WEBVTT - Tesla Cuts Prices Again and Goldman Says Apple a Buy 0:00:15.240 --> 0:00:18.800 I met Ludlow in San Francisco. This is Bloomberg Technology 0:00:18.840 --> 0:00:22.680 coming up. Tesla cuts prices again, the electric vehicle maker, 0:00:22.760 --> 0:00:25.759 reducing the costs of more expensive models for the second 0:00:25.760 --> 0:00:28.840 time this year. We'll bring you the details, plus time 0:00:28.920 --> 0:00:31.760 to buy Apple. After sitting on the sidelines for the 0:00:31.840 --> 0:00:34.559 last six years, Goldman Sachs says it is time to 0:00:34.720 --> 0:00:37.479 jump in on the iPhone maker despite missing out on 0:00:37.520 --> 0:00:40.880 a three hundred percent advance. We'll discuss and the push 0:00:41.120 --> 0:00:44.400 to ban TikTok. Senator Mark Warner plans to introduce a 0:00:44.479 --> 0:00:48.120 bill this week to allow the US to systematically ban 0:00:48.600 --> 0:00:52.520 Chinese technology. That's including services like the social media giant. 0:00:52.560 --> 0:00:55.160 All that and so much more. Coming up. The first, 0:00:55.240 --> 0:00:58.880 Tesla down two percentage points after cutting prices here in 0:00:58.880 --> 0:01:01.600 the US on Model lesque a Model X including the 0:01:01.680 --> 0:01:05.000 plaid varietals over the weekend. For more, Let's bring in 0:01:05.040 --> 0:01:08.559 bloombergs Dana Hoole, who is reporting, where are the price 0:01:08.640 --> 0:01:10.680 cuts and what do we know about them? In the 0:01:10.760 --> 0:01:13.759 last twenty four hours? So Tesla cut the prices last night, 0:01:13.800 --> 0:01:16.720 they change the website, and the model S is now 0:01:16.840 --> 0:01:19.679 roughly five thousand dollars cheaper. Across both models, and the 0:01:19.959 --> 0:01:23.520 X is almost ten thousand dollars cheaper. Interestingly, now the 0:01:23.560 --> 0:01:25.880 plaid is the exact same for both the S and 0:01:25.920 --> 0:01:28.120 the X. And I think what significant is that we've 0:01:28.120 --> 0:01:31.160 seen Tesla tweak prices quite a bit. This is kind 0:01:31.160 --> 0:01:33.760 of a significant change to come in March. We have 0:01:34.240 --> 0:01:36.240 roughly three and now four weeks left in the quarter. 0:01:36.720 --> 0:01:41.160 Tesla definitely changes prices. But is this a demand question 0:01:41.240 --> 0:01:43.560 or is this just Tesla trying to cut costs for consumers? Well, 0:01:43.640 --> 0:01:45.560 let's jump in on that. We every day go to 0:01:45.560 --> 0:01:47.680 our audience and ask what do you make of this story? 0:01:47.760 --> 0:01:50.640 And the question is do these price cuts push you 0:01:50.760 --> 0:01:53.800 to buy what is a still very expensive vehicle? The 0:01:53.880 --> 0:01:55.720 results kind of mixed, actually, I would say, you know, 0:01:55.760 --> 0:01:59.680 almost fifty percent of respondents say no, these are too expensive. 0:02:00.200 --> 0:02:02.960 What has Tesla said so far in twenty twenty three 0:02:03.000 --> 0:02:06.280 about demand, because they tend to use price cuts as 0:02:06.320 --> 0:02:09.720 a lever, frankly fine, pockets of demand absolutely well. Musk 0:02:09.800 --> 0:02:12.480 said last week and Investor Day that demand for Tesla's 0:02:12.520 --> 0:02:15.440 cars is infinite and that the biggest, you know, the 0:02:15.520 --> 0:02:20.840 limiting factor is priced. So you know, but again, I 0:02:20.880 --> 0:02:23.160 mean the vast majority of Tessa's sales right now are 0:02:23.200 --> 0:02:24.919 the three and the Y, and you know, he's even 0:02:24.960 --> 0:02:26.320 said that the S and the X are kind of 0:02:26.360 --> 0:02:29.160 like antique models that eventually will go the way. You know, 0:02:29.560 --> 0:02:32.000 there's sort of like legacy models that they make because 0:02:32.080 --> 0:02:34.360 people are fond of them, but they are still quite 0:02:34.400 --> 0:02:37.040 expensive cars. The fact that they are cutting at this 0:02:37.120 --> 0:02:39.359 point in the quarter, to me, means that they are 0:02:39.360 --> 0:02:41.560 trying to stoke demand. They must have inventory that they're 0:02:41.560 --> 0:02:45.160 trying to move. You have a really terrific piece out 0:02:45.680 --> 0:02:49.720 newsletter or Bloomberg terminal piece, both newsletter and ternal piece 0:02:49.760 --> 0:02:54.560 value for money on this great deep bench of talent Tesla. 