Speaker 1: From Mahart that we're Innovation of Money and Power Collie
Speaker 1: in Silicon Valley, NBN.
Speaker 2: This is Bloomberg Technology with Caroline Hyde and Ed Ludlow.
Speaker 3: I'm Caroline Hyde at Bloomberg's World headquarters in New York,
Speaker 3: ed on assignment today.
Speaker 4: This is Bloomberg Technology. Today.
Speaker 3: We dive into Teza's drop in car prices ahead of
Speaker 3: tonight's earnings report. It's how the cut and Price is
Speaker 3: now making the modern wine nearly thirty percent cheaper this year.
Speaker 4: Plus.
Speaker 3: Netflix falls off the missing subscriber growth estimates, but points
Speaker 3: to its passwords sharing crackdown as.
Speaker 4: A saving grace.
Speaker 3: And despite all the concerns over privacy, people are getting
Speaker 3: extremely personal the chatch ept as some turned to it
Speaker 3: for therapy. We discussed but first that's check in on
Speaker 3: these markss and nervousness once again around some of the
Speaker 3: big earnings that come in a little bit drab.
Speaker 4: We look at Mongo sally.
Speaker 3: We're going to dig into the likes of Netflix in
Speaker 3: a moment, but we're also still thinking about what the
Speaker 3: Federal Reserve, what global central banks have to do to
Speaker 3: tackle inflation still running hot in the UK, nawslack off
Speaker 3: by tenth five percent two year yield, which reflects, of course,
Speaker 3: concerns about interest rate hikes, up almost seven basis points
Speaker 3: on the day.
Speaker 4: We're looking at the.
Speaker 3: Vixendex though still well low, we're sub seventeen, so that
Speaker 3: anxiety not really playing into some of those fear indices
Speaker 3: as they're known flicking on. Let's look at this fear
Speaker 3: indext because we are seeing some nervousness around the riskier
Speaker 3: assets such as crypto. After what has been a phenomenal
Speaker 3: run up in bitcoin, we are seeing it just off
Speaker 3: about three point seven percent on the day, twenty nine thousands,
Speaker 3: where we're at so sub that thirty thousand level. But
Speaker 3: I'm pleased to say to dig into some of the
Speaker 3: micro moves on the day is pretty Gupta.
Speaker 4: She's here for well, talk us through some of those moves.
Speaker 5: Yeah. Well, I think the big one at Caroline is
Speaker 5: going to be those Netflix there shares. You are seeing
Speaker 5: them really plumbing here down about three point two percent
Speaker 5: after reporting those earnings after the bell yesterday. Look, Netflix
Speaker 5: thought they would increase your subscriber account by really cracking
Speaker 5: down on the password chairing. The exact opposite has happened.
Speaker 5: Remember last quarter, a big focus was not necessarily on
Speaker 5: the domestic, but on the international. Their biggest increase in
Speaker 5: their subscriber account last quarter came from India, and this
Speaker 5: time around they're really talking about that expansion. That international
Speaker 5: expansion continuing. Latin America would be really coming into focus
Speaker 5: with right now the opposite effect when it comes to
Speaker 5: that Password Chairing shares are down about three point two
Speaker 5: percent on the day. Not the only company that came
Speaker 5: out with earnings though, ASML, the Dutch semis equipment maker,
Speaker 5: coming out as well and talking about just how worried
Speaker 5: they are about the chip space right now. Look, you
Speaker 5: are also seeing earlier this week that TSMC, one of
Speaker 5: the biggest players in the chip space, talking about cutting
Speaker 5: capex because maybe the demand just doesn't support how much
Speaker 5: supply is needed. But also less supply also means higher prices. Nevertheless,
Speaker 5: if you are producing less, that is not such great
Speaker 5: news for an equipment maker like ASML. Nevertheless, chories like that,
Speaker 5: pushing those shares down about three percent. We got to
Speaker 5: go international, though, keep it international. Ali Baba as well,
Speaker 5: coming out and actually saying well, they might spin off
Speaker 5: a part of their grocery business into a fresh IPO,
Speaker 5: something that was not well received by investors, not really
Speaker 5: weighing the shares down to the tune about two percent
Speaker 5: even in the eighty rs stateside. But Caroline, let's push
Speaker 5: it ahead because after the bell is where all the
Speaker 5: action is in the tech space. Tesla reporting earnings, it's
Speaker 5: all about what they're going to do with deliveries at
Speaker 5: the same time that they are talking about price cuts
Speaker 5: as well. In today we are down one point six percent.
Speaker 3: Crazy the perfect roundup. We thank you, Critty, go up
Speaker 3: to there. Let's dig in on the Tesla perspective now
Speaker 3: the price cuts, the look ahead today's earnings.
Speaker 4: Let's bring in the.
Speaker 3: One I know, any Danah Hall before the storm of earnings,
Speaker 3: you sit down with us just to talk through some
Speaker 3: of the price cuts. I mean these are really now
Speaker 3: adding up well thirty percent off of over why.
Speaker 4: Yeah, and the model.
Speaker 6: Why is Tesla's most important car right now in terms
Speaker 6: of volume? And you know Elon Musk signaled at the
Speaker 6: end of last year that he was going to chase
Speaker 6: volume over profit margins. And today we're going to figure out, well,
Speaker 6: what is the impact of that. I mean, when you
Speaker 6: when you have price cuts, you know, as many of
Speaker 6: the days as they've had since the beginning of the year.
Speaker 6: That really does begin to eat into your profit margins.
Speaker 6: At the same time, you have to remember that the
Speaker 6: Biden Administration's IRA now gives Tesla a production tax credit
Speaker 6: for making these cars in the United States. So I mean,
Speaker 6: it's all margin, margin, margin, margin. That's like the only
Speaker 6: question that analysts and investors have today. What is the
Speaker 6: automotive gross margin X credits today? And that's like, you know,
Speaker 6: if I made a Bingo card, it would have margin
Speaker 6: in every square.
Speaker 4: But don't through that march.
Speaker 3: And it's one important when you're putting in the context
Speaker 3: of Tesla versus itself, but versus.
Speaker 4: The rest of the auto industry looking at evs, they're
Speaker 4: really not making them at any sort of profit yet.
Speaker 6: Right, I mean, that's why Tesla is doing what it's doing.
