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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 Chain. I'm Emily Check in San Francisco and this

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Speaker 1: is Bloomberg Technology coming up in the next hour. Stocks

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Speaker 1: are set for the longest losing streaks since January over

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Speaker 1: concerns the feds aggressive policy to combat high inflation will

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Speaker 1: throw the US into a recession. Plus, it is another

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Speaker 1: sign of a worsening crypto downturn, coin Based announcing it'll

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Speaker 1: layoff of its workforce, following other crypto companies that are

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Speaker 1: also cutting staff. And my excloulsive interview with Cisco CEO

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Speaker 1: Chuck Robbins on where he sees the economy headed and

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Speaker 1: how the company is navigating the downturn and supply chain

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Speaker 1: an He'll join me in an exclusive interview later this hour.

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Speaker 1: I do want to dive deeper now into the markets

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Speaker 1: as we wait for the Fed's decision Wednesday. Leo Kelly,

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Speaker 1: CEO of Verden's Capital Advisors, joining us now to discuss. So,

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Speaker 1: what are you expecting from the FED tomorrow, Leo, and

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Speaker 1: how is that impacting your strategy? Well, the FED has

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Speaker 1: to be aggressive there's no question about it. They are

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Speaker 1: well behind the curve. They have been for some time.

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Speaker 1: We never really brought into the transitory inflation nonsense, and

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Speaker 1: this has gotten far beyond anyone's expectations. So our expectation

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Speaker 1: is they act aggressively for the first time. While I

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Speaker 1: think we all want them to take it carefully and slowly,

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Speaker 1: the reality is they will do more damage if they're

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Speaker 1: not aggressive then if they don't. So um, we think

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Speaker 1: the FED is aggressive. We think the market expects that.

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Speaker 1: I don't know that tomorrow is going to impact our

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Speaker 1: long term strategy regardless. It's really about the trend, the

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Speaker 1: trend of inflation and prices, the trend of interest rates,

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Speaker 1: which we think are breaking a secular forty year bowl

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Speaker 1: market and starting to turn into a secular long term

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Speaker 1: bear market for bonds. So there's a lot happening right now,

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Speaker 1: and the FED is just one piece of that puzzle.

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Speaker 1: Why don't see the biggest risks in tech specifically, Well,

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Speaker 1: it's like specifically. The problem is is there's still a

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Speaker 1: lot of speculation um to wear out speculation in any market,

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Speaker 1: in any bubble type market, and when we look around

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Speaker 1: at things like crypto or we look at stay at

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Speaker 1: home stocks. Back in the uh COVID years, there was

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Speaker 1: tremendous speculation. There's tremendous stories, and it takes time and

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Speaker 1: it takes multiple um let's just say shots at that

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Speaker 1: speculation before you wind it completely out. So more than

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Speaker 1: likely what you see is you see these massive downturns.

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Speaker 1: You probably get some over sold recoveries, but then you

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Speaker 1: return back and until you get the last bit of

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Speaker 1: hope out of the market, you don't see actual bottoms. Um.

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Speaker 1: There was a great there was a great statistic. I

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Speaker 1: just heard uh in the in the introduction that these

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Speaker 1: companies have cash flow, and so this may be a

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Speaker 1: little different. I would say, back in the dot com bubble,

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Speaker 1: Microsoft had cash flow, Cisco had cash flow. If you

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Speaker 1: look at something like Cisco, um, it was at about

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Speaker 1: ninety dollars at the top of the dot com bubble,

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Speaker 1: got to nine, which was well below what its fair

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Speaker 1: value was, and it took decades for it to come

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Speaker 1: back before we started see reasonable prices. So interesting, I

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Speaker 1: think tech you have to be careful with interesting that

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Speaker 1: you use Cisco as an example, because I'm going to

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Speaker 1: speak to Chuck Robins, the CEO of Cisco later this hour.

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Speaker 1: I also spoke to Amazon CEO Andy Jassey last week

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Speaker 1: we spoke about the economy, his thoughts on rising inflation.

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Speaker 1: Take a listen to what he had to say. I

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Speaker 1: think the real challenge for us there is on the

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Speaker 1: cost side. And there have been several things that have happened, um,

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Speaker 1: some of which are more controllable than others. You know,

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Speaker 1: I think the part that's less controllable is really around inflation.

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Speaker 1: And I think we thought that inflation would start to

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Speaker 1: attenuate in two and with the war in Ukraine, it

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Speaker 1: just went the other way and has significantly accelerated. You've

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Speaker 1: got these massive companies like Amazon that have no control

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Speaker 1: over where these numbers are going. You know, what do

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Speaker 1: you think the long term impact is going to be

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Speaker 1: on a company like Amazon and other companies that you know,

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Speaker 1: rely on the health of the consumer. So history shows

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Speaker 1: us that when the cost of capital exceeds the return

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Speaker 1: on invested capital, we go into a recession. And the

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Speaker 1: cost of capital is rising rapidly, and so we're going

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Speaker 1: to see a significant profit recession in the marketplace from

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Speaker 1: companies like an Amazon and many others. And so if

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Speaker 1: you're not inflation sensitive. This is going to be serious

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Speaker 1: pressure on earning. So some of these reliable growth companies

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Speaker 1: that have steadied growth patterns are going to start to

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Speaker 1: see those patterns get disrupted and that's going to affect

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Speaker 1: PE multiples. The reality is with inflation that um, we

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Speaker 1: have it. It's accelerating and one of the reasons is

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Speaker 1: we're not addressing the problem. We have to go to

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Speaker 1: the core of the problem of inflation, and until we

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Speaker 1: do that, inflation will continue to surprise us. We cannot

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Speaker 1: answer a supply side inflation event with more demand, and

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Speaker 1: so far that has been the method of replacing and

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Speaker 1: repairing inflation. So the Fed has to get aggressive and

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Speaker 1: we cannot afford policy hours coming out of Washington that

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Speaker 1: stimulate more demand. I mean, that's the bottom line for inflation.

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Speaker 1: All right, Lots to continue to watch Leo Kelly Verdon's

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Speaker 1: Capital Advisers, thank you for giving us your input there. Well.

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Speaker 1: For the first time since agreeing to buy Twitter, Elon

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Speaker 1: Musk will address Twitter employees on Thursday. He'll speak virtually

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Speaker 1: at a company wide meeting and to take questions. Twitter

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Speaker 1: has been in a chaotic state since the deal came

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Speaker 1: together in April. While Musk has a passionate contingent of

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Speaker 1: employees who support to take over, another contingent is openly critical.

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Speaker 1: Some employees frustrated by Musk's ongoing questions about spam bots

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Speaker 1: and I think it's Musk's attempt to renegotiate his forty

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Speaker 1: four billion dollar deal. Twitter executives, however, have told employees

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Speaker 1: they plan to enforce the agreement. Coming up is the

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Speaker 1: future of streaming sports. We're gonna talk Apple, Disney, Netflix,

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Speaker 1: and the future of streaming with Rich Greenfield. Up next,

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Speaker 1: this is Bloomberg. As Netflix looks to turn around an

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Speaker 1: already rough year, it is hoping Squid Game will be

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Speaker 1: its savior. Just days after announcing the second season of

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Speaker 1: its most popular series of all times, Netflix is now

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Speaker 1: turning it into a reality competition. It is called Old

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Speaker 1: squid Game. The Challenge and the streaming service boasts that

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Speaker 1: will have not only the largest cast in reality TV history,

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Speaker 1: but also the biggest lumpsome cash prize four dred fifties.

