Speaker 1: From the heart where Innovation of Money and Power colle
Speaker 1: in Silicon Valley, NBN. This is Bloomberg Technology with Caroline
Speaker 1: Hyde and Ed Ludlow.
Speaker 2: I'm Caroline Hyde at Bloomberg's world headquarters in New.
Speaker 3: York and I'm Ed Ludlow live from San Francisco in APEC.
Speaker 4: This is Bloomberg Technology.
Speaker 5: Coming up, World leaders.
Speaker 2: They just send on San Francisco for the Asia Pacific
Speaker 2: Economic Corporation Summit. Full coverage from Ed ahead as we
Speaker 2: sit down with the Mayor of San Francisco, London Breed,
Speaker 2: and we'll hone in on the battle for artificial intelligence
Speaker 2: dominance as.
Speaker 5: The world's most valuable chip maker unveil's new processes to
Speaker 5: maintain its edge.
Speaker 2: Plus, we'll break down the numbers from the world's largest
Speaker 2: online shopping event, China Singles Day, and push ahead to
Speaker 2: Eco mus numbers from the like Sir, Walmart and Target
Speaker 2: coming later this week in the US.
Speaker 5: But first we're going to be keeping a close.
Speaker 2: Eye on what's happening in China US relationship more broadly
Speaker 2: from a global context, and we're going to be talking,
Speaker 2: of course about the key leaders that are descending on
Speaker 2: San Francisco overall, I'm going to be hearing that from
Speaker 2: the world of San Francisco, and we do want to
Speaker 2: welcome Ed.
Speaker 3: Inesf Welcome to our Bloomberg television and radio audiences worldwide.
Speaker 3: San Francisco this week hosts APEC. We're joined by San
Speaker 3: Francisco's Mayor London Breed.
Speaker 4: Mayor Breed, thank you for your time this morning.
Speaker 3: Of course, Look, there's one question that everyone has. Why
Speaker 3: has it taken the visit of US President Biden, China's President,
Speaker 3: zy leaders from around the world for action on all
Speaker 3: of the problems that this city has been talking about
Speaker 3: for four years now.
Speaker 6: Well, just to be clear, we have been working on
Speaker 6: this now for a few years. This is not an
Speaker 6: issue that we've been sinning around waiting to solve. It's
Speaker 6: been something that San Francisco continues to work on. And
Speaker 6: since I've been mayor since twenty eighteen, we've helped over
Speaker 6: ten thousand people exit homelessness and we've never even had
Speaker 6: ten thousand people on our streets. We've seen a reduction
Speaker 6: when other Bay Area cities saw an increase, and so
Speaker 6: this is a problem that we continuously worked on. This year, Fortunately,
Speaker 6: we've gotten additional resources from the state and the federal
Speaker 6: government that has really made a tremendous difference around the
Speaker 6: challenges that we're dealing with.
Speaker 3: A question from our audience that was submitted when they
Speaker 3: heard you were coming on the program is were people
Speaker 3: moved temporarily because of the events of this week from
Speaker 3: specific blocks and neighborhoods to others or was this a
Speaker 3: permanent action that was taken for what we see on
Speaker 3: the streets outside.
Speaker 6: Well, it was an effort that took place. As you know,
Speaker 6: we had a court case where it limited our ability
Speaker 6: to move people off the streets. We still have a
Speaker 6: few hundred beds available and our street outreach team is
Speaker 6: out there every day. And after we got clarity from
Speaker 6: the Ninth Circuit Court of Appeal, people who are offered
Speaker 6: shelter are no longer involuntarily homeless, so we are able
Speaker 6: to move them into housing and too treatment, into support,
Speaker 6: and so we have been very aggressive once we had
Speaker 6: that clarity to get people off the streets. Our goal
Speaker 6: is always to provide support, to provide compassion, but to
Speaker 6: not let people linger on our streets, especially when we're
Speaker 6: offering them an opportunity for housing.
Speaker 5: Our hope what we've.
Speaker 6: Offered is that they will hold on to what we're
Speaker 6: making available to them.
Speaker 4: May I breed.
Speaker 3: The frustration of San Franciscans and the perception of the
Speaker 3: outside world is this happens every APEC or even with Dreamforce.
Speaker 3: For a week, the city is cleaned up, it puts
Speaker 3: its best foot forward.
Speaker 4: But when everyone.
Speaker 3: Leaves on Friday or at the end of the week,
Speaker 3: you know what guarantees can you give the city that
Speaker 3: this is permanent, that the actions the city taken to
Speaker 3: address the problems we know about will continue.
Speaker 7: Well.
Speaker 6: Just to be clear, APEC is a very unique event
Speaker 6: in San Francisco. We haven't had a global event of
Speaker 6: this magnitude since the United Nations was established, so it's
Speaker 6: a big deal. And after Dreamforce, things that we've done
Speaker 6: to keep the streets clean, to deal with the open
Speaker 6: air drug dealing and using have continued, which is why
Speaker 6: we're seeing a significant increase in how great the streets
Speaker 6: look for San Francisco. And also, just so you know,
Speaker 6: we have certain concentrated areas where there are challenges. Other
Speaker 6: major cities in the US have the same problems, but
Speaker 6: in our neighborhoods and the outskirts of San Francisco, things
Speaker 6: have been looking up for a very long time.
Speaker 3: Welcome to our Bloomberg Television radio audience world while we're
Speaker 3: speaking with San Francisco mayor London Breed. That's the case,
Speaker 3: right that these issues are not unique or specific to
Speaker 3: San Francisco. Indeed, other Californian cities experience them. Why does
Speaker 3: the world think though, that San Francisco is a problem
Speaker 3: city and sort of a portion more blame in that
Speaker 3: sense than to other cities.
Speaker 6: Well, San Francisco has always been a larger than live city.
Speaker 6: People are always surprised to find out that our population
Speaker 6: isn't even a million people. We represent the entire Bay Area.
Speaker 6: It's a global city. It's the gateway to the Asia Pacific.