Speaker 6: They have wiggle room. They have the best profit margins
Speaker 6: in the industry when it comes to evs, and they're
Speaker 6: willing to sacrifice them to kind of continue to gain
Speaker 6: market share and maintain this pole position. On the last
Speaker 6: earnings call, zat Kerkhorn, Tesla's CFO, said that he expects
Speaker 6: profit margins to remain at about twenty percent this quarter,
Speaker 6: so we're waiting to see if that is the case,
Speaker 6: and it really is putting other arto makers on note.
Speaker 6: I mean, if you're not profitable and now you you know,
Speaker 6: Elon Musk has basically.
Speaker 4: Started this price war. It's hard for everybody else.
Speaker 3: Although he'll claim it's not a price for Dana Hall.
Speaker 3: We thank you so much. We're going to be called
Speaker 3: glued to your top Live blog when we get those
Speaker 3: numbers after the bell today, Let's go back to the
Speaker 3: numbers we've already got Netflix, which apparently is pretty hopeful
Speaker 3: about the second half of twenty twenty three, when, of
Speaker 3: course it starts to really crack down on password sharing
Speaker 3: because Q one a bit of a dismal start, the
Speaker 3: subscriber growth in particular disappointed. Let's bring in parent analytics
Speaker 3: industry strategists Brandon Kats for more on this and talk
Speaker 3: to us about the hope the silver lining around cracking
Speaker 3: down on what is one hundred million people they think
Speaker 3: share passwords when Netflix, is that really going to be
Speaker 3: some sort of well, holy grail after a first quarter
Speaker 3: miss holy grail?
Speaker 2: Maybe not, but a supplementary source of additional revenue moving
Speaker 2: forward probably Now, you have to remember every time Netflix
Speaker 2: has rolled out a price hike, it all results in
Speaker 2: temporary churn before stabilization. This really isn't so different. And
Speaker 2: while right now you're seeing churn rates go high in
Speaker 2: the regions that they're rolling it out, it is widely
Speaker 2: expected to stabilize moving forward, even when it comes to
Speaker 2: the ukn market, which is their most mature market and
Speaker 2: where they have the highest ARPU. So there's probably some
Speaker 2: short term pain for Netflix, but they wouldn't be rolling
Speaker 2: this out if they didn't believe in the long term upside,
Speaker 2: particularly as the whole industry hyper focuses on margins, margins, margins.
Speaker 3: Oh, looking at margins, with Tesla looking at margins, with
Speaker 3: Netflix looking at the content being king It was interesting
Speaker 3: that well, adding only one point seventy five million customers
Speaker 3: in the first quarter, less than had been hoped. Is
Speaker 3: that because of the content slate and you in particular
Speaker 3: focus in on not just what the content is more broadly,
Speaker 3: but what Netflix makes versus what it licenses.
Speaker 2: Yeah, it's a complicated question. We saw Netflix hit yet
Speaker 2: another record low in terms of global audience demand for
Speaker 2: its originals, and that happens because the streaming market is
Speaker 2: as cut it as a best buy on Black Friday,
Speaker 2: and that's not going to change anytime soon. But one
Speaker 2: saving grace is the fact that companies are reopening the
Speaker 2: licensing market after years of in house consolidation. So Netflix
Speaker 2: will probably be able to benefit by once again acquiring
Speaker 2: titles from competitors that will help increase engagement, retention, and acquisition.
Speaker 2: So they still have to strike that balance. They still
Speaker 2: have a strong content slate coming out in the second
Speaker 2: half the year, but it's really really important that they
Speaker 2: start generating some momentum soon.
Speaker 3: What about the people that they license the content from,
Speaker 3: you highlight Sony in particular, when they know that Netflix
Speaker 3: is out there pushing for advertising spots that are really
Speaker 3: quite expensive, how much can they negotiate for the price
Speaker 3: point of these sorts of content deals.
Speaker 2: If someone like a Sony, the premier arms dealer of
Speaker 2: content in Hollywood, has immense leverage in these conversations. Netflix
Speaker 2: is already paying them one billion over four years for
Speaker 2: their pay one film deal. That can continue to skyrocket
Speaker 2: in terms of their case by case licensing agreements. It's
Speaker 2: going to be really, really important because we obviously know
Speaker 2: Netflix wants to stabilize and kind of solidify its content
Speaker 2: budget around seventeen billions for the next few years, but
Speaker 2: they are going to be hard pressed to find better deals.
Speaker 2: Everyone knows they need the content and now is a rich,
Speaker 2: rich time to be selling. So despite the kind of
Speaker 2: crackdown on programming overall, they're in a tough position but
Speaker 2: also an advantageous one at the same time.
Speaker 3: And I want to go to what was perhaps a
Speaker 3: bit of a debarkle over the weekend for Netflix when
Speaker 3: it came to stress testing its live offering. They've done
Speaker 3: it before once with Chris Rock and then Love Is
Speaker 3: Blind happened. You were meant to be tuning in live
Speaker 3: to be able to give your own questions if you're
Speaker 3: an addict to this particular reality show, and it had
Speaker 3: a whole load of hitches. How important is that, Brandon
Speaker 3: to the future of the profits of Netflix.
Speaker 2: I had my glass of wine ready, I was excited
Speaker 2: for the live event, and unfortunately, as you mentioned, it
Speaker 2: did disappoint. Now Netflix really is being seen as test
Speaker 2: casing with Chris Rock with Love is Blind their ability
Speaker 2: to move into live sports, which is really the last
Speaker 2: vestige of hope that linear TV has and as we've seen,
Speaker 2: live sports continue to migrate more and more towards digital platforms.
Speaker 2: So the fact that they had issues here is not
Speaker 2: going to instill confidence in any smaller leagues that they
Speaker 2: might be interested in investing in in apparently stealing the rights.
Speaker 2: And again, live events is another revenue generating source that's
Speaker 2: going to bring engagement in a lot of chatter to
Speaker 2: the platform. So if they want to continue expand there,
Speaker 2: they have to make sure that the tech is up
Speaker 2: to snuff.
Speaker 4: And let's talk leadership.
Speaker 3: Lastly, Brandon, because all of this comes under what has
Speaker 3: been a very compared to many other tech orrantine content
Speaker 3: tech companies, a pretty slick transfer of power that seems
Speaker 3: to be going on with Netflix. What do you make
Speaker 3: of it under the new leadership and same more problems though.