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Speaker 1: Six real players will hope to win four point five

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Speaker 1: six million dollars. If you've seen the show, you know

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Speaker 1: the significance of that number. But unlike the original series.

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Speaker 1: There won't be any gore, they say. With the worst fate,

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Speaker 1: anyone will face going home empty handed. While Apple is

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Speaker 1: betting big on sports, the company just signed a ten

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Speaker 1: year deal to exclusively stream Major League Soccer on Apple

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Speaker 1: TV beginning Back in March, Apple reach a deal with

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Speaker 1: Major League Baseball to air Friday night games also on

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Speaker 1: Apple TV. This deal coming just one day after Disney

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Speaker 1: lost out on a bidding war for the streaming rights

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Speaker 1: to the popular Indian Premier League. Rich Greenfield of Light

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Speaker 1: Shed partners with us now to discuss it all. And

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Speaker 1: if you're a baseball fan, you know having those Friday

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Speaker 1: sports rights are pretty important. Sport's gonna be the next

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Speaker 1: big streaming differentiator or z big streaming differentiator now. I

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Speaker 1: think the reality is all of these streaming platforms are

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Speaker 1: realizing just how difficult it is not just to attract subscribers,

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Speaker 1: but to re engage them and to make sure they

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Speaker 1: don't turn emily. And it's it's hard, right. There's a

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Speaker 1: reason why Netflix spends seventeen billion dollars a year on content.

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Speaker 1: It's not like they do it because they want to

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Speaker 1: spend too much money and they just toss and burn capital.

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Speaker 1: The reality is the difference between the old cable days

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Speaker 1: that you and I grew up on. Remember you wanted

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Speaker 1: to cancel your cable service like you had a literally

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Speaker 1: call up Comcast or back in the daytime winner cable,

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Speaker 1: you probably spent the better part of your day on

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Speaker 1: hold being transferred around to departments. If you actually got

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Speaker 1: through the retention department and tried to quit or cancel,

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Speaker 1: then you had to go return your equipment and stand

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Speaker 1: in line like it was being tortured. Now, if you

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Speaker 1: want to cancel a service, it's point and click and cancel,

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Speaker 1: and you can sign right back up a few days later.

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Speaker 1: So I think in many way, sports is being used

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Speaker 1: as a tool that all of these companies are looking

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Speaker 1: at to bring in new subscribers and to retain existing subscribers.

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Speaker 1: And I don't think any of these will be all sports.

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Speaker 1: I think that's a very hard business model, and I

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Speaker 1: think it's one of the reasons ESPN hasn't converted to

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Speaker 1: over the top yet. But I do think that they're

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Speaker 1: all looking at sports as yet another tool to drive

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Speaker 1: subscribers and retain existing ones. How big a deal is

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Speaker 1: Apple picking up Major League Soccer or Disney losing out

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Speaker 1: on cricket. Do you see these wins and losses as

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Speaker 1: you know more um you know, you know, not necessarily

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Speaker 1: big deals. I think Apple is a huge deal. I

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Speaker 1: think every single person that invests in looks at the

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Speaker 1: media space or runs a media company should be thinking

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Speaker 1: about what Apple is doing. Because you know, the only

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Speaker 1: thing holding the traditional media bundle, big video bundles, cable

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Speaker 1: and broadcast networks. The only thing holding these bundles together, Emily,

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Speaker 1: is sports. All the best entertainment programming. Think about it.

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Speaker 1: Name one big own new show that's aired on linear

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Speaker 1: TV in years. Like everything is now starting its life

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Speaker 1: on streaming. I don't care whether we're talking about squid Games,

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Speaker 1: which you just talked about, or Mandalorian on Disney or

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Speaker 1: Murderers in the Building on Who. Like, everything is happening

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Speaker 1: on streaming. So the only thing sort of left has

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Speaker 1: been sports. And yet look what's just happened. Amazon has

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Speaker 1: just taken the number two TV series on linear TV

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Speaker 1: broadcast TV in Thursday Night Football this fall only on

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Speaker 1: Amazon Crime. And then you see this deal with MLS today,

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Speaker 1: like you're just every day the last pieces that are

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Speaker 1: holding together the TV bundle are being stripped away, and

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Speaker 1: that means two things. One more and more chord cutting,

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Speaker 1: less and less viewership for these TV programs. And all

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Speaker 1: of that means, you know, the bottom line is that

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Speaker 1: these legacy media companies are facing more and more pressure

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Speaker 1: because most of them are built around broadcasting cable networks.

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Speaker 1: It's gonna be very hard. How much M and A

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Speaker 1: do you think we're gonna see? I know you you

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Speaker 1: don't think good in the Netflix Roku deal is going

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Speaker 1: to happen? Do you say there's a zero percent chance? Look,

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Speaker 1: I hate zeros um. You know I've learned never to

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Speaker 1: I've learned never to say never. I mean, I think

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Speaker 1: if we had been on here six or you know,

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Speaker 1: if you said eight weeks ago, is Netflix gonna do advertising?

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Speaker 1: I would have said there's no chance. So you should

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Speaker 1: never say never. Everything is up for debate. I think

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Speaker 1: the odds of Netflix buying roke wu are very hard

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Speaker 1: to imagine. Why would you want to be in the

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Speaker 1: device business? I think, you know, Netflix benefits from being

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Speaker 1: a voweble on every device and not competing. Buying Roku

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Speaker 1: would put them into you know, battling against companies like

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Speaker 1: Samsung in video and that's just very hard for me

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Speaker 1: to believe. And I think Netflix is very focused on

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Speaker 1: sort of an asset light approach, initially advertising outsourcing. There

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Speaker 1: was a story out today that they may be doing

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Speaker 1: this as the information reported they may be looking at

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Speaker 1: using comcasts freewheel product. We think that makes a tremendous

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Speaker 1: amount of sense. And look, they're going to connect into

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Speaker 1: lots of platforms and use lots of players. They'll work

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Speaker 1: with Roku's, they'll work with trade desks. But I'd be

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Speaker 1: very surprised if Netflix was going to go out and

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Speaker 1: make a very significant acquisition. That's just not their style

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Speaker 1: at all. They are turning this squid game success into

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Speaker 1: a reality competition. What are your thoughts on that? I

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Speaker 1: mean is right now the cultural is now, culturally the

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Speaker 1: right time for a competition like this, with the world

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Speaker 1: melting down. If you if you watch sweed games, the

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Speaker 1: sort of the depressive nature of the world, it sort

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Speaker 1: of feels like the right time for a squid game

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Speaker 1: reality series, to be honest. But but leave that aside,

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Speaker 1: I think you're bringing up a greater issue. Netflix isn't broken.

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Speaker 1: None of the streaming services are broken, per se. That

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Speaker 1: the reality is it's all about content. Consumers are going

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Speaker 1: to gravitate to the services where they spend the most

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Speaker 1: them entertained. And you know, the reality is Netflix still

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Speaker 1: is by far and away the biggest service of all

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Speaker 1: time spent on connected TVs is on Netflix. But I

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Speaker 1: do think they need more iconic shows, and Stranger Things

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Speaker 1: has been huge coming back. All four seasons were the

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Speaker 1: weeks ago, So there's no doubt that franchise zeitgeist content

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Speaker 1: lean into doing more, not just a second season of

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Speaker 1: Squid Games, but how can they build this franchise even broader.

