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Speaker 1: From Mahard where Innovation, Money and power Collie in Silicon

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Speaker 1: Vallet NBN.

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Speaker 2: This is Bloomberg Technology with Caroline Hyde and Ed lud Love.

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Speaker 3: I'm Caroline hide A Bloomberg's World headquarters in New York

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Speaker 3: and Ludlow He's off.

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Speaker 4: This is Bloomberg Technology coming up.

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Speaker 3: Twitter becomes X in a musk, makes some overnight changes

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Speaker 3: to the look of the social network.

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Speaker 4: What's the vision for the company?

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Speaker 3: We discuss, plus Apple planning to keep shipments steady for

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Speaker 3: the latest iPhone fifteen. Will break down why the company

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Speaker 3: is still so confident with eighty five million being targeted

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Speaker 3: despite the decline in the smartphone market. And Sam Altman's

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Speaker 3: other project, world coin saws on the first day of trading.

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Speaker 3: We'll dig into the details of the token and the

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Speaker 3: project from the open AIICEO. First, let's I can in

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Speaker 3: the broader markets. Well, some pretty downbeat economic days to globally.

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Speaker 4: Abagail did to.

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Speaker 5: Them there certainly is, especially in Germany, pretty shocking and

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Speaker 5: maybe suggesting that maybe some sort of a global economic

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Speaker 5: slowdown could be ahead.

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Speaker 4: But here in the US we do have the.

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Speaker 5: S and P five hundred climbing for a second day

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Speaker 5: What makes this interesting is the fact that you have

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Speaker 5: the cebo Vix, that volatility index also hire. Typically when

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Speaker 5: stacks go hired, that goes lower. So it suggests that

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Speaker 5: maybe in this week, as big tech earnings really kick

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Speaker 5: off in Earnest, that we could have some fireworks ahead. Now,

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Speaker 5: one stock that's doing really quite well today, Apple, of course,

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Speaker 5: on this report that the company has ordered enough parts

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Speaker 5: to think that they are going to be they're basically

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Speaker 5: holding their iPhone shipment plan for this year of eighty

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Speaker 5: five million units, flat.

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Speaker 4: To last year.

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Speaker 5: The stock being hired suggests that investors may be relieved

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Speaker 5: that it's flat, that it's not a decline. As for

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Speaker 5: the year, well, it's been all about this big tech rally.

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Speaker 5: The first half was the best half on record. Right

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Speaker 5: now that nazak one hundred forty one percent on the year.

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Speaker 5: It's only July this earning season, though, Caroline, it's going

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Speaker 5: to be a real nail bier. We of course, tomorrow

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Speaker 5: have Microsoft in alphabet. On Wednesday we have Meta, so

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Speaker 5: lots and lots of stocks moving to the upside and

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Speaker 5: the downside Meta. It's interesting just to note that at

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Speaker 5: this point off of its lows, but down about eight

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Speaker 5: tens of one percent. That's going to be a big

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Speaker 5: one Caroline. As you know, on Wednesday, everybody looking for

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Speaker 5: the year of efficiency, their new Twitter competition, plus the

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Speaker 5: stock last week up one hundred and fifty percent of

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Speaker 5: the year, will the numbers justify?

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Speaker 4: It's something to keep in mind.

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Speaker 5: It's still a mid single digit growth number that they're

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Speaker 5: looking for. It's going to be an interesting report for sure.

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Speaker 3: Yeah, and I'll go be calling it Twitter for that

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Speaker 3: much longer, certainly.

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Speaker 4: Not a calling to Elon Musk.

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Speaker 3: Let's get back to what apagail was just starting with

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Speaker 3: the Apple biggest points contributor to the SMP today, let's

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Speaker 3: talk about why I'm very pleased to say Mark Germans

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Speaker 3: here with the latest reports according to people familiar, and

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Speaker 3: they are sticking to eighty five million as their target

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Speaker 3: for sales to the iPhone fifteen, which is pretty resilient

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Speaker 3: if you think about the economy.

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Speaker 6: That's right, So eighty five million units flat through the

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Speaker 6: rest of the year for these next generation iPhones, four

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Speaker 6: new models, two new iPhone fifteen Pro models to standard

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Speaker 6: iPhone fifteen models. That means that the shipments that Apple's

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Speaker 6: targeting are going to be flat for the third year

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Speaker 6: in a row.

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Speaker 7: Now, that's pretty good given everything.

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Speaker 6: Going on economically, if you look at the Android market

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Speaker 6: for smartphones, if you look at the larger consumer electronics market,

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Speaker 6: flat is a good thing.

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Speaker 7: Now.

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Speaker 6: But let's give some context, some comparison here, right, the

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Speaker 6: last two iPhone models, the iPhone thirteen line and the

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Speaker 6: iPhone fourteen line, those were pretty basic upgrades.

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Speaker 7: Not a lot new there, right.

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Speaker 6: But the iPhone fifteen Pro models as well as the

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Speaker 6: lower and iPhone fifteen models, they're actually going to be

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Speaker 6: quite significant upgrades. They're going to have a redesign on

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Speaker 6: the high end, they're going to be switching from stainless

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Speaker 6: steel to titanium. They're going to be changing the charger

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Speaker 6: from lightning to USBC, which is.

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Speaker 7: The industry standard.

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Speaker 6: You're going to see the dynamic island, the feature you're

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Speaker 6: showing right now on TV on the lower end iPhone

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Speaker 6: fifteen models. Big camera upgrades on both, even a bigger upgrade,

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Speaker 6: particularly for zooming in on photos and videos on the

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Speaker 6: highest and iPhone the fifteen Pro macs. You may see

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Speaker 6: a little bit of a price increase internationally across the

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Speaker 6: four model, so big iPhone upgrades this year. While flat,

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Speaker 6: in my opinion, it's a little bit more nuanced. It's

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Speaker 6: flat in a major iPhone upgrade cycle. All things considered,

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Speaker 6: still fairly positive though, marg You've.

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Speaker 4: Always got the nuance.

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Speaker 3: And one of the nuances also that Apple doesn't really

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Speaker 3: want us talking about these numbers anyway. They want us

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Speaker 3: to think about the subscriptions. They want us to think

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Speaker 3: about overall direction of travel rather than the intricacies of

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Speaker 3: how many iPhones they sell. But on the top end

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Speaker 3: of the bottom end, what's more important. Are they still

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Speaker 3: really a luxury item that can charge us more?

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Speaker 6: You know, I think it's interesting Apple made a change

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Speaker 6: I believe it was five years ago now, four or

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Speaker 6: five years ago now where they stopped reporting unit sales

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Speaker 6: for their individual products like the iPhone, the iPad, etc.

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Speaker 7: And they move to revenue only now.

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Speaker 6: At the time, they did that because unit sales were slowing,

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Speaker 6: so in terms of overall units, those were going.

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Speaker 7: Down in terms of how many they were selling.

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Speaker 6: But at the same time, revenue is going up because

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Speaker 6: of the pricing creases, right, So they do want us

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Speaker 6: to focus on the revenue because that is what is increasing.

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Speaker 6: And in terms of the devices being a luxury item,

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Speaker 6: I would say somewhat right. Phone prices overall across the

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Speaker 6: entire market have been going up. You're seeing a lot

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Speaker 6: of Android phones, Google phones getting in that pricing tier.

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Speaker 6: Apple at this point doesn't even sell the most expensive

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Speaker 6: phone in the market. Those would be the foldable phone

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Speaker 6: sold by Samsung, Google and some of the Chinese players.

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Speaker 7: But I think Apple will get there, right.

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Speaker 6: If they're continuing to increase storage, add new camera capabilities.

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Speaker 6: Next year actually is going to be another iPhone upgrade.

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Speaker 6: Of note, they're going to increase the screen sizes marginally, right,

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Speaker 6: That could add some pricing.

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Speaker 7: Pressure there as well.

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Speaker 6: So clearly I would say they're luxury item, but they're

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Speaker 6: not at the very very high end.

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Speaker 7: But they'll get there.

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Speaker 4: Marc German, we thank you for breaking down what is.

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Speaker 3: The key story because it is the most valuable company

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Speaker 3: more than three trillion dollars currently being added at the

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Speaker 3: moment to its market cap. Three point zero three seven

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Speaker 3: is where we stand. And remember, look, Apple is not

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Speaker 3: going to give us its earnings. It's juicy details until

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Speaker 3: next week August the third, But boy.

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Speaker 4: Have we got a lot to be digesting this week.

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Speaker 3: Alphabet Snap Microsoft, Mega names, Mega about a market capitalization

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Speaker 3: going to be coming through with transparencies to whether they

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Speaker 3: live up to those valuations. Let's get it to it

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Speaker 3: with Liz Young therefore, head of Investment Strategy over As.

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Speaker 3: So far, it's a big week, and it feels as

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Speaker 3: though all eyes on some of these AI focused names,

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Speaker 3: the Microsofts and indeed the alphabets.

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Speaker 8: Yeah, it's a huge week, fed week, and all of

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Speaker 8: these earnings coming in. It's really feeling like this is

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Speaker 8: when the rubber hits the road for a lot of

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Speaker 8: these companies that have seen so much optimism and multiple

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Speaker 8: expansions so far in twenty twenty three. The common carry

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Speaker 8: out of earnings is going to be hugely important because

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Speaker 8: if you look ahead to the end of twenty twenty

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Speaker 8: three and into twenty twenty four, earnings expectations are pretty

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Speaker 8: high just across the board for the index. So companies

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Speaker 8: are going to have to be able to justify the

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Speaker 8: multiples that these stocks are trading at with their own

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Speaker 8: expectations of what the next twelve months look like.