0:02:54.639 --> 0:02:56.880 I thought this was so important and worth taking a 0:02:56.880 --> 0:02:59.400 look at. Last week it invested day. Elon Musk is 0:02:59.480 --> 0:03:02.280 up on stage a site with familiar with that behind him. 0:03:02.280 --> 0:03:04.679 There you see it on the screen. Sixteen or so 0:03:04.880 --> 0:03:07.880 executives six. Yeah, I don't think we have time to 0:03:07.919 --> 0:03:09.960 go through all sixteen, but there are sort of a 0:03:10.040 --> 0:03:12.919 top three that you've picked out. Who are these new 0:03:13.000 --> 0:03:15.920 names behind Elon Musk? Yeah, So this is the first 0:03:15.919 --> 0:03:18.320 time that so many people have been on stage with Elon, 0:03:18.400 --> 0:03:20.519 and I think it's a clear sign that the company 0:03:20.600 --> 0:03:22.600 is trying to be like, Hey, even though Elon Musk 0:03:22.639 --> 0:03:25.360 bought Twitter, we have this deep bench of talent. Tom 0:03:25.480 --> 0:03:28.720 Zoo is clearly a rising star, as you've reported earlier 0:03:28.800 --> 0:03:31.000 this year. You know, Tom has kind of a growing 0:03:31.040 --> 0:03:34.480 remit within Tesla overseeing manufacturing not just in China, but 0:03:34.600 --> 0:03:37.760 in Texas and potentially in Mexico as well. I thought 0:03:37.760 --> 0:03:41.680 the presentation by Rebecca Tanucci, who oversees charging, was spectacular. 0:03:41.840 --> 0:03:45.080 She's like an executive that we've never heard of. And 0:03:45.120 --> 0:03:49.560 then Brendan Erhardt, who's the recently hired general counsel, came 0:03:49.600 --> 0:03:52.640 to Tesla from Dish. He briefly appeared on stage, and 0:03:52.840 --> 0:03:55.880 he's the first sort of big outside higher that we've 0:03:55.880 --> 0:03:57.720 had a Tesla in quite a while, just showing those 0:03:57.800 --> 0:04:00.960 kind of less familiar names on the screen. Then you're right, 0:04:01.000 --> 0:04:03.240 we've reported Tom ju now has kind of moved away 0:04:03.320 --> 0:04:05.720 from China where he was really focused, to globally looking 0:04:05.760 --> 0:04:09.720 at manufacturing air Heart Interesting. You and I have reported 0:04:09.760 --> 0:04:12.320 a lot on the turnover of legal names in Tesla. 0:04:12.400 --> 0:04:14.560 You've covered Tesla for so long and you've done so 0:04:14.600 --> 0:04:17.599 many of these events. Why was this one different? What 0:04:17.800 --> 0:04:20.320 was the kind of standout feature of it. Well, this 0:04:20.400 --> 0:04:22.039 was I mean, it was a four hour of it, 0:04:22.160 --> 0:04:24.599 so it was quite quite the long saga. It reminded 0:04:24.640 --> 0:04:26.599 me a little bit of a Battery day point two 0:04:26.600 --> 0:04:28.359 point er in which they were giving a lot of 0:04:28.520 --> 0:04:32.400 very detailed, highly technical information about their thinking, but there 0:04:32.480 --> 0:04:34.919 wasn't a clear product announcement. I think a lot of 0:04:34.960 --> 0:04:38.840 retail investors and Wall Street frankly were disappointed. They wanted 0:04:38.880 --> 0:04:41.000 to see a concept of the car. They didn't want 0:04:41.000 --> 0:04:43.159 to see like a future car under a white sheet, 0:04:43.160 --> 0:04:45.560 which is what the slide showed. But we didn't get 0:04:45.560 --> 0:04:47.120 to hear from a lot of people. And I mean, 0:04:47.440 --> 0:04:50.920 you know, part of Tesla's talent is people, and it's 0:04:51.040 --> 0:04:53.960 rare that they showcase people. Part of our talents of 0:04:54.040 --> 0:04:56.600 people too. Here at Bloomberg. Bloomberg's done a whole terrific 0:04:56.680 --> 0:04:59.159 reporting and all things Tesla. Now, let's stay in the 0:04:59.160 --> 0:05:03.120 world of evs and actually autonomous vehicles. Amazon's Zooks division 0:05:03.240 --> 0:05:07.080 is facing a federal inquiry into the self certification of 0:05:07.120 --> 0:05:11.120 its passenger vehicle as meeting safety standards. NITZA says it's 0:05:11.200 --> 0:05:14.039 launching an inquiry for more information on the data and 0:05:14.160 --> 0:05:17.359 testing