Speaker 2: Listen, there's always going to be snaffoos here and there,
Speaker 2: but I think overall you're seeing a pretty seamless transition.
Speaker 2: You're seeing issues that we've discussed that a important but
Speaker 2: not insurmountable. I would never bet against Netflix at this stage,
Speaker 2: given the way they've been able to innovate and adapt
Speaker 2: and continue expanding their products. So I think when we're
Speaker 2: talking about leadership them hyper focusing on the ad toier
Speaker 2: long term is a great call. That's what investors want
Speaker 2: to hear. That's what's going to be a huge growth engine,
Speaker 2: particularly for christ conscious consumers in a very uncertain economic reality.
Speaker 2: So I think right now you're seeing read Hastings footprints
Speaker 2: are still all over Netflix. But the new leadership in
Speaker 2: Greg Peters and Inted surrend Us, who's obviously been in
Speaker 2: that position for quite some time, is going to probably
Speaker 2: do just fine all things considered.
Speaker 3: Part analytics industry strategist Brandon Katz, great to have your
Speaker 3: energy on today.
Speaker 4: We thank you.
Speaker 7: Now.
Speaker 3: When people think of AI, they may think of robots
Speaker 3: threatening repetitive jobs, blue collar work, legal work, even but
Speaker 3: it may also be replacing one of the most secretive
Speaker 3: intimate lines of work therapy fly mergs. Rachel Metz reports
Speaker 3: that more and more people are actually turning to chat
Speaker 3: GPT that's open AI's chatbot as a solution to therapy,
Speaker 3: telling it their problems seeking reassurance despite potential privacy implications.
Speaker 4: Let's bring in Rachel as well as Margaret.
Speaker 3: Mitchell, chief ethics scientist for Hugging Face AI really is
Speaker 3: AI could be a solution to certain areas of therapy,
Speaker 3: like crisis helplines. Rachel, I turn to you first, how
Speaker 3: are people using chat GPT? You've had some really intimate
Speaker 3: discussions with certain people who.
Speaker 4: Turn to it.
Speaker 8: Yeah, I've spoken to some people who say they've used
Speaker 8: it either instead of speaking to a therapist or perhaps
Speaker 8: in addition to having a human therapist. And even though
Speaker 8: it's still really early days, some people are finding it
Speaker 8: quite helpful, which I thought was really interesting.
Speaker 4: It's actually not what I was expecting. But with that,
Speaker 4: of course comes concerns.
Speaker 9: Meg.
Speaker 3: And when you're let's start on the hopeful areas of this, Meg,
Speaker 3: where do you see opportunity for such viral AI chat
Speaker 3: bolts to be helpful in the world of mental health?
Speaker 10: Right, So there's a few areas. One in particular is
Speaker 10: around triaging, so figuring out who someone should talk to
Speaker 10: given that they have some issues. So basically there are
Speaker 10: like crisis text lines that are or crisis phone lines
Speaker 10: that are overrun with requests for help, especially for veterans,
Speaker 10: but there aren't enough people with expertise to help them.
Speaker 10: And so one thing that's really useful is to have
Speaker 10: some sort of automated system to help people get quickly
Speaker 10: through different calls in order to route them to the
Speaker 10: right people. It's also this kind of technology is also
Speaker 10: really useful for what's called rubber ducking, which is just
Speaker 10: sort of talking something out. When you have another entity
Speaker 10: that you can just talk something out too, even if
Speaker 10: it doesn't respond, that's often quite helpful. So those two
Speaker 10: sorts of use cases are arguably more pros than cons.
Speaker 3: Yeah, yeah, Rachel, there were clearly alleviation of the fact
Speaker 3: that they feel that this isn't a therapist that's going
Speaker 3: to charge them alade or indeed get bored of them
Speaker 3: asking questions.
Speaker 4: But when you spoke to open.
Speaker 3: Ai the company, or indeed when you're thinking of people
Speaker 3: who use them alongside a therapist, does that seem to
Speaker 3: be the better approach here?
Speaker 8: I think that right now it's really important to keep
Speaker 8: in mind that there are a lot of limitations here,
Speaker 8: and perhaps the most obvious is that this is not
Speaker 8: intended to be any kind of therapist.
Speaker 4: Is the general used chatbot.
Speaker 8: Any data that you're providing to the system, it could
Speaker 8: be viewed by open ai if it can be deleted,
Speaker 8: but it might take up to a month to delete
Speaker 8: your account. So I personally try to avoid giving it
Speaker 8: any information when I'm typing with chat GPT because I
Speaker 8: want control of my own personal data. So it's not
Speaker 8: like talking to a professional therapist, where you would have
Speaker 8: some sort of confidentiality in almost all cases.
Speaker 3: But also when asking a question of open AI, does
Speaker 3: it realize that perhaps this is a sensitive area. Does
Speaker 3: it push back on giving any direct medical advice for example?
Speaker 8: Yeah, there are policies include don't use the chatbot to
Speaker 8: diagnose any kind of actual medical diagnoses.
Speaker 4: But also if you yeah.
Speaker 8: If you're approaching it and saying like, hey, I need
Speaker 8: you know, I need help, you know, help me as
Speaker 8: like sort of a therapist, it may push back. But
Speaker 8: also at the same time it may maybe like, but
Speaker 8: if you want, I can try to give you some advice.
Speaker 8: So one of the people I spoke to said that
Speaker 8: that it was like, well, I am not intended as
Speaker 8: a therapist, however I can I can try to help.
Speaker 3: And interestingly, of course Meg there are other companies out
Speaker 3: there how are thinking about the ways in which loneliness
Speaker 3: can be helped. Replica is one that comes to mind,
Speaker 3: but you over at hugging face and hugging Face is
Speaker 3: an AI community, right, You're you're building, you're training the models,
Speaker 3: you're putting them into practice in an open source manner.
Speaker 3: How are you thinking about ethics around its use, whether
Speaker 3: it be for mental health or other wise.