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Speaker 1: So it's going to be.

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Speaker 8: A really sticky situation if they can't justify that some

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Speaker 8: of the AI enthusiasm. My concern has been that when

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Speaker 8: you have a new theme and a new innovation that

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Speaker 8: is supposed to take the world by storm or just

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Speaker 8: even change the marketplace a little bit, themes usually take

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Speaker 8: two to three years to really materialize, and they go

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Speaker 8: through a price discovery phase along the way. So I'm

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Speaker 8: not sure that we're going to get justification and gratification

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Speaker 8: of this AI theme in the next six to twelve months,

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Speaker 8: and that's something that these companies will have to grapple

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Speaker 8: with in the market.

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Speaker 3: I'm just thinking about price discovery of his last week,

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Speaker 3: the Microsoft got to push higher in terms of its

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Speaker 3: record market cap for itself because well, they're starting to

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Speaker 3: outline how they're going to price for some of the

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Speaker 3: add ons that we're getting with the big chat features,

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Speaker 3: and it looked pretty toppy. People were impressed by the

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Speaker 3: amount that they think they can charge. Ultimately, you've been

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Speaker 3: impressed by the market capitalizations more broadly, do you think

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Speaker 3: that we have moved.

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Speaker 4: Too far too fast?

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Speaker 3: We hold on to the level of outperformance and tech

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Speaker 3: stocks that we saw on the first half of the year.

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Speaker 8: Well, when you've got an index like the Nasdaq one

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Speaker 8: hundred up forty five percent year to date, that's an

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Speaker 8: outlier as far as performance goes, and I would say

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Speaker 8: it's probably due for a little bit of steam coming

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Speaker 8: out just because of how quickly things have run up.

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Speaker 8: Expectations haven't changed too much from a fundamental perspective, So

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Speaker 8: when you see that big dislocation, not only among different

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Speaker 8: sized companies, you've got large caps that really outpaced small

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Speaker 8: caps maybe until just recently, and when you've got certain

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Speaker 8: sectors that handily outpaced other sectors, there usually is a

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Speaker 8: little bit of mean reversion or just kind of closing

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Speaker 8: that gap. Those big divergences don't last forever, so they

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Speaker 8: do need to come back to a more rational place. Now,

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Speaker 8: that doesn't necessarily mean that everything has to come crashing down.

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Speaker 8: There's still an argument to be had, which a lot

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Speaker 8: of the bulls will tell you, which is that the

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Speaker 8: rest of the market can catch up rather than those

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Speaker 8: big names having to come down. That being said, given

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Speaker 8: the environment, given that we are on the precipice of

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Speaker 8: what's expected to be another FED hike, it just doesn't

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Speaker 8: quite make sense, especially for those what we would call

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Speaker 8: long duration equities, to be trading at such lofty valuations

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Speaker 8: when we haven't really finished the tightening cycle. Yet usually

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Speaker 8: the market hits the skids a little bit when that

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Speaker 8: tightening cycle stops.

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Speaker 3: Of course, today was the day we're meant to see

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Speaker 3: the NASDAT one hundred rebalancing.

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Speaker 4: It's occurred, maybe a.

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Speaker 3: Little bit of volatility in the run up, but did

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Speaker 3: it make much changes for you? Do you think ultimately

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Speaker 3: the NaSTA one hundred is a bench malt that can

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Speaker 3: really be used for diversification.

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Speaker 4: I think it can be used.

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Speaker 8: I mean I don't know that it's something that necessarily

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Speaker 8: is the epitome of diversification, given how top heavy it

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Speaker 8: becomes at certain times, but that's just the nature of

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Speaker 8: a market cap weighted index.

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Speaker 4: The rebalancing.

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Speaker 8: The actual day of rebalancing obviously isn't having too much

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Speaker 8: of an effect. I think a lot of that probably

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Speaker 8: got baked in when the announcement was made. You can

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Speaker 8: extrapolate what's going to happen, but over time, as things

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Speaker 8: change and as prices move, that's just always going to

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Speaker 8: be the case with a market cap weighted index, which

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Speaker 8: is why sometimes it becomes more of a risk not

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Speaker 8: to own some of those names because you're under exposed

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Speaker 8: to what's really driving broad markets.

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Speaker 1: And driving investor sentiment.

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Speaker 3: Yeah, a lot of those actively managed mutual funds have

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Speaker 3: been under pressure, according to the likes of Gold and Sacks.

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Speaker 4: Lastly, is I mean what about protection?

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Speaker 3: If you all worried that we've gone too far, too fast,

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Speaker 3: is it in any way well advantageous to be protecting

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Speaker 3: the downside right now?

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Speaker 7: Sure?

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Speaker 8: Well, you know, I've been one of those people who

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Speaker 8: is skeptical of this rally all the way up and

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Speaker 8: have felt very very wrong all the way up. But

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Speaker 8: that being said, it is always good to have protection

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Speaker 8: in the portfolio. I would say it's even better to

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Speaker 8: have it in the portfolio when you have valuations above

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Speaker 8: the five, ten, and fifteen year averages, and when you

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Speaker 8: have a VIX that seems pretty asleep at the wheel, that's.

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Speaker 4: When it's kind of prime to spike.

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Speaker 8: So although it feels like a ball and chain, it

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Speaker 8: can feel like cement boots. To put protection in the

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Speaker 8: portfolio in the midst of a rally, that's really the

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Speaker 8: time when protection is going to pay off more Because

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Speaker 8: maybe it's not under such strong demand. You can get

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Speaker 8: it at a cheaper price, and then it's there if

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Speaker 8: and when you need.

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Speaker 3: It helps you sleep a bit better, maybe, Liz Young,

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Speaker 3: SOI fi get some rest ahead of what is going

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Speaker 3: to be a monumental week. We thank you so much

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Speaker 3: for spending some time with us today. Remember, the end

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Speaker 3: of last week we saw that seven leading AI companies

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Speaker 3: in the United States agree to voluntary safeguards Linear Technologies Development,

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Speaker 3: Amazon and Google, Inflection, Meta, Microsoft, Open EIE, all formerly

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Speaker 3: making their commitment to new standards for safety, for security,

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Speaker 3: and as well as trust. Was in a meeting with

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Speaker 3: the President Biden at the White House on Friday afternoon. Now,

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Speaker 3: the Biden administration has already been vowing to manage the

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Speaker 3: risks of new tools even as they compete over the

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Speaker 3: potential of artificial intelligence joining us. Now, I'm pleased to

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Speaker 3: say someone who is at the meeting been thinking about

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Speaker 3: safety for a long time, Anthropic president and co founder

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Speaker 3: Daniella m Oday. And Daniella, these safeguards voluntary as they

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Speaker 3: are a step in the right direction for you.

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Speaker 7: Hi.

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Speaker 9: First of all, thank you so much for having me

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Speaker 9: here on the program today. And yes, we were very

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Speaker 9: grateful to be invited to the conversation at the White

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Speaker 9: House on Friday. Our CEO, Dario, my brother was there

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Speaker 9: and had the opportunity to speak with the President and

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Speaker 9: with the other industry leaders, and yes, you know, I

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Speaker 9: think this is an incredible first step towards really making

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Speaker 9: sure that we are working together at the industry level,

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Speaker 9: with government, with civil society in thinking about how to

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Speaker 9: develop these systems in ways that are safe, that are secure,

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Speaker 9: that are trustworthy, and so we were very happy to

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Speaker 9: be part of that conversation on Friday.

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Speaker 3: Of course, many have sort of tried to understand how

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Speaker 3: really authentic some leaders in AI are about sort of

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Speaker 3: being regulated, about being overseen. How deeply do you think

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Speaker 3: that runs when actually everyone's also just trying to race

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Speaker 3: to ensure that they are the first to innovate.

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Speaker 9: You know, I think that these two things, you know,

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Speaker 9: really don't have to be intention And one of the

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Speaker 9: things that I think Andthropic has really sort of built

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Speaker 9: kind of our ideas around is this concept that you

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Speaker 9: can develop these very transformative systems in ways that are

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Speaker 9: robustly safe. With the launch of Claude two that we had,

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Speaker 9: you know, just a couple of weeks ago, one of

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Speaker 9: the things we really emphasized and focused on was sort

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Speaker 9: of this commitment to making the models, you know, as

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Speaker 9: safe as possible and really working to improve on things

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Speaker 9: like helpfulness, honesty, and harmlessness. And so I think this

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Speaker 9: kind of industry discussion as a whole around how to

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Speaker 9: you know, move forward with this innovative technology, but also

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Speaker 9: really ensure that it's done in a way that is

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Speaker 9: you know, safe and secure is so important.

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Speaker 3: Claude too, of course, is meant to be less susceptible

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Speaker 3: to manipulation than other chapel So you really are thinking

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Speaker 3: about safety kindness, but how how do you go about

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Speaker 3: building that into a model.