the company used to certify it's a vehicle that 0:05:17.520 --> 0:05:21.240 was equipped with automated driver assistant software. The government didn't 0:05:21.240 --> 0:05:25.000 cite any problems or violations in the announcement. Zooks's general 0:05:25.040 --> 0:05:27.800 counsel told me in a statement, this is a request 0:05:27.960 --> 0:05:30.719 to gain an additional level of detail and information on 0:05:30.760 --> 0:05:34.560 the self certification test Zooks performed, which have met or 0:05:34.600 --> 0:05:38.039 exceeded government requirements. We are committed to working closely with 0:05:38.200 --> 0:05:41.279 NITZA on the questions they have and we remain confident 0:05:41.560 --> 0:05:46.279 in our self certification process and data. Now another story 0:05:46.320 --> 0:05:50.680 we're watching, Goldman Sachs says it's time to buy Apple shares. 0:05:51.920 --> 0:05:55.119 Goldman is taking a bye out of the Apple well 0:05:55.520 --> 0:05:58.880 Apple Shares. The firm is recommending the stock as a 0:05:58.960 --> 0:06:01.800 buy for the first time in nearly six years. To 0:06:01.920 --> 0:06:04.480 see what I did there. Analyst Michael Earn has taken 0:06:04.520 --> 0:06:07.000 over coverage of the stock, and he says Apple's large 0:06:07.080 --> 0:06:09.920 user base is going to help the iphonemaker grow its 0:06:09.920 --> 0:06:14.159 services business and because of its leading design fostering brand loyalty, 0:06:14.240 --> 0:06:17.040 Goldman think that Apple is able to reduce the number 0:06:17.080 --> 0:06:20.360 of users leaving the Apple ecosystem and to keep them 0:06:20.360 --> 0:06:23.320 making repeat purchases. So back to the last time Goldman 0:06:23.400 --> 0:06:26.320 had the equivalent of a buy on Apple twenty seventeen, 0:06:26.600 --> 0:06:29.839 the stock has rallied more than three hundred percent since then. 0:06:30.160 --> 0:06:32.960 Goldman's price target one hundred and ninety nine dollars implies 0:06:32.960 --> 0:06:35.800 more than thirty percent upside from the last close. That's 0:06:35.839 --> 0:06:38.279 way above the average target of one hundred and sixty 0:06:38.360 --> 0:06:41.919 nine sixty one cents. So Goldman's done sitting on the 0:06:41.920 --> 0:06:47.520 sidelines with Apple anyone else. An interesting piece we put 0:06:47.560 --> 0:06:50.440 out there in social media because the stock also got 0:06:50.480 --> 0:06:52.559 a bit of a bump just in the session alone 0:06:52.600 --> 0:06:54.440 from that Goldman call. As we said in the piece, 0:06:54.480 --> 0:06:57.040 up more than three hundred percent since the last time 0:06:57.080 --> 0:06:59.800 Goldman had the equivalent of a buy. So let's think 0:06:59.800 --> 0:07:01.920 with that Apple. Because Apple is gearing out to launch 0:07:02.000 --> 0:07:05.960 it's next slate of laptops, desktops and including that new 0:07:06.000 --> 0:07:09.239 iMac Blue by Mark gum In here with those details 0:07:09.240 --> 0:07:11.440 you're writing in your news lesson this morning about what's 0:07:11.480 --> 0:07:14.840 to come? What do we expect? Yeah, so new Max, 0:07:14.960 --> 0:07:17.280 new Max are coming soon. There's going to be a 0:07:17.360 --> 0:07:20.440 new fifteen Inchmacbook Air. This is going to be the 0:07:20.480 --> 0:07:23.200 first time that Apple has made a larger size MacBook Air. 0:07:23.680 --> 0:07:25.400 That's going to be appealing to people who want a 0:07:25.440 --> 0:07:27.920 bigger screen size but in a quite a bit cheaper 0:07:27.920 --> 0:07:30.560 and more portable package. There's people like me who have 0:07:30.600 --> 0:07:33.040 the biggest MacBook Pro you can get not because you 0:07:33.120 --> 0:07:35.400 want the performance, but because you want the screen real estate. 