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Speaker 1: I think that makes a lot of sense, and I

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Speaker 1: think you're gonna see Netflix pivot from having instead of

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Speaker 1: I think they haven't had enough of that, and that's

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Speaker 1: part of the reason why they've suffered over the course

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Speaker 1: of the last couple of quarters. We've seen a few

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Speaker 1: Disney stories over the last week, you know, more sort

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Speaker 1: of Game of Thrones, Chapec firing Peter Rice has head

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Speaker 1: of Content. Apparently it only took seven minutes. How optimistic

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Speaker 1: right now are you about SPEX leadership and the culture

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Speaker 1: he is trying to create given the channel in is

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Speaker 1: that he's faced. Look, Shape came in at a very

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Speaker 1: hard time, right right right in the middle of the pandemic.

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Speaker 1: Was no easy task. The theme park business was just

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Speaker 1: you know, sort of he was very much behind before

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Speaker 1: he became CEO. Is obviously having an incredible resurgence. They

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Speaker 1: But I think the real question for for Schapeck is

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Speaker 1: what is his plan? You know, is ESPN and sports

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Speaker 1: the future. Clearly they just bowed out of sports on

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Speaker 1: streaming in India as you brought up the I p

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Speaker 1: L rights went to Viacom, a team which is owned

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Speaker 1: by Reliance Geo and James Murdoch and others. But you know,

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Speaker 1: certainly bowing out of digital or streaming in India is

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Speaker 1: a big deal, and it sort of points at this

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Speaker 1: larger existential question for Shape of like what is the

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Speaker 1: future of Disney is it about Disney Studios, the meaning

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Speaker 1: the film studio and the TV studio, the theme parks

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Speaker 1: and Sumer product which all really worked well together. Do

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Speaker 1: they need to be in the ABC broadcast TV business?

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Speaker 1: Do they need to be in the ESPN and f

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Speaker 1: X business? Like, I think there's some very big decisions

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Speaker 1: for Shaping, and I think we're all waiting. I mean,

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Speaker 1: the reality is is there a future for Hulu or

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Speaker 1: do they just put more and more of that content

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Speaker 1: onto Disney Plus. Like there are some really big structural decisions.

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Speaker 1: Maybe that's what the board is waiting for, to sort

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Speaker 1: of see what the ultimate what Disney ultimately looks like.

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Speaker 1: I will say I was surprised the board came out

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Speaker 1: with a comment sort of endorsing um Shaping, but didn't

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Speaker 1: just renew his contracts. His contract expires in February. I'm

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Speaker 1: not sure what they're waiting for, like either renewest contract

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Speaker 1: or tell us they're bringing in a new CEO. It

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Speaker 1: does seem strange that we're sort of sitting here waiting

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Speaker 1: to figure out what happens next. The stocks obviously suffered,

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Speaker 1: but the whole group is down substantially. I think investors

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Speaker 1: really want to know what is the structural future of Disney,

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Speaker 1: what are the assets that are they keeping, what assets

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Speaker 1: are they getting rid of? And we really haven't gotten

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Speaker 1: that sense from Disney over the last six months. Yeah,

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Speaker 1: it was certainly interesting to hear from the board, but

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Speaker 1: you make a very good point, like rich Greenfield always

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Speaker 1: going to have your rich thank you stopping by Investor

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Speaker 1: without Coast. Leve believes we will have a techno economic

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Speaker 1: war over the next twenty years, most likely between the

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Speaker 1: US and China. He talked about tech valuations and what

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Speaker 1: it takes to be a VC on this week's episode

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Speaker 1: of Bloomberg Wealth with David Rubenstein. Well, we high look

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Speaker 1: at it is what is the underlying innovation that's going on,

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Speaker 1: and how large a market is it addressing. If it's large,

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Speaker 1: then the valuations will look large. If you look at

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Speaker 1: it Google, it's it's a great valuation. I'm I would

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Speaker 1: think it'd come back, but it's a twenty some percent

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Speaker 1: growth company, not a fifty percent growth company. The early

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Speaker 1: stages of much most venture would be considered low growth.

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Speaker 1: When you in that world and you're addressing large markets,

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Speaker 1: you have a proprietary advantage, then the valuation metrics are very,

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Speaker 1: very different and traditional valuation approaches don't really work, but

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Speaker 1: continuing to apply them as companies mature is a mistake

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Speaker 1: and is the deal valuation so high that it's gonna

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Speaker 1: be hard for people to get the returns that they

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Speaker 1: want at a venture investing. So I do think given

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Speaker 1: the hype we've seen the last five years, we will

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Speaker 1: see a decline and returns. Uh not for everybody. The

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Speaker 1: good firms continue to be disciplined about valuations, but I

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Speaker 1: do think in general for the industry will see a decline.

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Speaker 1: The best firms will still do well. So coastal ventures

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Speaker 1: will do okay, I hope. So we have to earn

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Speaker 1: our keep the coastala there. With David Rubinstein, Welcomeack to

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Speaker 1: Bloomberg Technology and Emily changing San Francisco stocks, Folly even

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Speaker 1: further on fears that the FEDS aggressive policies to fight

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Speaker 1: inflation will throw the US into a recession. Is this

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Speaker 1: rightful cause for alarm? Where are we headed for the

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Speaker 1: next half of the year. I want to get into

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Speaker 1: all of this and more with Chuck Robin, CEO of Cisco,

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Speaker 1: who is joining us now from Cisco Live two in

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Speaker 1: Las Vegas, the company's first in person conference in two years. Chuck,

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Speaker 1: it's great to have you back here on the show.

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Speaker 1: How's it going bring us the atmosphere from the floor.

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Speaker 1: How does it feel to be back in person? Well, Emily,

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Speaker 1: thanks for having me. And you know, we we're saying

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Speaker 1: this week we're putting the live back in Cisco Live.

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Speaker 1: We've got sixteen thousand of our closest friends here, we

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Speaker 1: have a lot of our partners back here that are demonstrating.

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Speaker 1: There's lots of education going on. We had a slew

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Speaker 1: of great product announcements this week, and so I think

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Speaker 1: everybody is just as you would expect, excited to be

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Speaker 1: together in person. I think everybody's been longing for it.

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Speaker 1: And a joke today that we're so glad that we're

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Speaker 1: not doing this over video and it's still room somewhere

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Speaker 1: where we're getting no feedback. So it's a lot of energy. Now.

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Speaker 1: Cisco has always been considered a bell weather for the economy,

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Speaker 1: and I have to wonder what your customers are telling

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Speaker 1: you and how inflation and what's happening in the markets

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Speaker 1: is impacting how they're spending. You know, we talked today

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Speaker 1: with our customers and partners here about the fact that

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Speaker 1: over the last five or six years, we've dealt with

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Speaker 1: a global trade war and terrorists, We've dealt with a pandemic,

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Speaker 1: We've dealt with social justice issues, We've dealt with supply

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Speaker 1: chain issues, we have a war in Ukraine, we have inflation.

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Speaker 1: So our our customers, while it's not the new normal,

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Speaker 1: I think they're dealing with the reality that there's always

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Speaker 1: something going on in the world, and technology has proven

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Speaker 1: to be so effective during the pandemic at keeping the

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Speaker 1: global economy and the global productivity at a great level

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Speaker 1: that I think technology is going to remain strategic for

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Speaker 1: our customers. And to them say they're they're powering ahead.