Speaker 10: Yeah, I mean with ethics work, you're always thinking through
Speaker 10: different values, different tensions, different pros and cons. There's never
Speaker 10: like one very obvious clear answer when you're getting into
Speaker 10: the leads of how this technology can affect people. And
Speaker 10: so we're working on things like gating mechanisms where while
Speaker 10: the source code is still open, the ability to interact
Speaker 10: with a system is limited. You have to be able
Speaker 10: to submit a request, and this is a situation where
Speaker 10: eventually it would make sense to collaborate with clinicians, therapists,
Speaker 10: things like that, have them be part of the system
Speaker 10: and part of the requests. So this is these gating
Speaker 10: mechanisms that work in open source. We also try and
Speaker 10: provide as much documentation and detail as possible, So we
Speaker 10: have heavy documentation protocols for data for models that go
Speaker 10: over intended uses, ways that the technology could be misunderstood.
Speaker 10: So really focusing on.
Speaker 8: The education to the users as well.
Speaker 3: Meg I'm going to execut a tough quick one to finish.
Speaker 3: Is open AI behaving responsibly here? Do you think in
Speaker 3: the use of chatchipt for into the broader community.
Speaker 11: Yes and no.
Speaker 10: With everything with ethics, they are doing some things responsibly.
Speaker 10: They are doing some things very irresponsibly. Well, I can
Speaker 10: go on, but yes, yes and no, they're being irresponsible
Speaker 10: in some ways that this technology is made available.
Speaker 3: Dig into that. On another occasion, we thank you so
Speaker 3: much for joining us. Margaret Mitchell of course hugging face
Speaker 3: chief ethics Officer and our own Rachel Mets just amazing
Speaker 3: reporting coming from her and all things artificial intelligence, And
Speaker 3: in fact, starting today you can find a new AI
Speaker 3: landing page on bloomug dot com. Go check out Rachel's
Speaker 3: work highlighting all of our carriage all of our data
Speaker 3: as well, and in fact, there's a new twelve part
Speaker 3: bluemug original series as well about AI's impact on specific
Speaker 3: sectors of the economy.
Speaker 4: You do not want to miss it. Coming up.
Speaker 3: Legislation surrounding a ban of TikTok is giving the attention
Speaker 3: a big tech not in the way you'd think mobbists
Speaker 3: are actually pushing for changes to that Bill.
Speaker 12: We have a rapport from Capitol Hill. Next, this is
Speaker 12: Bloomberg time for talking Tech.
Speaker 3: Some other key stories on our radar today. Meta set
Speaker 3: to begin at second round of company wide layoffs today,
Speaker 3: so move towards founder Mark Zuckerberg's goal of well greater
Speaker 3: efficiency and a company memo that was seen by Bloomberg
Speaker 3: News and indicates that Facebook, WhatsApp, Instagram, and Meta's virtual
Speaker 3: reality lab will all be impacted. Eventually ten thousand jobs
Speaker 3: will be cut. Snap says it can't be sued for
Speaker 3: allegedly addicting young users and contributing to a mental health crisis.
Speaker 3: Snap claims it is quote primarily used for direct communication,
Speaker 3: fundamentally different from competitors. They're at the center of social
Speaker 3: media addiction. Of course, Meta, White Dance, Google, Snap, They're
Speaker 3: all fighting nearly two hundred lawsuits over their impact on
Speaker 3: mental health.
Speaker 4: And speaking of social media, tech.
Speaker 3: Giants are resisting legislation that would ban TikTok in the
Speaker 3: United States now. The Information Technology Industry Council, which includes Snap, Meta,
Speaker 3: as well as IBM, Apple or Microsoft, is among groups
Speaker 3: lobbying to narrow what is the bipartisan legislation being considered
Speaker 3: in the Senate right now. They're worried that the bill's
Speaker 3: broad language could impact their businesses. So we want to
Speaker 3: dig in on that reporting Bloomberg's and edgeton.
Speaker 4: It's on Capitol Hill.
Speaker 3: And it's interesting, isn't it that actually a lobbyist for
Speaker 3: technology seems to be against a pushing back on the
Speaker 3: Chinese made TikTok.
Speaker 4: Why.
Speaker 9: Well, one thing that is concerning about this bill to
Speaker 9: US tech companies is that it's written very broadly. So
Speaker 9: this isn't a bill that would just come out and
Speaker 9: ban TikTok. Would actually empower the Commerce Secretary to evaluate
Speaker 9: the national security risk in any technology from a foreign
Speaker 9: adversary like China, Russia, Iran, North Korea. And so the
Speaker 9: concern is that a lot of US technology has Chinese components,
Speaker 9: some line of code written by a Chinese national, and
Speaker 9: then in the hands of a future Commerce secretary, this
Speaker 9: could become a very powerful weapon against the US tech industry.
Speaker 3: It is interesting because, of course, every time that we
Speaker 3: mentioned that maybe it'd be realistic for TikTok to be banned,
Speaker 3: share price dissolve, snap jump higher. We think about the
Speaker 3: repercussions and help to Google's YouTube shorts and Instagram.
Speaker 4: But who are the companies who are most worried about this?
Speaker 4: Would it more likely be the.
Speaker 3: Apples, the Cisco's, the ibms that are more dependent on
Speaker 3: Chinese made technologies.
Speaker 9: Well, our reporting shows that both hardware and software companies
Speaker 9: are worried about this, and part because.
Speaker 4: Of the precedent it sets.
Speaker 9: And that's one of the things we've heard from the
Speaker 9: tech industry throughout this conversation about TikTok is they're asking
Speaker 9: US lawmakers to be very careful in the steps that
Speaker 9: they take. Even if they might initially benefit US tech companies,
Speaker 9: it could set a really bad precedent for US companies
Speaker 9: operating abroad, like what if India decides that it wants
Speaker 9: to ban Meta, What if Brazil sides that it wants
Speaker 9: to ban Google. So you see this kind of you know,
Speaker 9: looking beyond their shorts and wondering how this is going
Speaker 9: to play out globally, not just here in the US.
Speaker 3: I suppose the show only on the foot being much
Speaker 3: of the argument is that China does ban an awful
Speaker 3: lot of US companies over there, and this would be
Speaker 3: the response to it.
Speaker 9: Well, and that's one thing that we see that I've
Speaker 9: heard from some lawmakers who are worried about this bill
Speaker 9: is they're saying, even though we're in a strategic competition
Speaker 9: with China, we don't want to become more like China.
Speaker 9: And you definitely see this debate working out and how
Speaker 9: you kind of handle this asymmetric strategic competition with our
Speaker 9: you know, some people's opinion, our greatest global adversary, to
Speaker 9: try to figure out how we can address our tech
Speaker 9: industry here in the US in a way that reflects
Speaker 9: both the freedoms and values that the United States holds.