Speaker 6: And so what this city is represented in history, whether
Speaker 6: it's the United Nations in nineteen forty five or the
Speaker 6: Peace Treaty which Japan in nineteen fifty one, San Francisco
Speaker 6: continues to be that city that creates those global connections,
Speaker 6: that is really oversized in terms of its image around
Speaker 6: the world. And it's one of the most beautiful, iconic
Speaker 6: places anywhere. So we're going to always get attention, whether
Speaker 6: it's good attention, or bad attention depends on what the
Speaker 6: story represents, and right now APEC all eyes are on
Speaker 6: the city artificial intelligence. Of the top twenty AI companies
Speaker 6: in the world, eight are in San Francisco and they
Speaker 6: are growing rapidly. Autonomous vehicles are being tested here. We're
Speaker 6: seeing so many new technologies and things that are changing
Speaker 6: the world. And even during COVID, we were a leader
Speaker 6: and we saw one of the lowest death rates anywhere
Speaker 6: in the country. So San Francisco continues to get a
Speaker 6: lot of attention in various aspects and that will continue.
Speaker 5: And my hope is as.
Speaker 6: A result of APEX, people will finally get to see
Speaker 6: what San Francisco is from their own experience.
Speaker 3: The centerpiece of this week for many is President Biden
Speaker 3: meeting with President g and the expectation is there will
Speaker 3: be some discussion about fentanyl. If you had the opportunity
Speaker 3: to speak to President g this week, what would you
Speaker 3: ask of him in the context of fentanyl.
Speaker 6: Well, part of it is just to work with the
Speaker 6: US and to ensure that the resources that are being
Speaker 6: sent out of China that come into either the US
Speaker 6: or Mexico are cut off to the fullest extent. Possible
Speaker 6: that we work together in order to ensure that this
Speaker 6: deadly poison that is killing people in San Francisco in
Speaker 6: significant numbers and all over the country, that we're able
Speaker 6: to combat this, to stop it, so that we can
Speaker 6: continue the relationship, the good relationship that always existed between
Speaker 6: China and the US around trade, around business growth and development,
Speaker 6: because right now this is a big part of what
Speaker 6: I think is also having an impact on our relationship
Speaker 6: because it has been so deadly to the people of
Speaker 6: the United States.
Speaker 3: Maverriid, who will you be meeting with this week and
Speaker 3: what are you hoping to achieve when the weekends.
Speaker 6: Well, I'm hoping to meet with a number of the
Speaker 6: leaders who are coming to San Francisco from the various economies.
Speaker 6: I'll be saying Hi. They'll be very brief hellos and
Speaker 6: meetings and just welcomes to San Francisco, and hopefully an opportunity,
Speaker 6: you know, not just to talk about the challenges, but
Speaker 6: to talk about the business opportunities and how San Francisco
Speaker 6: can be an important part of the economies of these
Speaker 6: various countries because many of the growth and development around
Speaker 6: AI and new technologies are being developed right here.
Speaker 3: Going into this week, mey Breed, you'd announced jointly with
Speaker 3: Mark Benioff that Dreamforce will return next year. Has mister
Speaker 3: Benioff given you any guarantees that Dreamforce will stay in
Speaker 3: San Francisco beyond twenty twenty four?
Speaker 6: Well, right now, next year, Salesforce is committed to hosting
Speaker 6: Dreamforce in San Francisco. Mark is a San Franciscan, He
Speaker 6: loves this city and will continue to work very closely
Speaker 6: with him to ensure next year's success as well as
Speaker 6: hopefully future Dreamforce success in San Francisco.
Speaker 3: AI, it's clearly top of mind for everyone, not just
Speaker 3: this week, but throughout twenty twenty three here in this city.
Speaker 3: You know, we've talked about all of the square foot
Speaker 3: of office space that has been filled by AIAI. You know,
Speaker 3: dozens of startups have been founded in this city. What
Speaker 3: action will you take this week to continue that? You know,
Speaker 3: what initiatives are you trying to put in place to
Speaker 3: continue the growth that AI seems to be centering in
Speaker 3: our city.
Speaker 6: Well, part of it is San Francisco has never had
Speaker 6: to work hard for business, for tourism and conventions, and
Speaker 6: what that means is, you know, we need to change
Speaker 6: a lot of our codes and things that limit people's
Speaker 6: ability to do business in San Francisco.
Speaker 5: We were always you.
Speaker 6: Can only be a bank in the financial district, or
Speaker 6: you can only have a retail establishment here. And many
Speaker 6: of the policies that I've already proposed allow for diversifying
Speaker 6: places like the building we are in now today, so
Speaker 6: that it's used for more than just office space. It
Speaker 6: could be used for lab space. You know, we have
Speaker 6: a three point four vacancy rate for lab space, and
Speaker 6: so we could use a building like this for that purpose.
Speaker 6: It should be able to easily convert.
Speaker 3: It is zero office mat bored directly involved in those
Speaker 3: conversations kind of bringing private sector two opportunities that you're
Speaker 3: aware of in our city.
Speaker 8: We definitely are me.
Speaker 6: Ikea is a perfect example of a space that's empty
Speaker 6: that wouldn't have been possible had we not bridged that
Speaker 6: gap to make it possible for Ikea to go into
Speaker 6: that space.
Speaker 5: So we're doing both.
Speaker 6: We're changing policies based on the communities and the people
Speaker 6: who are property owners to allow for their properties to
Speaker 6: be used for more than just one use. We're making
Speaker 6: planning code changes, and we're trying to just make it
Speaker 6: easier so that the process is not as cumbersome in
Speaker 6: trying to deliver something different and unique and diverse for
Speaker 6: San Francisco business may read.
Speaker 3: Until very recently, San Francisco was the only city in
Speaker 3: the world that had two robotaxi companies operating twenty four
Speaker 3: to seven and charging a fair for driverless rides. Cruise's
Speaker 3: permit was revoked. I appreciate that's the jurisdiction of the
Speaker 3: DMV and the CPUC, but if CRUs were able to
Speaker 3: demonstrate they fixed the issues that the regulators were concerned about,
Speaker 3: would you support their permit being reinstated.
Speaker 6: Well, we actually have three, including Zekes, which is a
Speaker 6: lot smaller, I.
Speaker 4: Know, and way charging fairs to the public.
Speaker 6: Yes, And so our hope is that you know, this
Speaker 6: is really about safety and security and transparency, and my
Speaker 6: hope is that crews can get things in order in
Speaker 6: order to be back on the streets of San Francisco.