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Speaker 1: So we'll see. Elon Musk says he has a super

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Speaker 1: bad feeling about the economy. Jamie Diamond said he's preparing

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Speaker 1: for an economic hurricane. How does Chuck Robbins feel, Well,

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Speaker 1: I remain optimistic, but I'm thinking specifically about the importance

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Speaker 1: of technology to our customers and how looks like we

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Speaker 1: lost Chuck Robbins. They're joining us from Cisco Live two

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Speaker 1: will work to get his shot back up. We're seeing

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Speaker 1: sentiment at pretty much an all time low. I don't

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Speaker 1: think I've ever seen people, uh, you know, feeling this

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Speaker 1: negative about the industry. All of that said, there are

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Speaker 1: still plenty of crypto firms that are hiring. Um you

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Speaker 1: know that we're seeing layoffs for sure, but the sort

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Speaker 1: of or ideology that powers this movement is intact. That

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Speaker 1: was Nick Carter, founding partner at Castle Line Adventures earlier

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Speaker 1: on Bloomberg. Now, the dual crisis of Terra and Celsius

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Speaker 1: shaking up defy in ways that may have very serious

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Speaker 1: repercussions for the crypto markets. I want to talk about

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Speaker 1: all that and more with our crypto contributor Shinali Bossic

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Speaker 1: and with Sheila Lawren, CEO of the Crypto Council for Innovation. Sheila,

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Speaker 1: great to have you here in person. So, look, there's

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Speaker 1: chaos in crypto markets, in markets more broadly, but especially

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Speaker 1: in the crypto markets. Just how how low are we

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Speaker 1: going to go here? Where's the bottom? Well, it's it's

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Speaker 1: hard to know, it's impossible to know. But we are

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Speaker 1: seeing real world consequences. We're seeing real job loss affecting

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Speaker 1: real people. We're seeing real people losing real money. And

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Speaker 1: that's in the context, of course of record high inflation,

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Speaker 1: erosion of purchasing power for families. So all at all,

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Speaker 1: it's it's it's not a great picture. That being said,

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Speaker 1: as you noted, it's hardly were hardly immune. It's hardly

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Speaker 1: just the crypto market being affected here. It's really a

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Speaker 1: much broader global economy melt down. So we you see

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Speaker 1: coin based first to hiring, freeze, now slashing of its workforce.

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Speaker 1: This on the back of the stock plummeting. What's your reaction,

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Speaker 1: our reactions that were in a contraction phase. There are

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Speaker 1: other firms who are hiring. There's a lot going on

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Speaker 1: in the market that's adjacent to crypto as well, And

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Speaker 1: I think what we're seeing is a pivot towards core

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Speaker 1: principles and ideologies. Building a brand new financial and technology

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Speaker 1: ecosystem is not easy. It takes stamina, and I think

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Speaker 1: if I were new to this industry, I would be nervous.

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Speaker 1: But over the six and seven years i've been here,

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Speaker 1: I've seen a bunch of these cycles come and go,

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Speaker 1: and so I think that what we're just seeing is

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Speaker 1: again and refocusing on street priorities. And my hope is

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Speaker 1: that we're going to come out of this the way

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Speaker 1: we have before. You know, you had mentioned real people

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Speaker 1: losing real money, and I want to steal your former

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Speaker 1: lawyer hat for a second. I mean, how does the

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Speaker 1: SEC look at something like this and want to protect

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Speaker 1: investors after so much money has already been lost. Well, Frank,

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Speaker 1: that's source of frustration I think for the industry is

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Speaker 1: that we really have been looking to agencies. The industry

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Speaker 1: has been been calling this for this for quite some time,

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Speaker 1: to say, we do need the ability to distinguish some

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Speaker 1: of the scams that do exist us in this space

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Speaker 1: from the very legitimate projects that also exist. And instead,

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Speaker 1: what we're seeing is intense litigation enforcement actions against legitimate

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Speaker 1: actors for relatively minor kinds of infractions rather than some

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Speaker 1: sort of clarity, which is what the industry really needs.

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Speaker 1: So I have to say, wearing a lawyer hat, I'm

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Speaker 1: not super thrilled about what what the engagement we're getting

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Speaker 1: from the agencies that are here to really support and

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Speaker 1: help all of us. We needed that lack of clarity.

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Speaker 1: How much of a hangover does that give the ecosystem

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Speaker 1: when you don't know what you can build? How do

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Speaker 1: you then invest in projects when when you don't know

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Speaker 1: what's possible. Well, I think that's exactly right. And what

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Speaker 1: we're kind of seeing a response to you right now

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Speaker 1: is where there is this high degree of uncertainty on

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Speaker 1: what is going to eventually be kosher, you know, to

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Speaker 1: have built and to have engaged with with people aren't

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Speaker 1: sure what to do. And we've been again, we've been

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Speaker 1: asking for many years for guard rails, for guidelines on

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Speaker 1: how to engage. We want to work collaborately with regulation

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Speaker 1: and with policymakers, and you know, in some cases that's happening.

431
00:23:55,119 --> 00:23:56,920
Speaker 1: We are seeing a lot of support from the legislative

432
00:23:56,960 --> 00:23:59,639
Speaker 1: side of the house. We are seeing an approach a

433
00:23:59,680 --> 00:24:01,720
Speaker 1: center to run and Lumus had their recent bill that

434
00:24:01,800 --> 00:24:05,399
Speaker 1: kind of trying to clarify c FCC SEC jurisdiction. A

435
00:24:05,400 --> 00:24:08,840
Speaker 1: lot of engagement abroad from the Europeans, from from APAC

436
00:24:08,920 --> 00:24:12,280
Speaker 1: countries seeing this, but here, you know, the SEC maybe

437
00:24:12,320 --> 00:24:14,880
Speaker 1: not taking quite the same approach. Well, I'm sure there's

438
00:24:14,960 --> 00:24:17,000
Speaker 1: lawmakers who are looking at what's happened with Tera and

439
00:24:17,080 --> 00:24:19,520
Speaker 1: looking at what's happened with Celsius and are like, I

440
00:24:19,560 --> 00:24:23,199
Speaker 1: don't know about any of this anymore. I mean, you know,

441
00:24:23,240 --> 00:24:27,560
Speaker 1: these are companies that and and and you know, um,

442
00:24:27,600 --> 00:24:30,159
Speaker 1: you know, structures that seem to be very legitimate but

443
00:24:30,240 --> 00:24:34,240
Speaker 1: are having major issues. What do you say to reassure them? Well,

444
00:24:34,280 --> 00:24:36,359
Speaker 1: I think it's not actually not that hard to differentiate

445
00:24:36,400 --> 00:24:38,199
Speaker 1: some of these things from other things. Right, there's a

446
00:24:38,240 --> 00:24:40,959
Speaker 1: reason Celsius has a particular lending platform they were engaged

447
00:24:41,000 --> 00:24:43,760
Speaker 1: with unclear to me and maybe to others. Maybe others

448
00:24:43,760 --> 00:24:46,000
Speaker 1: know whether they are what kind of insolvency we're seeing

449
00:24:46,040 --> 00:24:48,800
Speaker 1: here is this cash flow insolvency is and balance sheet insolvency.

450
00:24:49,320 --> 00:24:51,520
Speaker 1: But I think there's a reason that coin Based, for example,

451
00:24:51,840 --> 00:24:53,879
Speaker 1: scrapped it's lending right kind of said it's not the

452
00:24:53,960 --> 00:24:56,359
Speaker 1: right time. We don't have regulatory clarity that we need

453
00:24:56,400 --> 00:24:58,920
Speaker 1: to see around some of that engagement. As far as Tara,

454
00:24:59,040 --> 00:25:01,720
Speaker 1: it's a pretty highly dif for initiated algorithmic stable coin.

