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Speaker 1: From the heart of where innovation, money and power COLLI

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Speaker 1: in Silicon Valley and beyond. This is Bloomberg Technology with

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Speaker 1: Emily Jay. I'm Emily Check in San Francisco, and this

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Speaker 1: is Bloomberg Technology. Coming up in the next hour. The

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Speaker 1: chips are down. Shares of semi conductor companies plunging to

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Speaker 1: start the week after new US curbs on China's access

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Speaker 1: to American technology. Where is the industry's downturn headed We

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Speaker 1: will discuss. Plus, it's not just chip stocks at risk.

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Speaker 1: Both the I m F and the World Bank are

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Speaker 1: warning of a potential global recession. This as tech earnings

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Speaker 1: kick off next week, We're gonna preview what to expect,

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Speaker 1: and the markets are spoken about the Twitter deal as well.

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Speaker 1: Investors seem to see about a six chance that Elon

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Speaker 1: Musk still closes by October. What will become the social

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Speaker 1: media platform once that happens. We will explore that this hour.

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Speaker 1: All that in a moment, but first I want to

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Speaker 1: stick to the chip story. Now, chip stocks down their

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Speaker 1: lowest since joining US. Now wugin Hoe Boomberg Intelligence, Senior

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Speaker 1: analyst for Hardware and Networking, So a disappointing start Wuginhoe

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Speaker 1: ahead of you know what could be a potentially difficult

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Speaker 1: earning season. We've already already had these warnings from A

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Speaker 1: m D and from Samsung. Where is this going? Sure?

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Speaker 1: I thank thanks simily so so UM. I think the

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Speaker 1: A m D as well as the stamp sub warnings

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Speaker 1: UH is a precursor to what we may potentially see

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Speaker 1: for earning season. For the upcoming earning season, I think

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Speaker 1: that the risk here is is not on the consumer side.

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Speaker 1: I think the consumer concerns on the PC side UM

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Speaker 1: has already been factored in. I think the bigger risk

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Speaker 1: going through into earning season is this going to affect

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Speaker 1: the enterprise side on this chip side. We haven't seen

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Speaker 1: that yet, but if we look at the m D

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Speaker 1: data center numbers, they weren't as strong as people as hoped.

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Speaker 1: They were more in line than anything else. And and

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Speaker 1: the concern is that it's going to affect more chip

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Speaker 1: makers on the data center in cloud side. So is

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Speaker 1: the chip downturn far from over? I mean, is it

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Speaker 1: just starting? But it potentially could be. Right if we

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Speaker 1: start thinking about enterprise bending going going forward, UH, if

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Speaker 1: there is a downturn going to three, then then there

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Speaker 1: is that risk of downward learnings revisions to reflect the

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Speaker 1: weakness on the enterprise side of the ledger. Right, UM,

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Speaker 1: I still don't have a good crystal ball on where

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Speaker 1: the PC sector is going to bottom out, and I

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Speaker 1: think we're gonna have to start seeing, uh where the

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Speaker 1: the enterprise side is gonna flesh out as well. Now,

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Speaker 1: of course, these you know, new round of of American

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Speaker 1: curves on China's access to US technology. How that, um,

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Speaker 1: you know, potentially make a bad situation worse and and

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Speaker 1: how does that play out over the longer term. Sure,

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Speaker 1: I don't think it's going to be a near term

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Speaker 1: impact if if anything, it's gonna be a longer term impact.

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Speaker 1: The band or the curbs on the AI side. Isn't

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Speaker 1: there anything new? This is something that m D as

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Speaker 1: well as in video hinted at at one of the

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Speaker 1: a K filings U back in September. And this makes

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Speaker 1: it more official than anything else. And I believe I

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Speaker 1: am D as well as in video said the impact

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Speaker 1: will be minimal because they could still sell lesser um

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Speaker 1: lesser powered AI chips to to China. Now, now that

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Speaker 1: being said, I do think that the the U S

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Speaker 1: do does want to send in broader curbs UH to

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Speaker 1: slow down China's development of not only the use of

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Speaker 1: AI chips, but also the manufacturer of AI chips. There

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Speaker 1: were some developments by by Smike of introducing seven animator chips.

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Speaker 1: I think that put a scare UH and into the

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Speaker 1: US and they want to slow down anything that China

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Speaker 1: can do to develop some of these higher powered UH

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Speaker 1: chips going forward. So it doesn't sound like you think

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Speaker 1: we're heading towards a total ban, but you know, is

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Speaker 1: that a possibility. Well, let's let's use UM. Well, let's

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Speaker 1: use whahwah as an example of as well as et EU.

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Speaker 1: There is an entity list that they're on UH and UM.

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Speaker 1: At the end of the day, whilwah is a smart

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Speaker 1: phone business. Essentially has UM pretty much died, all right?

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Speaker 1: If if there there is a an entity list that

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Speaker 1: the US has started to beef up and we might

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Speaker 1: start seeing H some of these lesser known Chinese memory

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Speaker 1: companies as well as chip manufacturing companies UH fall into

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Speaker 1: that entity. If that's going to be the case, then

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Speaker 1: then there might be a dent into the China China's

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Speaker 1: chip manufacturing UH initiatives going forward. So I mean, we'll case,

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Speaker 1: we still have to see where this will go, but

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Speaker 1: that still may happen. All right, Well, a lot of

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Speaker 1: rad for chips to start the week. U Jin Hobe,

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Speaker 1: Bloomberg Intelligence senior analysts, thank you so much for stopping by. Now.

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Speaker 1: Speaking of China, we're following the COVID situation there as well,

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Speaker 1: tally's rising and fears of a potential lockdown returning once again.

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Speaker 1: The country reported one thousand, eight hight seven cases for Sunday,

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Speaker 1: the highest since August. In Shanghai posted the most new

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Speaker 1: local infections in almost three months, official saying anyone traveling

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Speaker 1: to Shanghai will need a negative COVID result within twenty

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Speaker 1: four hours of arriving in the city, and we'll have

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Speaker 1: to do three tests in three days. Coming up a

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Speaker 1: bit more than a coin tossed Cowan analysts pricing in

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Speaker 1: a sixt chance that Ellen Musk's deal with Twitter gets

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Speaker 1: done by the deadline. We're gonna dig into the odds next.

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Speaker 1: This is Bloomberg. The glimpses we've had of Elon Mask's

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Speaker 1: vision for Twitter include potentially becoming part of what he

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Speaker 1: calls X the Everything app, which brings to mind the

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Speaker 1: Chinese app we Chat. Quick takes out were talked to

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Speaker 1: us about the obstacles Twitter will face if it tries

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Speaker 1: to become while like we Chat. Take a listen. Elon

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Speaker 1: Musks billion dollar deal to buy Twitter is back on

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Speaker 1: and it comes with an interesting wrinkle, turning the social

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Speaker 1: media company into a so called super app. Now, this

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Speaker 1: is what the Chinese company we Chat has really pioneered.