Speaker 6: But they really are going to need to build the
Speaker 6: trust of the people here in the city. And I
Speaker 6: know that we don't directly make the decision, but we're
Speaker 6: still here to work with this technology because we are
Speaker 6: excited that autonomous vehicles are in San Francisco, are testing
Speaker 6: in San Francisco, are able to be a new transportation
Speaker 6: network as a part of San Francisco, but we have
Speaker 6: to ensure that it's a safe network of transportation as well.
Speaker 3: San Francisco Mayor London breed a big week for APEX
Speaker 3: twenty twenty three.
Speaker 4: Thank you so much, Thank you for your time. Back
Speaker 4: to you.
Speaker 2: And a big conversation with you, Ed. We thank you
Speaker 2: so much for me while coming up the world's most
Speaker 2: valuable chip maker. But it's upgrading as processor as rivals
Speaker 2: try to challenge its own AI dominance. All the details
Speaker 2: around and videos updated H two hundred Next this is
Speaker 2: Bloomberg Technology if the world's misvaluable ship firm in video
Speaker 2: and it's upgrading it's all important H one AI processor
Speaker 2: and an effort to maintain its dominance in the artificial
Speaker 2: intelligence field.
Speaker 5: New model guess what called H two hundred will.
Speaker 2: Get the ability to use kind of high bandwidth memory
Speaker 2: to better cope with the huge data sets needed for developing,
Speaker 2: for training, for implementing AI. Joining us now and the
Speaker 2: man behind the story Bloomberg's Ian King.
Speaker 5: And it feels as though the Darling of.
Speaker 2: AI isn't restling on its laurels. It's ces AMD. It
Speaker 2: sees Intel and it has to keep on innovating.
Speaker 4: No, that's exactly it.
Speaker 9: I mean we asked an executive over there exactly that question. Now,
Speaker 9: is this you covering up you know what the competition
Speaker 9: and bring to market soon? Then they were like, no, no, no,
Speaker 9: as soon as we can do something, we do it.
Speaker 9: We just move forward as quickly as we can on
Speaker 9: every front. And that's very much their stance, and that's
Speaker 9: what's kept them ahead so far.
Speaker 5: Remind us why they are so far ahead.
Speaker 2: Originally, of course, all about gaming, but they've just managed
Speaker 2: to offer to particularly well the cloud companies, something unique,
Speaker 2: the data center focus.
Speaker 9: I mean it's a mixture of right place, right time
Speaker 9: and seeing things coming ahead of time. Their technology fundamentally
Speaker 9: is very good at parallel computing. Parallel computing is the
Speaker 9: answer to training these artificial intelligence programs. You basically have
Speaker 9: to bombard them with lots of information, and the ability
Speaker 9: to do these small calculations in parallel is absolutely central
Speaker 9: to that. They put the software in place, they put
Speaker 9: the systems in place, and right now they're the only
Speaker 9: real game in town. Despite everybody else's attempts.
Speaker 5: I mean, it's funny.
Speaker 2: We had what Kai fu Lee talking to Bloomberg TV
Speaker 2: on the end of last week talking about how he'd
Speaker 2: stocked up in H one hundreds in a mask.
Speaker 5: I mean, unimit.
Speaker 2: Anyone really out they're trying to demonstrate their strength in
Speaker 2: AI by how much of a horde of H one
Speaker 2: hundreds they had? What about the supply chain of this
Speaker 2: see and how much we likely to see sort of
Speaker 2: the backlogs continue.
Speaker 9: I mean the company has said, you know that they
Speaker 9: are taking giant leaps forward in terms of availability of
Speaker 9: these chips, which which sounds great. But then if you
Speaker 9: go online and try to buy one, you see a
Speaker 9: list price of twenty eight grand and not currently available.
Speaker 9: Then you go and try to get one on the
Speaker 9: gray market and you see a price of forty thousand
Speaker 9: dollars and upwards. So that tells its own story. Clearly,
Speaker 9: these things are in extremely high demand. Clearly in Video
Speaker 9: is selling as many as they can possibly make, and
Speaker 9: until AMD, Intel and anybody else can be in the
Speaker 9: market with a arrival that can turn people's eyes in
Speaker 9: a different direction, it's likely to remain the case.
Speaker 2: I feel like, we need a whole other conversation about
Speaker 2: the gray market and how that is evolving.
Speaker 5: But in tell us a little bit.
Speaker 2: About Ultimately, we were sitting down M Kai fu Lee
Speaker 2: because there's this issue about sanctions on Chinese, on these
Speaker 2: US chips being shipped to China, and we know that
Speaker 2: in Vidia front and center has had to change the
Speaker 2: chips in which it can send. How much of an
Speaker 2: issue has that been. I mean, obviously H two hundreds
Speaker 2: aren't getting over there.
Speaker 10: I assume yeah, no, H one.
Speaker 9: Hundred didn't get over there either. You'll remember a while
Speaker 9: ago restrictions were imposed basically a year ago, restrictions were
Speaker 9: imposed by the US. The time that looked like it
Speaker 9: was going to be the end for these high level
Speaker 9: chips in China. What Nvidia did was read the rules
Speaker 9: really carefully and come up with something that was essentially
Speaker 9: a workaround. Chinese got their own versions of these chips,
Speaker 9: not as good, but still pretty good. New rules have
Speaker 9: come out which basically block blows off. So now we've
Speaker 9: seen reports about in Nvidia taking another step to come
Speaker 9: up with another version that would essentially circumvent these rules.
Speaker 2: In King always got the technicalities the movements at play
Speaker 2: as we looked towards the twenty first as well. They're
Speaker 2: all important numbers. We thank you so much time now
Speaker 2: for talking tech. First up, a big Swing animis for
Speaker 2: Disney's Marvel Universe, the newest film in the franchise. The
Speaker 2: Marvels managed to generate forty seven million dollars in US
Speaker 2: and Canadian theater ticket sales this weekend. Look, it's the
Speaker 2: lowest opening ever for an MCU film. Much of the
Speaker 2: blame is sort of being pointed at poor marketing due
Speaker 2: to the sag Aftra strikes.
Speaker 5: Finally ended last week.
Speaker 2: Meanwhile, Salesforce is naming Denise Dresser as the new CEO
Speaker 2: of Slack, and Dresser served as a president of Accelerated
Speaker 2: Industries over at Salesforce and was previously an executive vice.
Speaker 5: President for Enterprise Sales.