455
00:25:01,800 --> 00:25:04,560
Speaker 1: It does not flect the broader crypto ecosystem in any

456
00:25:04,600 --> 00:25:06,679
Speaker 1: kind of meaningful way. So I do think the thing

457
00:25:06,760 --> 00:25:09,760
Speaker 1: to note is that education is really important here. Crypto

458
00:25:09,840 --> 00:25:12,879
Speaker 1: is not a monolith. Every crypto l one learn one

459
00:25:12,920 --> 00:25:15,200
Speaker 1: platform has a very different approach to what it's thinking

460
00:25:15,240 --> 00:25:17,840
Speaker 1: about doing. Every stable coin is different. The reserves are

461
00:25:17,840 --> 00:25:20,840
Speaker 1: held differently, and all of that nuance is critically important

462
00:25:20,920 --> 00:25:23,399
Speaker 1: for us to understand as we move towards more of

463
00:25:23,400 --> 00:25:25,920
Speaker 1: a regulation and policy environment. So what crypto projects are

464
00:25:25,920 --> 00:25:29,480
Speaker 1: you most excited about? You know, where do you see legitimate,

465
00:25:29,600 --> 00:25:31,919
Speaker 1: high potential. So I'm really excited about the ones that

466
00:25:31,920 --> 00:25:34,840
Speaker 1: are focusing on real problems, solving real problems for real people.

467
00:25:34,880 --> 00:25:37,359
Speaker 1: I think it's not a surprise We've seen crowdfunding of

468
00:25:37,359 --> 00:25:40,240
Speaker 1: a wartime defense of Ukraine right in this environment. We've

469
00:25:40,240 --> 00:25:43,600
Speaker 1: seen massive amounts of outlays to India during COVID relief.

470
00:25:43,720 --> 00:25:47,120
Speaker 1: We've seen examples where this institutions are we're really focusing

471
00:25:47,119 --> 00:25:49,399
Speaker 1: on real problems. We also know that we've got one

472
00:25:49,440 --> 00:25:51,639
Speaker 1: point seven billion people in the world without access to

473
00:25:51,680 --> 00:25:55,200
Speaker 1: basic financial services. It's a massive gap the legacy institutions

474
00:25:55,200 --> 00:25:57,920
Speaker 1: have not solved. So projects that are focusing in those

475
00:25:57,920 --> 00:26:01,320
Speaker 1: places and understand that there's a gianic market there that

476
00:26:01,480 --> 00:26:04,040
Speaker 1: needs to be at these basic baseline checking account kinds

477
00:26:04,080 --> 00:26:06,560
Speaker 1: of services. Those are the projects that I personally think

478
00:26:06,600 --> 00:26:09,200
Speaker 1: you're gonna see longevity and stamina, and you're gonna see

479
00:26:09,240 --> 00:26:12,040
Speaker 1: those emerge from this particular moment that we're in stronger

480
00:26:12,080 --> 00:26:16,199
Speaker 1: than ever. All right, Crypto Council for Innovation CEO Sheila Warren,

481
00:26:16,320 --> 00:26:19,359
Speaker 1: thanks for sharing your view on the landscape we are

482
00:26:19,400 --> 00:26:22,639
Speaker 1: facing our own Chinali Bossi, Shinali, thank you for joining

483
00:26:22,720 --> 00:26:27,160
Speaker 1: us as well. Coming back up, Chuck Robin, Cisco CEO

484
00:26:27,520 --> 00:26:31,720
Speaker 1: once more from Cisco Live for more of that exclusive conversation.

485
00:26:31,800 --> 00:26:45,400
Speaker 1: He'll be with me next. This is Bloomberg. We're back

486
00:26:45,440 --> 00:26:49,680
Speaker 1: now with Chuck Robbins, EO of Cisco and this week's Teconomics. Chuck,

487
00:26:49,720 --> 00:26:53,080
Speaker 1: we were talking about the economy Elon Musk. Of course,

488
00:26:53,080 --> 00:26:55,879
Speaker 1: Hassetti has a super bad feeling about it. Jamie Diamond

489
00:26:55,920 --> 00:26:58,840
Speaker 1: is preparing for an economic hurricane. How do you feel?

490
00:26:58,920 --> 00:27:04,320
Speaker 1: How would you phrase it? Well, I I remain optimistic,

491
00:27:04,359 --> 00:27:06,439
Speaker 1: but I also understand there's a lot of complexity in

492
00:27:06,440 --> 00:27:09,280
Speaker 1: the world. And uh, I think that you know, we're

493
00:27:09,280 --> 00:27:13,080
Speaker 1: focused on delivering the technology to our customers, to focused

494
00:27:13,080 --> 00:27:15,560
Speaker 1: on delivering for our shareholders, and we'll have to see

495
00:27:15,600 --> 00:27:17,719
Speaker 1: how things play out. There's certainly a lot of complexities.

496
00:27:17,760 --> 00:27:19,840
Speaker 1: I think the FED is gonna move tomorrow. The question

497
00:27:19,880 --> 00:27:22,080
Speaker 1: is how far do they move and what does that mean?

498
00:27:23,119 --> 00:27:25,800
Speaker 1: But I think, you know, we're just preparing for what

499
00:27:25,840 --> 00:27:28,600
Speaker 1: we can control, and then we'll respond accordingly to things

500
00:27:28,600 --> 00:27:32,679
Speaker 1: that we can't. So are you preparing for a possible recession?

501
00:27:32,760 --> 00:27:35,480
Speaker 1: I mean you have to be planning for different scenarios.

502
00:27:37,760 --> 00:27:40,040
Speaker 1: We are always planning for different scenarios. But we've been

503
00:27:40,080 --> 00:27:42,639
Speaker 1: around long enough and been through enough downturns that we

504
00:27:43,040 --> 00:27:44,840
Speaker 1: have playbooks and we know how to we know how

505
00:27:44,880 --> 00:27:48,320
Speaker 1: to deal with those appropriately. So we'll see. I'm trying

506
00:27:48,359 --> 00:27:50,199
Speaker 1: not to borrow any trouble right now, even though I

507
00:27:50,280 --> 00:27:52,840
Speaker 1: understand it's a very complex environment that we're operating in.

508
00:27:53,960 --> 00:27:56,000
Speaker 1: So let's talk about the supply chain. What do you

509
00:27:56,040 --> 00:27:59,480
Speaker 1: see that's still being impacted, especially when it comes to

510
00:27:59,760 --> 00:28:02,800
Speaker 1: say SCO, What problems are starting to unwind and how

511
00:28:02,840 --> 00:28:08,440
Speaker 1: long will these problems in general be with us? Yeah,

512
00:28:08,480 --> 00:28:10,960
Speaker 1: I think on the supply chain front right now, we're

513
00:28:10,960 --> 00:28:15,359
Speaker 1: obviously still seeing capacity issues around semiconductors, because every product

514
00:28:15,359 --> 00:28:17,680
Speaker 1: on the planet now seems to have one or more

515
00:28:17,680 --> 00:28:21,240
Speaker 1: semiconductors in it, and that's probably in the time where

516
00:28:21,240 --> 00:28:24,240
Speaker 1: we start to see some capacity come online. We've seen

517
00:28:24,320 --> 00:28:27,320
Speaker 1: obviously the PC demand is kind of slowed, which we

518
00:28:27,320 --> 00:28:31,160
Speaker 1: think is freed up some components in the marketplace, and

519
00:28:31,440 --> 00:28:34,640
Speaker 1: we're starting to see inventories at brokers increase a bit,