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Speaker 1: It's a portal in China for everything from dating apps

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Speaker 1: to paying your bills, ordering food and getting taxis. But

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Speaker 1: it hasn't really succeeded in Europe and the US, and

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Speaker 1: there are often three obstacles. Firstly, you need to have

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Speaker 1: a payment layer, something that connects all of the apps

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Speaker 1: together and makes it easy to pay in one quick action. Secondly,

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Speaker 1: you need to have a lot of developers. Twitter has

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Speaker 1: about two million users, but there are about one point

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Speaker 1: eight billion active users of Apple devices and three billion

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Speaker 1: active users of Android devices. If you're a developer or

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Speaker 1: a company looking to build a product, it's pretty clear

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Speaker 1: which of those three services you're likely to prioritize. And finally,

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Speaker 1: there is the regulatory consideration. If you are a company

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Speaker 1: that leverages its strength in one service, to build strength

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Speaker 1: in a different one. That is not something that regulators,

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Speaker 1: particularly in Europe, look too kindly upon. But it also

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Speaker 1: comes with a slight problem. Either you are not big

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Speaker 1: enough for developers to have the scale that they want

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Speaker 1: to build apps and services for your product, or if

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Speaker 1: you do have the scale, you're going to attract that

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Speaker 1: regulatory attention. Perhaps Ellen is the person who can make

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Speaker 1: this happen, but it does come with a lot of obstacles.

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Speaker 1: Cutics alex Web, they're sticking with Twitter merger arbitrage strategists

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Speaker 1: a cow and say the mark is pricing in just

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Speaker 1: a bit more than the odds of a coin. Tash

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Speaker 1: that Ela Musk still with Twitter, will close by the

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Speaker 1: court issued deadline of October. Here tell us more about

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Speaker 1: the latest Bloomberg's Kurt Wagner, who has has of course

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Speaker 1: been covering this whole pograah for us. We're gonna get

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Speaker 1: to the weach that thing in a moment, Kurt. But

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Speaker 1: what do you make of this whole six chance thing,

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Speaker 1: especially given it has been a short thing to this point. Yeah,

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Speaker 1: I was trying to think of something clever about form

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Speaker 1: me once, you know whatever, But to me it feels

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Speaker 1: higher than sixty simply because you know, both sides are

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Speaker 1: showing up. They want the same deal, right, They want

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Speaker 1: the same price, at least that's what they say, And

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Speaker 1: now a judges said, okay, you have until to do

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Speaker 1: this and a lot of the stuff getting debt financing

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Speaker 1: in order, for example, getting shareholder approval, that's all done. Right,

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Speaker 1: So they say they want the same deal. They say

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Speaker 1: that all the stuff that they need to do to

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Speaker 1: get that done is essentially done. So I feel like

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Speaker 1: it's got to be higher than sixty pc, Emily, But

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Speaker 1: you know what, what do I know? I feel like

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Speaker 1: we've been talking about this for six months and it

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Speaker 1: keeps changing. So right, what do any of us know? Well,

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Speaker 1: Elon Musk knows, or at least he has said he

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Speaker 1: wants to make Twitter part of this Everything app vision.

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Speaker 1: What does that mean to you? How do you interpret that?

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Speaker 1: Does it sound to you like we chat? It sounds

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Speaker 1: a lot like we chat um. And it's not necessarily

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Speaker 1: a bad idea because we chat is incredibly popular in

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Speaker 1: China and we've seen other companies, mostly Facebook, try to

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Speaker 1: do this as well. Where I think it's an issue

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Speaker 1: is that, as Alex said in kind, of the intro

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Speaker 1: you showed, Twitter just doesn't have the scale that's needed

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Speaker 1: for for something like this, right. And most of what

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Speaker 1: makes we chat so valuable, I think, is that it's

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Speaker 1: also the place where people do all of their communication. Right.

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Speaker 1: It's not just where you get your Uber or you

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Speaker 1: order your food delivery. It's where you're talking with mom

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Speaker 1: and dad and grandma and your boss and your cousins.

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Speaker 1: And like, Twitter is not that place right there. It

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Speaker 1: is not a place that people are hanging out. And

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Speaker 1: so for me, the idea of suddenly turning into a

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Speaker 1: place where everyone is hanging out and suddenly doing their shopping,

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Speaker 1: it just doesn't really make sense. Again, I like the

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Speaker 1: idea and concept because it's see it clearly works in China.

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Speaker 1: I just don't think that this is going to happen

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Speaker 1: for Twitter now. It is ambitious and if anyone can

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Speaker 1: do it right, you would say, all right, well maybe

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Speaker 1: Elon Musk is that person. But Mark Zuckerberg's trying to

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Speaker 1: met a few times and it's not happening there either.

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Speaker 1: So speaking of scale, how are you thinking about potential

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Speaker 1: staffing changes once Musk presumably takes over the company. You know,

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Speaker 1: is there going to be a mass exodus. Is there

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Speaker 1: going to be an influx of of you know, Elon

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Speaker 1: Musk's fans who want to work for him. You know,

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Speaker 1: clearly the size that the company is can't necessarily handle,

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Speaker 1: like you said, the scale of a social media platform,

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Speaker 1: the size of wei chat. Well, I can tell you

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Speaker 1: what I know, and then I can speculate a little bit.

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Speaker 1: What I know is that a lot of people inside

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Speaker 1: Twitter are currently worried for their jobs. Right. They expect

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Speaker 1: Ellen to come in and do laughs. They expect them

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Speaker 1: to essentially kind of clean the executive ranks um you know,

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Speaker 1: certainly Ceo Pragaga Waal, probably the head lawyer Vigionatti and

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Speaker 1: you know, this is something that happens a lot of

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Speaker 1: times during an acquisition, but I think especially now because

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Speaker 1: Ellen has basically said he doesn't have competence or faith

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Speaker 1: in those leaders. Right, So this is this is what

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Speaker 1: people are bracing for now. What he does next is

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Speaker 1: going to be a good question. Is he going to

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Speaker 1: trim the company down and simply keep it sort of

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Speaker 1: the engineers bare bones folks who are going to build product,

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Speaker 1: or if he wants to do this kind of super

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Speaker 1: apt thing he's talking about he's gonna need partnerships people,

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Speaker 1: He's gonna need probably content people like moderation people, right,

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Speaker 1: which is is something that he has kind of shied

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Speaker 1: away from. And so that's where I think things get

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Speaker 1: a little tricky, is you know, the financial vision for

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Speaker 1: the company seems to be let's cut everything back and

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Speaker 1: and maybe you know, get healthy, as he likes to say, um,

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Speaker 1: but the vision is much more ambitious than that, and

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Speaker 1: I'm not sure that Surly works with that small of

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Speaker 1: his staff. All Right, lots continue to follow a Kurt,

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Speaker 1: I know you'll be all over it. Thank you for

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Speaker 1: the updates. I want to get a quick check on

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Speaker 1: another story that we're following, which is several airport websites

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Speaker 1: in the US we're knocked offline by a pro Russia

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Speaker 1: activist group. Chicago's O'Hare and l a X among the

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Speaker 1: websites hacked. The group, called kill Net, has been linked

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Speaker 1: to a series of cyber attacks against Western targets, including

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Speaker 1: disruptions to some state government websites last week. Curology, the

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Speaker 1: cosmetics company that provides prescription skincare customized to patient skin,

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Speaker 1: has grown at lightning speed over the last few years.