Speaker 2: Dresser takes the helm at Slack after the previous CEO,
Speaker 2: that's Lydianne Jones, announced she was leaving to go and
Speaker 2: take over.
Speaker 5: At Bumble plus.
Speaker 2: Google sewing five unidentified scammers that allegedly tricked users and
Speaker 2: installing malware on their devices. But the scammers use social
Speaker 2: media to encourage users to download a fake version of
Speaker 2: as ai Chat what barred this fake download later allowed
Speaker 2: scammers to access user social media accounts. Google is suing
Speaker 2: for breach contract and trademark infringement. Meanwhile, let's talk about
Speaker 2: Google and illegal context a little bit more. It is
Speaker 2: beefed up the quality of its search engine, but only
Speaker 2: after it was pressured by the European Union regulators. That's
Speaker 2: according to the internal documents via the USDOJ, claiming Google's
Speaker 2: failure to willingly make improvements prouse it's illegally maintaining its monopoly.
Speaker 5: This is while Alphabet CEO.
Speaker 2: Sonopitchai is about to testify tomorrow in a separate anti trust.
Speaker 5: Fight, this time with Epic Games.
Speaker 2: As always, there's a lot going on, and we're pleased
Speaker 2: to welcome Multinaek who joins us now for on all
Speaker 2: of this, and ultimately let's just talk about Epic Games
Speaker 2: for a moment, because it's not just alphabets Google that.
Speaker 5: They've had issued with the play Store.
Speaker 2: They take issue at many an app store, but tell
Speaker 2: us what they think that they'll get out of Sonopicchui tomorrow.
Speaker 11: Multi So Epic it's trying to prove that Google struck
Speaker 11: these secret deals with Activision and drag games and other
Speaker 11: competitors to stop them from building their own third party
Speaker 11: app stores.
Speaker 8: And I think they will question.
Speaker 11: Pitchai tomorrow and some of these agreements which they've already
Speaker 11: shown in court, and they'll also try to show that
Speaker 11: Google tried to strike these deals with OEMs to make
Speaker 11: sure that the Google Play App Store was prominently featured
Speaker 11: on Android phones. So that's what they're going to focus
Speaker 11: on tomorrow, and they're also going to quiz him on
Speaker 11: some of the business aspects and some.
Speaker 8: Of the policies related to the Google App Store.
Speaker 11: And Google's lawyers are going to then ask Pitchai to
Speaker 11: explain why some of these policies are justified.
Speaker 8: You know, Google has to strike.
Speaker 11: These deals to compete with big competitors like apps like
Speaker 11: the Apple App Store, as well as ensure that there's
Speaker 11: security and you know a lot of good features for
Speaker 11: developers as well as a safe platform for users.
Speaker 2: And there they try to vindicate the thirty percent cut
Speaker 2: that they and well other app stores take from these developers.
Speaker 2: I'm interested in the nuance of that of how much
Speaker 2: they think they will be able to land the idea
Speaker 2: that this isn't paying developers to you know, make okay
Speaker 2: with a thirty percent cut, but you're paying developers to
Speaker 2: come and build on the Google Play Store rather than
Speaker 2: just going to Apple iOS individually.
Speaker 11: Of course, they're definitely going to focus on you know,
Speaker 11: Google's lawyers already have begun arguing that, you know, the
Speaker 11: thirty percent cut is justified because we're giving developers a
Speaker 11: platform to reach some of the largest.
Speaker 8: Users mobile users in the world.
Speaker 11: So in terms of having this platform in the first
Speaker 11: place and providing all these features and programs for developers
Speaker 11: to build their businesses on their platform, you know, the
Speaker 11: thirty percent cuts justified for them to actually be able
Speaker 11: to invest in this platform, to keep it safe for users,
Speaker 11: to make sure that it's a good place for developers
Speaker 11: to come and bill businesses that can thrive.
Speaker 2: Just going back to the border context here, I'll say
Speaker 2: that how out of the ordinary is it for CEOs
Speaker 2: have to get up to be summoned in this way,
Speaker 2: to give evidence in this manner.
Speaker 8: So we've seen a lot of CEOs this year already.
Speaker 11: We've had Elon Musk who's been quite you know, they've
Speaker 11: been appearing quite quite often in some of these cases.
Speaker 11: So napitchit's actually going to be his second time in
Speaker 11: almost two and a half weeks, because just two weeks
Speaker 11: ago he was in DC testifying in the Google an
Speaker 11: I trust case related to the dogs claims that Google's
Speaker 11: ad search business is anti competitive. So you know, here
Speaker 11: he is again two weeks later, two and a half
Speaker 11: weeks later, is going to be here tomorrow, you know, testifying.
Speaker 11: So I think he's going to slowly get you know,
Speaker 11: seasoned in terms of being at the witness stand also,
Speaker 11: but sometimes the CEOs serve as you know, the conscience
Speaker 11: of the company, so it'd be interesting to see how
Speaker 11: he defends.
Speaker 2: Thank you, mauntin Knak All Things alphabet from New York.
Speaker 2: This is Luemo Technology. Welcome back to blouemaog Technology. I'm
Speaker 2: Caroline Hide in New York. Let's get a quick check
Speaker 2: on the markets as we're basically halfway through a trading
Speaker 2: day and we're looking at well, I mean flat to
Speaker 2: lower now and then as that one hundred off by
Speaker 2: a quarter of a percentage point, just think how far
Speaker 2: how fast we have managed to rally in the month
Speaker 2: of November so far. Of course, appetite back in tech
Speaker 2: as we potentially see the peak of hiking cycle for
Speaker 2: the Federal Reserve. All important CPI number inflation data coming tomorrow,
Speaker 2: So it's a macro context. I look at what's happening
Speaker 2: in the world of chip makers because in videos on
Speaker 2: the higher side, but well, nothing else really is and
Speaker 2: the socks is currently off by more than a percentage
Speaker 2: point at the moment. Bitcoin on the downside. Let's have
Speaker 2: a look at what's happening in Asia, though China in particular.
Speaker 2: This isn't as that golden dragon, and I shanna like
Speaker 2: to know because it's called the Internet. Companies that trade
Speaker 2: here in the US not toab be higher. Now, is
Speaker 2: this more about the hope that China will be adding
Speaker 2: some stimulus to the economy. We're worried about a week
Speaker 2: consumer there at the moment. Nevertheless, we do see a
Speaker 2: little bit of appetite and buying on that particular exchange.