520
00:28:34,720 --> 00:28:39,120
Speaker 1: which they build their inventories from oversupply that that suppliers

521
00:28:39,120 --> 00:28:41,480
Speaker 1: have acquired that they don't need. So that's actually a

522
00:28:41,520 --> 00:28:44,320
Speaker 1: positive sign. So starting to see some good signs. But

523
00:28:44,360 --> 00:28:47,280
Speaker 1: I still think we're we're three six, nine months to

524
00:28:47,320 --> 00:28:49,120
Speaker 1: where we really get this thing resolved in a way

525
00:28:49,160 --> 00:28:52,440
Speaker 1: that's acceptable to our customers. Honestly, we're now in a

526
00:28:52,480 --> 00:28:55,080
Speaker 1: period where the big big debate is do you go

527
00:28:55,160 --> 00:28:58,959
Speaker 1: back to work full time or not. WebEx of course,

528
00:28:59,120 --> 00:29:03,040
Speaker 1: one of Cisco top products helps enable remote work. What

529
00:29:03,400 --> 00:29:07,080
Speaker 1: is Cisco's policy at this point on remote work? How

530
00:29:07,120 --> 00:29:09,160
Speaker 1: are you thinking about it? And what it means the

531
00:29:09,160 --> 00:29:13,959
Speaker 1: company and your investors. So there's two things. Number One,

532
00:29:14,000 --> 00:29:16,560
Speaker 1: we've opened our offices and we actually are leaving it

533
00:29:16,640 --> 00:29:20,400
Speaker 1: with the management. The manager and their team to determine

534
00:29:20,720 --> 00:29:22,120
Speaker 1: how many days a week do you need to be

535
00:29:22,120 --> 00:29:24,680
Speaker 1: in the office as a team to drive your productivity.

536
00:29:24,680 --> 00:29:26,960
Speaker 1: And then if you say that's two days, then which

537
00:29:27,040 --> 00:29:28,320
Speaker 1: days do you want to come in as a team.

538
00:29:28,320 --> 00:29:30,360
Speaker 1: We don't think in our case, we don't think it

539
00:29:30,400 --> 00:29:33,880
Speaker 1: makes sense to mandate days where people are come in

540
00:29:33,920 --> 00:29:36,640
Speaker 1: the office before the pandemic. We have almost fifteen percent

541
00:29:36,720 --> 00:29:39,560
Speaker 1: of our employees work from home full time anyway, and

542
00:29:39,680 --> 00:29:42,400
Speaker 1: a great majority of our teams have distributed team members,

543
00:29:42,400 --> 00:29:45,720
Speaker 1: so they're gonna be interacting over video anyway, and so

544
00:29:45,920 --> 00:29:48,440
Speaker 1: we're leaving it up to the teams. But we're also

545
00:29:48,560 --> 00:29:52,520
Speaker 1: building a whole set of products and a solution portfolio

546
00:29:52,600 --> 00:29:54,560
Speaker 1: for our customers who are trying to solve this hybrid

547
00:29:54,600 --> 00:29:57,560
Speaker 1: work issue, because every customer has a different approach that

548
00:29:57,600 --> 00:29:59,480
Speaker 1: they're taking, and we believe we have a lot of

549
00:29:59,480 --> 00:30:02,440
Speaker 1: technology that can help them. So do you think Elon

550
00:30:02,560 --> 00:30:05,160
Speaker 1: Musk calling workers back to the office, is he going

551
00:30:05,200 --> 00:30:10,160
Speaker 1: to be on the wrong side of history. Well, every company,

552
00:30:10,240 --> 00:30:12,720
Speaker 1: I think is different in what they need, and they're

553
00:30:12,760 --> 00:30:15,479
Speaker 1: like groups within our company that have decided they need

554
00:30:15,520 --> 00:30:17,520
Speaker 1: to be in the office more often. So our engineering

555
00:30:17,560 --> 00:30:21,200
Speaker 1: teams that want to collaborate in whiteboard and build products together,

556
00:30:21,240 --> 00:30:23,320
Speaker 1: they're spending more time in the office than perhaps some

557
00:30:23,360 --> 00:30:25,840
Speaker 1: of our other teams. So it would be very difficult

558
00:30:25,880 --> 00:30:28,719
Speaker 1: for me to critique another CEO's decision about what they

559
00:30:28,760 --> 00:30:31,400
Speaker 1: believe they need their employees to do. But for us,

560
00:30:31,480 --> 00:30:33,480
Speaker 1: we think this strategy is working. So far, and we've

561
00:30:33,520 --> 00:30:37,040
Speaker 1: seen the innovation continue to to pour out of the organization.

562
00:30:37,080 --> 00:30:39,200
Speaker 1: The teams are doing a phenomenal job, so we're quite

563
00:30:39,200 --> 00:30:42,080
Speaker 1: comfortable with where we are. If the future of work

564
00:30:42,160 --> 00:30:45,600
Speaker 1: is hybrid, you know, security is even more important. I

565
00:30:45,640 --> 00:30:49,200
Speaker 1: know that's one of the focuses of Cisco Live. You know,

566
00:30:49,720 --> 00:30:52,880
Speaker 1: talk to us about the threat landscape you see out

567
00:30:52,920 --> 00:30:57,000
Speaker 1: there for businesses and the vulnerabilities they still face in

568
00:30:57,120 --> 00:31:00,280
Speaker 1: terms of shoring up their defensions, getting their systems ready

569
00:31:00,320 --> 00:31:03,480
Speaker 1: and able to enable this kind of work for the

570
00:31:03,520 --> 00:31:08,959
Speaker 1: long term future. Well, the complexity that's been created over

571
00:31:09,000 --> 00:31:11,680
Speaker 1: the last few years. Every customer we have now is

572
00:31:11,760 --> 00:31:15,880
Speaker 1: dealing with employees that are massively distributed. Their applications are

573
00:31:15,920 --> 00:31:19,400
Speaker 1: running in multiple places public clouds, private cloud sas applications

574
00:31:19,760 --> 00:31:22,360
Speaker 1: as well as data is now being distributed. And now

575
00:31:22,400 --> 00:31:25,160
Speaker 1: we have IoT really becoming real sort of bringing new

576
00:31:25,200 --> 00:31:28,400
Speaker 1: devices onto the network, and so it really creates a

577
00:31:28,520 --> 00:31:32,440
Speaker 1: new paradigm around how our customers need to defend in security,

578
00:31:32,480 --> 00:31:36,240
Speaker 1: which is why we announced our strategy around Cisco Security

579
00:31:36,240 --> 00:31:40,080
Speaker 1: Cloud this week, continued Trusted Access, Secure Connect Plus. So

580
00:31:40,120 --> 00:31:42,920
Speaker 1: we're bringing out technologies that help for this new environment

581
00:31:43,400 --> 00:31:45,320
Speaker 1: and at the same time, I think it's just imperative

582
00:31:45,360 --> 00:31:47,320
Speaker 1: for all of us that we have to stay focused

583
00:31:47,360 --> 00:31:50,680
Speaker 1: on employee hygiene because the people and the passwords and

584
00:31:50,720 --> 00:31:53,200
Speaker 1: all those things that we count on everyone to do

585
00:31:53,520 --> 00:31:56,000
Speaker 1: properly every day continues to be one of the biggest

586
00:31:56,080 --> 00:31:59,720
Speaker 1: risks in the system. What's your view on M and

587
00:31:59,800 --> 00:32:02,840
Speaker 1: A right now? With valuations coming down, are there any

588
00:32:02,960 --> 00:32:09,640
Speaker 1: areas you're interested in potential targets you could share? Well?

