WEBVTT - Stocks Plunge and Coinbase Slashes 18% of its Workforce 0:00:02.240 --> 0:00:05.520 From the heart of where innovation, money and power COLLI 0:00:06.360 --> 0:00:10.880 in Silicon Valley and beyond. This is Bloomberg Technology with 0:00:10.920 --> 0:00:26.759 Emily Chain. I'm Emily Check in San Francisco and this 0:00:26.760 --> 0:00:29.320 is Bloomberg Technology coming up in the next hour. Stocks 0:00:29.360 --> 0:00:32.520 are set for the longest losing streaks since January over 0:00:32.600 --> 0:00:37.000 concerns the feds aggressive policy to combat high inflation will 0:00:37.080 --> 0:00:41.400 throw the US into a recession. Plus, it is another 0:00:41.440 --> 0:00:45.320 sign of a worsening crypto downturn, coin Based announcing it'll 0:00:45.400 --> 0:00:49.959 layoff of its workforce, following other crypto companies that are 0:00:50.040 --> 0:00:54.000 also cutting staff. And my excloulsive interview with Cisco CEO 0:00:54.080 --> 0:00:56.680 Chuck Robbins on where he sees the economy headed and 0:00:56.680 --> 0:00:59.960 how the company is navigating the downturn and supply chain 0:01:00.000 --> 0:01:03.560 an He'll join me in an exclusive interview later this hour. 0:01:03.920 --> 0:01:05.679 I do want to dive deeper now into the markets 0:01:05.680 --> 0:01:08.440 as we wait for the Fed's decision Wednesday. Leo Kelly, 0:01:08.480 --> 0:01:12.039 CEO of Verden's Capital Advisors, joining us now to discuss. So, 0:01:12.080 --> 0:01:14.520 what are you expecting from the FED tomorrow, Leo, and 0:01:14.520 --> 0:01:19.399 how is that impacting your strategy? Well, the FED has 0:01:19.400 --> 0:01:22.040 to be aggressive there's no question about it. They are 0:01:22.360 --> 0:01:24.679 well behind the curve. They have been for some time. 0:01:25.480 --> 0:01:29.800 We never really brought into the transitory inflation nonsense, and 0:01:29.840 --> 0:01:33.800 this has gotten far beyond anyone's expectations. So our expectation 0:01:33.959 --> 0:01:37.880 is they act aggressively for the first time. While I 0:01:37.920 --> 0:01:41.160 think we all want them to take it carefully and slowly, 0:01:41.640 --> 0:01:44.839 the reality is they will do more damage if they're 0:01:44.840 --> 0:01:48.680 not aggressive then if they don't. So um, we think 0:01:48.680 --> 0:01:51.200 the FED is aggressive. We think the market expects that. 0:01:51.280 --> 0:01:54.000 I don't know that tomorrow is going to impact our 0:01:54.040 --> 0:01:58.320 long term strategy regardless. It's really about the trend, the 0:01:58.360 --> 0:02:01.040 trend of inflation and prices, the trend of interest rates, 0:02:01.360 --> 0:02:06.120 which we think are breaking a secular forty year bowl 0:02:06.160 --> 0:02:09.680 market and starting to turn into a secular long term 0:02:09.720 --> 0:02:14.160 bear market for bonds. So there's a lot happening right now, 0:02:14.440 --> 0:02:17.000 and the FED is just one piece of that puzzle. 0:02:17.680 --> 0:02:22.880 Why don't see the biggest risks in tech specifically, Well, 0:02:22.919 --> 0:02:25.040 it's like specifically. The problem is is there's still a 0:02:25.080 --> 0:02:30.440 lot of speculation um to wear out speculation in any market, 0:02:30.480 --> 0:02:33.560 in any bubble type market, and when we look around 0:02:33.560 --> 0:02:36.280 at things like crypto or we look at stay at 0:02:36.320 --> 0:02:39.880 home stocks. Back in the uh COVID years, there was 0:02:39.960 --> 0:02:44.560 tremendous speculation. There's tremendous stories, and it takes time and 0:02:44.639 --> 0:02:49.120 it takes multiple um let's just say shots at that 0:02:49.240 --> 0:02:53.079 speculation before you wind it completely out. So more than 0:02:53.120 --> 0:02:56.320 likely what you see is you see these massive downturns. 