Speaker 2: And this as we have some idiosyncratic news around certain names.
Speaker 2: Let's just take a light on DD for example, Chinese
Speaker 2: ride haling leader. It has posted its first profit since
Speaker 2: two thousand and twenty one, actually sustaining gradual recovery.
Speaker 5: Head of a twenty twenty four Hong Kong listing.
Speaker 2: The company's revenue actually rose twenty five percent in September quarter,
Speaker 2: suggesting they get's making some headway in an effort.
Speaker 5: To regain market share.
Speaker 2: Back in twenty twenty one, regulators launched a probe remember
Speaker 2: into its data handling and forced it to delist from the.
Speaker 5: New York Stock Exchange.
Speaker 2: Meanwhile, it's been China's most important shopping festival was held
Speaker 2: every the weekend.
Speaker 5: It's called a Singles Day.
Speaker 2: In an annual bargain's extravaganza. Remember Baba really popularized it
Speaker 2: over about a decade ago. While the event is usually
Speaker 2: dominated by e commerce platforms Alibabajd, dot Com, Pindo a duo,
Speaker 2: smaller streaming platforms du in quite shue that they're able
Speaker 2: to have some breakthrough performances.
Speaker 5: It would seem it's got an expert on this.
Speaker 2: Jacob Cook, CEO and e commerce consultancy WPIC Marketing and
Speaker 2: Technologies staying up extremely late for us over there in Asia,
Speaker 2: we really appreciate it, Jacob, just was the eleventh of
Speaker 2: eleventh a good day for these sorts of players. Did
Speaker 2: company the individuals come out and spend more than we anticipated?
Speaker 12: Well, they certainly did. At the start of the Shopping Festival.
Speaker 13: I think the legacy platforms were seeing sort of low
Speaker 13: single digit increases, maybe even around the three percent mark.
Speaker 13: And your team MOLLS and your JDS really, I think
Speaker 13: what you were saying before really is the big story.
Speaker 13: Your doin's, your read books, your KAI shows that are
Speaker 13: really reporting triple digit gains on where they were last year.
Speaker 12: You know, overall, probably low double digits in terms of
Speaker 12: where the shopping festival was last year. That's down from
Speaker 12: where we were in previous here is but you know,
Speaker 12: behavior is really changing and how people are shopping online
Speaker 12: is changing online in China too.
Speaker 5: Yeah, articulate how that is.
Speaker 2: I mean, we know that a consumer is under stress
Speaker 2: at the moment in terms of the economics slow down.
Speaker 2: Are they therefore looking for deals or is it the
Speaker 2: places they go to shop has changed?
Speaker 12: Well, I think both are true.
Speaker 13: They certainly are looking for deals, and there was a
Speaker 13: lot of deals this year. You know, there was intense
Speaker 13: competition between Team All and JD. But you know, like
Speaker 13: I said, we have single digit increases in those platforms
Speaker 13: while they're fighting for market share, and just incredible triple
Speaker 13: digit increases on more of the live streaming platforms like
Speaker 13: like Kwaishua and doing it doing it alone, I think
Speaker 13: was reporting one hundred and twenty percent of over the
Speaker 13: last year. Little read Book you have three to four
Speaker 13: hundred percent. These are huge numbers, and they really, you know,
Speaker 13: are really showing us how the difference is and and
Speaker 13: just the way that people are shopping through live streaming
Speaker 13: now really becoming mainstream.
Speaker 2: Okay, So is that the case that people, no matter
Speaker 2: where they are, are just flicking through their phone, they're
Speaker 2: on some sort of TikTok like offering and they're getting
Speaker 2: the offerings in there. Or are people signaling out streamers
Speaker 2: in particular because it's some sort of entertainment for them.
Speaker 2: I mean, some of them, they're absolutely incredible at what
Speaker 2: they do.
Speaker 5: It seems.
Speaker 13: Yeah, people are pretty loyal to the streamers that they're
Speaker 13: finding out. Certainly they are out there looking for deals,
Speaker 13: but you mean, you know a lot of times when
Speaker 13: they're logging onto these platforms, they don't know or they're
Speaker 13: not coming there with the pre intended purchase intent. You know,
Speaker 13: a team all the JD you see a lot of
Speaker 13: people like Little Lemon reporting huge numbers. Apple had a
Speaker 13: great turnout, but with the live streamers they're really going
Speaker 13: for product recommendations, they're going for great deals, but when
Speaker 13: they tune into these shows, maybe they didn't know what
Speaker 13: they were going to buy beforehand. So it's really mean
Speaker 13: I think when we talk about more bringing products to
Speaker 13: people as opposed to people to products, and this is
Speaker 13: really the trend going forward, and we just see this
Speaker 13: continuing on. There's really no end in sight unless the
Speaker 13: other platforms really do, you know, make a play it here,
Speaker 13: but this is it's just huge. It's a huge trend
Speaker 13: and we're seeing in other parts of Asia as well.
Speaker 2: Tell us a little bit about where the money flows here.
Speaker 2: I mean, there's a great story on the terminal today
Speaker 2: all about the top China live streamer. He's known as
Speaker 2: Lipstick King because he's really could and cosmetics as well,
Speaker 2: it would seem, but actually his own numbers, they're coming
Speaker 2: from third parties like Southern Metropolis Daily is reporting around
Speaker 2: his own numbers having gone down a lot from this
Speaker 2: time last year.
Speaker 5: How is he making money? How are the.
Speaker 2: Companies that are selling through him making money? And actually
Speaker 2: is he not doing as well as he was in
Speaker 2: previous times?
Speaker 12: Well that's a big question. I mean, certainly he's making
Speaker 12: a lot of money.
Speaker 13: I mean, when we go back to the tax of
Speaker 13: aation cases that we had a couple of years ago,
Speaker 13: the debated taxes that were made public were in the
Speaker 13: hundreds of millions of US dollars, which if you extrapolate back,
Speaker 13: means their income is in the billions of US dollars. Yeah,
Speaker 13: certainly people are. The one thing with cosmetics is it's
Speaker 13: the repeat purchase. So Brandon link to lose money and
Speaker 13: to be able to go on his show at extreme discounts,
Speaker 13: maybe even sell below costs in the hopeful that people
Speaker 13: will come back and buy that product again. You know
Speaker 13: that doesn't work for large durables or.