0:07:35.440 --> 0:07:36.880 So now you'll be able to get that in a 0:07:36.960 --> 0:07:40.200 lighter and cheaper package. Also, a new thirteen Inchmacbook Air 0:07:40.320 --> 0:07:42.680 coming in the next few months later this year, the 0:07:42.720 --> 0:07:45.480 first update to the iMac right in about two two 0:07:45.520 --> 0:07:47.680 and a half years that will have an M three chip, 0:07:47.760 --> 0:07:51.560 their next generation processor. And speaking of new Apple products, 0:07:51.600 --> 0:07:55.080 there's also something coming sooner than these new max imminent, 0:07:55.120 --> 0:07:59.640 I'm told is a new iPhone fourteen color, so look 0:07:59.680 --> 0:08:02.880 out for this week. It's interesting because you and I 0:08:02.920 --> 0:08:05.800 started the year kind of really focused on the upcoming 0:08:05.880 --> 0:08:10.240 AARVR headset, but you forget that the cadence of new 0:08:10.320 --> 0:08:14.200 products and releases is quite closely tracked. And you wrote 0:08:14.200 --> 0:08:16.720 in the newsletter the most frequent question I get ahead 0:08:16.720 --> 0:08:19.560 of my weekly column is something along the lines of 0:08:19.800 --> 0:08:22.640 when is a new iMac coming out? Why is everyone 0:08:22.680 --> 0:08:27.040 waiting specifically on a new iMac. Yeah. The iMac is 0:08:27.400 --> 0:08:30.800 really what started Apple over again under Steve Jobs in 0:08:30.840 --> 0:08:33.440 the late nineteen nineties, right, And this all in one 0:08:33.480 --> 0:08:36.079 machine that now has become essentially an iPad with the 0:08:36.160 --> 0:08:38.480 twenty four in screen on a stand. It's not their 0:08:38.520 --> 0:08:41.679 most popular Mac those go to the thirteen inch MacBook 0:08:41.720 --> 0:08:44.280 Pro a base model as well as the MacBook Air. 0:08:44.720 --> 0:08:48.199 But it's very well received in schools, like in computer 0:08:48.280 --> 0:08:50.240 labs and such. People like to put them in their 0:08:50.280 --> 0:08:53.320 living rooms, in kids rooms, people who work from home. 0:08:53.400 --> 0:08:55.720 It's been a really hot buy for work from home, 0:08:56.240 --> 0:08:59.640 remote work setups, hybrid work environments. And that machine, like 0:08:59.679 --> 0:09:03.400 I said, has not been updated since April twenty twenty one. Right. 0:09:03.440 --> 0:09:05.280 So Apple fans, you know, they all want to know 0:09:05.440 --> 0:09:07.360 when that new models coming out because they don't want 0:09:07.360 --> 0:09:11.240 to buy an M one iMac, which from a processor standpoint, 0:09:11.320 --> 0:09:14.960 has been outdated already for you six to nine months, 0:09:15.160 --> 0:09:17.080 if not longer. They want to know when the new 0:09:17.120 --> 0:09:19.760 ones coming out. And I'm told it's reached an advanced 0:09:19.760 --> 0:09:24.160 stage called EVT. They're now doing test production of the iMac. 0:09:24.400 --> 0:09:26.720 They're gearing up for mass production in about three months 0:09:26.720 --> 0:09:29.600 from now it's going to look similar, have basically all 0:09:29.600 --> 0:09:31.760 the same features as the current model, but that faster 0:09:32.040 --> 0:09:33.880 M three chip, which is really going to dial up 0:09:33.880 --> 0:09:36.760 the performance, which is what you want for a machine 0:09:36.760 --> 0:09:38.760 with the twenty four in screen for people doing video 0:09:38.880 --> 0:09:41.000 editing and such. Well, that's where I was going to go. 0:09:41.080 --> 0:09:44.880 Let's talk Silicon just really quickly. Which chips did the 0:09:44.960 --> 0:09:47.400 new jen I MacBooks have? The ones that did due 0:09:47.440 --> 0:09:51.199 out imminently, right, So the next chip for Apple is 0:09:51.240 --> 0:09:53.559 going to be that M three chip. I don't believe 0:09:53.679 --> 0:09:56.520 that's going to arrive until later in the year, with 0:09:56.559 --> 0:09:59.199 either that iMac or that update to the thirteen inch 0:09:59.280 --> 0:10:02.720 MacBook Air. That this fifteen inch MacBook Air is going 0:10:02.760 --> 0:10:05.840 to come a bit sooner than the M three chips availability, 0:10:05.880 --> 0:10:08.000 So that's likely to have a variation of the M 0:10:08.080 --> 0:10:10.880 two or the M two pro chip that's already available 0:10:11.080 --> 0:10:14.320 in sort of those base MacBook pros and the thirteen 0:10:14.360 --> 0:10:17.080 inch MacBook Air today. But the M three chip, whenever 0:10:17.120 --> 0:10:19.600 that does hip, that's going to be a pretty considerable 0:10:19.679 --> 0:10:22.600 upgrade for anyone coming from an M one. That's the 0:10:22.640 --> 0:10:24.400 first time Apple is going to move from a five 0:10:24.520 --> 0:10:29.680 nanimeter production technology to a three nanimeter production technology that's 0:10:29.679 --> 0:10:31.880 going to allow Apple to dial up the speed a 0:10:31.920 --> 0:10:34.760 bit on the CPU side. But also because of that 0:10:34.840 --> 0:10:38.600 new production process through TSMC, the efficiency and battery life 0:10:38.720 --> 0:10:42.000 is likely to improve as well. Thing begs Markham and 0:10:42.080 --> 0:10:45.559 thank you smile. You're remember to subscribe to Mark's weekly column. 