0:02:56.560 --> 0:02:59.280 You probably get some over sold recoveries, but then you 0:02:59.400 --> 0:03:02.480 return back and until you get the last bit of 0:03:02.520 --> 0:03:06.880 hope out of the market, you don't see actual bottoms. Um. 0:03:06.880 --> 0:03:08.800 There was a great there was a great statistic. I 0:03:08.880 --> 0:03:12.560 just heard uh in the in the introduction that these 0:03:12.560 --> 0:03:15.239 companies have cash flow, and so this may be a 0:03:15.280 --> 0:03:18.040 little different. I would say, back in the dot com bubble, 0:03:18.720 --> 0:03:21.480 Microsoft had cash flow, Cisco had cash flow. If you 0:03:21.560 --> 0:03:25.120 look at something like Cisco, um, it was at about 0:03:25.280 --> 0:03:27.560 ninety dollars at the top of the dot com bubble, 0:03:27.760 --> 0:03:30.880 got to nine, which was well below what its fair 0:03:30.960 --> 0:03:34.760 value was, and it took decades for it to come 0:03:34.800 --> 0:03:38.880 back before we started see reasonable prices. So interesting, I 0:03:38.920 --> 0:03:41.880 think tech you have to be careful with interesting that 0:03:41.920 --> 0:03:43.800 you use Cisco as an example, because I'm going to 0:03:43.840 --> 0:03:47.000 speak to Chuck Robins, the CEO of Cisco later this hour. 0:03:47.240 --> 0:03:50.000 I also spoke to Amazon CEO Andy Jassey last week 0:03:50.040 --> 0:03:53.560 we spoke about the economy, his thoughts on rising inflation. 0:03:53.640 --> 0:03:56.680 Take a listen to what he had to say. I 0:03:56.720 --> 0:03:59.120 think the real challenge for us there is on the 0:03:59.120 --> 0:04:02.720 cost side. And there have been several things that have happened, um, 0:04:02.760 --> 0:04:04.840 some of which are more controllable than others. You know, 0:04:04.920 --> 0:04:09.119 I think the part that's less controllable is really around inflation. 0:04:09.240 --> 0:04:11.480 And I think we thought that inflation would start to 0:04:11.480 --> 0:04:14.920 attenuate in two and with the war in Ukraine, it 0:04:15.000 --> 0:04:18.479 just went the other way and has significantly accelerated. You've 0:04:18.520 --> 0:04:22.040 got these massive companies like Amazon that have no control 0:04:22.520 --> 0:04:25.080 over where these numbers are going. You know, what do 0:04:25.120 --> 0:04:27.000 you think the long term impact is going to be 0:04:27.040 --> 0:04:30.440 on a company like Amazon and other companies that you know, 0:04:30.600 --> 0:04:36.360 rely on the health of the consumer. So history shows 0:04:36.440 --> 0:04:39.520 us that when the cost of capital exceeds the return 0:04:39.560 --> 0:04:42.680 on invested capital, we go into a recession. And the 0:04:42.720 --> 0:04:45.440 cost of capital is rising rapidly, and so we're going 0:04:45.480 --> 0:04:49.640 to see a significant profit recession in the marketplace from 0:04:49.680 --> 0:04:52.640 companies like an Amazon and many others. And so if 0:04:52.680 --> 0:04:55.800 you're not inflation sensitive. This is going to be serious 0:04:55.800 --> 0:04:58.800 pressure on earning. So some of these reliable growth companies 0:04:59.040 --> 0:05:01.640 that have steadied growth patterns are going to start to 0:05:01.680 --> 0:05:04.560 see those patterns get disrupted and that's going to affect 0:05:04.640 --> 0:05:09.920 PE multiples. The reality is with inflation that um, we 0:05:10.000 --> 0:05:13.200 have it. It's accelerating and one of the reasons is 0:05:13.240 --> 0:05:16.320 we're not addressing the problem. We have to go to 0:05:16.360 --> 0:05:19.440 the core of the problem of inflation, and until we 0:05:19.520 --> 0:05:23.719 do that, inflation will continue to surprise us. We cannot 0:05:23.760 --> 0:05:28.839 answer a supply side inflation event with more demand, and 0:05:28.920 --> 0:05:32.680 so far that has been the method of replacing and 0:05:32.720 --> 0:05:36.480 repairing inflation. So the Fed has to get aggressive and 0:05:36.520 --> 0:05:39.400 we cannot afford policy hours coming out of Washington that 0:05:39.480 --> 0:05:42.320 stimulate more demand. I mean, that's the bottom line for inflation. 0:05:43.400 --> 0:05:47.080 All right, Lots to continue to watch Leo Kelly Verdon's 0:05:47.120 --> 0:05:51.599 Capital Advisers, thank you for giving us your input there. Well. 0:05:51.640 --> 0:05:54.080 For the first time since agreeing to buy Twitter, Elon 0:05:54.160 --> 0:05:57.840 Musk will address Twitter employees on Thursday. He'll speak virtually 0:05:57.880 --> 0:06:01.440 at a company wide meeting and to take questions. Twitter 0:06:01.440 --> 0:06:03.720 has been in a chaotic state since the deal came 0:06:03.760 --> 0:06:07.320 together in April. While Musk has a passionate contingent of 0:06:07.320 --> 0:06:11.360 employees who support to take over, another contingent is openly critical. 