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Speaker 9: Yes, so you know, of course, you know, no model

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Speaker 9: on the market is one hundred percent you know immune

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Speaker 9: from you know, jail breaks or is perfectly safe. But

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Speaker 9: really our goal has been to try and provide a

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Speaker 9: model that's as safe as possible today, and we do

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Speaker 9: that through you know, a few different techniques. One of

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Speaker 9: them is something called constitutional and this is really a

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Speaker 9: process of training the model with kind of guidelines around

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Speaker 9: how to be you know, safe and helpful to users,

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Speaker 9: really trying to maximize the honesty and also harmlessness of

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Speaker 9: the model, so making sure it doesn't output you know,

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Speaker 9: negative biased, toxic content or you know, making it harder

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Speaker 9: to you know, assist a human in doing harm.

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Speaker 3: You can course, taking your time in releasing product updates,

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Speaker 3: has that in any way been attention with your own

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Speaker 3: back as you've raised a lot of money, if people

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Speaker 3: wanted you to be faster, or have they understood that

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Speaker 3: time is necessary if you're going to be focused on safety.

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Speaker 9: So again, you know, I really think of this as

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Speaker 9: kind of, you know, a balancing act.

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Speaker 7: Right.

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Speaker 9: We have had Claude internally and we've been using it

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Speaker 9: and testing it for some time, and we also really

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Speaker 9: just wanted to make sure that the model that we're

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Speaker 9: putting out onto the market, right, that Claude dot ai

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Speaker 9: was as safe as possible, right, so that not just

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Speaker 9: businesses but individuals are kind of signing up to play

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Speaker 9: around with it that you know, it's hopefully you know,

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Speaker 9: as safe as possible and certainly safer than you know

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Speaker 9: claud one, you know, our previous model that was on

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Speaker 9: the market.

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Speaker 3: I meanwhile, being able to analyze, summarize vast quantities of

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Speaker 3: information give us the productivity gains the rule looking for

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Speaker 3: I'm interested as to when you're thinking about developing not

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Speaker 3: only the models internally, but doing them safely and within

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Speaker 3: future regulation. How do you look at what Europe's up

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Speaker 3: to in terms of trying to set the rules of

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Speaker 3: the road.

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Speaker 9: Yeah, so, you know, I think this is a really

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Speaker 9: again kind of important conversation that we have been having,

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Speaker 9: you know, both with US policymakers and future regulators, but

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Speaker 9: really abroad as well. Right, I think so much of

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Speaker 9: what we've seen in the past you know, six to

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Speaker 9: twelve months, is that artificial intelligence is becoming this kind

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Speaker 9: of worldwide phenomenon, Right, It's not just something that's the

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Speaker 9: province of you know, specific country or countries. And so

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Speaker 9: I think obviously the conversations that are having you know

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Speaker 9: here but also in the EU are just incredibly important

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Speaker 9: from a data privacy and uh you know, security and

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Speaker 9: safety perspective, and a conversation you know, we've really been

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Speaker 9: actively a part of as well.

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Speaker 3: Of course, prior to Anthropic and helping co found it,

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Speaker 3: you were at open AI. You're also at STRIPE as

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Speaker 3: a risk manager. How do you compare the way in

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Speaker 3: which regulation is top of mind full the focus on

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Speaker 3: AI visa v. Fintech visa V. I mean we will

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Speaker 3: think about the blow up a crypto for example.

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Speaker 9: Yeah, I mean I really think that this Uh, really

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Speaker 9: just this concept that I kind of come back to

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Speaker 9: around this kind of public private kind of partnership or

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Speaker 9: you know, communication norms I think are just incredibly important,

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Speaker 9: and I think that those are you know, some of

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Speaker 9: the lessons learned from kind of previous industries. Right is

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Speaker 9: really having you know, communication early and often.

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Speaker 4: Right.

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Speaker 9: I think at Anthropic we view part of our role

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Speaker 9: in industry as helping to give policymakers and civil society

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Speaker 9: and academics access to our information. Right So we've published

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Speaker 9: more than fifteen safety papers. Anyone can read them on

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Speaker 9: our website, and we develop policy briefings because we really

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Speaker 9: view this as part of our role. Right is helping

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Speaker 9: to inform people more broadly about potential safety, safety topics

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Speaker 9: and questions.

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Speaker 4: Daniela Amade, great to have some time with you. Thank you.

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Speaker 3: Anthropic President Anna d co founder, whose brother had been

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Speaker 3: there at the meeting with the White House on Friday. Meanwhile,

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Speaker 3: coming up, Albenheimer, was that your weekend, Well, it was

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Speaker 3: many people's weekend. It sent shot ways to the box

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Speaker 3: office and we got all the numbers for you. Next

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Speaker 3: come New York. This is roombag technology. Let's talk about

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Speaker 3: what was hot this weekend movies. Parently, Bobby Oppenheimen brought

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Speaker 3: out movie fans in their droves, making this weekend's box

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Speaker 3: office revenue.

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Speaker 4: All in double from a year ago.

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Speaker 3: Joining us really about the business uplift from Babenheimer preveig

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Speaker 3: intelligence is Geita Raganathan and either I mean, wow, Warner

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Speaker 3: Brothers must be pleased, so too must be some of

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Speaker 3: the cinema chain Cinney World and AMC. But ultimately, is

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Speaker 3: this as amazing as it seems to be.

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Speaker 2: It's absolutely amazing. It's unprecedented. I mean, you know, this

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Speaker 2: kind of foot traffic Caroline is something that you would

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Speaker 2: reserve for let's say a Marble or a Star Wars

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Speaker 2: kind of a phenomenon, right, and then to have two

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Speaker 2: movies like this, which which are really polar opposites, you know,

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Speaker 2: it's such a fantastic, clever piece of counterprogramming that both

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Speaker 2: these studios kind of put together on the same date.

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Speaker 2: And the fact that they were able to kind of

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Speaker 2: tap into this whole social you know, cultural like it

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Speaker 2: really kind of became this pop culture moment, and they

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Speaker 2: both appted into it so aggressively and so beautifully. It

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Speaker 2: ended up boosting the box office for both movies, and

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Speaker 2: it's just created this whole positive, upbeat conversation now for

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Speaker 2: the industry, which has come really at such an opportune

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Speaker 2: moment I think.

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Speaker 3: I mean, considering that the entire conversation around the industry

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Speaker 3: was about writers strikes, about acting strikes. How much is

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Speaker 3: that going to be a concern going forward or can

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Speaker 3: they reap the rewards of the production that's available to

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Speaker 3: be distributed now.

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Speaker 2: Yeah, So as we came into this summer box office

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Speaker 2: a season, you know, obviously there was a lot more content.

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Speaker 2: So last year what we were kind of looking at

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Speaker 2: was there was just not enough content out in the theaters.

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Speaker 2: People were willing to come. The demand was there, but

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Speaker 2: the supply wasn't. And this year we have thirty percent higher,

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Speaker 2: so thirty percent more titles versus last year. But we

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Speaker 2: saw that a lot of these even high profile titles,

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Speaker 2: right whether you looked at an Indiana Jones or Elemental,

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Speaker 2: you know, the Flash, all of these kind of underperformed.

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Speaker 2: They didn't live up to expectations. And so that kind

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Speaker 2: of brought us back to this question about, you know,

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Speaker 2: can we ever go back to pre pandemic levels and

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Speaker 2: then add to that the added complexity from the writer's

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Speaker 2: strike and you know, the actors strike that's kind of

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Speaker 2: shut down production. I don't think we're necessarily going to

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Speaker 2: see anything any major delays as far as twenty twenty

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Speaker 2: three is concerned. But then you get into twenty twenty

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Speaker 2: four and twenty twenty five and things start to look

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Speaker 2: a little bit hazy because you know a lot of

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Speaker 2: the titles that we were expecting to come out then

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Speaker 2: now could be pushed back.

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Speaker 3: Keep a keen eye on some of those other stocks

439
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Speaker 3: you're looking at AMC therefore, on the back of this,

440
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Speaker 3: but we always love all your analysis across all the

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Speaker 3: stocks you watch. Kathy Braganath and of course of Blombag Intelligence,

442
00:21:35,720 --> 00:21:38,320
Speaker 3: thank you so much. Meanwhile, coming up, we'll talk about

443
00:21:38,359 --> 00:21:42,240
Speaker 3: the debate around the viability of blockchain's utility. This is

444
00:21:42,240 --> 00:21:53,840
Speaker 3: Bloombag Technology. Welcome back to bloue meg Technology. I'm Karen

445
00:21:53,920 --> 00:21:55,560
Speaker 3: Hyde right here in New Yor. Let's check in on

446
00:21:55,600 --> 00:21:58,440
Speaker 3: these markets because actually the rebalancing has occurred, then that's

447
00:21:58,480 --> 00:22:00,359
Speaker 3: that one hundred meant to be taking away some of

448
00:22:00,400 --> 00:22:04,000
Speaker 3: that overall well dominance of the key five, six seven

449
00:22:04,040 --> 00:22:07,560
Speaker 3: players that have so rode the wave of AI euphoria

450
00:22:07,640 --> 00:22:10,200
Speaker 3: this year, we see it just gaining about a tenth

451
00:22:10,320 --> 00:22:12,720
Speaker 3: percent as that comes to an end the overall rebalancing.