589
00:32:09,680 --> 00:32:12,040
Speaker 1: We have. Uh. I've been asked a few times if

590
00:32:12,040 --> 00:32:14,760
Speaker 1: our M and A strategy has changed because of the valuations,

591
00:32:14,800 --> 00:32:17,720
Speaker 1: and I've said, our strategy hasn't changed. The openness to

592
00:32:17,800 --> 00:32:19,920
Speaker 1: talking to us might have changed on the other side,

593
00:32:20,000 --> 00:32:22,400
Speaker 1: but uh, you know, we remain interested in the same

594
00:32:22,440 --> 00:32:24,800
Speaker 1: area as we have been interested. Uh you know, we're

595
00:32:24,800 --> 00:32:27,880
Speaker 1: always on the lookout for security. They're emerging areas around

596
00:32:27,880 --> 00:32:31,480
Speaker 1: observe ability. But uh, you know, we we start with

597
00:32:31,760 --> 00:32:36,000
Speaker 1: is it a strategic fit for our technology portfolio? Is

598
00:32:36,000 --> 00:32:37,400
Speaker 1: it a cultural fit? And is it good for our

599
00:32:37,400 --> 00:32:39,560
Speaker 1: shareholders long term? And as long as those three work,

600
00:32:39,880 --> 00:32:43,840
Speaker 1: the valuations certainly make a lot more assets actually fit

601
00:32:43,880 --> 00:32:45,959
Speaker 1: in that criteria, a lot more so than perhaps six

602
00:32:46,040 --> 00:32:50,400
Speaker 1: months ago. Any chance Cisco would make a competing bid

603
00:32:50,480 --> 00:32:56,080
Speaker 1: for vm Ware. I'm not going to comment on that,

604
00:32:56,120 --> 00:32:59,320
Speaker 1: but I think we're we we we we're constantly looking

605
00:32:59,360 --> 00:33:02,760
Speaker 1: at all of our our potential targets out there. And uh,

606
00:33:02,920 --> 00:33:06,560
Speaker 1: you know, we've had we build partnerships with companies we acquire,

607
00:33:06,960 --> 00:33:09,640
Speaker 1: and we do lots of our own innovation and internal

608
00:33:10,000 --> 00:33:12,280
Speaker 1: research and development. We're gonna continue to focus on all

609
00:33:12,320 --> 00:33:15,080
Speaker 1: of those. So look, check you've been in this industry

610
00:33:15,120 --> 00:33:17,600
Speaker 1: for a long time. You've been working at Cisco for

611
00:33:17,680 --> 00:33:19,720
Speaker 1: a long time. One of our guests earlier in the

612
00:33:19,760 --> 00:33:22,520
Speaker 1: show pointed to Cisco stock and what happened in the

613
00:33:22,560 --> 00:33:25,720
Speaker 1: dot com bust and how it's taken decades to get

614
00:33:25,720 --> 00:33:28,720
Speaker 1: back to where it was from a historical perspective. How

615
00:33:28,760 --> 00:33:31,560
Speaker 1: do you see this downturn fitting into the you know,

616
00:33:31,840 --> 00:33:39,280
Speaker 1: longer term picture. I'm just so curious how you're evaluating it.

617
00:33:39,280 --> 00:33:41,920
Speaker 1: It's funny you say I've been around for a long time.

618
00:33:41,960 --> 00:33:43,920
Speaker 1: You actually were one of my first interviews when I

619
00:33:43,960 --> 00:33:48,719
Speaker 1: became CEO. Uh, and um, I think, look, what's happened

620
00:33:48,760 --> 00:33:52,160
Speaker 1: is there's now a higher value put on being profitable.

621
00:33:52,200 --> 00:33:55,400
Speaker 1: Clearly there's there's there's a lot of similarities in some

622
00:33:55,480 --> 00:33:58,760
Speaker 1: of the companies that had great ideas, uh, you know,

623
00:33:58,800 --> 00:34:01,440
Speaker 1: similarities with the dot um bus. And I think i've

624
00:34:01,440 --> 00:34:03,720
Speaker 1: heard people talk about it today and over the last

625
00:34:03,720 --> 00:34:06,840
Speaker 1: few days, is that there were certainly quality companies that emerge.

626
00:34:06,880 --> 00:34:09,640
Speaker 1: And I think what what will be realized out of

627
00:34:09,680 --> 00:34:11,839
Speaker 1: this is that what are the real, valid business models

628
00:34:11,880 --> 00:34:14,040
Speaker 1: that are going to emerge that have the ability to

629
00:34:14,080 --> 00:34:16,120
Speaker 1: make money over the short term and over the long term.

630
00:34:16,160 --> 00:34:18,239
Speaker 1: But it's clear right now the market is going to

631
00:34:18,400 --> 00:34:21,320
Speaker 1: reward real companies that build real things and make real earnings.

632
00:34:21,320 --> 00:34:23,800
Speaker 1: And our current quarter, the low end of our guide

633
00:34:23,840 --> 00:34:26,280
Speaker 1: we gave it the last earnings call is a record

634
00:34:26,280 --> 00:34:29,200
Speaker 1: EPs year for Cisco, So we're pretty happy with where

635
00:34:29,200 --> 00:34:33,760
Speaker 1: we are. So look, you know, if as you're mapping

636
00:34:33,760 --> 00:34:36,560
Speaker 1: out your plans, what's your own what's your sort of

637
00:34:36,600 --> 00:34:39,839
Speaker 1: strategic advice to yourself in terms of how you get

638
00:34:40,560 --> 00:34:42,440
Speaker 1: how you get from you know this point to the

639
00:34:42,520 --> 00:34:48,200
Speaker 1: end of the year dealing with all of these unpredictable forces. Well,

640
00:34:48,200 --> 00:34:50,239
Speaker 1: my advice is look back at what you've done over

641
00:34:50,280 --> 00:34:51,719
Speaker 1: the last two and a half years, because they've just

642
00:34:51,760 --> 00:34:53,879
Speaker 1: been different crises and we're just dealing with it yet

643
00:34:53,920 --> 00:34:56,600
Speaker 1: another one now. And you know, we focus a lot

644
00:34:56,680 --> 00:35:00,280
Speaker 1: of it sounds clichetic, but we focus a tunnelness stuff

645
00:35:00,280 --> 00:35:02,520
Speaker 1: we really can control. And I've been at way almost

646
00:35:02,560 --> 00:35:05,120
Speaker 1: all my life. The things that I can control our

647
00:35:05,200 --> 00:35:07,719
Speaker 1: monitor and we plan for, but we don't worry about them.

648
00:35:07,719 --> 00:35:09,120
Speaker 1: And so we're going to continue to do what we

649
00:35:09,160 --> 00:35:12,560
Speaker 1: can do, continue to execute, and continue to deliver technology

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00:35:12,560 --> 00:35:14,920
Speaker 1: that we think our customers really need right now as

651
00:35:15,000 --> 00:35:18,279
Speaker 1: everybody's trying to modernize and really build their architectures for

652
00:35:18,320 --> 00:35:21,080
Speaker 1: the new world, and candidly to deal with the next

653
00:35:21,120 --> 00:35:23,720
Speaker 1: crisis and be ready because so many of our customers

654
00:35:23,719 --> 00:35:27,200
Speaker 1: were not ready when we went into the pandemic. All right,

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00:35:27,400 --> 00:35:30,360
Speaker 1: Cisco CEO, Chuck Robbins, I remember that first interview you

656
00:35:30,440 --> 00:35:33,640
Speaker 1: did with me as CEO. Appreciated the time then, and

657
00:35:33,719 --> 00:35:36,000
Speaker 1: now thank you for joining us. We'll let you get

658
00:35:36,040 --> 00:35:40,399
Speaker 1: back to Cisco Live, all right. I want to get

659
00:35:40,400 --> 00:35:44,160
Speaker 1: now to another big enterprise company, and that is Oracle.