0:06:11.680 --> 0:06:15.520 Some employees frustrated by Musk's ongoing questions about spam bots 0:06:15.560 --> 0:06:18.400 and I think it's Musk's attempt to renegotiate his forty 0:06:18.440 --> 0:06:22.080 four billion dollar deal. Twitter executives, however, have told employees 0:06:22.120 --> 0:06:26.400 they plan to enforce the agreement. Coming up is the 0:06:26.440 --> 0:06:30.600 future of streaming sports. We're gonna talk Apple, Disney, Netflix, 0:06:30.600 --> 0:06:33.599 and the future of streaming with Rich Greenfield. Up next, 0:06:33.960 --> 0:06:47.360 this is Bloomberg. As Netflix looks to turn around an 0:06:47.400 --> 0:06:49.880 already rough year, it is hoping Squid Game will be 0:06:50.120 --> 0:06:53.400 its savior. Just days after announcing the second season of 0:06:53.400 --> 0:06:56.920 its most popular series of all times, Netflix is now 0:06:56.960 --> 0:07:00.160 turning it into a reality competition. It is called Old 0:07:00.200 --> 0:07:03.240 squid Game. The Challenge and the streaming service boasts that 0:07:03.279 --> 0:07:06.880 will have not only the largest cast in reality TV history, 0:07:06.920 --> 0:07:11.560 but also the biggest lumpsome cash prize four dred fifties. 0:07:11.600 --> 0:07:15.040 Six real players will hope to win four point five 0:07:15.200 --> 0:07:18.720 six million dollars. If you've seen the show, you know 0:07:18.760 --> 0:07:21.679 the significance of that number. But unlike the original series. 0:07:21.720 --> 0:07:24.840 There won't be any gore, they say. With the worst fate, 0:07:24.960 --> 0:07:30.600 anyone will face going home empty handed. While Apple is 0:07:30.640 --> 0:07:33.080 betting big on sports, the company just signed a ten 0:07:33.160 --> 0:07:36.240 year deal to exclusively stream Major League Soccer on Apple 0:07:36.280 --> 0:07:39.440 TV beginning Back in March, Apple reach a deal with 0:07:39.480 --> 0:07:43.000 Major League Baseball to air Friday night games also on 0:07:43.080 --> 0:07:46.440 Apple TV. This deal coming just one day after Disney 0:07:46.720 --> 0:07:48.760 lost out on a bidding war for the streaming rights 0:07:48.800 --> 0:07:52.600 to the popular Indian Premier League. Rich Greenfield of Light 0:07:52.640 --> 0:07:55.480 Shed partners with us now to discuss it all. And 0:07:55.520 --> 0:07:57.720 if you're a baseball fan, you know having those Friday 0:07:57.760 --> 0:08:01.240 sports rights are pretty important. Sport's gonna be the next 0:08:01.240 --> 0:08:07.520 big streaming differentiator or z big streaming differentiator now. I 0:08:07.560 --> 0:08:11.000 think the reality is all of these streaming platforms are 0:08:11.040 --> 0:08:15.600 realizing just how difficult it is not just to attract subscribers, 0:08:15.680 --> 0:08:17.720 but to re engage them and to make sure they 0:08:17.720 --> 0:08:20.880 don't turn emily. And it's it's hard, right. There's a 0:08:20.960 --> 0:08:24.640 reason why Netflix spends seventeen billion dollars a year on content. 0:08:25.520 --> 0:08:27.480 It's not like they do it because they want to 0:08:27.520 --> 0:08:30.160 spend too much money and they just toss and burn capital. 0:08:30.440 --> 0:08:33.240 The reality is the difference between the old cable days 0:08:33.280 --> 0:08:35.400 that you and I grew up on. Remember you wanted 0:08:35.440 --> 0:08:38.199 to cancel your cable service like you had a literally 0:08:38.840 --> 0:08:41.880 call up Comcast or back in the daytime winner cable, 0:08:41.960 --> 0:08:43.720 you probably spent the better part of your day on 0:08:43.800 --> 0:08:46.760 hold being transferred around to departments. If you actually got 0:08:46.760 --> 0:08:49.560 through the retention department and tried to quit or cancel, 0:08:49.800 --> 0:08:51.760 then you had to go return your equipment and stand 0:08:51.840 --> 0:08:54.200 in line like it was being tortured. Now, if you 0:08:54.200 --> 0:08:56.560 want to cancel a service, it's point and click and cancel, 0:08:56.760 --> 0:08:58.640 and you can sign right back up a few days later. 