Speaker 4: Deer and it's great reporting.
Speaker 3: Thank you for bringing us the latest and jutant over
Speaker 3: there on Capitol Hill. Welcome back to lumbag Technology. I'm
Speaker 3: Carienne Hyde in New York. Let's get a quick check
Speaker 3: on these markets right now, because we are eeking out
Speaker 3: gains on the Nasdaq one hundred.
Speaker 4: In fact, we've eat them out for three straight days.
Speaker 3: It's the longest winning street we've seen on this particular
Speaker 3: tech heavy benchmark since the end of March.
Speaker 4: So managing to just rally up.
Speaker 3: On the heavy lift that's going on with Apple, with
Speaker 3: Amazon doing the heavy lifting on the points perspective on
Speaker 3: the downside of Cisco. Also on the downside is Netflix
Speaker 3: off by more than three point seven percent after look
Speaker 3: it's it's guidance and its first quarter earnings underwhelmed one
Speaker 3: point seventy five million subscribers added, not as many as
Speaker 3: the market wanted to see, and their forward looking guidance
Speaker 3: the second quarter revenue not looking so pretty either, although
Speaker 3: they do talk about the second half of the year
Speaker 3: being stronger on the back of clamping down on password sharing.
Speaker 3: Tesla also off by one point three percent. Again, this
Speaker 3: is Elon Musk going for well overall sales over profits.
Speaker 3: He wants to be getting them out the doors. The
Speaker 3: model why's the model threes and so he's cutting the
Speaker 3: price point once again overall the model why the suv
Speaker 3: is down by thirty percent in terms of a price
Speaker 3: point over the course of this year alone. Flick it
Speaker 3: on and we'll look at what's happening on crypto, because
Speaker 3: maybe some of that nervousness and anxiety around earnings around
Speaker 3: where the Federal Reserve has to go in terms of
Speaker 3: inflation is just hitting biggerin Also, look, maybe some of
Speaker 3: the bank cernings, particularly the smaller banks, are easing some
Speaker 3: of our concerns about the resiliency of the financial sector
Speaker 3: here in the United States, that rush for a haven
Speaker 3: of bitcoin, which of course is an alternative to moder
Speaker 3: day finance. It's caring up by three and a half
Speaker 3: percent with sub thirty thousand dollars.
Speaker 4: Let's flick gears. Now, let's talk about something different to.
Speaker 3: Our Airbnb how it's adding Starwarard Capital some other landlords
Speaker 3: to a program that will allow renters to lease their
Speaker 3: apartments part time on the home sharing platform. Look, this
Speaker 3: actually helps landlords perhaps attract tenants who aim to boost
Speaker 3: become those hosts themselves. Airbnb co founders here to talk
Speaker 3: all about it. Nate Blatcharzik, We're pleased to welcome offering
Speaker 3: first that actually rolled out what in November. But people
Speaker 3: are getting more and more interested. What's driving demand here?
Speaker 3: Is it the landlords that are interested or is it
Speaker 3: the potential tenants?
Speaker 4: We're telling the landlords to get on board.
Speaker 13: The Airbnb Friendly Apartment's program is off to a very
Speaker 13: strong start, and I think that's because it addresses a
Speaker 13: real need out there for renters, which is housing affordability.
Speaker 13: In the United States, renters, forty six percent of renters
Speaker 13: are cost burdened.
Speaker 11: That means they're spending thirty percent or more of their
Speaker 11: income just to pay their rent.
Speaker 13: And this disproportionately impacts young people and those living in cities.
Speaker 13: About two thirds of young people two thirds of those
Speaker 13: in Citi's rent. And that's really Airbnb's for audience, and
Speaker 13: it's an audience I can relate to because when we
Speaker 13: started Airbnb, it was simply to help us afford our
Speaker 13: own rent. We had quit our jobs to become entrepreneurs,
Speaker 13: and we rented out an extra bedroom.
Speaker 11: And if I were to do that today, it's a
Speaker 11: good chance my lard wouldn't allow me to.
Speaker 13: And so with this program, we're helping renters to find
Speaker 13: apartment landlords who will support their hosting activity on a
Speaker 13: part time basis. And you can come to our site
Speaker 13: now and find two hundred and sixty apartment buildings across
Speaker 13: thirty eight cities in the United States that will allow
Speaker 13: you to host.
Speaker 3: The thirty eight cities is interesting because that's ramped up
Speaker 3: since you first launched back in November as well. Is
Speaker 3: this a regulatory discussion that you're having as well?
Speaker 11: Well?
Speaker 13: We launched one hundred and seventy five buildings across twenty
Speaker 13: five cities. It's now two hundred sixty buildings and thirty
Speaker 13: eight cities. And there's two layers of this. Of course,
Speaker 13: there's the regulation that exists city by city, and in
Speaker 13: most cities there's regulation now in place, and it allows
Speaker 13: people to rent their primary homes on a part time basis.
Speaker 13: But even if the regulation allows you to do this,
Speaker 13: you still need permission from your landlord. And so this
Speaker 13: program really works with landlords to create a framework that
Speaker 13: makes them comfortable giving permission to their tenants to become hosts.
Speaker 3: What gets them comfortable because they need to have a
Speaker 3: lot of faith in the tenants, so they'll keep the
Speaker 3: building that they're going to be.
Speaker 4: Offering up to scratch.
Speaker 3: That becomes a pleasant experience for anyone who's walking into
Speaker 3: one of their particular high rises.
Speaker 13: Yeah, first and foremost, just visibility.
Speaker 11: Into what's happening in their buildings, right.
Speaker 13: They want to have an atmosphere that is conducive to
Speaker 13: a good sense of community in their buildings, and so
Speaker 13: they want to have certain controls to make sure that
Speaker 13: this is happening only on a part time basis, and
Speaker 13: that they know who's coming and going from the buildings.
Speaker 13: So we have a software suite that allows the landlord
Speaker 13: to see who's hosting in the building, how many guests
Speaker 13: are coming and going, and really have a sense of
Speaker 13: control over what's happening and effectively enforced it too. The
Speaker 13: second part of that is that we are allowing landlords
Speaker 13: to market themselves the market, the fact that they are
Speaker 13: friendly to Airbnb hosts, that they allowed us, and so
Speaker 13: they are now featured on our website. You can come
Speaker 13: to our website and you can see these two undred
Speaker 13: sixty buildings across the US, and if you're interested, reach
Speaker 13: out to the building to sign a one year lease.