0:10:53.520 --> 0:10:56.640 You're on a hundre million Americans on TikTok ninety minutes 0:10:56.679 --> 0:10:59.200 a day. Even you guys would like that kind of return. 0:10:59.320 --> 0:11:02.520 Ninety minutes a day. They are taking data from Americans, 0:11:02.559 --> 0:11:04.840 not keeping it safe. But what worries me more with 0:11:04.960 --> 0:11:08.719 TikTok is that this can be a propaganda tool to 0:11:08.840 --> 0:11:13.760 basically the kind of videos you see would promote ideological issues. 0:11:13.920 --> 0:11:16.400 If you look at what TikTok shows to the Chinese kids, 0:11:16.400 --> 0:11:18.920 which is all about science and engineering, versus when our 0:11:19.000 --> 0:11:25.600 kids see, there's a radical difference. That was Senator Mark Warner, 0:11:25.640 --> 0:11:28.400 who plans to introduce a bill this week to allow 0:11:28.400 --> 0:11:33.800 the US to systematically ban Chinese technology, including services like TikTok. 0:11:33.800 --> 0:11:37.600 Bloomberg's ky lines out in DC with more, Kaylee, what 0:11:37.679 --> 0:11:41.600 do we know about this particular bill, Well, we know 0:11:41.640 --> 0:11:45.199 it has bipartisan support because the co sponsor of Democratic 0:11:45.240 --> 0:11:48.560 Senator Mark Warner's bill as Republican John Thune from South Dakota. 0:11:48.679 --> 0:11:51.120 So this in theory supported on both sides of the 0:11:51.160 --> 0:11:53.520 Aisle here at least by some members, and it gives 0:11:53.520 --> 0:11:58.320 the US the authority on national security concern grounds to 0:11:58.559 --> 0:12:02.600 ban or prohibit certain Chinese technology here in the US. 0:12:02.679 --> 0:12:04.679 And when he was asked on that Sunday program he 0:12:04.760 --> 0:12:06.440 was speaking on about that, he said, yes, that does 0:12:06.480 --> 0:12:10.120 include Byte Dances TikTok, as you saw in the clip there. 0:12:10.320 --> 0:12:13.560 He has two concerns here, one about the potential propaganda element, 0:12:13.600 --> 0:12:16.760 the other about data security because as we're all swirling 0:12:16.760 --> 0:12:19.679 on TikTok, our data is being collected, and the concern 0:12:19.840 --> 0:12:23.720 is that Byte Dance, being a Chinese company, then would 0:12:23.760 --> 0:12:26.520 have that data being shared with the Chinese government. Now 0:12:26.520 --> 0:12:29.360 it's important to note Byte Dance has said it operates independently, 0:12:29.400 --> 0:12:32.120 that its data is secured through an alliance with Oracle 0:12:32.200 --> 0:12:34.319 when it comes to US customers. But there's been a 0:12:34.360 --> 0:12:37.400 significant amount of pushback against that, including from FBI Director 0:12:37.840 --> 0:12:41.000 Chris Ray, who has said that China controls the algorithm 0:12:41.040 --> 0:12:43.160 and China can access the data. And so this is 0:12:43.200 --> 0:12:47.199 the concern here with yet another potential legislation being introduced 0:12:47.320 --> 0:12:51.480 to prohibit or restrict TikTok in some form, that does 0:12:51.520 --> 0:12:55.680 appear to be momentum behind this initiative. On this program, 0:12:55.720 --> 0:13:00.680 we've been talking about some form of legislation around not 0:13:00.840 --> 0:13:04.360 just TikTok but Chinese technology generally for some time. Why 0:13:04.440 --> 0:13:09.679 is this bill different? I suppose well. Senator Warner has 0:13:09.720 --> 0:13:12.240 said he intends to design this bill so it can 0:13:12.280 --> 0:13:15.040 resist any kind of legal challenges, because we have seen 0:13:15.080 --> 0:13:18.559 other proposals put forward that have run into some resistance, 0:13:18.600 --> 0:13:22.480 like Republican Josh Holly's. For