0:08:58.720 --> 0:09:01.640 So I think in many way, sports is being used 0:09:01.920 --> 0:09:04.200 as a tool that all of these companies are looking 0:09:04.240 --> 0:09:08.079 at to bring in new subscribers and to retain existing subscribers. 0:09:08.080 --> 0:09:10.400 And I don't think any of these will be all sports. 0:09:10.440 --> 0:09:12.480 I think that's a very hard business model, and I 0:09:12.480 --> 0:09:14.600 think it's one of the reasons ESPN hasn't converted to 0:09:14.600 --> 0:09:16.680 over the top yet. But I do think that they're 0:09:16.720 --> 0:09:20.160 all looking at sports as yet another tool to drive 0:09:20.240 --> 0:09:23.520 subscribers and retain existing ones. How big a deal is 0:09:23.520 --> 0:09:27.200 Apple picking up Major League Soccer or Disney losing out 0:09:27.280 --> 0:09:31.160 on cricket. Do you see these wins and losses as 0:09:31.200 --> 0:09:35.880 you know more um you know, you know, not necessarily 0:09:36.000 --> 0:09:39.400 big deals. I think Apple is a huge deal. I 0:09:39.400 --> 0:09:42.400 think every single person that invests in looks at the 0:09:42.400 --> 0:09:45.400 media space or runs a media company should be thinking 0:09:45.400 --> 0:09:48.040 about what Apple is doing. Because you know, the only 0:09:48.080 --> 0:09:51.960 thing holding the traditional media bundle, big video bundles, cable 0:09:52.000 --> 0:09:55.640 and broadcast networks. The only thing holding these bundles together, Emily, 0:09:55.720 --> 0:09:58.679 is sports. All the best entertainment programming. Think about it. 0:09:58.960 --> 0:10:02.800 Name one big own new show that's aired on linear 0:10:02.880 --> 0:10:05.600 TV in years. Like everything is now starting its life 0:10:05.600 --> 0:10:08.280 on streaming. I don't care whether we're talking about squid Games, 0:10:08.280 --> 0:10:11.200 which you just talked about, or Mandalorian on Disney or 0:10:11.280 --> 0:10:14.360 Murderers in the Building on Who. Like, everything is happening 0:10:14.360 --> 0:10:16.959 on streaming. So the only thing sort of left has 0:10:17.000 --> 0:10:20.600 been sports. And yet look what's just happened. Amazon has 0:10:20.640 --> 0:10:23.600 just taken the number two TV series on linear TV 0:10:23.720 --> 0:10:27.280 broadcast TV in Thursday Night Football this fall only on 0:10:27.320 --> 0:10:30.920 Amazon Crime. And then you see this deal with MLS today, 0:10:30.960 --> 0:10:34.640 like you're just every day the last pieces that are 0:10:34.679 --> 0:10:38.320 holding together the TV bundle are being stripped away, and 0:10:38.360 --> 0:10:41.320 that means two things. One more and more chord cutting, 0:10:41.880 --> 0:10:44.280 less and less viewership for these TV programs. And all 0:10:44.320 --> 0:10:47.079 of that means, you know, the bottom line is that 0:10:47.160 --> 0:10:50.120 these legacy media companies are facing more and more pressure 0:10:50.160 --> 0:10:52.840 because most of them are built around broadcasting cable networks. 0:10:52.840 --> 0:10:55.439 It's gonna be very hard. How much M and A 0:10:55.480 --> 0:10:57.120 do you think we're gonna see? I know you you 0:10:57.160 --> 0:10:59.320 don't think good in the Netflix Roku deal is going 0:10:59.360 --> 0:11:03.360 to happen? Do you say there's a zero percent chance? Look, 0:11:03.360 --> 0:11:06.319 I hate zeros um. You know I've learned never to 0:11:06.679 --> 0:11:08.600 I've learned never to say never. I mean, I think 0:11:08.640 --> 0:11:10.480 if we had been on here six or you know, 0:11:11.240 --> 0:11:13.760 if you said eight weeks ago, is Netflix gonna do advertising? 