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Speaker 1: With revenue projected over two million dollars. The company is

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Speaker 1: now profitable and announcing changes to its c suite to

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Speaker 1: prepare for the next phase. Dr d with Larger, co

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Speaker 1: founder of Curology, stepped down as CEO to pass the

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Speaker 1: torch to Heather Wallace, who was most recently president at Revlon.

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Speaker 1: They're both joining me now for more on the transition. So, David,

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Speaker 1: I want to start with you give us some background

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Speaker 1: on the transition here and who popped the question and

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Speaker 1: how oh thank you Emily. That would be me who

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Speaker 1: popped the question. And the reason is that the skills

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Speaker 1: you need to successfully found the company are just very

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Speaker 1: different than the skills you need to take an established

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Speaker 1: company like cure Ology and grow it to its full potential.

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Speaker 1: And so you know, right now the company is in

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Speaker 1: this incredible position for the future because um, like you said,

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Speaker 1: we became profitable and we really have the ability to invest.

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Speaker 1: And so my goal is just to find someone to

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Speaker 1: help take us to that next level. And I just

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Speaker 1: couldn't be more excited to be able to found Heather here. Heather,

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Speaker 1: given what you learned recently at Revlon, what's your vision

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Speaker 1: for the company and you know what you know about

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Speaker 1: what's going on in in the beauty world, especially given

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Speaker 1: that we are moving into potentially a pretty pronounced down

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Speaker 1: to earn. So I mean a couple of things. One

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Speaker 1: is I'm so sorry excited to be joining Curology, and

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Speaker 1: Carology is actually doing what many baby companies are talking about,

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Speaker 1: which is personalization. So it's truly personal personalized skincare. We

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Speaker 1: are connecting people with dermatology providers that create custom formulas

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Speaker 1: and we can service those consumers and really help them

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Speaker 1: have better skin outcomes. And so people, your face is

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Speaker 1: the way that you face the world, and so how

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Speaker 1: you look and how your face looks really has a

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Speaker 1: big impact on your confidence, on how you feel um

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Speaker 1: and and truly a big impact in your life. So

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Speaker 1: I'm excited about that with the Ology. Now. You know,

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Speaker 1: as terms of what's happening with the economy, I think

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Speaker 1: where we all are concerned about that this is an

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Speaker 1: incredibly resilient category um and I do expect us to

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Speaker 1: be able to do very well during this time period.

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Speaker 1: I want to agree that good skincare is vital, but

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Speaker 1: how much do you think people are really going to

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Speaker 1: be spending on themselves right now when they're spending more

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Speaker 1: on everything from gas to groceries. I mean, isn't that

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Speaker 1: the first thing to go you It's actually not. Um.

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Speaker 1: There are many things that go before skincare. So I've

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Speaker 1: actually seen data over time on UM what happens during

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Speaker 1: challenging economic times, and skincare is one of the most

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Speaker 1: resilient categories. The end of the day, as you say,

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Speaker 1: you know you're going to work, you're in front of

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Speaker 1: friends and family, You're putting your best face forward, and

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Speaker 1: it is very important, and so I do expect consumers

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Speaker 1: to still spend in this area. David. The cult of

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Speaker 1: the founder is so strong, and especially in Silicon Valley,

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Speaker 1: and I'm wondering if you've You've been pretty straightforward about

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Speaker 1: why you're doing this in now, do you think too

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Speaker 1: many founders stay too long and that more founders should

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Speaker 1: leave potentially sooner. Every company is different, but but I

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Speaker 1: do believe that you know, the decision to pass the baton,

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Speaker 1: as you say to someone like Heather, should actually be

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Speaker 1: made a lot more commonly, because ultimately what we care

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Speaker 1: about is getting our business to that next level, and

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Speaker 1: the same person to successfully found a company isn't necessarily

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Speaker 1: the right person to get you to that next level.

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Speaker 1: So so I do think there's um um there. There's

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Speaker 1: a lot of merit in that um Heather, I know

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Speaker 1: that Revlon recently filed for bankruptcy. They're talking about supply

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Speaker 1: chain issues. Curious if you're expecting to deal with some

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Speaker 1: of those similar issues at cure Ology, especially as it

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Speaker 1: pertains to the supply chain and what you learned there

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Speaker 1: that you can potentially apply here and head off some

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Speaker 1: of these challenges. Yeah, so I think when it comes

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Speaker 1: to cure Ology, our supply chain is really focused in

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Speaker 1: the US, and so it's much more simple. We are

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Speaker 1: providing products end to end, but it's a much more

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Speaker 1: simple supply chain. So the other thing I know is

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Speaker 1: that just keeping us focused, so keeping us focused on

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Speaker 1: the right and the core of the products and being

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Speaker 1: able to continue to do our personalization and our customized

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Speaker 1: formulas at scale is going to be where the focus is.

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Speaker 1: So let's talk a little bit more about that. What's

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Speaker 1: your hope for the next chapter of growth given the

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Speaker 1: rise in direct consumer skincare, the rise in personalization, as

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Speaker 1: you say, the rise in subscription services, but also the

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Speaker 1: fact that we're you know, some people might be paying

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Speaker 1: for a few different script subscription services. Um, you know

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Speaker 1: at one time, how do you how do you see

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Speaker 1: balance consumers balancing all of that, and curology winning out.

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Speaker 1: So the company was founded on the mission of access,

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Speaker 1: that consumers should have access to the kind of skincare

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Speaker 1: solutions that the best dermatologists can provide. And so as

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Speaker 1: we think about growth in the future, it's all going

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Speaker 1: to be about continued awareness and access to those providers.

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Speaker 1: And the more access and awareness that we can create,

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Speaker 1: the more consumers we can bring in. Where the the

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Speaker 1: largest player in the personalized skincare space, but we are

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Speaker 1: relatively small at this point compared to the twenty billion

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Speaker 1: dollar facial skincare market in the US. David, what are

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Speaker 1: you hoping to see in this next chapter and how

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Speaker 1: involved will you be? I will be stepping into the

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Speaker 1: position of board chairperson, and you know, ultimately the most

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Speaker 1: important thing is that Chology succeeds, and so I'm going

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Speaker 1: to be helping in every way that any way that

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Speaker 1: I can. UM But you know, the biggest thing for

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Speaker 1: me is that we have this this really huge opportunity

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Speaker 1: in front of us because I think if you talk

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Speaker 1: to almost anybody who's used cure Ology, they will tell

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Speaker 1: you there's no way I'm going back to using what

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Speaker 1: I use before. But when you take a step back

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Speaker 1: and look at the market, about plus percent of people

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Speaker 1: are still using non personalized, less effective skincare. And so

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Speaker 1: what I really do hope to see is just us

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Speaker 1: being able to continue to spearhead the market shifting towards

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Speaker 1: the more effective, personalized type of skincare that the best

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Speaker 1: dermatologists provide. And speaking of the market, Heather, I mean,

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Speaker 1: are you thinking about an I p O. You know,

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Speaker 1: in terms of the next phase of growth? You know,

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Speaker 1: who knows what the future will bring. I think we're

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Speaker 1: going to be focused on profitable growth and reaching more

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Speaker 1: consumers with our fantastic customized solutions UM and the better skin,

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Speaker 1: the more better skin outcomes, that will just unlock the

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Speaker 1: future possibilities. All right, Heather Wallace, the new CEO of Curology,

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Speaker 1: and Dr David Lusher, co founder of Curology, moving into

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Speaker 1: the role of chair. Thank you both for joining us.