452
00:22:12,720 --> 00:22:14,960
Speaker 3: Many have traded ahead of that as to whether we

453
00:22:15,040 --> 00:22:17,120
Speaker 3: see a downplay in the likes of Meta and Video

454
00:22:17,160 --> 00:22:19,080
Speaker 3: and some of the stocks that are really outperformed this year,

455
00:22:19,160 --> 00:22:21,439
Speaker 3: but all country world indext managing to stay afloat up

456
00:22:21,480 --> 00:22:24,000
Speaker 3: three tens percent, even though we saw some pretty ugly

457
00:22:24,080 --> 00:22:26,960
Speaker 3: data PMI data coming out of Europe in particular, just

458
00:22:27,000 --> 00:22:29,000
Speaker 3: showing that maybe these central banks are going to have

459
00:22:29,040 --> 00:22:31,320
Speaker 3: to look at the tension between growth and interest.

460
00:22:31,119 --> 00:22:32,640
Speaker 4: Rate hikes that much more.

461
00:22:32,760 --> 00:22:35,480
Speaker 3: Is inflation still on the eyes of the ECB in particular,

462
00:22:35,520 --> 00:22:37,879
Speaker 3: but remember they've got to be able to support the

463
00:22:37,880 --> 00:22:40,880
Speaker 3: economy too. Bitcoin on the downside three a half percent lower.

464
00:22:41,400 --> 00:22:44,040
Speaker 3: Maybe no real catalyst here, just a lack of clarity

465
00:22:44,080 --> 00:22:45,480
Speaker 3: as to whether or not we do get some of

466
00:22:45,480 --> 00:22:48,359
Speaker 3: those spot bitcoin ETFs coming to the market and indeed

467
00:22:48,400 --> 00:22:51,120
Speaker 3: where regulation goes. That's moving on to the individual names

468
00:22:51,119 --> 00:22:53,320
Speaker 3: that are moving this market. Because Apple is really helping

469
00:22:53,320 --> 00:22:55,320
Speaker 3: support the likes of Then now is that one hundred

470
00:22:55,400 --> 00:22:58,359
Speaker 3: and indeed the benchmarks today up six percent most valuable stock.

471
00:22:58,640 --> 00:23:01,480
Speaker 3: Why well, then Lally to be selling well eighty five

472
00:23:01,520 --> 00:23:03,480
Speaker 3: million as we understand how many phones they want to

473
00:23:03,480 --> 00:23:07,119
Speaker 3: be made for the next upcoming iPhone fifteen. So actually

474
00:23:07,119 --> 00:23:11,119
Speaker 3: people thinking that looks pretty strong given the overall economic environment,

475
00:23:11,200 --> 00:23:14,400
Speaker 3: and video on the upside, Mazouhu going long this stock,

476
00:23:14,480 --> 00:23:17,480
Speaker 3: saying really there's still opportunity to buy despite the significant

477
00:23:17,520 --> 00:23:19,680
Speaker 3: outperformance of this chip stock and all eyes on AI.

478
00:23:19,960 --> 00:23:21,639
Speaker 3: Remember we've got a bit of time to wait for

479
00:23:21,680 --> 00:23:24,560
Speaker 3: their earnings later in August. Guilliad Science is your worst

480
00:23:24,560 --> 00:23:27,359
Speaker 3: performer really on major benchmarks today, off by four and

481
00:23:27,400 --> 00:23:31,359
Speaker 3: a half percent. Sadly, HR high risk MDS is something

482
00:23:31,359 --> 00:23:33,520
Speaker 3: that they're not going to be able to be combating

483
00:23:33,560 --> 00:23:35,919
Speaker 3: with a really cocktail or some of their drugs.

484
00:23:35,920 --> 00:23:36,919
Speaker 4: They were doing some testing.

485
00:23:37,000 --> 00:23:39,120
Speaker 3: The phase three is having to be wound down. We're

486
00:23:39,119 --> 00:23:41,280
Speaker 3: off by four and a half percent. Let's go back

487
00:23:41,280 --> 00:23:42,840
Speaker 3: though to the crypto news. I was just looking at

488
00:23:42,880 --> 00:23:46,240
Speaker 3: bitcoin under pressure and look it's three years and multiple

489
00:23:46,240 --> 00:23:49,600
Speaker 3: digital asset market dislocations one hundreds of millions of dollars,

490
00:23:49,600 --> 00:23:53,400
Speaker 3: but an eyeball scanning crypto project and as world coin

491
00:23:53,600 --> 00:23:56,880
Speaker 3: its officially launched for more, we're joined by Bluemost Kaylee Lines.

492
00:23:56,920 --> 00:23:59,360
Speaker 3: And what's so interesting about this project is is kind

493
00:23:59,359 --> 00:24:02,680
Speaker 3: of managing to that perfect hype of AI and crypto

494
00:24:02,960 --> 00:24:04,520
Speaker 3: and indeed some Altman too.

495
00:24:06,000 --> 00:24:08,600
Speaker 10: Yeah, exactly, spearheaded by Sam Altman, who has in many

496
00:24:08,640 --> 00:24:11,000
Speaker 10: ways become synonymous with AI Caroline. And you're right to

497
00:24:11,000 --> 00:24:13,400
Speaker 10: point out just how long this took. Since Bloomberg first

498
00:24:13,480 --> 00:24:16,640
Speaker 10: reported about this project back in June of twenty twenty one,

499
00:24:16,680 --> 00:24:19,439
Speaker 10: Bitcoin has gone from around thirty two thousand dollars up

500
00:24:19,480 --> 00:24:22,960
Speaker 10: to sixty seven thousand dollars back down to thirty thousand dollars.

501
00:24:23,000 --> 00:24:25,560
Speaker 10: So there's been a lot of change leading up to

502
00:24:25,600 --> 00:24:27,679
Speaker 10: this debut. But what at debut it has been. The

503
00:24:27,720 --> 00:24:30,639
Speaker 10: initial price Caroline for this token was one dollar and

504
00:24:30,720 --> 00:24:34,120
Speaker 10: seventy cents. Currently, according to pricing on coin marketcap dot com,

505
00:24:34,119 --> 00:24:36,640
Speaker 10: we're at two dollars and twenty eight cents, so that's

506
00:24:36,720 --> 00:24:40,000
Speaker 10: up roughly thirty seven percent on this day. About one

507
00:24:40,080 --> 00:24:42,920
Speaker 10: hundred and forty three million coins have been allocated in

508
00:24:42,960 --> 00:24:45,439
Speaker 10: this launch, and this is very much about the fervor

509
00:24:45,480 --> 00:24:48,240
Speaker 10: around AI. Is this bridge between AI and crypto. Is

510
00:24:48,280 --> 00:24:50,479
Speaker 10: what world Coin does is it has this small device

511
00:24:50,760 --> 00:24:53,919
Speaker 10: called an orb which scans the eyeball of an individual

512
00:24:53,960 --> 00:24:57,919
Speaker 10: and creates a digital identity, giving that person what this

513
00:24:58,000 --> 00:25:01,480
Speaker 10: company is calling proof of per personhood. They essentially build

514
00:25:01,520 --> 00:25:04,000
Speaker 10: this as essential in a world where it's very hard

515
00:25:04,040 --> 00:25:06,920
Speaker 10: to tell what is generated in terms of content by

516
00:25:06,920 --> 00:25:10,560
Speaker 10: a human and what is not what is generated by AI.

517
00:25:10,720 --> 00:25:12,800
Speaker 10: So clearly you are seeing some of that excitement showing

518
00:25:12,840 --> 00:25:15,200
Speaker 10: up in the price action today. It is worth noting, though,

519
00:25:15,440 --> 00:25:17,919
Speaker 10: that this can't be traded everywhere. It cannot be traded

520
00:25:17,960 --> 00:25:21,560
Speaker 10: currently here in the US because of the regulatory environment,

521
00:25:21,560 --> 00:25:23,760
Speaker 10: and Sam Altman spoke to Bloomberg about this about the

522
00:25:23,840 --> 00:25:27,280
Speaker 10: uncertainty around regulations here in the US. He told Bloomberg

523
00:25:27,320 --> 00:25:28,800
Speaker 10: that he hopes the US will be able to get

524
00:25:28,800 --> 00:25:32,200
Speaker 10: to a quote rational place in terms of crypto regulation.

525
00:25:32,359 --> 00:25:34,639
Speaker 10: So limited here as to how you can interact with

526
00:25:34,680 --> 00:25:39,320
Speaker 10: world Coin, but consider it elsewhere. It seems to be

527
00:25:39,320 --> 00:25:40,560
Speaker 10: getting quite the reception.

528
00:25:41,040 --> 00:25:43,439
Speaker 3: Kay, brilliant as always, We thank you, of course, the

529
00:25:43,440 --> 00:25:46,000
Speaker 3: co host of the most crypto shows. So, as you know,

530
00:25:46,000 --> 00:25:48,720
Speaker 3: it's a fair thing or two about the overall speculation

531
00:25:48,760 --> 00:25:51,760
Speaker 3: of this market, well, hyper reality, let's stick with that,

532
00:25:51,800 --> 00:25:54,720
Speaker 3: and indeed some of the over use cases that's what

533
00:25:54,760 --> 00:25:56,919
Speaker 3: everyone has wanted, identity being a key one for the

534
00:25:56,920 --> 00:25:57,480
Speaker 3: world coin.

535
00:25:57,800 --> 00:25:58,840
Speaker 4: What about blockchain?

536
00:25:58,880 --> 00:26:02,440
Speaker 3: How do they remain that underlying technology relevant and applications.

537
00:26:02,480 --> 00:26:04,359
Speaker 4: Well, there's a tool to check it out. It's called

538
00:26:04,400 --> 00:26:06,680
Speaker 4: the Value Proposition. It's a website.