0:11:13.760 --> 0:11:16.439 I would have said there's no chance. So you should 0:11:16.480 --> 0:11:19.079 never say never. Everything is up for debate. I think 0:11:19.120 --> 0:11:21.520 the odds of Netflix buying roke wu are very hard 0:11:21.520 --> 0:11:23.680 to imagine. Why would you want to be in the 0:11:23.760 --> 0:11:27.480 device business? I think, you know, Netflix benefits from being 0:11:27.520 --> 0:11:31.080 a voweble on every device and not competing. Buying Roku 0:11:31.120 --> 0:11:34.160 would put them into you know, battling against companies like 0:11:34.240 --> 0:11:36.880 Samsung in video and that's just very hard for me 0:11:36.920 --> 0:11:39.760 to believe. And I think Netflix is very focused on 0:11:39.960 --> 0:11:43.920 sort of an asset light approach, initially advertising outsourcing. There 0:11:43.960 --> 0:11:45.760 was a story out today that they may be doing 0:11:45.760 --> 0:11:48.280 this as the information reported they may be looking at 0:11:48.600 --> 0:11:51.960 using comcasts freewheel product. We think that makes a tremendous 0:11:51.960 --> 0:11:54.720 amount of sense. And look, they're going to connect into 0:11:54.800 --> 0:11:57.520 lots of platforms and use lots of players. They'll work 0:11:57.520 --> 0:12:00.040 with Roku's, they'll work with trade desks. But I'd be 0:12:00.160 --> 0:12:02.240 very surprised if Netflix was going to go out and 0:12:02.280 --> 0:12:06.199 make a very significant acquisition. That's just not their style 0:12:06.320 --> 0:12:10.440 at all. They are turning this squid game success into 0:12:10.440 --> 0:12:12.800 a reality competition. What are your thoughts on that? I 0:12:12.840 --> 0:12:16.680 mean is right now the cultural is now, culturally the 0:12:16.760 --> 0:12:20.559 right time for a competition like this, with the world 0:12:20.559 --> 0:12:22.800 melting down. If you if you watch sweed games, the 0:12:22.960 --> 0:12:25.040 sort of the depressive nature of the world, it sort 0:12:25.040 --> 0:12:27.000 of feels like the right time for a squid game 0:12:27.040 --> 0:12:29.680 reality series, to be honest. But but leave that aside, 0:12:29.720 --> 0:12:33.680 I think you're bringing up a greater issue. Netflix isn't broken. 0:12:33.800 --> 0:12:36.480 None of the streaming services are broken, per se. That 0:12:36.600 --> 0:12:39.360 the reality is it's all about content. Consumers are going 0:12:39.400 --> 0:12:41.480 to gravitate to the services where they spend the most 0:12:41.520 --> 0:12:43.920 time and where they have the most content that keeps 0:12:43.960 --> 0:12:48.280 them entertained. And you know, the reality is Netflix still 0:12:48.360 --> 0:12:52.120 is by far and away the biggest service of all 0:12:52.200 --> 0:12:55.120 time spent on connected TVs is on Netflix. But I 0:12:55.160 --> 0:12:58.680 do think they need more iconic shows, and Stranger Things 0:12:58.679 --> 0:13:01.720 has been huge coming back. All four seasons were the 0:13:01.760 --> 0:13:04.520 top four most watch shows on Netflix a couple of 0:13:04.559 --> 0:13:08.480 weeks ago, So there's no doubt that franchise zeitgeist content 0:13:08.640 --> 0:13:11.120 is critical, and I think that's why you're seeing Netflix 0:13:11.200 --> 0:13:14.000 lean into doing more, not just a second season of 0:13:14.000 --> 0:13:17.679 Squid Games, but how can they build this franchise even broader. 0:13:17.880 --> 0:13:19.240 I think that makes a lot of sense, and I 0:13:19.240 --> 0:13:22.680 think you're gonna see Netflix pivot from having instead of 0:13:22.720 --> 0:13:25.800 just volume of series, really making sure that they have 0:13:26.800 --> 0:13:30.400 a good number of series that really are zeitgeist and 0:13:30.480 --> 0:13:34.360 really water cooler conversation that create the buzz that they need. 0:13:34.559 --> 0:13:36.680 I think they haven't had enough of that, and that's 0:13:36.840 --> 0:13:39.520 part of the reason why they've suffered over the course 0:13:39.520 --> 0:13:42.040 of the last couple of quarters. We've seen a few 0:13:42.040 --> 0:13:44.680 Disney stories over the last week, you know, more sort 0:13:44.720 --> 0:13:48.640 of Game of Thrones, Chapec firing Peter Rice has head 0:13:48.640 --> 0:13:53.199 of Content. Apparently it only took seven minutes. How optimistic 0:13:53.400 --> 0:13:56.920 right now are you about SPEX leadership and the culture 0:13:57.000 --> 0:14:00.280 he is trying to create given the channel in is 0:14:00.320 --> 0:14:03.080 that he's faced. Look, Shape came in at a very 0:14:03.120 --> 0:14:06.040 hard time, right right right in the middle of the pandemic. 