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Speaker 1: Welcome back to Bloomer Technology. I'm emily changing San Francisco.

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Speaker 1: I want to turn back to the marcus As, heads

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Speaker 1: of the I m F and the World Bank warn

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Speaker 1: of a rising risk of global recession. This with advanced

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Speaker 1: economy slowing down and faster inflation forcing the Fed to

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Speaker 1: keep raising interest rates. What does it mean for tech

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Speaker 1: stocks and tech earnings coming up? I want to break

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Speaker 1: that all down with Michael Casper of Blue Brig Intelligence.

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Speaker 1: So what do you make of the macro environment, what's

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Speaker 1: happening here and what it means for tech stox? Michael, Yeah,

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Speaker 1: the macro environment is still somewhat strong for what it

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Speaker 1: is a technical reception right now. Um, just to give

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Speaker 1: you some context around the SMP earnings at large, we

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Speaker 1: were looking at about a two point five percent expansion

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Speaker 1: in three Q. It's still an expansion, UM, and that's

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Speaker 1: gonna be a the trough, or at least looks like

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Speaker 1: it's gonna be the trough, at least according a consensus

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Speaker 1: um for this earning cycle, and specifically with tech stocks,

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Speaker 1: Tech is looking to have about a seven point five

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Speaker 1: percent earngas contraction. That's only second worst to communications and financials,

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Speaker 1: which are tied with the twelve point one percent to

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Speaker 1: client um. And some of the tech stocks are specifically

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Speaker 1: some of the industries look to be under pressure here

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Speaker 1: given the rising dollar and some of the supply chain

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Speaker 1: concerns that linger. Now the World Bank is saying there's

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Speaker 1: a real danger of worldwide contraction. You've got Jamie dime

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Speaker 1: In saying market is going to fall another twenty percent.

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Speaker 1: What's your own research showing, well, we're seeing much lighter contraction. Right,

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Speaker 1: So if you use our fare value model and use

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Speaker 1: September slow as the price and try to back into

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Speaker 1: what earnings contraction was priced by the market, you're looking

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Speaker 1: at about a five to EPs to climb that was

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Speaker 1: priced in by that September. And the varying scenarios have

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Speaker 1: to do with the different rates that drive ps, right,

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Speaker 1: So if you get a five percent expansion or five

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Speaker 1: percent interest rate, you're looking at about a five percent

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Speaker 1: earning strop to accompany that. And by the way, that

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Speaker 1: would be pretty much right in line with the narrowest

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Speaker 1: earning strop that we've had across all the recessions historically

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Speaker 1: back to UM, in line with that recession, which coincidentally

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Speaker 1: was a very inflationary period as well. So we've got

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Speaker 1: a raft of tech earnings coming out next week. Uh,

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Speaker 1: Netflix will be kicking us off. Of course, we've got

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Speaker 1: you know, all the big tech penning's quickly to follow.

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Speaker 1: What are you looking at and what are you expecting?

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Speaker 1: I'm looking at the outlooks for companies, especially the makencaps.

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Speaker 1: Right now, the makacaps are expected to have about a

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Speaker 1: two earnings increase on medium to the top five tech

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Speaker 1: and tech related stocks test slide through Tesla in there

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Speaker 1: um and that would be the worst going back to one.

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Speaker 1: So I'm watching the outlooks on those make acap stocks

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Speaker 1: within tech. I think Semmy's is particularly interesting given given

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Speaker 1: the chip news today. UM limiting exports to China and

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Speaker 1: that's industry is forecast for about fourteen percent to clients,

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Speaker 1: so there's still lingering supply chain issues there. There's the

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Speaker 1: pressure from the latest announcement from the Biden administration, and

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Speaker 1: Semmis looks to be under some considerable pressure here. You know,

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Speaker 1: how do you think whatever we see from these earnings

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Speaker 1: could set the tone for the rest of the year.

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Speaker 1: I mean, given what we're seeing in chip stocks good

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Speaker 1: so far, if we continue to get some more bad signals,

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Speaker 1: I mean, you know, does that spell doom and gloom? Yeah?

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Speaker 1: It wouldn't necessarily be good, especially considering if you're looking

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Speaker 1: at the SMP five hunder as a whole tech in

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Speaker 1: discretionary stocks, you're supposed to lead the way out of

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Speaker 1: this kind of mild earnings reception that we're having right now. Um.

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Speaker 1: And you know, if if that doesn't materialize, at least

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Speaker 1: on the tech side, which is a huge driver. I mean,

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Speaker 1: we're talking about indexes in those top five stocks. If

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Speaker 1: we're looking at some weakness and tech stocks, it will

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Speaker 1: translate overall weakness in the SMP five d um. But

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Speaker 1: so far, I will say, at least on the earnings front,

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Speaker 1: companies have done a pretty good job making the best

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Speaker 1: out of a bad situation with margins. All right, Michael, Well,

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Speaker 1: thanks for giving us your view, and good to hear

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Speaker 1: someone who's a little bit more optimistic than other Michael

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Speaker 1: cast Bar of Bloomberg Intelligence, appreciate it. Meantime, another story

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Speaker 1: that we are watching, shares of Riveant declined after the

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Speaker 1: e V makers that at a recall about thirteen thousand

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Speaker 1: vehicles delivered to customers after discovering a minor structural defect

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Speaker 1: with a nut that could loosen fully in quote rare circumstances.

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Speaker 1: The company said it's recalling almost all vehicles delivered to customers,

430
00:24:22,119 --> 00:24:24,960
Speaker 1: even though the issue was discovered only in seven out

431
00:24:24,960 --> 00:24:29,000
Speaker 1: of an abundance of caution. And speaking of evs, Amazon

432
00:24:29,119 --> 00:24:31,400
Speaker 1: just announced it will spend a billion euros over five

433
00:24:31,480 --> 00:24:34,760
Speaker 1: years to electrify it's delivery fleet in Europe. That money

434
00:24:34,800 --> 00:24:36,760
Speaker 1: will be used to double the number of evs in

435
00:24:36,800 --> 00:24:40,760
Speaker 1: Europe to ten tho vans and fift electric heavy goods

436
00:24:41,040 --> 00:24:43,800
Speaker 1: vehicles or so they call them. Bloomberg. Spencer Soper, who

437
00:24:43,840 --> 00:24:46,520
Speaker 1: covers Amazon for US, is here with more. So what

438
00:24:46,720 --> 00:24:51,960
Speaker 1: is Amazon hoping to accomplish, Spencer with this announcement? Yes,

439
00:24:52,000 --> 00:24:55,440
Speaker 1: so basically Amazon sending a message to the market, Uh,