539
00:26:06,359 --> 00:26:10,240
Speaker 3: Database demonstrating the positive impact, they say of blockchain applications

540
00:26:10,400 --> 00:26:13,479
Speaker 3: on any network. Website is powered by Polygon Labs and

541
00:26:13,560 --> 00:26:15,840
Speaker 3: launched just over about a month ago. Let's bring in

542
00:26:15,840 --> 00:26:19,400
Speaker 3: Polygon's chief legal and policy officer, Rettig. It is great

543
00:26:19,400 --> 00:26:22,080
Speaker 3: to have some time with you, Rebecca, and interesting that

544
00:26:22,119 --> 00:26:24,840
Speaker 3: we're just talking about identity as a key area that

545
00:26:24,880 --> 00:26:28,720
Speaker 3: blockchain technology can be a real use case. Just tell

546
00:26:28,800 --> 00:26:31,320
Speaker 3: us a little bit about the value problem the other

547
00:26:31,359 --> 00:26:35,000
Speaker 3: opportunities we're seeing blockchain technology be applied and used.

548
00:26:35,960 --> 00:26:36,600
Speaker 1: Thanks so much.

549
00:26:36,880 --> 00:26:41,240
Speaker 11: The Value prop is an interactive website that allows you

550
00:26:41,320 --> 00:26:42,880
Speaker 11: to go in and see all of.

551
00:26:42,840 --> 00:26:45,000
Speaker 1: The positive use cases for a blockchain.

552
00:26:45,040 --> 00:26:47,320
Speaker 11: It answers the question, as you said, is there a

553
00:26:47,400 --> 00:26:49,520
Speaker 11: fundamental value to blockchain?

554
00:26:49,560 --> 00:26:50,520
Speaker 1: We've seen it asked by the.

555
00:26:50,440 --> 00:26:53,800
Speaker 11: White House, by reporters, by policymakers around the world, and

556
00:26:53,920 --> 00:26:57,120
Speaker 11: this interactive website is really meant to answer the question

557
00:26:57,200 --> 00:27:01,720
Speaker 11: and the affirmative. Yes, so it showcases from as you said,

558
00:27:01,720 --> 00:27:04,720
Speaker 11: identity with world cooin that's on the value prop, but

559
00:27:04,800 --> 00:27:08,320
Speaker 11: also things that we've seen from Starbucks and other and

560
00:27:08,600 --> 00:27:12,840
Speaker 11: Sports Illustrated and other major companies that have launched blockchain

561
00:27:12,880 --> 00:27:14,240
Speaker 11: based applications as well.

562
00:27:14,600 --> 00:27:17,240
Speaker 3: Yeah, we're looking at some of those companies now Starbucks,

563
00:27:17,240 --> 00:27:21,080
Speaker 3: you mentioned, Disney, Coca Cola, and Nike, even well chargeable

564
00:27:21,520 --> 00:27:25,520
Speaker 3: elements like UNICEF. What is perhaps the is it all

565
00:27:25,520 --> 00:27:28,480
Speaker 3: about financial applications? Is it's about loyalty? What are you

566
00:27:28,560 --> 00:27:31,800
Speaker 3: really seeing companies' willingness to embrace at the moment the

567
00:27:31,800 --> 00:27:34,960
Speaker 3: world of web three when it hasn't exactly been loved

568
00:27:34,960 --> 00:27:36,240
Speaker 3: from a regulartry perspective.

569
00:27:37,200 --> 00:27:39,680
Speaker 11: I think finance is one part of blockchain and it's

570
00:27:39,680 --> 00:27:42,639
Speaker 11: gotten a lot of attention, but there are forty two

571
00:27:42,680 --> 00:27:47,359
Speaker 11: disparate use cases on the value prop that range from

572
00:27:47,480 --> 00:27:52,920
Speaker 11: consumer loyalty to identity, to gaming to social impacts.

573
00:27:53,000 --> 00:27:54,159
Speaker 4: And there are.

574
00:27:54,359 --> 00:27:57,840
Speaker 11: Over four hundred and thirty applications that fall within those

575
00:27:57,920 --> 00:28:00,560
Speaker 11: forty two different use cases. So I think what we're

576
00:28:00,600 --> 00:28:03,440
Speaker 11: going to see as we continue on this blockchain journey

577
00:28:03,640 --> 00:28:06,960
Speaker 11: is something that expands well beyond the finance use case

578
00:28:07,240 --> 00:28:10,560
Speaker 11: into things like democratizing all of the ways we use

579
00:28:10,560 --> 00:28:15,200
Speaker 11: the Internet, such as social media, consumer loyalty, and even

580
00:28:15,320 --> 00:28:18,639
Speaker 11: something like the California DMV government is looking at ways

581
00:28:18,680 --> 00:28:19,440
Speaker 11: to use.

582
00:28:19,359 --> 00:28:21,359
Speaker 1: Blockchain based applications as well.

583
00:28:21,640 --> 00:28:25,159
Speaker 3: Okay, let's look about the government a little bit, because you,

584
00:28:25,280 --> 00:28:28,400
Speaker 3: of course, the reason Polygon is there, and the use

585
00:28:28,480 --> 00:28:31,520
Speaker 3: case in many ways is about building the infrastructure of

586
00:28:31,560 --> 00:28:36,240
Speaker 3: Web three, making it easier, faster, cheaper to be transacting

587
00:28:36,280 --> 00:28:38,680
Speaker 3: on ethereum in particular. How much are you seeing your

588
00:28:38,720 --> 00:28:41,800
Speaker 3: own use case being well elevated at the moment?

589
00:28:41,840 --> 00:28:43,280
Speaker 4: Are we stagnating in any way?

590
00:28:44,240 --> 00:28:47,880
Speaker 11: I do think that the infrastructure and the scaling infrastructure

591
00:28:47,920 --> 00:28:50,720
Speaker 11: in particular is really getting a lot of attention and

592
00:28:51,480 --> 00:28:55,320
Speaker 11: in terms of making blockchains much more available and widespread

593
00:28:55,400 --> 00:28:58,360
Speaker 11: and faster, cheaper, easier to use. Or is it not

594
00:28:58,440 --> 00:29:00,880
Speaker 11: a use case in particular, as you, it's just the

595
00:29:00,920 --> 00:29:04,360
Speaker 11: infrastructure that allows all of these various use cases to

596
00:29:04,400 --> 00:29:06,680
Speaker 11: be built on top in an open and permissionless way

597
00:29:06,720 --> 00:29:10,160
Speaker 11: and democratizes all the ways that the Internet is being used,

598
00:29:10,400 --> 00:29:14,000
Speaker 11: whether it's by governments or by people through consumer loyalty

599
00:29:14,000 --> 00:29:14,880
Speaker 11: programs as well.

600
00:29:15,640 --> 00:29:19,760
Speaker 3: You'll token matic well, the SEC has decided that perhaps

601
00:29:19,840 --> 00:29:22,400
Speaker 3: it is a security How have you managed to deal

602
00:29:22,400 --> 00:29:24,400
Speaker 3: with that? I know you've recently taken on the legal

603
00:29:24,720 --> 00:29:27,040
Speaker 3: part of the role that you now have on top

604
00:29:27,080 --> 00:29:27,720
Speaker 3: of policy.

605
00:29:28,320 --> 00:29:29,560
Speaker 4: How are the conversation's going.

606
00:29:31,160 --> 00:29:35,560
Speaker 11: Well, the matic allegations were in allegations against Binance and

607
00:29:35,600 --> 00:29:39,600
Speaker 11: coinbase to third parties, which which we have no affiliation,

608
00:29:40,280 --> 00:29:44,280
Speaker 11: and those cases are progressing forward. But more than that,

609
00:29:44,360 --> 00:29:47,080
Speaker 11: I do sort of echo what mister Altman said, which

610
00:29:47,120 --> 00:29:49,920
Speaker 11: is I hope, especially given what we've seen as to

611
00:29:50,120 --> 00:29:54,880
Speaker 11: different types of decisions coming out of US district federal

612
00:29:54,920 --> 00:29:58,120
Speaker 11: courts about the ways that crypto can be used, I

613
00:29:58,120 --> 00:30:01,480
Speaker 11: hope we do have sensible regulation and that really brings

614
00:30:01,520 --> 00:30:05,280
Speaker 11: clarity and allows businesses in the US to continue doing

615
00:30:05,360 --> 00:30:08,440
Speaker 11: business and get back to the business of doing business

616
00:30:08,440 --> 00:30:08,960
Speaker 11: as well.

617
00:30:09,240 --> 00:30:11,320
Speaker 3: Do you Man committed to the US? Do you think

618
00:30:11,440 --> 00:30:13,800
Speaker 3: this is tolk of talent moving overseas?

619
00:30:14,680 --> 00:30:16,880
Speaker 1: So Polygon Labs is an international company.