0:14:06.120 --> 0:14:08.880 Was no easy task. The theme park business was just 0:14:09.040 --> 0:14:11.360 you know, sort of he was very much behind before 0:14:11.400 --> 0:14:15.280 he became CEO. Is obviously having an incredible resurgence. They 0:14:15.400 --> 0:14:18.040 literally can't keep up with demand and they're raising price. 0:14:18.400 --> 0:14:20.880 But I think the real question for for Schapeck is 0:14:21.480 --> 0:14:24.640 what is his plan? You know, is ESPN and sports 0:14:24.680 --> 0:14:27.880 the future. Clearly they just bowed out of sports on 0:14:27.920 --> 0:14:30.240 streaming in India as you brought up the I p 0:14:30.400 --> 0:14:33.280 L rights went to Viacom, a team which is owned 0:14:33.280 --> 0:14:36.040 by Reliance Geo and James Murdoch and others. But you know, 0:14:36.160 --> 0:14:39.840 certainly bowing out of digital or streaming in India is 0:14:39.880 --> 0:14:41.240 a big deal, and it sort of points at this 0:14:41.400 --> 0:14:44.560 larger existential question for Shape of like what is the 0:14:44.600 --> 0:14:48.200 future of Disney is it about Disney Studios, the meaning 0:14:48.200 --> 0:14:51.360 the film studio and the TV studio, the theme parks 0:14:51.360 --> 0:14:53.880 and Sumer product which all really worked well together. Do 0:14:53.960 --> 0:14:56.480 they need to be in the ABC broadcast TV business? 0:14:56.640 --> 0:14:59.080 Do they need to be in the ESPN and f 0:14:59.360 --> 0:15:01.960 X business? Like, I think there's some very big decisions 0:15:02.320 --> 0:15:04.080 for Shaping, and I think we're all waiting. I mean, 0:15:04.400 --> 0:15:07.320 the reality is is there a future for Hulu or 0:15:07.360 --> 0:15:09.080 do they just put more and more of that content 0:15:09.120 --> 0:15:13.000 onto Disney Plus. Like there are some really big structural decisions. 0:15:13.400 --> 0:15:15.240 Maybe that's what the board is waiting for, to sort 0:15:15.280 --> 0:15:18.480 of see what the ultimate what Disney ultimately looks like. 0:15:18.800 --> 0:15:20.880 I will say I was surprised the board came out 0:15:20.880 --> 0:15:24.360 with a comment sort of endorsing um Shaping, but didn't 0:15:24.400 --> 0:15:29.560 just renew his contracts. His contract expires in February. I'm 0:15:29.600 --> 0:15:32.160 not sure what they're waiting for, like either renewest contract 0:15:32.480 --> 0:15:34.920 or tell us they're bringing in a new CEO. It 0:15:35.000 --> 0:15:37.920 does seem strange that we're sort of sitting here waiting 0:15:38.200 --> 0:15:41.440 to figure out what happens next. The stocks obviously suffered, 0:15:41.440 --> 0:15:44.440 but the whole group is down substantially. I think investors 0:15:44.480 --> 0:15:47.920 really want to know what is the structural future of Disney, 0:15:47.920 --> 0:15:50.280 what are the assets that are they keeping, what assets 0:15:50.280 --> 0:15:52.280 are they getting rid of? And we really haven't gotten 0:15:52.320 --> 0:15:56.160 that sense from Disney over the last six months. Yeah, 0:15:56.240 --> 0:15:58.400 it was certainly interesting to hear from the board, but 0:15:58.440 --> 0:16:01.400 you make a very good point, like rich Greenfield always 0:16:01.400 --> 0:16:07.640 going to have your rich thank you stopping by Investor 0:16:07.680 --> 0:16:10.640 without Coast. Leve believes we will have a techno economic 0:16:10.720 --> 0:16:13.520 war over the next twenty years, most likely between the 0:16:13.600 --> 0:16:16.720 US and China. He talked about tech valuations and what 0:16:16.760 --> 0:16:19.120 it takes to be a VC on this week's episode 0:16:19.320 --> 0:16:24.160 of Bloomberg Wealth with David Rubenstein. Well, we high look 0:16:24.200 --> 0:16:29.560 at it is what is the underlying innovation that's going on, 0:16:30.080 --> 0:16:34.160 and how large a market is it addressing. If it's large, 0:16:34.320 --> 0:16:38.040 then the valuations will look large. If you look at 0:16:38.080 --> 0:16:41.480 it Google, it's it's a great valuation. I'm I would 0:16:41.480 --> 0:16:45.040 think it'd come back, but it's a twenty some percent 0:16:45.160 --> 0:16:49.840 growth company, not a fifty percent growth company. The early 0:16:49.960 --> 0:16:55.440 stages of much most venture would be considered low growth. 