440
00:24:55,520 --> 00:25:00,480
Speaker 1: you know, start producing more EV vehicles because uh, Amazon

441
00:25:00,760 --> 00:25:04,639
Speaker 1: can't find enough of them. Um and you recently that

442
00:25:04,840 --> 00:25:08,920
Speaker 1: You're segment that you just had about Ribby in particular,

443
00:25:08,920 --> 00:25:11,080
Speaker 1: shows they don't like to be wholly dependent on one

444
00:25:11,119 --> 00:25:14,640
Speaker 1: particular company as well. So they buy from Ribbian, they

445
00:25:14,640 --> 00:25:17,520
Speaker 1: buy from Mercedes. They want more people in the market

446
00:25:17,600 --> 00:25:19,520
Speaker 1: producing these things, and they just want more of these

447
00:25:19,680 --> 00:25:24,000
Speaker 1: electric vehicles produced. Uh you know. As as a bottom line,

448
00:25:25,800 --> 00:25:29,160
Speaker 1: how do electric cars fit into Amazon's plans to get

449
00:25:29,240 --> 00:25:35,120
Speaker 1: to uh net zero. Yes, so Amasa really hasn't said

450
00:25:35,160 --> 00:25:37,360
Speaker 1: precisely how it's gonna do. This's a very lofty goal,

451
00:25:37,440 --> 00:25:41,520
Speaker 1: you know, net zero emissions by but the most visible

452
00:25:41,560 --> 00:25:44,800
Speaker 1: thing has been electric vehicles. They're on the road, you

453
00:25:44,840 --> 00:25:47,720
Speaker 1: see them, um, And they're going to have to address

454
00:25:47,760 --> 00:25:51,479
Speaker 1: a lot of other things in their company like uh,

455
00:25:51,560 --> 00:25:55,320
Speaker 1: you know, airplanes and ocean liners and those sorts of

456
00:25:55,359 --> 00:26:01,080
Speaker 1: things that are still very fuel heavy, but they're electric vehicles.

457
00:26:01,160 --> 00:26:03,520
Speaker 1: Is really the predominant part piece of their of their

458
00:26:03,560 --> 00:26:07,919
Speaker 1: push so far, and so talk to us about the

459
00:26:08,000 --> 00:26:10,160
Speaker 1: other parts of the other potential parts of their push.

460
00:26:10,200 --> 00:26:13,800
Speaker 1: How else are they going to get to that zero? Yeah,

461
00:26:13,840 --> 00:26:16,040
Speaker 1: there there were some interesting things in this announcement in

462
00:26:16,080 --> 00:26:18,399
Speaker 1: Europe where they even talked about making deliveries you know,

463
00:26:18,520 --> 00:26:21,320
Speaker 1: on electric bicycles and even by foot. And they also

464
00:26:21,359 --> 00:26:24,439
Speaker 1: talked about expanding their network in Europe, their warehouse network

465
00:26:24,480 --> 00:26:27,040
Speaker 1: in Europe. And I think there's also setting a message

466
00:26:27,040 --> 00:26:28,760
Speaker 1: with that as well that they want to make sure

467
00:26:28,800 --> 00:26:31,680
Speaker 1: that is particularly it's a delivery station, they want to

468
00:26:31,720 --> 00:26:34,120
Speaker 1: make sure that it's equipped with charging stations for any

469
00:26:34,119 --> 00:26:38,480
Speaker 1: type of of you know, non or low emission vehicles

470
00:26:38,520 --> 00:26:40,199
Speaker 1: that they that they might be using. They want to

471
00:26:40,240 --> 00:26:42,480
Speaker 1: make sure that the infrastructure that they have, not just

472
00:26:42,560 --> 00:26:44,919
Speaker 1: the vehicles they have, but the infrastructure they have is

473
00:26:44,960 --> 00:26:48,800
Speaker 1: capable of charging these things. And how is what they're

474
00:26:48,800 --> 00:26:52,320
Speaker 1: doing in Europe compared how does it compare to what

475
00:26:52,480 --> 00:26:55,359
Speaker 1: they have done so far in the United States? I

476
00:26:55,400 --> 00:26:58,399
Speaker 1: mean it pretty much is the same is the same model, um,

477
00:26:58,440 --> 00:27:01,760
Speaker 1: you know, just a big investment in electric vehicles. But

478
00:27:01,840 --> 00:27:04,040
Speaker 1: this is the biggest announcement they've made by far in Europe.

479
00:27:04,040 --> 00:27:06,080
Speaker 1: So they're trying to send a message to Europe, say, listen,

480
00:27:06,400 --> 00:27:07,920
Speaker 1: what we've been doing in the US, We're going to

481
00:27:08,000 --> 00:27:10,000
Speaker 1: be doing the same thing, same thing in Europe and

482
00:27:10,040 --> 00:27:15,239
Speaker 1: following the same playbook. All right, Spencer, soaper always good

483
00:27:15,240 --> 00:27:18,120
Speaker 1: to have you with us. Thank you Spencer for those updates.

484
00:27:18,119 --> 00:27:21,280
Speaker 1: Thumbs up. All right? Coming up the long crypto winter?

485
00:27:21,400 --> 00:27:23,840
Speaker 1: How much longer is it going to lask and what

486
00:27:23,880 --> 00:27:26,480
Speaker 1: do we make of all the recent crypto CEO and

487
00:27:26,640 --> 00:27:29,160
Speaker 1: other executive departures. Would have talked about that and more

488
00:27:29,320 --> 00:27:34,680
Speaker 1: with Hunter Horsley bit Wise Asset Management CEO. That's next.

489
00:27:34,880 --> 00:28:09,040
Speaker 1: This is Bloomberg time now for our Crypto report. And

490
00:28:09,080 --> 00:28:12,760
Speaker 1: as global markets are awaiting US inflation data Thursday, I

491
00:28:12,760 --> 00:28:15,119
Speaker 1: want to take a look at the global wave of

492
00:28:15,160 --> 00:28:17,760
Speaker 1: monetary tightening to fight inflation and how it's spurred a

493
00:28:17,800 --> 00:28:22,760
Speaker 1: near six slide in bitcoin this year. Will bitcoin break

494
00:28:22,840 --> 00:28:26,080
Speaker 1: it's twenty dollar mark anytime soon? I want to ask

495
00:28:26,560 --> 00:28:28,840
Speaker 1: Hunter hoares Ley about that and more. He's the CEO

496
00:28:28,920 --> 00:28:31,440
Speaker 1: of bit Wise Asset Management. Hunter. Good to have you back.