Speaker 13: And so we're effectively driving leads to these buildings, driving
Speaker 13: their core business, reducing their marketing costs.
Speaker 11: This is an importance to them too.
Speaker 3: As the economy rolls over, do you think more and
Speaker 3: more will seek this have you Have you been able
Speaker 3: to line it up as to people are more worried
Speaker 3: about cost of living and whether or not this does well.
Speaker 13: Yeah, absolutely, I mean I think it definitely plays to
Speaker 13: the times where there's economic uncertainty and questions about housing affordability.
Speaker 13: So I think now more than ever this is relevant
Speaker 13: and I think in particular. You know, we're well positioned
Speaker 13: to create this product because we have the audience that
Speaker 13: really understands that hosting enables people to pay their bills
Speaker 13: to you know, start their company. H These are folks
Speaker 13: who are young, they're often in urban areas, they're very
Speaker 13: fluent in airbnb. They want to do this. They know
Speaker 13: that this is helping, that would help them. They just
Speaker 13: need to know what landlords are going to support the activity.
Speaker 13: And so we're kind of playing matchmaker here. We have
Speaker 13: the demand and now through our partnerships, we have to.
Speaker 3: Supply, and often these are international landlords. Would this ever
Speaker 3: go beyond the United States?
Speaker 13: Yeah, So we're working with a range of landlords, smaller
Speaker 13: landlords and larger ones including Gray Star, UDR Equity, Residential Star,
Speaker 13: Wars Capital now just signed on, and many more. And
Speaker 13: this will continue to grow. We're actively partnering. We have
Speaker 13: a backlog of landlords we're working with. I do think
Speaker 13: this will expand beyond the United States. We're starting here,
Speaker 13: and frankly, we're going slow because we want to make
Speaker 13: sure this works for the landlords as well, and we
Speaker 13: want to make sure that this is a success and
Speaker 13: it's success in these two hundred and sixty buildings. Then
Speaker 13: we're confident there's gonna be many more buildings, and we'll
Speaker 13: take it outside.
Speaker 11: The US as well.
Speaker 4: Why does it work for you.
Speaker 11: For Airbnb the company?
Speaker 13: Yes, it's important because look, one third of Americans rent,
Speaker 13: and that's a large part of the market, and so
Speaker 13: we want to make sure that they're not categorically disallowed
Speaker 13: from participating in Airbnb. And so this is really meant
Speaker 13: to unlock a big part of the market, and particularly
Speaker 13: young people, those in cities. I mean, this is our
Speaker 13: core demographic that you know, by default currently cannot host,
Speaker 13: and so this program is intended to really unlock that
Speaker 13: and change the industry's perception and see this as Airbnb,
Speaker 13: not as something they need to tightly control or prohibit
Speaker 13: in their buildings, but really as an economic opportunity that
Speaker 13: can be embraced with the proper controls in place. And again,
Speaker 13: it is all about controls and making sure it's happening
Speaker 13: on a part time basis, which is what our tools allow.
Speaker 11: Nat.
Speaker 3: Thanks so much for spending time with us. Airbnb co
Speaker 3: founder Nagra Chasing there.
Speaker 4: Thank you.
Speaker 3: Now, as we ramp up to Earth Day this Saturday,
Speaker 3: we continue to cover the new technologies really striving to
Speaker 3: protect the planet, and today we take a look at
Speaker 3: the concerns of the impact of offshore wind farms and whales,
Speaker 3: dolphins and other marine life and how AI can actually
Speaker 3: help with that. Pimbag's Stefan Jodovic has their story.
Speaker 14: Whaleship collisions are a leading cause of death for endangered
Speaker 14: whales off the North Atlantic coast of Massachusetts, as well
Speaker 14: as the North and southern California coast of the Pacific.
Speaker 14: Despite their large stature, weighing anywhere between seventy and one
Speaker 14: hundred and sixty tons, they are no match for a
Speaker 14: two hundred thousand ton cargo ship.
Speaker 11: For example.
Speaker 14: North Atlantic right whales have been listed as endangered under
Speaker 14: the Endangered Species Act since nineteen seventy and have had
Speaker 14: a population decline since twenty ten.
Speaker 1: The right whale is highly endangered and jasmal Leo the
Speaker 1: utmost concern that we protect them and ensure that you know,
Speaker 1: we don't do anything during our operations or construction to
Speaker 1: negatively and points of population.
Speaker 14: In order to prevent this problem, organization like Charles River
Speaker 14: Analytics and Whale Safe have been using artificial intelligence in
Speaker 14: order to.
Speaker 11: Combat whale fatalities.
Speaker 14: Based in Cambridge, Massachusetts, Charles River Analytics developed a whale
Speaker 14: detection technology system to be used by a vineyard wind
Speaker 14: who is planning to install over sixty general electric wind
Speaker 14: turbines fifteen miles south of Martha's Vineyard. The software system,
Speaker 14: called Awarian, alerts large shipping vessels to slow down and
Speaker 14: avoid deadly collisions by using infrared radars and cameras to
Speaker 14: detect the location of whales by performing three hundred and
Speaker 14: sixty degree sweeps of the surrounding ocean.
Speaker 7: The great part about the Aware Island AI software is
Speaker 7: that it works with this incorrect video camera and it's
Speaker 7: able to detect small changes temperature, which enables us to
Speaker 7: detect whales during times of women if visibility or parkness.
Speaker 14: In contrast, the Benioff Ocean Initiative back organization Whale Safe
Speaker 14: deploys underwater microphones called hydrophones off the Californian coast to
Speaker 14: listit for blue whale vocalizations near busy shipping lanes, where
Speaker 14: the two rule is able to rank vessels and shipping
Speaker 14: companies according to their cooperation rates with NOAA's voluntary speed restrictions.
Speaker 11: In both regions.
Speaker 1: THO goal is an integrate that these technologies will feature
Speaker 1: winning projects as we develop LO on the tern seyboard.
Speaker 1: We need to find ways where you know, we can
Speaker 1: advance the technology so that we can build off optional
Speaker 1: and you know, as quickly as possible to meet these
Speaker 1: goals that the states.