620
00:30:16,960 --> 00:30:19,800
Speaker 11: But I do think that people view the in the

621
00:30:19,840 --> 00:30:22,400
Speaker 11: people in the crypto space in general view the US

622
00:30:22,800 --> 00:30:25,880
Speaker 11: as a particularly important place and a place where technology

623
00:30:25,920 --> 00:30:28,040
Speaker 11: has really thrived for a long time. And I think

624
00:30:28,120 --> 00:30:30,560
Speaker 11: that many in the industry are really committed to seeing

625
00:30:30,880 --> 00:30:36,480
Speaker 11: legislation move forward that puts really safeguardrails around the industry

626
00:30:36,520 --> 00:30:39,360
Speaker 11: and the way that users interact both with technology and

627
00:30:39,480 --> 00:30:42,280
Speaker 11: with tokens as well. Other countries around the world have

628
00:30:42,360 --> 00:30:45,160
Speaker 11: already done that. The EU has had MECA in place

629
00:30:45,240 --> 00:30:48,320
Speaker 11: now for a few months, and there are rules and

630
00:30:48,400 --> 00:30:51,360
Speaker 11: rides being built out by the European Banking Authority and

631
00:30:51,560 --> 00:30:55,960
Speaker 11: by ZMA, which is the Securities Authority to really implement

632
00:30:56,080 --> 00:30:59,120
Speaker 11: MEKA in a practical way. The UK has put out

633
00:30:59,120 --> 00:31:03,720
Speaker 11: a very compelling crypto asset consultation about building a regulatory

634
00:31:03,760 --> 00:31:05,840
Speaker 11: regime there, and other countries around the world have had

635
00:31:05,840 --> 00:31:10,400
Speaker 11: cryptoregulations in plays, particularly for these centralized exchanges for many years.

636
00:31:10,600 --> 00:31:12,719
Speaker 11: So I do hope and think that people are hopeful

637
00:31:12,760 --> 00:31:16,080
Speaker 11: that the USA, it's long been a tech center, really

638
00:31:16,120 --> 00:31:18,680
Speaker 11: catches up and takes the same type of approach.

639
00:31:18,840 --> 00:31:21,080
Speaker 3: And I'm sure in many ways this is exactly why

640
00:31:21,120 --> 00:31:24,640
Speaker 3: the value prop has been put forward, is to try

641
00:31:25,320 --> 00:31:29,400
Speaker 3: to discuss that this isn't just always speculation, but this

642
00:31:29,560 --> 00:31:34,160
Speaker 3: is actually real tangible use cases of the underlying technology.

643
00:31:34,200 --> 00:31:35,520
Speaker 3: How much do you think that that's the flight that

644
00:31:35,600 --> 00:31:38,080
Speaker 3: you have to have or is it better if we

645
00:31:38,120 --> 00:31:41,560
Speaker 3: start to see the Larry Finks the other key players

646
00:31:41,560 --> 00:31:44,680
Speaker 3: in this world start to push for bitcoin spot ETFs

647
00:31:44,760 --> 00:31:47,080
Speaker 3: than like that will actually change hearts and minds.

648
00:31:47,760 --> 00:31:49,960
Speaker 11: Well, I think the value prop is really something that

649
00:31:50,000 --> 00:31:52,480
Speaker 11: can change hearts and minds because it really allows people

650
00:31:52,520 --> 00:31:54,880
Speaker 11: to go in and search by use case and the

651
00:31:54,920 --> 00:31:57,120
Speaker 11: things they care about the most and see how blockchain

652
00:31:57,200 --> 00:31:59,640
Speaker 11: is powering that in a very positive way. But I

653
00:31:59,640 --> 00:32:02,160
Speaker 11: think this is a group effort that I do hope

654
00:32:02,200 --> 00:32:04,720
Speaker 11: that Larry Think and others in the traditional financial world

655
00:32:04,840 --> 00:32:08,280
Speaker 11: who are really coming around to the compelling use case

656
00:32:08,280 --> 00:32:10,720
Speaker 11: that bitcoin and other types of crypto assets may have.

657
00:32:11,120 --> 00:32:12,240
Speaker 1: They're an important voice.

658
00:32:12,280 --> 00:32:14,840
Speaker 11: And for people who've been working in the industry behind

659
00:32:14,880 --> 00:32:19,360
Speaker 11: the scenes as builders and lawyers and others who believe

660
00:32:19,440 --> 00:32:20,800
Speaker 11: in this technology, there's.

661
00:32:20,600 --> 00:32:22,400
Speaker 1: An important voice there as well.

662
00:32:22,480 --> 00:32:24,760
Speaker 11: So I do hope that this is a group effort

663
00:32:24,840 --> 00:32:28,520
Speaker 11: over time for the value proposition of blockchain to really

664
00:32:28,560 --> 00:32:29,160
Speaker 11: come to the fore.

665
00:32:29,360 --> 00:32:31,120
Speaker 3: Well, thanks for being the voice on this show today,

666
00:32:31,160 --> 00:32:34,800
Speaker 3: Rebecca Retti. I appreciate it. Putagon chief Legal and policy Officer,

667
00:32:35,120 --> 00:32:38,200
Speaker 3: We thank you. Meanwhile, coming up, let's talk about well,

668
00:32:38,240 --> 00:32:40,760
Speaker 3: it's been a well and true slump in M and A,

669
00:32:41,280 --> 00:32:43,680
Speaker 3: of course, in many ways spearheaded by a collapse of

670
00:32:43,680 --> 00:32:46,840
Speaker 3: Credit Suite or some of the concerns and agitations within

671
00:32:46,880 --> 00:32:49,760
Speaker 3: the banking sector interest rates. More broadly, what is it

672
00:32:49,840 --> 00:32:51,960
Speaker 3: doing for Wall Street giants? What does it mean for

673
00:32:52,040 --> 00:32:56,920
Speaker 3: your technology companies in the venture backspace actually eventually going public?

674
00:32:57,000 --> 00:33:18,160
Speaker 3: More on that next. This is putting back technology time

675
00:33:18,200 --> 00:33:20,720
Speaker 3: now for talking tech. First up, Ali Barbara has decided

676
00:33:21,040 --> 00:33:23,320
Speaker 3: not to sell any part of its one third stake

677
00:33:23,360 --> 00:33:26,280
Speaker 3: in Ant during the Chinese fintech leader's imminent share buyback.

678
00:33:26,480 --> 00:33:28,960
Speaker 3: The e commerce company says it wants to maintain its

679
00:33:29,000 --> 00:33:30,680
Speaker 3: life of an important partner.

680
00:33:30,600 --> 00:33:31,280
Speaker 4: Won't take partner.

681
00:33:31,320 --> 00:33:33,080
Speaker 3: Ant's planned to buy back as much as seven point

682
00:33:33,120 --> 00:33:36,440
Speaker 3: six percent of its stock, while others are indeed selling out. Meanwhile,

683
00:33:36,480 --> 00:33:39,600
Speaker 3: soft Bank is setting up an AI powered warehousing joint

684
00:33:39,680 --> 00:33:41,200
Speaker 3: venture with Symbotic.

685
00:33:41,480 --> 00:33:44,080
Speaker 4: Both companies are investing a combined one hundred million dollars to.

686
00:33:44,120 --> 00:33:47,000
Speaker 3: Establish the deal, which will be called green Box Systems

687
00:33:47,240 --> 00:33:50,720
Speaker 3: LLC plus. Tesla delivered more electric vehicles in the first

688
00:33:50,720 --> 00:33:54,440
Speaker 3: half of this year than Volkswagen BMW and Mercedes Benz combined.

689
00:33:54,720 --> 00:33:58,320
Speaker 3: German carmakers are struggling as software issues delay key models

690
00:33:58,520 --> 00:34:00,880
Speaker 3: and contribute to waning sales, particularly in China.

691
00:34:01,840 --> 00:34:03,080
Speaker 4: Meanwhile, let's talk.

692
00:34:02,920 --> 00:34:06,160
Speaker 3: More broadly about risk taking in this sector because high

693
00:34:06,160 --> 00:34:08,560
Speaker 3: boring costs, geobolitical tensions.

694
00:34:08,440 --> 00:34:11,080
Speaker 4: And well the threat of a global.

695
00:34:10,680 --> 00:34:13,600
Speaker 3: Recession just some of the factors that have led to

696
00:34:13,640 --> 00:34:16,520
Speaker 3: a slump in mergers and acquisitions. In turn, Wall Street

697
00:34:16,680 --> 00:34:18,960
Speaker 3: titans have kind of reshuffled their M and A leadership

698
00:34:18,960 --> 00:34:22,520
Speaker 3: this year. Some firms have gone on hiring spree, while

699
00:34:22,880 --> 00:34:24,880
Speaker 3: others are still there hoping that M and A boom

700
00:34:24,880 --> 00:34:26,240
Speaker 3: cycler is just around the corner.

701
00:34:26,600 --> 00:34:27,520
Speaker 4: It's a great story.

702
00:34:27,600 --> 00:34:30,640
Speaker 3: It's today's big take, and Bloomberg's at Crystal c is

703
00:34:30,680 --> 00:34:32,120
Speaker 3: one of the reporters behind it.

704
00:34:32,200 --> 00:34:33,400
Speaker 4: And I hadn't thought.

705
00:34:33,280 --> 00:34:35,719
Speaker 3: About this angle that even though M and AS kind

706
00:34:35,760 --> 00:34:37,560
Speaker 3: of felt on ice, even though we keep talking about

707
00:34:37,560 --> 00:34:41,719
Speaker 3: Microsoft and Activision. Basically, people are all moving decks at

708
00:34:41,719 --> 00:34:42,120
Speaker 3: the moment.

709
00:34:42,239 --> 00:34:43,520
Speaker 4: Why why a bank is moving?