497
00:28:31,520 --> 00:28:34,119
Speaker 1: So let's start on markets. What's your read as we

498
00:28:34,160 --> 00:28:36,919
Speaker 1: head into the fourth quarter, and there seems to be

499
00:28:37,000 --> 00:28:41,040
Speaker 1: just more and more bad news. Yeah, it's been. It's

500
00:28:41,040 --> 00:28:45,000
Speaker 1: been a tumultuous year in markets broadly, and certainly certainly

501
00:28:45,000 --> 00:28:47,840
Speaker 1: in crypto. I think the current you know, recent numbers

502
00:28:48,320 --> 00:28:52,160
Speaker 1: this year, the NASDACS down, O smps down, and cryptos

503
00:28:52,200 --> 00:28:56,400
Speaker 1: down or thereabouts. It's changing every day. So the story

504
00:28:56,440 --> 00:28:59,920
Speaker 1: of this year is definitely a bear market. Uh. Nevertheless,

505
00:29:00,040 --> 00:29:03,400
Speaker 1: we've seen increased interest from from our our client base,

506
00:29:03,840 --> 00:29:06,800
Speaker 1: and I think that the backdrop for many crypto investors

507
00:29:07,080 --> 00:29:13,280
Speaker 1: investors is that they're historically have been four year cycles. Uh.

508
00:29:13,320 --> 00:29:16,880
Speaker 1: And while there are opportunities to make money in many

509
00:29:16,960 --> 00:29:20,200
Speaker 1: moments of the crypto market, bear market moments of the

510
00:29:20,240 --> 00:29:22,840
Speaker 1: moments where fortunes can be made, and so there are

511
00:29:22,920 --> 00:29:25,560
Speaker 1: some that are positioning themselves in the current bear market

512
00:29:26,120 --> 00:29:30,360
Speaker 1: UM and UH and coming into the space. Now, So

513
00:29:30,520 --> 00:29:33,480
Speaker 1: what do you think it'll mean for crypto ultimately? Does

514
00:29:33,520 --> 00:29:38,560
Speaker 1: bitcoin break that mark for example? Yeah, you know, I

515
00:29:39,000 --> 00:29:43,720
Speaker 1: can't say for sure about about twenty UM and certainly

516
00:29:44,240 --> 00:29:46,280
Speaker 1: it's a space with with quite a bit of allatility.

517
00:29:46,840 --> 00:29:50,880
Speaker 1: But the historical pattern of cryptover the data we have

518
00:29:51,280 --> 00:29:54,600
Speaker 1: about twelve years of a journey, is that we get

519
00:29:54,640 --> 00:29:58,440
Speaker 1: four year cycles. We get three years of bowld markets

520
00:29:58,520 --> 00:30:01,600
Speaker 1: with growing momentum, and then we get a bear market year,

521
00:30:01,720 --> 00:30:07,640
Speaker 1: so the market down almost, the market down north and

522
00:30:07,720 --> 00:30:13,560
Speaker 1: this year obviously the market down around. The expectation if

523
00:30:13,560 --> 00:30:16,920
Speaker 1: the market you know, continues its historical trend would be

524
00:30:17,000 --> 00:30:20,240
Speaker 1: that we begin a new cycle next year. And so

525
00:30:20,360 --> 00:30:23,440
Speaker 1: wherever we wind up this year, a lot of investors

526
00:30:23,480 --> 00:30:26,840
Speaker 1: are thinking about how that positions them for the next cycle.

527
00:30:28,760 --> 00:30:30,600
Speaker 1: You're out with a new Web three fund that will

528
00:30:30,640 --> 00:30:35,920
Speaker 1: give retail investors exposure to companies across Web three, UH, finance,

529
00:30:36,000 --> 00:30:40,800
Speaker 1: the metaverse, the creator economy. As we barrel into a recession,

530
00:30:40,840 --> 00:30:45,720
Speaker 1: what makes you think investors are going to jump on board. Yeah.

531
00:30:45,800 --> 00:30:50,520
Speaker 1: So at bid wise, we view our role as helping

532
00:30:50,560 --> 00:30:54,480
Speaker 1: investors understand and access the opportunities in crypto. And certainly

533
00:30:54,840 --> 00:30:57,080
Speaker 1: there are a wide range of important things going on

534
00:30:57,120 --> 00:31:00,600
Speaker 1: in the world today outside of this space. It's our

535
00:31:00,680 --> 00:31:03,840
Speaker 1: job to stay focused on this space. Specifically, we've been

536
00:31:03,840 --> 00:31:06,400
Speaker 1: doing it for five years. We work with over a

537
00:31:06,480 --> 00:31:11,760
Speaker 1: thousand financial advisors, branches, UH and institutions. And what we

538
00:31:11,800 --> 00:31:16,760
Speaker 1: saw with the web was an emerging category of opportunity

539
00:31:17,160 --> 00:31:22,120
Speaker 1: around the established innovators, established companies who are positioned to

540
00:31:22,200 --> 00:31:25,720
Speaker 1: benefit from the rise of Web three, from the environment

541
00:31:25,800 --> 00:31:28,600
Speaker 1: created by crypto and so we view it as our

542
00:31:28,720 --> 00:31:33,400
Speaker 1: job to recognize worthwhile opportunities and open up access to

543
00:31:33,440 --> 00:31:37,040
Speaker 1: those UH and so that's why we we introduced we

544
00:31:37,120 --> 00:31:40,840
Speaker 1: introduced the Web three product. And in general today there's

545
00:31:40,880 --> 00:31:44,840
Speaker 1: there's quite a wide aperture of different areas that investors

546
00:31:45,160 --> 00:31:49,200
Speaker 1: see opportunity in the crypto markets, quite different from you know,

547
00:31:49,280 --> 00:31:51,320
Speaker 1: even even when when we started the firm and the

548
00:31:51,360 --> 00:31:55,680
Speaker 1: story was mostly just about just about bitcoin. Now there's

549
00:31:55,680 --> 00:31:59,440
Speaker 1: been a number of high high profile crypto executive departures

550
00:31:59,680 --> 00:32:04,160
Speaker 1: see es. The CFO of open Sea recently left. What

551
00:32:04,160 --> 00:32:08,400
Speaker 1: do you thinks behind all of this. You know, I

552
00:32:08,440 --> 00:32:12,400
Speaker 1: think zooming out it's a it's a difficult time in

553
00:32:12,440 --> 00:32:16,160
Speaker 1: the economy, and crypto is not bigger than that, It's

554
00:32:16,200 --> 00:32:18,840
Speaker 1: not excluded from that. And in fact, you know, crypto

555
00:32:19,080 --> 00:32:21,520
Speaker 1: is more volatile in general, and so I think it's

556
00:32:21,640 --> 00:32:25,160
Speaker 1: natural to expect that you would see that you would

557
00:32:25,160 --> 00:32:28,800
Speaker 1: see turnover and that you would see adjustments with the

558
00:32:28,840 --> 00:32:32,240
Speaker 1: firms in the space. We've been around for five years,

559
00:32:32,840 --> 00:32:35,600
Speaker 1: UH and in that period of time alone have seen

560
00:32:35,680 --> 00:32:39,120
Speaker 1: many many of the players change. UM. I think it's

561
00:32:39,360 --> 00:32:41,680
Speaker 1: a healthy part of the progression and the maturation of

562
00:32:41,720 --> 00:32:44,960
Speaker 1: the space. But in thinking about what it means the

563
00:32:45,000 --> 00:32:48,120
Speaker 1: average UH, the average investor who's interested in the space

564
00:32:48,200 --> 00:32:51,640
Speaker 1: doesn't have a ton of time to UH to focus