Speaker 4: And the federal government have for knowable energy.
Speaker 14: Whether a company uses infrared camera technology or sonic wave detection,
Speaker 14: these initiatives provide an eco friendly solution to a problem
Speaker 14: that has resulted in the increasing development of renewable energy
Speaker 14: products combating climate change.
Speaker 4: Sefanjovich there, we thank him.
Speaker 3: Now coming up we'll have more climate change related news
Speaker 3: and then while the benched capital stick for it.
Speaker 4: That's next as a bring bad.
Speaker 3: Time now for our VC roundup, starting with Congruent Ventures,
Speaker 3: which has raised three hundred million dollar fund to help
Speaker 3: its stable of climate focus startups grow their businesses. This
Speaker 3: brings the total amount of assets managed by Congruent to
Speaker 3: more than seven hundred million. Meanwhile, General Motors GM ventures
Speaker 3: fund is participating in an investment around nanoramic laboratories to
Speaker 3: help the startup develop nanotechnology that could make EV batteries
Speaker 3: cheaper to manufacture. Builtmaker dinderslose a dollar figure for its investment. Now,
Speaker 3: investing in companies making a change is not just all
Speaker 3: about the environment. It's also about representation, who runs them,
Speaker 3: who builds them. Let's bring in Fiat Ventures General partner
Speaker 3: Drew Glover, an investor who strives to build a diverse
Speaker 3: portfolio for more on this, and Fiat ventures is really
Speaker 3: focused on fintech in particular. You hadtech Fiat growth, which
Speaker 3: is more about advising and consulting, and now or you're
Speaker 3: taking bit of money and stake in these sorts of companies.
Speaker 3: Just how well funded are the companies that you back
Speaker 3: at the moment.
Speaker 15: Yeah, so it really goes across, It really goes across
Speaker 15: the spectrum.
Speaker 11: Here.
Speaker 15: You know, Fiat growth we get to work hands on
Speaker 15: as a growth consultant to a lot of these early
Speaker 15: stage businesses. And then on Fiat ventures we get to
Speaker 15: take advantage of an investment. We actually get the right
Speaker 15: to invest on the Fiat growth side. So on the
Speaker 15: Fiat growth sides, we're working with companies as early as
Speaker 15: pre seed and as late stage as public. On the
Speaker 15: Fiat venture side, we're investing in pre Series A companies.
Speaker 15: So that's typically preceed seed and of course Series A,
Speaker 15: so on the earlier side. However, we do take a
Speaker 15: call it follow on investment. On the later stages, as
Speaker 15: we're running their growth, we get insight into how they're
Speaker 15: building their business, and that gives us ability to do
Speaker 15: really deep due diligence to understand if we want to
Speaker 15: take a larger stake in the business at the later stage.
Speaker 3: That's really interesting, this whole follow on investment because what
Speaker 3: you're writing checks of one hundred to five hundred thousand,
Speaker 3: and you then have to do three times the allocation
Speaker 3: four future rounds. What's it like when you're trying to
Speaker 3: co invest at later rounds with bigger players? Are they
Speaker 3: what are they trying to be pushy at the moment?
Speaker 3: Are you looking at pay to play being enforced a
Speaker 3: lot more?
Speaker 11: Yeah?
Speaker 15: You know, well, in the VC world, especially in the
Speaker 15: later stage, elbows get a lot sharper. You know, there's
Speaker 15: bigger names or spokes with a lot more money. I
Speaker 15: think one unique thing that FIAT can really lean on
Speaker 15: is we are their growth partners. And so when I
Speaker 15: say growth meaning we're not just being the strategy, but
Speaker 15: we're also being the execution. As really being their outsource
Speaker 15: growth team. So by us being so deeply embedded in
Speaker 15: their business and their overall success around how they're spending money,
Speaker 15: deploying money, and growing their client base and their user base,
Speaker 15: we also have the ability to really lean in and
Speaker 15: take a bigger stake in the business at a later stage.
Speaker 15: And we're not having to compete with those sharp elbows
Speaker 15: because we built such a deep relationship with them from
Speaker 15: the early stage to the late stage.
Speaker 3: Okay, so asking those founders to really fight for you
Speaker 3: basically when doing those sort of later rounds of funding,
Speaker 3: talk to about those founders that you back. I'm thinking
Speaker 3: of what you're backing. Companies that have gen z helping
Speaker 3: finance their side hustles. You've got rental home surpassive income.
Speaker 3: You've also got well disability insurance companies.
Speaker 4: Where is the suitees? What makes you invest in these companies?
Speaker 15: True? You know, we focus on fintech, but I would
Speaker 15: also say the fintech adjacent. You know, we're big believers
Speaker 15: that the future of fintech is going to be deeply
Speaker 15: embedded into every action we take. We're seeing it become
Speaker 15: part of our day to day lives. We're also big
Speaker 15: believers that finance is getting younger. You know kids that
Speaker 15: are gen Z or even gin Alpha, they are engaging
Speaker 15: in work in a very different way. They're not just
Speaker 15: doing a lemonade stand or a paper route anymore, but
Speaker 15: they're really engaging from the standpoint of reselling shoes on
Speaker 15: stock x, are opening up their Etsy store. So Copper
Speaker 15: Bank's a great example. It's a team bank and it's
Speaker 15: really built around financial literacy. We really want to make
Speaker 15: it so of these kids that are engaging with work
Speaker 15: that of course they have to pay taxes on, they're
Speaker 15: doing it in a very smart, thoughtful and educated way.
Speaker 15: So Copper is a really incredible team bank that focuses
Speaker 15: on financial literacy he first, but giving kids the ability
Speaker 15: to engage with digital finance and finance as a whole
Speaker 15: in a very unique, accessible way.
Speaker 3: As a mother, I really hope my kids remain engaged
Speaker 3: in wanting to develop the financial literacy and education.
Speaker 4: No matter what the economy looks like.
Speaker 3: But we are coming off the back of a period
Speaker 3: where it was really exciting to have a side hustle.
Speaker 3: It was really a time to think about investing in
Speaker 3: a young age because we suddenly saw meteoric growth in
Speaker 3: stocks and shares, But when we go into an economic slowdown,
Speaker 3: does that remain as appetizing and do your companies remain
Speaker 3: as appetizing to invest in.
Speaker 11: It's a really good question. You know.