710
00:34:43,760 --> 00:34:45,600
Speaker 12: Yeah, I mean a lot of what you're seeing, like

711
00:34:45,680 --> 00:34:49,360
Speaker 12: Microsoft Activision, it indicates a high regulatory hurdle when it

712
00:34:49,360 --> 00:34:51,680
Speaker 12: comes to deal making, right, So what that really means

713
00:34:51,760 --> 00:34:54,520
Speaker 12: is that it takes much longer for deals to clothes

714
00:34:54,560 --> 00:34:57,600
Speaker 12: and the bonus doesn't really hit that year you do

715
00:34:57,640 --> 00:34:59,880
Speaker 12: that deal. So a lot of people are moving around

716
00:35:00,040 --> 00:35:02,799
Speaker 12: trying to pick up guarantee packages to see if they

717
00:35:02,840 --> 00:35:05,000
Speaker 12: can get a one new guarantee or like a second

718
00:35:05,080 --> 00:35:07,280
Speaker 12: year on an eurnout to see if that can subsidize

719
00:35:07,320 --> 00:35:10,200
Speaker 12: them of their income. And that obviously it isn't the

720
00:35:10,239 --> 00:35:13,280
Speaker 12: main reason. The main reason is the Credit Suez ubs

721
00:35:13,320 --> 00:35:16,719
Speaker 12: merger that really left so many bankers trying to find

722
00:35:16,800 --> 00:35:19,920
Speaker 12: jobs all at the same time, and coupled that with

723
00:35:20,320 --> 00:35:23,120
Speaker 12: not so good M and A performances last year, like

724
00:35:23,280 --> 00:35:27,080
Speaker 12: not very good bonus performances, that just all led to

725
00:35:27,120 --> 00:35:29,240
Speaker 12: everyone wanting to get a new job in a new environment.

726
00:35:29,800 --> 00:35:32,120
Speaker 3: You sort of talk about some of the regulatory concerns

727
00:35:32,520 --> 00:35:35,120
Speaker 3: and many have felt that it's a big tech regulatory concern.

728
00:35:35,200 --> 00:35:37,239
Speaker 3: But is it more m and a more broadly and

729
00:35:37,440 --> 00:35:41,600
Speaker 3: what does that mean for you know, the venture investors

730
00:35:41,680 --> 00:35:43,680
Speaker 3: out there who are looking for some sort of exit

731
00:35:43,719 --> 00:35:45,600
Speaker 3: because he used to cover IPOs and that's been pretty

732
00:35:45,640 --> 00:35:46,239
Speaker 3: much shut too.

733
00:35:46,440 --> 00:35:49,399
Speaker 12: Yeah, IPO has been non existent for almost a year

734
00:35:49,480 --> 00:35:52,160
Speaker 12: until pretty much this month. Right we are not seeing

735
00:35:52,800 --> 00:35:56,080
Speaker 12: any like big boom of IPO coming either. But what

736
00:35:56,160 --> 00:35:58,960
Speaker 12: you're describing in the regulatory herd. It really is an

737
00:35:59,000 --> 00:36:02,600
Speaker 12: industry at noss issue. We're seeing that in consumer you

738
00:36:02,680 --> 00:36:06,160
Speaker 12: see Alberson's Kroger running into problems. You're seeing in healthcare,

739
00:36:06,560 --> 00:36:10,000
Speaker 12: Mgen Horizon Therapeutic is also in courts. So you're seeing

740
00:36:10,000 --> 00:36:14,279
Speaker 12: these issues everywhere. And for venture capital firms it may

741
00:36:14,320 --> 00:36:17,360
Speaker 12: not be immune neither, because you're seeing some private equity

742
00:36:17,400 --> 00:36:20,839
Speaker 12: firms are being looked at for antitrust issues. So all

743
00:36:20,880 --> 00:36:24,360
Speaker 12: in all, regulation is a bigger problem in every single sector,

744
00:36:24,600 --> 00:36:25,839
Speaker 12: and especially in tech.

745
00:36:26,360 --> 00:36:29,440
Speaker 3: But then a few are moving thinking they'll be a

746
00:36:29,440 --> 00:36:31,399
Speaker 3: pick up what would be the catalyst to there being

747
00:36:31,400 --> 00:36:32,480
Speaker 3: some ple to pick up at M and A.

748
00:36:32,719 --> 00:36:34,640
Speaker 12: So some of the investment banks are thinking that if

749
00:36:34,640 --> 00:36:37,080
Speaker 12: they can pick up talent right now and when the

750
00:36:37,120 --> 00:36:39,719
Speaker 12: boom comes back, they are well positioned for it. And

751
00:36:40,080 --> 00:36:42,640
Speaker 12: we see a lot of newcomers in this market. Actually,

752
00:36:42,800 --> 00:36:46,480
Speaker 12: especially in the US, you're seeing some European comers Santander

753
00:36:46,760 --> 00:36:50,400
Speaker 12: Atlantra are making big hires in the US and with

754
00:36:50,560 --> 00:36:53,120
Speaker 12: big prices as well. A lot of the credit spee

755
00:36:53,120 --> 00:36:55,719
Speaker 12: people actually moved over to a Santender as a curt

756
00:36:55,880 --> 00:36:58,960
Speaker 12: see two point zero and a lot. You see that

757
00:36:59,200 --> 00:37:02,480
Speaker 12: and you kind of wonder what happened here because that

758
00:37:02,520 --> 00:37:06,800
Speaker 12: had happened before with HSBC coming over, with like Nomura

759
00:37:06,800 --> 00:37:10,399
Speaker 12: coming over. So this is an interesting time and could

760
00:37:10,600 --> 00:37:15,080
Speaker 12: history repeat itself? Very much could, But we've not seen

761
00:37:15,120 --> 00:37:18,759
Speaker 12: this kind of scale and this kind of scope of

762
00:37:18,840 --> 00:37:20,480
Speaker 12: people moving around in a long time.

763
00:37:21,440 --> 00:37:23,520
Speaker 4: This is a global story in nature.

764
00:37:24,080 --> 00:37:26,719
Speaker 3: We were just hearing about and financial and anabab But

765
00:37:26,840 --> 00:37:28,640
Speaker 3: I mean, is that the sort of name that we

766
00:37:28,680 --> 00:37:31,719
Speaker 3: need to see starting to kickstart at least some.

767
00:37:31,719 --> 00:37:33,839
Speaker 4: Of the spin offs, some of the activity.

768
00:37:33,960 --> 00:37:37,360
Speaker 3: How much is this a US European bank story or

769
00:37:37,440 --> 00:37:39,640
Speaker 3: is this a global Asian flank story too?

770
00:37:40,080 --> 00:37:42,400
Speaker 12: So the players in Asia are slightly different. When I

771
00:37:42,440 --> 00:37:44,680
Speaker 12: was in Hong Kong, you see a lot of Chinese

772
00:37:44,800 --> 00:37:48,200
Speaker 12: banks being very very active players in M and A

773
00:37:48,480 --> 00:37:51,600
Speaker 12: and EC refund raising. A lot of the IPO may

774
00:37:51,680 --> 00:37:54,200
Speaker 12: have like a Morgan, Stanley and Goldman at the very top,

775
00:37:54,239 --> 00:37:58,800
Speaker 12: but they will have ten Chinese banks supporting the listing.

776
00:37:58,920 --> 00:38:04,520
Speaker 12: So it's it's a slightly different player composition out there.

777
00:38:04,840 --> 00:38:07,520
Speaker 12: But this particular story, I would say describes more so

778
00:38:07,719 --> 00:38:10,680
Speaker 12: what happens in Europe and in the US. You see

779
00:38:10,719 --> 00:38:14,160
Speaker 12: that similar like moving around musical chair out in Asia

780
00:38:14,200 --> 00:38:15,920
Speaker 12: as well, but more so in places like as the

781
00:38:16,000 --> 00:38:19,719
Speaker 12: management where foreign players are still more dominant, and if

782
00:38:19,719 --> 00:38:22,240
Speaker 12: you need if you're talking about a more relationship based

783
00:38:22,239 --> 00:38:25,360
Speaker 12: business out in Asia, it's very much still local players

784
00:38:25,360 --> 00:38:26,439
Speaker 12: having that advantage.

785
00:38:26,800 --> 00:38:29,200
Speaker 4: Truly global story. We thank you for it, Christiss.

786
00:38:29,760 --> 00:38:32,560
Speaker 3: She's been everywhere covering everything and we thank her for it.

787
00:38:40,560 --> 00:38:42,000
Speaker 4: Wow, we discussed it earlier earlier.

788
00:38:42,080 --> 00:38:46,160
Speaker 3: Let's dig in X going viral being Twitter's new logo

789
00:38:46,239 --> 00:38:49,279
Speaker 3: of course, replacing the signature bluebird, as part of Elo

790
00:38:49,320 --> 00:38:51,879
Speaker 3: Musk's vision of transforming what is a seventeen year old

791
00:38:51,920 --> 00:38:54,960
Speaker 3: service into what is everything app here with more is

792
00:38:54,960 --> 00:38:56,360
Speaker 3: Bloomberg's Asha counts.

793
00:38:56,680 --> 00:38:59,960
Speaker 4: And even though we knew back in April the holding

794
00:39:00,080 --> 00:39:01,680
Speaker 4: company been changed names.

795
00:39:01,480 --> 00:39:04,279
Speaker 3: We knew the obsession with x or started well back

796
00:39:04,280 --> 00:39:06,120
Speaker 3: when PayPal was first formed.