example, the No TikTok on 0:13:22.600 --> 0:13:25.640 United States Devices Act, would put a total ban on 0:13:25.800 --> 0:13:29.000 TikTok here in the US, prohibit allowing the President to 0:13:29.040 --> 0:13:31.640 prohibit the use and download of it. There has been 0:13:31.640 --> 0:13:34.640 some criticism that that actually is a violation of First 0:13:34.640 --> 0:13:38.000 Amendment rights to free speech because you're restricting the content 0:13:38.080 --> 0:13:41.120 people could put out there. So there are some kind 0:13:41.160 --> 0:13:43.200 of legal questions here that make it difficult for a 0:13:43.200 --> 0:13:45.160 measure like this to get over the finish line. Will 0:13:45.200 --> 0:13:47.480 have to see ultimately if it does. I will say, though, 0:13:47.480 --> 0:13:50.760 what we're talking about here is an expansion of bands 0:13:50.800 --> 0:13:53.800 on TikTok from the public sector to the broader US public, 0:13:53.840 --> 0:13:56.800 because you already have in place Congress spanning TikTok from 0:13:56.840 --> 0:13:59.160 government devices last year, in the White House last month 0:13:59.360 --> 0:14:03.920 mandating federal agencies remove it from phones and systems. Kaylee. 0:14:03.920 --> 0:14:06.400 The other big headline out of DC from a kind 0:14:06.400 --> 0:14:10.760 of oversight perspective, is what President Biden is considering doing 0:14:10.800 --> 0:14:14.040 in terms of executive orders and restrictions on China. What 0:14:14.040 --> 0:14:17.440 do we know, Well, we know from Bloomberg reporting that 0:14:17.480 --> 0:14:19.520 this is in the works, and we are expecting that 0:14:19.720 --> 0:14:22.440 funding for this program we're talking about will be included 0:14:22.440 --> 0:14:24.480 in the President's budget on March ninth, so we could 0:14:24.560 --> 0:14:28.120 get full details on Thursday. But it's essentially restricting US 0:14:28.200 --> 0:14:33.600 investment in Chinese technology, specifically technology that advances intelligence and 0:14:33.640 --> 0:14:37.080 military capabilities of the Chinese government. So while we don't 0:14:37.120 --> 0:14:40.400 know what exactly technologies are being specified here, we should 0:14:40.440 --> 0:14:42.360 get more details in the coming days. We don't know 0:14:42.400 --> 0:14:44.920 it from the reporting at this point, but think things 0:14:44.960 --> 0:14:49.560 like semiconductors or artificial intelligence chat GPT like products, as 0:14:49.560 --> 0:14:51.960 well as quantum computing. All of that is expected to 0:14:51.960 --> 0:14:54.640 be included in the scope here. And what is noteworthy 0:14:54.640 --> 0:14:57.920 and important to me is that when in these conversations 0:14:58.120 --> 0:15:00.760 that Bloomberg had with those working on this policy for 0:15:00.800 --> 0:15:04.200 the administration, something that was raised was the idea that 0:15:04.760 --> 0:15:07.480 this isn't just about money. It is also about talent 0:15:07.560 --> 0:15:11.440 and expertise that US individuals can share with Chinese companies, 0:15:11.440 --> 0:15:13.960 and they want to put restrictions around that. So, as 0:15:13.960 --> 0:15:17.120 you say, this is about a broader competition element between 0:15:17.120 --> 0:15:19.280 the US and China, and it's a story we're going 0:15:19.280 --> 0:15:20.960 to have to continue to follow and expect to get 0:15:20.960 --> 0:15:24.720 details from the President on in the coming days. Bloomberg's 0:15:24.800 --> 0:15:29.040 Katie lines Mountain DC, thank you now from TikTok to Twitter. 0:15:29.160 --> 0:15:32.080 This morning, the app suffered its second outage in a week. 0:15:32.480 --> 0:15:36.600 In response, Elon must called the platform brittle. Bloomberg's cut 0:15:36.640 --> 0:15:41.320 Wagner is here, Resident social media reporter, all Things Social. 0:15:41.800 --> 0:15:45.080 It was one of those mornings where it just happens. 