Speaker 15: The public markets are always going to play a really
Speaker 15: big role on how we evaluate and put evaluation on
Speaker 15: some of these early stage businesses. As an investor, you know,
Speaker 15: we're always having to think ten years out, fifteen years out,
Speaker 15: twenty years out. If we think back to the Ubers
Speaker 15: and the airbnbs, who was just on in the last
Speaker 15: last segment, you know, it took them fifteen years to
Speaker 15: get to where they needed to be and become a
Speaker 15: really success full public companies. So it'll always affect the valuation.
Speaker 15: But it's really up to us to be able to
Speaker 15: see around the corner. You know, in two thousand and eight,
Speaker 15: no one thought that some of those companies, again the Airbnb,
Speaker 15: the Ubers, the lifts of the world, would be able
Speaker 15: to get where they got to because a lot of
Speaker 15: folks as investors are looking a month out, a quarter out,
Speaker 15: of year out. But it's really important to be able
Speaker 15: to see around the corner and think a decade out.
Speaker 15: So so yes, today the valuations are not nearly as
Speaker 15: high as they were, you know, eight months ago, a
Speaker 15: year and a half ago, especially.
Speaker 11: Two years ago.
Speaker 15: But we have to be able to see where the
Speaker 15: generational shift is going to come and be able to
Speaker 15: see how the market and more importantly, the consumers and
Speaker 15: the clients are going to evolve over time. So for us,
Speaker 15: it's really around you know, seeing into the future, and
Speaker 15: we know that in moments like this, especially in the market,
Speaker 15: some of the best opportunities are are sitting right in
Speaker 15: front of us. And it really comes down to the
Speaker 15: vcs that are going to take a chance in a
Speaker 15: market like this to understand where like the really great
Speaker 15: diamonds and the rough are going to come out, and.
Speaker 3: Often built by diversity of thought and with more than
Speaker 3: fifty percent of your portfolio being underrepresented founders, I'm sure
Speaker 3: that helps in any ways. Fiat Ventures General partner Drew Gloverer,
Speaker 3: great to have some time with you.
Speaker 4: Thank you. Some breaking news.
Speaker 3: Now from the Bloomberg Meta is planning to cut or
Speaker 3: relocate its London based Instagram employees. According to a person
Speaker 3: familiar with the matter, the London office became pretty much
Speaker 3: a center for growth for the app when it's leader, Adamiseri,
Speaker 3: moved there temporarily last year. Now, Massari is planning to
Speaker 3: relocate to the US along with staffers who aren't maaid off.
Speaker 3: It's according to a source who are not to be
Speaker 3: identified because as yet the decision hasn't been made public
Speaker 3: and the move won't be final until the completion of
Speaker 3: a required consultation period with the UK government. Now, let's
Speaker 3: talk about something different, different, but about transit. Now, the
Speaker 3: city of San Jose in California is exploring the use
Speaker 3: of electric pods to get people to and from the airport.
Speaker 3: It recently granted initial authorization for plans to develop a
Speaker 3: network of autonomous cars for the service. It's known as
Speaker 3: personal Rapid Transit, and it's tapped Silicon Valley startup Clydeways
Speaker 3: to engineer the idea.
Speaker 4: Junias Now is a founder of that company, Mark.
Speaker 3: Seger, And for the uninitiated, just tell us what personal
Speaker 3: rapid transit is all about. Why is it more efficient
Speaker 3: than say, like a subway or a bus.
Speaker 16: Well, good morning, Caroline, thank you so much for letting
Speaker 16: me be here and speak with you. So what we
Speaker 16: do is the exact opposite of a bus or a train.
Speaker 16: Rather than cramming lots of people into one vehicle that
Speaker 16: stops from stop to stop to stop and you have
Speaker 16: to wait on it, we bring vehicles to you. Every
Speaker 16: passenger gets their own vehicle on demand anytime twenty four
Speaker 16: to seven, and that vehicle only stops once once it's
Speaker 16: on it's journey, which is at your destination. And so
Speaker 16: we're inverting the paradigm of shared vehicles to private vehicles.
Speaker 16: But ironically we can move more people that way at
Speaker 16: a fraction of the cost.
Speaker 3: Interesting it kind of makes me think of the Minority Report,
Speaker 3: where we kind of still Tom Cruise breaking out on one.
Speaker 4: But these ideas have been long in the making.
Speaker 3: In fact, I think it's London Heathrow has had them
Speaker 3: for a while, so has to buy Why isn't sort of.
Speaker 16: Picked up in mass They have been the ide idea
Speaker 16: of PRT personal rappid trands. It has indeed been a
Speaker 16: very around for a very long time, but no one
Speaker 16: could make it work. And frankly we have to thank
Speaker 16: the one hundred dodds billion dollars a VC capital that
Speaker 16: went into autonomous vehicle technology, which, while it isn't ready,
Speaker 16: it has provided the platform to make a closed autonomous
Speaker 16: personal rappid trendsit system like ours work and work really
Speaker 16: really well.
Speaker 4: So you're authorized for pre development agreement. What next? What
Speaker 4: about environmental engineering reviews and the likes?
Speaker 16: Well, that's precisely what's next. But because we're a fraction
Speaker 16: of the size of a traditional rail system, for example,
Speaker 16: we're also at a fraction of the cost and a
Speaker 16: fraction of the time. So we're going to go through
Speaker 16: environmental reviews next, but at a fairly rapid clip, just
Speaker 16: because our footprint is so much smaller. And then we're
Speaker 16: going to build it. But again, building it happens in
Speaker 16: a matter of months, not typically decades, or maybe even
Speaker 16: longer than that.
Speaker 11: In some instances.
Speaker 3: We'll see how quickly this gets on the rails. We
Speaker 3: thank you so much, Glideway's founder Mark Sega. There and
Speaker 3: that does it for this edition of BlueBag Technology. Do
Speaker 3: not forget to check out our podcast. You can find
Speaker 3: it on the terminal. You can go to Apples, Spotify, iHeart,
Speaker 3: and so much more to be digesting tomorrow tune in,
Speaker 3: of course, we'll have the latest on the analysis around
Speaker 3: Tesla's numbers. They're coming after the close of market today.
Speaker 3: Stay tuned for Romain Mustic and Co's reporting across that
Speaker 3: from New York, from San Francisco, this is Bloomberg.