Speaker 12: Things like that.
Speaker 13: But you know, there's just a ton more lier streamers
Speaker 13: out there, and even men now are tuning into these
Speaker 13: shows where it was primarily, you know, a really female
Speaker 13: dominated demographic before. So yes, the live streamers are making
Speaker 13: a ton of money, and the platforms are making a
Speaker 13: ton of money.
Speaker 12: The brands not so much.
Speaker 13: But it still is a great way to reach millions
Speaker 13: of consumers in fifteen minutes.
Speaker 5: Set in the US sun.
Speaker 2: In the UK and Western economies, people are very offai
Speaker 2: with following influencers and starting to see more ads or
Speaker 2: understanding when they're getting product placement. But ultimately, with this
Speaker 2: style of shopping ever translate, do you think.
Speaker 13: Well, I think what the TikTok numbers that are being
Speaker 13: reported so far, we've seen numbers out of Malaysia, out
Speaker 13: of Great Britain, and that it is catching on. So yes,
Speaker 13: we do expect it to catch on in other parts.
Speaker 13: You know, it's not a lot different than you know,
Speaker 13: what we'd have seen with QBC a while ago. It's
Speaker 13: a little bit different than say just a normal influencer
Speaker 13: and the fact that you have an audience that is
Speaker 13: coming in to buy. We know that they're there to shop,
Speaker 13: they're usually in your right demographic, whereas maybe when you're
Speaker 13: talking about an influencer, you're there, you know, kind of
Speaker 13: surfing and you're influenced about a product. But the live
Speaker 13: stream model is really of more direct sale. And yes,
Speaker 13: we absolutely expect this to catch on at other markets.
Speaker 5: Jacob Cook staying up what past one am?
Speaker 2: I think it with you? Absolutely brilliant, Thank you wpic.
Speaker 2: We appreciate the context. Meanwhile, later this week we're going
Speaker 2: to be getting a glimpse into how much consumers have
Speaker 2: rained in potentially their discretionary spending here in the United
Speaker 2: States too, Walmart Target reporting earnings to mention but a
Speaker 2: few as a vital holiday season approaching. Of course, Jennifer
Speaker 2: Bartushas is with us of Bloomberg Intelligence, and are we
Speaker 2: likely to see what we're just hearing about in China?
Speaker 2: The fact that discount isn't doing well at the moment,
Speaker 2: company is able to shift product if they've got the
Speaker 2: right price point. Is that what's going to happen here
Speaker 2: in the US as well?
Speaker 7: Yeah, I think with it is definitely what we're going
Speaker 7: to see as we go through third quarter earnings. There
Speaker 7: is a flight to value in the United States, and
Speaker 7: the consumer is shopping the channels where they feel that
Speaker 7: they can get a good value. So we think that
Speaker 7: discount stores, some of the off price stores are poised
Speaker 7: to do well this quarter just because of that's where
Speaker 7: the consumer's headed.
Speaker 2: So look out for rostors, look out for TJX. Ultimately,
Speaker 2: what is the sort of mix of in store. I mean,
Speaker 2: I think of a TJX, and I think of going
Speaker 2: there in person and rifling through very close courted clothes
Speaker 2: that you.
Speaker 5: Can hardly see.
Speaker 2: But I'm interested as to whether or not people are
Speaker 2: doing that online more and more.
Speaker 5: Is that more of a Walmart Target play?
Speaker 7: Well, when you're talking about the off price stores, it
Speaker 7: really still is a hunted discovery type of environment, so
Speaker 7: people are still going into those stores to search for value.
Speaker 7: When you're talking about the discount stores like a Walmart
Speaker 7: or a Target, it's more of a combination of both
Speaker 7: online and in store shopping. And when we look at
Speaker 7: traffic of visits into the discount stores, although across all
Speaker 7: of retail traffic is down year over year, it is
Speaker 7: up to the discounters, and that's based on placer AI data,
Speaker 7: So that gives a little confidence that these people who
Speaker 7: play in the value space are attracting those customers.
Speaker 5: It's interesting we're just looking at interday moves. May sees
Speaker 5: off by some three percent.
Speaker 2: Of course, own Bloomingdale's owner of Blue Mercury, some often
Speaker 2: a more high end luxury kind of a purchase that's
Speaker 2: going on even at the Macy stores as well. But
Speaker 2: they've had a big focus on investing in online in
Speaker 2: marketplace offerings in AI. Is that going to be something
Speaker 2: we hear from everyone, this whole focus on data or AI.
Speaker 7: Well, I think that across retail. You know, there is
Speaker 7: a lot of investment that happens with regards to the
Speaker 7: omnichannel experience. Consumers now really want to have a flawless experience,
Speaker 7: whether they're in person or whether they're shopping online, and
Speaker 7: so that is an area where investment is likely to continue,
Speaker 7: just because it really is about meeting customers where their
Speaker 7: interest is and where the demand is. And that's really
Speaker 7: not retailer specific. That's really happening across the entire industry.
Speaker 2: It's going to be a busy week for you, Jennifer Buttash.
Speaker 2: Just thank you so much for walking us through ahead
Speaker 2: of all those retail earnings from Blue Bag Intelligence.
Speaker 5: Meanwhile, coming up, global.
Speaker 2: Crypto venture funding, well, funny enough, is down, in fact,
Speaker 2: as we hit a low that we haven't seen since.
Speaker 5: About twenty twenty.
Speaker 2: We're going to talk about it all with the latest
Speaker 2: data from Pitchbook.
Speaker 5: That's next. There's Bluemotechnology.
Speaker 2: Global crypto adventure funding, Well, it's hit a recent low
Speaker 2: amid of course the unwinding of Tara Luna, the collapse
Speaker 2: of FTX.
Speaker 5: There we mention what else was happening last year.
Speaker 2: According to new data from Pitchbook, crypto venture funding fell
Speaker 2: by sixty three percent year of a year to just
Speaker 2: two billion dollars in the third quarter's according to Pitchbook
Speaker 2: cryptoanalyst Robert Lane where pleased to welcome him.
Speaker 5: To the show.
Speaker 2: And I mean, perhaps unsurprising with the fallout that VC
Speaker 2: appetite has remained low.