0:15:45.640 --> 0:15:50.040 It's Twitter down, people ask I did? I wrote hiku actually, 0:15:50.880 --> 0:15:53.040 because it's like, you know, when you go on Twitter 0:15:53.080 --> 0:15:56.480 and twitters down, everyone is on the platform asking is 0:15:56.560 --> 0:15:59.440 Twitter down? That was my tweet. Sad gloomy Monday, a 0:15:59.560 --> 0:16:04.000 busy Twitter breaking sigh, the outages. That was pretty good. 0:16:04.160 --> 0:16:07.960 But this is more than just a sort of regular outage, right, yeah, 0:16:08.000 --> 0:16:09.680 I mean you have a first of all, you have 0:16:09.680 --> 0:16:12.200 a future here if the TV thing doesn't work out, 0:16:12.200 --> 0:16:15.760 writing poet, right. But yeah, I mean, look, we've I've 0:16:15.800 --> 0:16:18.040 been on this show. We've talked about this. Everyone who's 0:16:18.040 --> 0:16:20.160 fallow Twitter knows that over the last couple of weeks 0:16:20.640 --> 0:16:24.120 and months, the staff at Twitter has been slashed, right, 0:16:24.160 --> 0:16:27.680 I mean we're talking well over fifty percent of employees 0:16:27.680 --> 0:16:29.600 that were just a few months ago are now gone. 0:16:29.920 --> 0:16:32.840 And so when you know, we see that happen, and 0:16:32.880 --> 0:16:34.800 when those a lot of those people are engineers or 0:16:34.800 --> 0:16:38.880 site reliability folks, suddenly you you know, see these outages 0:16:38.920 --> 0:16:41.000 happening with more frequency. This is something that a lot 0:16:41.000 --> 0:16:43.600 of people thought would happen when Elon first took over. 0:16:43.960 --> 0:16:46.320 It didn't right away. You may remember, everyone was like, hey, look, 0:16:46.320 --> 0:16:48.680 Twitter seems to be working fine. Well, it's starting to 0:16:49.040 --> 0:16:51.720 catch up to the company. We did kind of get 0:16:51.760 --> 0:16:54.440 a response from Elon must that went some way to 0:16:54.560 --> 0:16:57.520 explaining what caused the outage. I think we can bring 0:16:57.560 --> 0:17:00.280 the tweet back up. But the point is is they're 0:17:00.280 --> 0:17:03.640 trying to make fixes with a skeleton staff. A small 0:17:03.720 --> 0:17:08.360 API change had massive ramifications. According to Elon Musk, this 0:17:08.400 --> 0:17:10.280 is happening regularly though, I mean, what are they trying 0:17:10.320 --> 0:17:12.920 to do that's causing this? Yeah, well, I mean this 0:17:13.000 --> 0:17:15.560 is the thing, right, I mean, when you go from 0:17:15.600 --> 0:17:18.720 having dozens, if not hundreds of engineers working on something 0:17:18.840 --> 0:17:22.160 to a very small group. You know, even just one 0:17:22.160 --> 0:17:24.399 little change, one little bug, you have to detect it, 0:17:24.440 --> 0:17:25.399 you have to go and you have to fix it. 0:17:25.480 --> 0:17:27.800 You have to push that change everyone like it's you know, 0:17:27.920 --> 0:17:29.760 maybe only down for an hour, but it's the kind 0:17:29.800 --> 0:17:33.320 of thing that might have gotten caught or fixed even 0:17:33.440 --> 0:17:37.000 quicker had there been more bodies in the room, right, 0:17:37.040 --> 0:17:39.040 And so I think we're just seeing the kind of 0:17:39.119 --> 0:17:43.040 price of all these cost cuts starting to happen to 0:17:43.080 --> 0:17:46.480 the platform in terms of its reliability. Still a platform 0:17:46.520 --> 0:17:48.800 that people are using. And then they're talking this about 0:17:48.840 --> 0:17:52.000 on putting Westcote Wagner, Thank you very much. Thanks. Now, 0:17:52.000 --> 0:17:54.200 coming up, we'll bring you the latest in tech news 0:17:54.560 --> 0:17:58.560 from China. As President Jijing Ping is emphasizing the country's 0:17:58.680 --> 0:18:01.960 investment in the tech sector. That's all Next. This is 0:18:02.000 --> 0:18:17.080 Bloomberg time now for talking tech, and let's get over 0:18:17.520 --> 0:18:21.160 to China. Baofan co founder of China Renaissance and one 0:18:21.160 --> 0:18:25.359 of the tech industry's star bankers, has vanished his firmish 0:18:25.440 --> 0:18:30.440 due to statement that he is cooperating in an unspecified investigation. 0:18:30.480 --> 0:18:34.880 The banker's disappearance is sending shutters through China's corporate class 0:18:35.200 --> 0:18:38.840 in spite of some pushback and some encouraging words from 0:18:38.880 --> 0:18:44.719 state media. Meanwhile, President Jijingping is officially backing the tech sector. 