565
00:32:51,640 --> 00:32:54,280
Speaker 1: on on everything that's going on day today. I think

566
00:32:54,320 --> 00:32:57,920
Speaker 1: that the real the real learning OFO is that it's

567
00:32:57,920 --> 00:33:01,480
Speaker 1: starting to really matter who you work with, or what

568
00:33:01,560 --> 00:33:05,280
Speaker 1: platform you use, or what app you use, and not

569
00:33:05,520 --> 00:33:09,200
Speaker 1: all of these things are created equal. I think in

570
00:33:10,040 --> 00:33:12,480
Speaker 1: there's a sense that if you invested in something, it

571
00:33:12,520 --> 00:33:14,320
Speaker 1: didn't really matter where you bought it or how you

572
00:33:14,360 --> 00:33:16,080
Speaker 1: bought it. You had it. You had a shot at

573
00:33:16,840 --> 00:33:20,200
Speaker 1: at a great return. I think this year, what's becoming

574
00:33:20,240 --> 00:33:22,840
Speaker 1: more clear is that it matters. It matters who you're

575
00:33:22,840 --> 00:33:26,479
Speaker 1: working with or what service you're using to invest. So

576
00:33:26,600 --> 00:33:29,440
Speaker 1: I think that that is the implication of this for

577
00:33:29,520 --> 00:33:34,240
Speaker 1: most investors is paying attention to to who you're working with. Now,

578
00:33:34,240 --> 00:33:36,280
Speaker 1: I'd love for you to put your social media hat

579
00:33:36,360 --> 00:33:38,800
Speaker 1: on for a moment. You used to work at Facebook

580
00:33:38,840 --> 00:33:42,040
Speaker 1: and Instagram earlier in your career. I'm sure you've been

581
00:33:42,080 --> 00:33:47,040
Speaker 1: following the Twitter Musk saga to a certain extent. Elon

582
00:33:47,160 --> 00:33:50,760
Speaker 1: Musk and Jack Dorsey we now know from their text. Uh,

583
00:33:50,800 --> 00:33:56,480
Speaker 1: you know talked about making Twitter and open source protocol. Uh.

584
00:33:56,640 --> 00:34:00,600
Speaker 1: What do you think about a decentralized vision for Twitter

585
00:34:00,640 --> 00:34:05,080
Speaker 1: and if something like that is really possible? I think

586
00:34:05,120 --> 00:34:08,319
Speaker 1: it's possible. I think it's exciting, and I think it's

587
00:34:08,320 --> 00:34:10,799
Speaker 1: an experiment we're going to see a play out in

588
00:34:10,840 --> 00:34:14,400
Speaker 1: the next in the immediate term future. Uh. In fact,

589
00:34:14,480 --> 00:34:17,880
Speaker 1: there's a there's a project called Forecaster that's already attempting

590
00:34:17,920 --> 00:34:23,400
Speaker 1: to build a Web three version of Twitter where you

591
00:34:23,440 --> 00:34:28,200
Speaker 1: can have a similar communication experience. Um, but you don't

592
00:34:28,239 --> 00:34:31,440
Speaker 1: worry about the sort of corporate policy and the moderation

593
00:34:31,480 --> 00:34:35,480
Speaker 1: policy because the information is on a blockchain, and then

594
00:34:35,640 --> 00:34:38,600
Speaker 1: the app just pulls information from that blockchain. So I

595
00:34:38,600 --> 00:34:40,799
Speaker 1: think the game is a foot on this one, and

596
00:34:40,840 --> 00:34:43,320
Speaker 1: I think zooming out it's it's sort of indicative of

597
00:34:43,400 --> 00:34:45,839
Speaker 1: the moment we're at in the crypto space and with

598
00:34:45,880 --> 00:34:48,280
Speaker 1: Web three, which is there are now a huge amount

599
00:34:48,280 --> 00:34:52,839
Speaker 1: of developers, there's great funding, UH, there's proven technology, and

600
00:34:52,960 --> 00:34:56,000
Speaker 1: I think over the next two years you're gonna see

601
00:34:56,600 --> 00:35:01,240
Speaker 1: a big wave of attempts to build UH in sumer applications,

602
00:35:01,880 --> 00:35:05,759
Speaker 1: to build services that people use UM. And I think

603
00:35:05,800 --> 00:35:09,279
Speaker 1: I think the Twitter scenario is front and centers as

604
00:35:09,320 --> 00:35:13,040
Speaker 1: one of those in Web three. So it sounds like

605
00:35:13,040 --> 00:35:15,960
Speaker 1: you see this pretty clearly. Can you explain what this

606
00:35:16,000 --> 00:35:18,560
Speaker 1: actually looks like and how how do how do things

607
00:35:18,680 --> 00:35:22,400
Speaker 1: change for the average Twitter user? What happens to Twitter,

608
00:35:22,719 --> 00:35:25,840
Speaker 1: for example, if everything is decentralized. I think, you know,

609
00:35:25,920 --> 00:35:28,360
Speaker 1: some people just don't understand, like what are they what

610
00:35:28,480 --> 00:35:32,520
Speaker 1: do they really mean? Here's here's the mental model i'd offer.

611
00:35:33,360 --> 00:35:38,200
Speaker 1: In the current world, your followers, your your your audience

612
00:35:38,600 --> 00:35:41,880
Speaker 1: is only available on Twitter. So whatever Twitter does is

613
00:35:41,960 --> 00:35:46,600
Speaker 1: law UH, and sometimes that that is is a downside

614
00:35:46,600 --> 00:35:51,160
Speaker 1: for certain users. The decentralized Web three version. I don't

615
00:35:51,160 --> 00:35:53,319
Speaker 1: know exactly what it will look like, but it will

616
00:35:53,360 --> 00:35:55,760
Speaker 1: look something more like the way you think about your email,

617
00:35:56,400 --> 00:35:58,680
Speaker 1: which is, if you're not happy with Gmail, you can

618
00:35:58,719 --> 00:36:00,719
Speaker 1: move to a Well. If you're not happy with AO

619
00:36:00,800 --> 00:36:03,160
Speaker 1: well and you want certain features, you can move to

620
00:36:03,200 --> 00:36:06,359
Speaker 1: Superhuman uh and so on and so forth. You can

621
00:36:06,440 --> 00:36:09,719
Speaker 1: take your email address, you can take your your your

622
00:36:09,760 --> 00:36:13,360
Speaker 1: contact book with you, uh, and you can go somewhere

623
00:36:13,360 --> 00:36:15,560
Speaker 1: else if you don't like the way that the app

624
00:36:16,160 --> 00:36:18,880
Speaker 1: is being built or the policies of the app. And

625
00:36:18,920 --> 00:36:22,080
Speaker 1: so that's that's what people are striving for here. When

626
00:36:22,120 --> 00:36:25,200
Speaker 1: you hear people say a Web three version of something

627
00:36:25,640 --> 00:36:28,880
Speaker 1: similar to the dynamic and power structure that exists with email,

628
00:36:29,160 --> 00:36:32,640
Speaker 1: they want to introduce that to more parts of our life. Uh.