0:16:56.360 --> 0:16:59.760 When you in that world and you're addressing large markets, 0:17:00.120 --> 0:17:05.440 you have a proprietary advantage, then the valuation metrics are very, 0:17:05.560 --> 0:17:12.000 very different and traditional valuation approaches don't really work, but 0:17:14.800 --> 0:17:19.800 continuing to apply them as companies mature is a mistake 0:17:20.000 --> 0:17:22.840 and is the deal valuation so high that it's gonna 0:17:22.840 --> 0:17:24.520 be hard for people to get the returns that they 0:17:24.560 --> 0:17:28.119 want at a venture investing. So I do think given 0:17:28.160 --> 0:17:31.920 the hype we've seen the last five years, we will 0:17:32.000 --> 0:17:36.879 see a decline and returns. Uh not for everybody. The 0:17:36.920 --> 0:17:41.399 good firms continue to be disciplined about valuations, but I 0:17:41.480 --> 0:17:44.640 do think in general for the industry will see a decline. 0:17:45.160 --> 0:17:48.359 The best firms will still do well. So coastal ventures 0:17:48.359 --> 0:17:51.040 will do okay, I hope. So we have to earn 0:17:51.080 --> 0:18:04.280 our keep the coastala there. With David Rubinstein, Welcomeack to 0:18:04.280 --> 0:18:07.760 Bloomberg Technology and Emily changing San Francisco stocks, Folly even 0:18:07.800 --> 0:18:10.680 further on fears that the FEDS aggressive policies to fight 0:18:10.720 --> 0:18:14.600 inflation will throw the US into a recession. Is this 0:18:14.760 --> 0:18:17.359 rightful cause for alarm? Where are we headed for the 0:18:17.400 --> 0:18:19.040 next half of the year. I want to get into 0:18:19.080 --> 0:18:21.359 all of this and more with Chuck Robin, CEO of Cisco, 0:18:21.440 --> 0:18:24.480 who is joining us now from Cisco Live two in 0:18:24.560 --> 0:18:28.560 Las Vegas, the company's first in person conference in two years. Chuck, 0:18:28.600 --> 0:18:30.560 it's great to have you back here on the show. 0:18:31.000 --> 0:18:33.560 How's it going bring us the atmosphere from the floor. 0:18:33.640 --> 0:18:37.919 How does it feel to be back in person? Well, Emily, 0:18:37.920 --> 0:18:40.280 thanks for having me. And you know, we we're saying 0:18:40.280 --> 0:18:42.320 this week we're putting the live back in Cisco Live. 0:18:42.359 --> 0:18:44.639 We've got sixteen thousand of our closest friends here, we 0:18:44.680 --> 0:18:47.800 have a lot of our partners back here that are demonstrating. 0:18:47.840 --> 0:18:50.679 There's lots of education going on. We had a slew 0:18:50.760 --> 0:18:53.680 of great product announcements this week, and so I think 0:18:53.720 --> 0:18:56.879 everybody is just as you would expect, excited to be 0:18:57.040 --> 0:18:59.840 together in person. I think everybody's been longing for it. 0:18:59.840 --> 0:19:02.280 And a joke today that we're so glad that we're 0:19:02.280 --> 0:19:05.840 not doing this over video and it's still room somewhere 0:19:05.840 --> 0:19:09.400 where we're getting no feedback. So it's a lot of energy. Now. 0:19:09.520 --> 0:19:13.040 Cisco has always been considered a bell weather for the economy, 0:19:13.040 --> 0:19:15.119 and I have to wonder what your customers are telling 0:19:15.160 --> 0:19:18.480 you and how inflation and what's happening in the markets 0:19:18.600 --> 0:19:23.879 is impacting how they're spending. You know, we talked today 0:19:23.920 --> 0:19:26.399 with our customers and partners here about the fact that 0:19:26.480 --> 0:19:29.199 over the last five or six years, we've dealt with 0:19:29.480 --> 0:19:32.080 a global trade war and terrorists, We've dealt with a pandemic, 0:19:32.160 --> 0:19:35.240 We've dealt with social justice issues, We've dealt with supply 0:19:35.320 --> 0:19:38.200 chain issues, we have a war in Ukraine, we have inflation. 0:19:38.880 --> 0:19:43.479 So our our customers, while it's not the new normal, 0:19:43.960 --> 0:19:46.520 I think they're dealing with the reality that there's always 0:19:46.520 --> 0:19:49.119 something going on in the world, and technology has proven 0:19:49.160 --> 0:19:52.280 to be so effective during the pandemic at keeping the 0:19:52.280 --> 0:19:56.000 global economy and the global productivity at a great level 0:19:56.400 --> 0:19:59.159 that I think technology is going to remain strategic for 0:19:59.200 --> 0:20:01.760 our customers. And to them say they're they're powering ahead. 