Speaker 5: But vcs are sitting on a whole ton of cash,
Speaker 5: some of them, I.
Speaker 2: Think of a sixteen Z in particular when it comes
Speaker 2: to crypto. Why aren't they putting money to work in
Speaker 2: some of the projects?
Speaker 14: Yeah, well, thanks for having me here again, Caroline. Well,
Speaker 14: first of all, this is not really a symptom specifically
Speaker 14: in cryptos more of the broader venture markets. So you know,
Speaker 14: we track investments across entire adventure ecosystem and is down
Speaker 14: for Q three as well, so you're seeing that this
Speaker 14: same thing. So what you're seeing in the crypto space
Speaker 14: is basically what adventure investors are doing. They're taking the
Speaker 14: time to talk to founders, they're taking the time to
Speaker 14: understand what the business models are, how they're operating, and
Speaker 14: then they're going to slowly deploy capital. You know, we
Speaker 14: talked about this last time. It's just the pace of
Speaker 14: investing in the process of investing has been much much slower.
Speaker 14: I think we're crypto, but what the unique aspect is
Speaker 14: there still regulations that they have to think about, right,
Speaker 14: and then it's really nason all the technologies that it's
Speaker 14: being built.
Speaker 4: It's very nascent.
Speaker 14: So I think that is part of the slow down too,
Speaker 14: specifically in crypto, it's those two things.
Speaker 2: Let's talk about some of the regulatory questions because actually
Speaker 2: many I'm sure who will gather around their Thanksgiving table
Speaker 2: this month, will say they had some big wins when
Speaker 2: it came to the SEC sort of unable to enforce
Speaker 2: the way in which they thought they were, the fact
Speaker 2: that they lost against initially against the gray scale and
Speaker 2: I'm going to have been turning into an ETF. They
Speaker 2: seems that they've dropped their issues with Ripple in particular.
Speaker 2: Does that spell that the SEC isn't going to have
Speaker 2: as many teeth?
Speaker 14: Yeah, Honestly, we think what's going to happen is that
Speaker 14: the SEC is gonna l approve some of the things
Speaker 14: are happening in the space. So first we think the
Speaker 14: spot bitcoin ETF is going to get approved in the
Speaker 14: next few months. And now we just saw last week,
Speaker 14: black Rock is applying for U spot E ETF as well,
Speaker 14: ETF as well. So we think those things are going
Speaker 14: to help the crypto space because it's going to increase
Speaker 14: the liquidity in the spaces. I think right now we're
Speaker 14: in a liquidity constrained market, so a lot of the
Speaker 14: products don't really work well. Lending markets, credit markets are
Speaker 14: not working as well, especially in the defied space because
Speaker 14: of the lack of liquidity. We think that you know,
Speaker 14: as that secs kind of have to force to play
Speaker 14: a hand to really look at these products, and if
Speaker 14: they do reject, they have to give a really good reason,
Speaker 14: and right now we haven't heard any good reason that
Speaker 14: the season gift for not having any of these exchange
Speaker 14: traded products on the market. They're already allowed a bitcoin
Speaker 14: exchange features on the market, and so you know, you
Speaker 14: look at what black Rock is arguing in their following
Speaker 14: is that, look, these things are going to be correlated
Speaker 14: to the spot markets no matter what their price. The
Speaker 14: features products their price to the spot market, right and
Speaker 14: in the surveillance is the same way that that black
Speaker 14: Ross can do the surveillance as well with nastating coin
Speaker 14: base and all these other exchanges. So we think it's
Speaker 14: going to happen, but there's get the approval, and it's
Speaker 14: really going to be a great benefit for the crypto markets.
Speaker 2: I mean, Larry thinks U turn I'm going to call
Speaker 2: it has not been lost on many And the fact
Speaker 2: that ultimately I'm sure is about face on the infrastructure
Speaker 2: behind crypto is probably in large part because his clients
Speaker 2: want it. Now talk to us about whether that institutional
Speaker 2: demand is really there, because that's what you hear a
Speaker 2: lot from the crypto space, But then we're just trying
Speaker 2: to see the data.
Speaker 14: Basically, we do think it's there, and I think that
Speaker 14: is why all these asset managers are getting into it.
Speaker 14: And it's also you don't want to be the asset
Speaker 14: manager that didn't spend the investment, the time, and the
Speaker 14: resources to offer crypto service to your clients. And if
Speaker 14: a bull market returns and then you're not offering those services,
Speaker 14: your clients are going to go to another asset manager.
Speaker 14: So you know, we've estimated that just on the bitcoin side,
Speaker 14: for the ETF it's roughly between fifty to eighty billion
Speaker 14: dollars of demand for a spot in ETF so and
Speaker 14: I think that you know that's going to continue to
Speaker 14: increase as well. So there definitely is a lot of demand.
Speaker 14: It's not just custoding and holding asset and being able
Speaker 14: to buy it in a regulated way. You know, there's
Speaker 14: all these other service trade services, prime brokerage, you know,
Speaker 14: the opportunity for asset managers and banks to offer like
Speaker 14: an in a wedge for their clients to get access
Speaker 14: to it. But then even think about eth eth is
Speaker 14: pretty complicated because if you offer an eth ETF that's staking, right,
Speaker 14: that's involved. So how does that work for clients and
Speaker 14: how do they measure their returns on that and all that?
Speaker 14: So there is a lot of client demand very quickly.
Speaker 2: Where does the money get apportioned to the startups or
Speaker 2: to bitcoin and eath?
Speaker 4: Oh, that's a that's a difficult question.
Speaker 14: I think it's it's different because venture investors are the
Speaker 14: one that is investing in the startups. They're not really
Speaker 14: buying ETH and bitcoin maybe a little bit or maybe
Speaker 14: like through through like foundations and stuff that they invest in,
Speaker 14: But for the most part, we think that, like you
Speaker 14: said at the beginning of the segments, that a lot
Speaker 14: of dry powder in the crypto space exists you know,
Speaker 14: you know a sixteen Z they have the four fo
Speaker 14: point five billion dollar fund. That is still a good
Speaker 14: amount of capital left in that fund. And there's these
Speaker 14: other funds that they're raised. That's the fourth crypto fund
Speaker 14: by the way, so all of that capital is kind
Speaker 14: of goes to the startups. And then I think on
Speaker 14: the for bitcoin and eth, you're going to see more
Speaker 14: of the traditional asset managers and all that investors that
Speaker 14: would would buy into bitcoin and eth and some of
Speaker 14: the more strong alternative tokens.
