.119
<v Speaker 1>more to go. We've got I'm going to talk with

0:19:21.200 --> 0:19:23.879
<v Speaker 1>Kathy Wood. We're going to hear a lot more conversations.

0:19:24.080 --> 0:19:26.320
<v Speaker 1>They're all coming out. Have a good night, everybody,