629
00:36:32,680 --> 00:36:34,719
Speaker 1: And so you know, I think you could use that

630
00:36:34,760 --> 00:36:39,400
Speaker 1: as an analogy for how uh it might change certain

631
00:36:39,440 --> 00:36:45,839
Speaker 1: services like Twitter. Interesting. Well, thanks for humoring us there,

632
00:36:46,280 --> 00:36:49,160
Speaker 1: Hunter Horseley, CEO. If it wise, Asset Management would love

633
00:36:49,200 --> 00:36:51,799
Speaker 1: to have you back sooner rather than later. Hunter, thank

634
00:36:51,840 --> 00:37:02,879
Speaker 1: you for stopping by. Apple is set to shift from

635
00:37:03,160 --> 00:37:05,920
Speaker 1: the lightning charging port on the iPhone and other devices

636
00:37:05,960 --> 00:37:09,480
Speaker 1: to USBC to abide by a new European law. What

637
00:37:09,520 --> 00:37:12,439
Speaker 1: does this mean for the company's wireless first future. Let's

638
00:37:12,440 --> 00:37:15,040
Speaker 1: bring in Mark German for more. So, let's let's rewind

639
00:37:15,080 --> 00:37:17,680
Speaker 1: a little bit, because when they change that lightning charging port,

640
00:37:17,719 --> 00:37:21,280
Speaker 1: it was a little traumatic for some people. What exactly

641
00:37:21,360 --> 00:37:24,600
Speaker 1: is Apple doing now and what does it mean for

642
00:37:25,160 --> 00:37:28,680
Speaker 1: iPhone users? That's right, Emily so for most the two

643
00:37:28,680 --> 00:37:31,680
Speaker 1: thousand's right, Apple had what was called the thirty pin

644
00:37:31,800 --> 00:37:34,960
Speaker 1: iPod connector that worked on all their main iPods, and

645
00:37:34,960 --> 00:37:37,000
Speaker 1: it was also the connector that was on the iPhone

646
00:37:37,239 --> 00:37:41,200
Speaker 1: until the iPhone five. With the five, Apple moved to lightning.

647
00:37:41,239 --> 00:37:44,600
Speaker 1: It's much smaller, it's reversible, it's all digital. It made

648
00:37:44,640 --> 00:37:48,439
Speaker 1: sense as things were shifting more wirelessly, right, But now

649
00:37:48,520 --> 00:37:51,000
Speaker 1: we're getting to the point where USBC is taking over

650
00:37:51,040 --> 00:37:54,000
Speaker 1: the tech industry, and now the European Union is pushing

651
00:37:54,080 --> 00:37:58,520
Speaker 1: USBC because it's interoperable between Android devices from Samsung, from

652
00:37:58,560 --> 00:38:01,239
Speaker 1: Google as well as Apple to ices. Right now, the

653
00:38:01,280 --> 00:38:04,040
Speaker 1: iPhone still uses lightning. That means you can't use the

654
00:38:04,040 --> 00:38:06,479
Speaker 1: same charg or to charge your iPhone as you can't

655
00:38:06,480 --> 00:38:09,120
Speaker 1: even with your iPad pro or your maclopro or your

656
00:38:09,120 --> 00:38:12,480
Speaker 1: Android device. So, because of some prodding from the European

657
00:38:12,560 --> 00:38:15,040
Speaker 1: Union and because it just makes sense for consumers in

658
00:38:15,080 --> 00:38:18,880
Speaker 1: its ecosystem, Apple will move to USBC next year in

659
00:38:19,640 --> 00:38:22,120
Speaker 1: three with the iPhone fifteen. They'll also move it to

660
00:38:22,160 --> 00:38:24,520
Speaker 1: some of their math accessories that still use lightning, some

661
00:38:24,560 --> 00:38:27,080
Speaker 1: of their iPhone accessories like the mag Safe battery that

662
00:38:27,200 --> 00:38:29,919
Speaker 1: use lightning, and probably most critically, the air pods, which

663
00:38:29,960 --> 00:38:32,480
Speaker 1: also still use lightning. So overall, it's a very good

664
00:38:32,480 --> 00:38:37,279
Speaker 1: move for consumers. I think what does it mean though,

665
00:38:37,320 --> 00:38:40,120
Speaker 1: given that Apple really wants us ultimately to not have

666
00:38:40,200 --> 00:38:43,400
Speaker 1: to use any wires at all. Yeah, no, that's a

667
00:38:43,400 --> 00:38:47,400
Speaker 1: good question. So about five years ago, Apple announced the

668
00:38:47,400 --> 00:38:49,560
Speaker 1: device called the air Power. What that was was a

669
00:38:49,640 --> 00:38:52,640
Speaker 1: three device charging matt from the company. It was announced

670
00:38:52,640 --> 00:38:55,480
Speaker 1: in seen was supposed to go on sale and it

671
00:38:55,480 --> 00:38:58,320
Speaker 1: would allow you to inductively charge an iPhone, air pods,

672
00:38:58,360 --> 00:39:01,000
Speaker 1: and the Apple Watch at the same time. Many technical

673
00:39:01,040 --> 00:39:03,880
Speaker 1: issues I won't be labor right now, that never launched,

674
00:39:03,960 --> 00:39:07,800
Speaker 1: but Apple still wants to push users towards wireless charging.

675
00:39:07,880 --> 00:39:10,759
Speaker 1: The latest MacBooks they all use Mac Safe charging, right.

676
00:39:10,800 --> 00:39:13,160
Speaker 1: You don't stick an actual cable into the device, but

677
00:39:13,239 --> 00:39:16,720
Speaker 1: it uses somewhat of a magnetic inductive charger called mag safe.

678
00:39:17,000 --> 00:39:19,719
Speaker 1: The iPhone has mag Safe charging, the Apple watches mac

679
00:39:19,760 --> 00:39:22,600
Speaker 1: Safe charging, the AirPods have max Safe charging. So while

680
00:39:22,600 --> 00:39:25,480
Speaker 1: the lightning connector and the iPod thirty pin connector before

681
00:39:25,520 --> 00:39:28,360
Speaker 1: that both last at about ten eleven years for the

682
00:39:28,440 --> 00:39:31,759
Speaker 1: respective ecosystems, I think USBC is going to be the

683
00:39:31,800 --> 00:39:34,680
Speaker 1: Apple connector for the next five years, and then we'll

684
00:39:34,719 --> 00:39:38,240
Speaker 1: see a much bigger push to inductive charging, mag safe

685
00:39:38,640 --> 00:39:44,480
Speaker 1: and wireless in tropical boat inter propability. All right, Boomer

686
00:39:44,520 --> 00:39:48,880
Speaker 1: smart German, always appreciating you keeping us update on all

687
00:39:48,960 --> 00:39:52,160
Speaker 1: things Apple. Thank you so much for that. And that

688
00:39:52,680 --> 00:39:55,240
Speaker 1: does it for the sedition of Boomberg Technology. Do not forget.

689
00:39:55,280 --> 00:39:59,319
Speaker 1: You can check out the podcast anywhere you get your podcasts.

690
00:39:59,400 --> 00:40:03,279
Speaker 1: I'm Emily in San Francisco. This is Bloomberg