0:20:01.840 --> 0:20:05.919 So we'll see. Elon Musk says he has a super 0:20:05.960 --> 0:20:09.600 bad feeling about the economy. Jamie Diamond said he's preparing 0:20:09.600 --> 0:20:15.120 for an economic hurricane. How does Chuck Robbins feel, Well, 0:20:15.800 --> 0:20:19.800 I remain optimistic, but I'm thinking specifically about the importance 0:20:19.800 --> 0:20:25.320 of technology to our customers and how looks like we 0:20:25.440 --> 0:20:29.800 lost Chuck Robbins. They're joining us from Cisco Live two 0:20:30.080 --> 0:20:44.840 will work to get his shot back up. We're seeing 0:20:44.880 --> 0:20:47.400 sentiment at pretty much an all time low. I don't 0:20:47.400 --> 0:20:51.040 think I've ever seen people, uh, you know, feeling this 0:20:51.200 --> 0:20:53.439 negative about the industry. All of that said, there are 0:20:53.480 --> 0:20:56.840 still plenty of crypto firms that are hiring. Um you 0:20:56.880 --> 0:20:59.680 know that we're seeing layoffs for sure, but the sort 0:20:59.680 --> 0:21:04.879 of or ideology that powers this movement is intact. That 0:21:04.960 --> 0:21:07.960 was Nick Carter, founding partner at Castle Line Adventures earlier 0:21:08.000 --> 0:21:12.000 on Bloomberg. Now, the dual crisis of Terra and Celsius 0:21:12.000 --> 0:21:15.879 shaking up defy in ways that may have very serious 0:21:16.040 --> 0:21:18.359 repercussions for the crypto markets. I want to talk about 0:21:18.400 --> 0:21:21.200 all that and more with our crypto contributor Shinali Bossic 0:21:21.400 --> 0:21:25.840 and with Sheila Lawren, CEO of the Crypto Council for Innovation. Sheila, 0:21:25.840 --> 0:21:28.240 great to have you here in person. So, look, there's 0:21:28.320 --> 0:21:32.600 chaos in crypto markets, in markets more broadly, but especially 0:21:32.800 --> 0:21:35.240 in the crypto markets. Just how how low are we 0:21:35.280 --> 0:21:37.480 going to go here? Where's the bottom? Well, it's it's 0:21:37.480 --> 0:21:39.159 hard to know, it's impossible to know. But we are 0:21:39.160 --> 0:21:42.240 seeing real world consequences. We're seeing real job loss affecting 0:21:42.240 --> 0:21:44.639 real people. We're seeing real people losing real money. And 0:21:44.960 --> 0:21:47.440 that's in the context, of course of record high inflation, 0:21:47.800 --> 0:21:50.440 erosion of purchasing power for families. So all at all, 0:21:50.480 --> 0:21:52.600 it's it's it's not a great picture. That being said, 0:21:52.800 --> 0:21:55.200 as you noted, it's hardly were hardly immune. It's hardly 0:21:55.240 --> 0:21:57.320 just the crypto market being affected here. It's really a 0:21:57.440 --> 0:22:00.360 much broader global economy melt down. So we you see 0:22:00.400 --> 0:22:03.760 coin based first to hiring, freeze, now slashing of its workforce. 0:22:03.840 --> 0:22:07.440 This on the back of the stock plummeting. What's your reaction, 0:22:08.000 --> 0:22:10.320 our reactions that were in a contraction phase. There are 0:22:10.480 --> 0:22:12.840 other firms who are hiring. There's a lot going on 0:22:12.840 --> 0:22:15.119 in the market that's adjacent to crypto as well, And 0:22:15.160 --> 0:22:17.080 I think what we're seeing is a pivot towards core 0:22:17.119 --> 0:22:20.600 principles and ideologies. Building a brand new financial and technology 0:22:20.600 --> 0:22:23.040 ecosystem is not easy. It takes stamina, and I think 0:22:23.080 --> 0:22:25.320 if I were new to this industry, I would be nervous. 0:22:25.320 --> 0:22:27.120 But over the six and seven years i've been here, 0:22:27.280 --> 0:22:29.040 I've seen a bunch of these cycles come and go, 0:22:29.160 --> 0:22:30.639 and so I think that what we're just seeing is 0:22:30.680 --> 0:22:33.720 again and refocusing on street priorities. And my hope is 0:22:33.760 --> 0:22:34.840 that we're going to come out of this the way 0:22:34.840 --> 0:22:36.920