660
00:35:44,280 --> 00:35:47,400
Speaker 1: After it's sank to a sixteen months low in Monday

661
00:35:47,400 --> 00:35:50,720
Speaker 1: markets fall, but now having the best day in six

662
00:35:50,760 --> 00:35:54,560
Speaker 1: months after fourth quarter cloud sales topped estimates. Our ed

663
00:35:54,600 --> 00:35:56,759
Speaker 1: letlow has been taken a deep dive on that at

664
00:35:56,800 --> 00:35:59,000
Speaker 1: what do you see how quickly things change? I mean,

665
00:35:59,040 --> 00:36:01,719
Speaker 1: Oracle is interesting because they set their stool out right there,

666
00:36:01,719 --> 00:36:04,239
Speaker 1: like we want to move into cloud and cloud is

667
00:36:04,320 --> 00:36:07,560
Speaker 1: less than a quarter of revenue, and they performed, you know,

668
00:36:07,640 --> 00:36:11,280
Speaker 1: cloud grew in the quarter. They're giving a really bullish

669
00:36:11,360 --> 00:36:15,799
Speaker 1: outlook about growth in the current quarter of the year

670
00:36:16,000 --> 00:36:18,279
Speaker 1: at a time where everyone's worried about recession. It's kind

671
00:36:18,280 --> 00:36:20,480
Speaker 1: of similar to Cisco. You know, they're not the sexiest

672
00:36:20,520 --> 00:36:24,359
Speaker 1: companies with respect to if he's just listening and he's

673
00:36:24,400 --> 00:36:27,759
Speaker 1: still listening, But they're really important as a read on

674
00:36:27,800 --> 00:36:31,040
Speaker 1: the economy because this is where businesses also also has

675
00:36:31,080 --> 00:36:32,480
Speaker 1: to spend their money. Well, so you read what Chuck

676
00:36:32,560 --> 00:36:35,960
Speaker 1: Robin said there. He's optimistic, but it's complicated. There are

677
00:36:36,000 --> 00:36:37,560
Speaker 1: a lot of things that they can't control. What is

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00:36:37,600 --> 00:36:41,920
Speaker 1: Oracle saying about the economy. There are macroeconomic headwinds. But

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00:36:41,920 --> 00:36:44,319
Speaker 1: I think what's really interesting for them is that they,

680
00:36:44,520 --> 00:36:47,400
Speaker 1: just like Cisco did, they're kind of maintaining the idea

681
00:36:47,480 --> 00:36:51,719
Speaker 1: that the demand is there that even smaller businesses are

682
00:36:51,760 --> 00:36:55,400
Speaker 1: willing to spend on moving to cloud infrastructure. Why because

683
00:36:55,400 --> 00:36:58,040
Speaker 1: over the course of the pandemic. They learned that investing

684
00:36:59,320 --> 00:37:02,759
Speaker 1: in moving to cloud is cost efficient. You know, it

685
00:37:02,840 --> 00:37:04,560
Speaker 1: might be an upfront cost, or it might be a

686
00:37:04,560 --> 00:37:07,239
Speaker 1: brave decision, but when the world is changing, you're not

687
00:37:07,440 --> 00:37:09,400
Speaker 1: labored with a lot of hardware or a lot of

688
00:37:09,480 --> 00:37:11,799
Speaker 1: servers that there will be obviously in a few years time,

689
00:37:11,880 --> 00:37:13,640
Speaker 1: So it seems like the smart choice. You still need

690
00:37:13,680 --> 00:37:17,280
Speaker 1: technology to keep remote workforce is connected. For the example,

691
00:37:17,320 --> 00:37:20,920
Speaker 1: as Chuck was pointing out, you know Larry Allison. Of course,

692
00:37:21,080 --> 00:37:23,560
Speaker 1: you know we we don't talk about him enough. Last

693
00:37:23,560 --> 00:37:27,160
Speaker 1: we were talking about his plans for when I, um,

694
00:37:27,200 --> 00:37:32,040
Speaker 1: you know, to talk to us about the significance here

695
00:37:32,120 --> 00:37:33,719
Speaker 1: of you know, a guy and a company that we

696
00:37:33,760 --> 00:37:36,160
Speaker 1: don't actually talk about very much. But it's still a

697
00:37:36,200 --> 00:37:39,359
Speaker 1: giant industry. You know, it's interesting we talk about him more.

698
00:37:39,440 --> 00:37:41,160
Speaker 1: Is a is a Silicon Valley kind of name than

699
00:37:41,200 --> 00:37:43,440
Speaker 1: we do. Is the CEO of a really big company,

700
00:37:43,520 --> 00:37:46,120
Speaker 1: and he owns a really big chunk of Oracle, which

701
00:37:46,200 --> 00:37:49,680
Speaker 1: is worth remembering. He has a vested interest in its success.

702
00:37:49,760 --> 00:37:52,320
Speaker 1: But you know he is participating in these earnings calls.

703
00:37:52,560 --> 00:37:54,920
Speaker 1: He's stepped down from the board of Tesla, which is

704
00:37:54,920 --> 00:37:56,800
Speaker 1: a news item of the last week is an ally

705
00:37:56,960 --> 00:38:00,759
Speaker 1: Elon Masque. He's a reported backer of Mosques bid to

706
00:38:00,880 --> 00:38:03,560
Speaker 1: buy Twitter. He's on his island in Hawaii, but he's

707
00:38:03,560 --> 00:38:07,880
Speaker 1: also running a really critically important tech company in Oracle. Yeah.

708
00:38:07,960 --> 00:38:11,680
Speaker 1: Interesting to see how his career has involved at Bloodlow.

709
00:38:11,920 --> 00:38:14,200
Speaker 1: Thank you, thanks for that quick update, and that does

710
00:38:14,239 --> 00:38:16,440
Speaker 1: it for this edition of Bloomberg Technology. We're gonna continue

711
00:38:16,440 --> 00:38:19,160
Speaker 1: to stay on top of all of this market mayhem.

712
00:38:19,160 --> 00:38:23,280
Speaker 1: Full coverage right here on Wednesday of the FED meeting,

713
00:38:23,400 --> 00:38:27,440
Speaker 1: we are expecting those rates to rise seventy five basis points.

714
00:38:27,480 --> 00:38:31,000
Speaker 1: Coverage starts live one thirty pm Eastern time, ten thirty

715
00:38:31,040 --> 00:38:34,040
Speaker 1: am Pacific. Also, we're gonna be joined by Victoria Green

716
00:38:34,160 --> 00:38:37,360
Speaker 1: of g squared for market reaction tomorrow and Melton two Mirrors,

717
00:38:37,440 --> 00:38:41,520
Speaker 1: chief strategy officer of coin Shares talking crypto. That's all

718
00:38:41,560 --> 00:38:45,319
Speaker 1: coming up tomorrow. I'm Emily Changed in San Francisco. This

719
00:38:45,520 --> 00:38:46,120
Speaker 1: is Bloomberg