0:18:44.760 --> 0:18:47.879 In his opening remarks at the National People's Congress, he 0:18:47.960 --> 0:18:51.399 said the country will take forceful measures to support the 0:18:51.440 --> 0:18:54.879 development of high end manufacturing and emphasize the country's need 0:18:54.920 --> 0:18:59.000 to ensure it's self reliance in technology and as part 0:18:59.040 --> 0:19:02.040 of that grand projects, China also plans to create a 0:19:02.160 --> 0:19:05.760 central agency to manage the flow of data within the 0:19:05.840 --> 0:19:08.840 country and abroad that according to The Wall Street Journal, 0:19:09.160 --> 0:19:12.840 citing sources, Beijing intends to set up a new National 0:19:12.960 --> 0:19:16.240 Data Bureau that will become the top overseer of data 0:19:16.240 --> 0:19:20.320 related issues to strengthen its control over the valuable data 0:19:20.400 --> 0:19:28.280 generated by swaths of the economy, including the internet industry. 0:19:33.280 --> 0:19:36.879 I'med Ludlow in San Francisco. This is Bloomberg Technology now 0:19:36.880 --> 0:19:40.920 the private company's space races taking shape after venture capital 0:19:40.960 --> 0:19:44.080 firms spent more than six billion dollars on space related 0:19:44.119 --> 0:19:48.359 tech last year. SpaceX continues to dominate the market for 0:19:48.440 --> 0:19:52.760 lawn jan is growing its own constellation of starlink satellites, 0:19:52.840 --> 0:19:57.120 but competition and customers are heating up between smaller players 0:19:57.160 --> 0:20:01.600 like Astuanis and Andresen Horrowist Backs light Stop, most recently 0:20:01.680 --> 0:20:05.280 valued at one point four billion dollars. Joining me now 0:20:05.359 --> 0:20:08.360 is just trying to ceo. John Gedmark, Let's go back 0:20:08.359 --> 0:20:11.480 to basics. Tell me about this company, because the reason 0:20:11.480 --> 0:20:14.760 on your show is that you have this big moment. 0:20:14.840 --> 0:20:17.480 A satellite is built and it's moving from just down 0:20:17.480 --> 0:20:22.000 the road from where we're sitting now to Florida. Why yeah, 0:20:22.040 --> 0:20:25.080 thanks for having me here on the show. So at Astronauts, 0:20:25.200 --> 0:20:27.920 we built a new kind of satellite. So this is 0:20:27.960 --> 0:20:32.200 a microsatellite for higher orbits, starting with a special orbit 0:20:32.200 --> 0:20:34.520 called geostation orbit. So this is an orbit where we 0:20:34.520 --> 0:20:37.640 can put a satellite up into space and basically park 0:20:37.720 --> 0:20:40.960 it over a country, providing continuous service with just that 0:20:41.080 --> 0:20:44.160 one satellite. So that allows us to provide service at 0:20:44.359 --> 0:20:48.920 very low cost compared to other types of satellite applications 0:20:49.000 --> 0:20:52.760 and compared to certainly the old school satellites that have 0:20:52.840 --> 0:20:55.640 come before. So today is a big day first because 0:20:55.680 --> 0:20:59.200 we're launching our We just shipped our first satellite out 0:20:59.280 --> 0:21:02.919 the door. Is arriving at Cape Canaveral as we speak, 0:21:03.520 --> 0:21:05.880 and there it's going to be integrated onto a SpaceX 0:21:05.960 --> 0:21:08.480 rocket for its ride to space. We're just showing those 0:21:08.520 --> 0:21:11.000 pictures on the screen of it being loaded into the 0:21:11.040 --> 0:21:13.719 container back of a big reag and off it goes. 0:21:14.440 --> 0:21:17.119 How does it get to space? We're going to be 0:21:17.200 --> 0:21:21.280 riding as a ride share on a Falcon heavy rocket. 0:21:21.440 --> 0:21:25.320 So this is a big rocket. The zeri's eight set. Yes, 0:21:25.440 --> 0:21:28.280 SpaceX is looking at the week of April eighth, so 0:21:28.320 --> 0:21:31.360 we've got a launch window. We'll have a more definitive 0:21:31.400 --> 0:21:34.280 datas we get a little bit closer. Yeah, and in 0:21:34.320 --> 0:21:39.720 this instance, this is a satellite that will provide capability 0:21:39.800 --> 0:21:44.399 for a commercial customer, private sect customer rights. Yeah, that's right. 0:21:44.480 --> 0:21:47.720 So we have a private customer in the US state 0:21:47.720 --> 0:21:51.439 of Alaska called Pacific Data Port. They're an internet service 0:21:51.480 --> 0:21:55.080