797
00:39:06,440 --> 00:39:08,880
Speaker 4: It sort of felt overnight in the way that it occurred.

798
00:39:10,320 --> 00:39:11,720
Speaker 4: It did in a lot of ways.

799
00:39:11,840 --> 00:39:14,920
Speaker 13: Right Elon Musk sent a tweet and was saying, if

800
00:39:14,960 --> 00:39:16,640
Speaker 13: I get a good logo for X We're going to

801
00:39:16,719 --> 00:39:19,799
Speaker 13: run with it starting tonight. So it did seem fast,

802
00:39:19,840 --> 00:39:22,560
Speaker 13: although it's been a slow development. As you mentioned, they

803
00:39:22,640 --> 00:39:24,799
Speaker 13: started adding more of the features. He's talked about it

804
00:39:24,840 --> 00:39:28,080
Speaker 13: a lot, He's been really vocal, but now the bird

805
00:39:28,120 --> 00:39:30,480
Speaker 13: logo is slowly disappearing. If you go on the site,

806
00:39:30,600 --> 00:39:32,680
Speaker 13: you don't see the bird in the top left corner anymore.

807
00:39:32,719 --> 00:39:34,640
Speaker 13: So it does feel pretty fast in that regard.

808
00:39:35,560 --> 00:39:38,840
Speaker 3: Immediately, we sort of felt that, even though his CTO

809
00:39:38,920 --> 00:39:42,520
Speaker 3: and executive chairman, the CEO Linda Yacarino getting on board,

810
00:39:42,600 --> 00:39:45,920
Speaker 3: sort of supporting the change, trying to illustrate where the

811
00:39:46,400 --> 00:39:48,520
Speaker 3: overall everything out goes, and it seems to be very

812
00:39:48,560 --> 00:39:52,640
Speaker 3: much payments alongside what video content, audio as well.

813
00:39:53,840 --> 00:39:56,360
Speaker 13: All of those things right, and we've seen some movement

814
00:39:56,400 --> 00:39:59,600
Speaker 13: towards those things. Musk has been testing out live video

815
00:39:59,640 --> 00:40:02,280
Speaker 13: a lot. Know that the Tucker Carlson Show is on Twitter,

816
00:40:02,680 --> 00:40:07,040
Speaker 13: so adding those capabilities to do longer form videos. Audio

817
00:40:07,160 --> 00:40:10,120
Speaker 13: obviously has always been a thing with Twitter spaces, they've

818
00:40:10,120 --> 00:40:12,400
Speaker 13: been doing more of those. Must have been involved in

819
00:40:12,440 --> 00:40:13,879
Speaker 13: a lot of those. And then he's talked a lot

820
00:40:13,880 --> 00:40:16,600
Speaker 13: about payments. We haven't seen the full fledged version of

821
00:40:16,640 --> 00:40:19,440
Speaker 13: that yet, but even just thinking about subscriptions, how you

822
00:40:19,480 --> 00:40:23,759
Speaker 13: can subscribe to people's tweets. Now they're paying creators a

823
00:40:23,800 --> 00:40:26,000
Speaker 13: share of ad revenue. So all of those things have

824
00:40:26,080 --> 00:40:28,920
Speaker 13: been steps towards this vision and we'll see what that

825
00:40:29,000 --> 00:40:31,040
Speaker 13: sort of next step is to fully realize it.

826
00:40:31,120 --> 00:40:33,920
Speaker 3: And it feels kind of shocking. But look, I mean

827
00:40:34,000 --> 00:40:37,000
Speaker 3: Facebook recently did it with Meta. We know that Google

828
00:40:37,040 --> 00:40:39,239
Speaker 3: became alphabet as a parent company. Is it tried to

829
00:40:39,280 --> 00:40:42,160
Speaker 3: sort of diversify its moonshots a bit? This isn't unheard of.

830
00:40:42,280 --> 00:40:45,840
Speaker 3: But what sort of brand damage can it do? How

831
00:40:45,960 --> 00:40:49,319
Speaker 3: much are advertisers, indeed consumers users is.

832
00:40:49,280 --> 00:40:50,640
Speaker 4: Going to be kind of upended by this.

833
00:40:51,840 --> 00:40:52,960
Speaker 1: I mean, that's a good question.

834
00:40:53,120 --> 00:40:55,480
Speaker 13: And even in the examples you've mentioned, right, you go

835
00:40:55,560 --> 00:40:58,359
Speaker 13: on Facebook and you still see that blue f Right,

836
00:40:58,400 --> 00:41:00,880
Speaker 13: you still kind of see some of the brand, But

837
00:41:00,960 --> 00:41:03,399
Speaker 13: it almost feels like Twitter is moving away from even

838
00:41:03,440 --> 00:41:05,560
Speaker 13: having the blue bird logo, And so I think that

839
00:41:05,719 --> 00:41:07,920
Speaker 13: is a bit different. And look, it's a question, right,

840
00:41:08,000 --> 00:41:09,640
Speaker 13: That's something that we're going to be asking people as

841
00:41:09,680 --> 00:41:12,360
Speaker 13: we're having conversations this week, is how much was the

842
00:41:12,400 --> 00:41:15,759
Speaker 13: Twitter brand worth and how much will they sort of

843
00:41:15,800 --> 00:41:18,160
Speaker 13: lose in moving away from that? Now, you could argue

844
00:41:18,200 --> 00:41:20,600
Speaker 13: that the rebranding is also a way to move away

845
00:41:20,640 --> 00:41:23,160
Speaker 13: towards some of the challenges Twitter has faced over the

846
00:41:23,160 --> 00:41:25,640
Speaker 13: past six seven months in terms of the content and

847
00:41:26,040 --> 00:41:29,480
Speaker 13: just the perception amongst advertisers. So it could be helpful

848
00:41:29,480 --> 00:41:31,840
Speaker 13: in that regard, But I don't know how much is

849
00:41:31,840 --> 00:41:33,640
Speaker 13: the brand worth. It is something that we've all sort

850
00:41:33,680 --> 00:41:36,960
Speaker 13: of known for so many years. Even to tweet has

851
00:41:37,040 --> 00:41:39,480
Speaker 13: become a verb. What happens to that? If it's now X,

852
00:41:39,760 --> 00:41:42,080
Speaker 13: there's all these sorts of questions that lay in front

853
00:41:42,120 --> 00:41:42,319
Speaker 13: of it.

854
00:41:42,560 --> 00:41:44,120
Speaker 4: Yeah, I mean, I'm thinking it. One was lost over

855
00:41:44,120 --> 00:41:44,520
Speaker 4: the weekend.

856
00:41:44,560 --> 00:41:49,279
Speaker 3: What is it if you retweet because you reacting kind

857
00:41:49,280 --> 00:41:51,440
Speaker 3: of kissing. I like to see an ex as a kiss.

858
00:41:51,640 --> 00:41:54,439
Speaker 3: But ultimately are you Are we starting to see it

859
00:41:54,480 --> 00:41:56,640
Speaker 3: come to its fruition, particularly on the mobile apt because

860
00:41:56,640 --> 00:41:58,319
Speaker 3: I haven't seen much change there as much as the

861
00:41:58,320 --> 00:41:59,200
Speaker 3: web for example.

862
00:42:00,400 --> 00:42:01,560
Speaker 4: Yeah, it's not as much.

863
00:42:01,640 --> 00:42:05,120
Speaker 13: Again, the top left, at least on desktop you can

864
00:42:05,160 --> 00:42:07,560
Speaker 13: see the X. If you go to Elon Musk's profile,

865
00:42:07,600 --> 00:42:09,839
Speaker 13: you'll see it says he works for X, and X

866
00:42:09,880 --> 00:42:12,880
Speaker 13: has the page and the affiliates and all the employees

867
00:42:12,920 --> 00:42:13,560
Speaker 13: and things like that.

868
00:42:13,760 --> 00:42:15,760
Speaker 7: So there are there have been movements.

869
00:42:16,160 --> 00:42:17,360
Speaker 1: It's not full fledgedet.

870
00:42:17,360 --> 00:42:17,960
Speaker 7: We haven't gotten there.

871
00:42:18,000 --> 00:42:19,520
Speaker 1: But I mean it's been pretty fast.

872
00:42:20,320 --> 00:42:22,560
Speaker 3: I mean he's got a sun called X I think

873
00:42:22,600 --> 00:42:23,880
Speaker 3: along with a few other letters.

874
00:42:23,880 --> 00:42:25,799
Speaker 4: He's got space x X.

875
00:42:25,800 --> 00:42:29,120
Speaker 3: Definitely, he does love it, can't take it away from him. Meanwhile,

876
00:42:29,200 --> 00:42:31,919
Speaker 3: Asia Count's brilliant. Thank you for synthesizing it all down

877
00:42:31,920 --> 00:42:33,600
Speaker 3: for us. I meanwhile, that does it for this addition

878
00:42:33,640 --> 00:42:35,799
Speaker 3: of blie med technology, do not forget to check out

879
00:42:35,840 --> 00:42:38,680
Speaker 3: our podcast find out on the terminal and go online

880
00:42:38,680 --> 00:42:41,680
Speaker 3: on Apple, Spotify and iHeart from New York.

881
00:42:42,000 --> 00:42:43,200
Speaker 4: This is bloie meg Technology.