Speaker 2: Not lost the numbers this quarter, but maybe a bit
Speaker 2: of optimism in the future. Pitchbook analyst, we love having
Speaker 2: Robert Lay, thank you very much. Indeed, let's just hone
Speaker 2: in on the digital health landscape and parents.
Speaker 5: This is one for you.
Speaker 2: Pediatric telehealth startup Summer Health is unveiling a new platform,
Speaker 2: everyday care.
Speaker 5: For twenty dollars a month.
Speaker 2: Parents will have twenty four to seven access to their
Speaker 2: own personalized team of providers in the same way that
Speaker 2: look you would text your family of friends for a photo,
Speaker 2: for a video, basically for an update and whether you
Speaker 2: think your kids sick or not. And then to Silver
Speaker 2: Summer Health CEO and founders with us to tell us
Speaker 2: why there is this demand at the moment, what particularly
Speaker 2: is at breaking point that means that parents need an
Speaker 2: ability to have telehealth far Moisily.
Speaker 15: Yeah, Carolyn, thanks so much for having me on today.
Speaker 15: The average American child sees their pediatrician for seven minutes
Speaker 15: per year, so imagine how much can you really get
Speaker 15: done in seven minutes. We have discovered that by having
Speaker 15: always on care through summer Health's new everyday care platform,
Speaker 15: we can offer that primary care around the clock. So
Speaker 15: today summer Health is expanding beyond just urgent care those
Speaker 15: episodic needs to actually assigning a provider to your account
Speaker 15: for everyday care needs.
Speaker 2: I'm trying to get to grips with how you make
Speaker 2: the money, because twenty dollars is well, really well the
Speaker 2: reasonable when you think about the cost of healthcare. So
Speaker 2: I'm trying to understand where do you get the revenue
Speaker 2: streams from. How are people, of course that you're bringing
Speaker 2: onto your telehealth to offer their services, how.
Speaker 5: Are they getting the money as well?
Speaker 10: Yeah, so summer Health is a subscription service.
Speaker 15: It's twenty dollars per month or one hundred and ninety
Speaker 15: two dollars per year. Many of our customers actually pay
Speaker 15: that annual plan and it's basically the cost of a copey.
Speaker 15: We have the most high quality providers on the platform
Speaker 15: because we have developed our own proprietary back end for
Speaker 15: our providers.
Speaker 10: We've actually leaned into AI quite a bit.
Speaker 15: To give the doctors at their fingertips the most simple
Speaker 15: to use and easy to access resource to give parents
Speaker 15: the most personalized solution.
Speaker 2: You're backed by maybe some heavyweights in the world of
Speaker 2: VC Secoya, Lux Capital, Books Group individuals as well. Where
Speaker 2: are they thinking that you're a solution that just isn't
Speaker 2: being offered elsewhere?
Speaker 15: Yeah, well, I have yet to see a telemedicine platform
Speaker 15: that really leans into continuous care. We hear the clamor
Speaker 15: growing louder, especially from parents, but certainly from Americans all
Speaker 15: over the country that they're looking for a physician to
Speaker 15: really get to know them, get to know their family,
Speaker 15: get to know their family's needs. What Summer Health has
Speaker 15: been able to do is develop that kind of always
Speaker 15: on care by being there continuously and forging a relationship
Speaker 15: by assigning a provider to your account. What we see
Speaker 15: other telemedicine platforms do is basically you can sort of
Speaker 15: parachute in for that one off moment and step out
Speaker 15: and they don't really get to know you.
Speaker 10: So that's where we're moving.
Speaker 2: It's interesting that I was there trying to get an
Speaker 2: appointment for my son from an air issue on the Friday,
Speaker 2: because I knew I had to go in to see
Speaker 2: someone and there wasn't a single doctor available in the
Speaker 2: whole of the county.
Speaker 5: I'm interested as to how do you solve for that element.
Speaker 2: At the end of the day, a lot of these
Speaker 2: things a doctor just has to have a look.
Speaker 15: Yeah, we've actually been pleasantly surprised by how much we
Speaker 15: can do via telemedicine. A lot can be done with
Speaker 15: a recorded video or a photo that we can treat
Speaker 15: our providers. If you have a respiratory issue, for example,
Speaker 15: snap a video and our doctors can hear that cough
Speaker 15: over and over again. Our providers actually think it's better
Speaker 15: than some of the video chat care because they can
Speaker 15: see it time and time again. We also have the
Speaker 15: benefit of working with a great pharmacy provider so that
Speaker 15: we can locate medicine that's out of stock for you
Speaker 15: and let you know when that medicine is available for
Speaker 15: your family, So you're not waiting for an hour in
Speaker 15: the pharmacy for that medication.
Speaker 2: Boy, I feel that I'm interested in and just ultimately
Speaker 2: the mon We just talked about the vcs that are
Speaker 2: back you. Are you needing to raise more funds? How
Speaker 2: is that ongoing conversation? I'm sure every founder out there
Speaker 2: is having it. But have you managed to get some
Speaker 2: sort of runway?
Speaker 5: Yeah?
Speaker 15: So we're very grateful to be backed by Sequoy Capital, Lux,
Speaker 15: Chelsea Clinton's Metrodora and other amazing vcs who have supported.
Speaker 10: Us through this journey. We're growing rapidly.
Speaker 15: We hope other parents will come join us, and that
Speaker 15: thankfully has been fueling our growth. So we're in a
Speaker 15: great position right now.
Speaker 2: A'man great to have some time with you, and for
Speaker 2: every parent out there, we feel you. When it comes
Speaker 2: to perhaps the current illnesses that are floating around and
Speaker 2: Indo Silver, we thank our Summer Health CEO and founder.
Speaker 2: I mean, well, look, that does it for this edition
Speaker 2: of Bluemou Technology. You do not want to forget to
Speaker 2: check out our podcast. You'll find it on the terminal
Speaker 2: as well as online on Apple, Spotify and iHeart from
Speaker 2: New York and of course back where the Asia Pacific
Speaker 2: event is happening.
Speaker 5: Over in San Francisco where it is. This is Bluemo
Speaker 5: technology