WEBVTT - CPI Data, Cybersecurity, And Tech

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<v Speaker 1>Welcome to the Bloomberg Markets Podcast. I'm Paul Sweeney alongside

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<v Speaker 1>my co host Matt Miller. Every business day we bring

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<v Speaker 1>you interviews from CEOs, market pros, and Bloomberg experts, along

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<v Speaker 1>with essential market moving news. Find the Bloomberg Markets podcast

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<v Speaker 1>called Apple Podcasts or wherever you listen to podcasts, and

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<v Speaker 1>at Bloomberg dot com slash podcast. At CPI seven point

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<v Speaker 1>five year overy year the highest rate since How does

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<v Speaker 1>the market perform in the face of that headwind? Let's

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<v Speaker 1>check in with Avery Sheffield, co founder and c I

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<v Speaker 1>O Advantage Rock that's part of Rockefeller Asset Management. Every

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<v Speaker 1>thanks so much for joining us. What did you take

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<v Speaker 1>away from a seven point five CPI print? Yes, well,

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<v Speaker 1>I mean inflation is raging. I mean it was kind

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<v Speaker 1>of added anticipated given what we've seen in companies results. UM.

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<v Speaker 1>I think what this means is that, you know, we're

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<v Speaker 1>going to continue to see more pressure on consumers um

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<v Speaker 1>and consume we're spending and really what the the key

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<v Speaker 1>for us is, you know, where is this price into

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<v Speaker 1>the market and and and where it isn't you know

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<v Speaker 1>from a stock perspective, do you expect uh this to

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<v Speaker 1>cool down by year? End significantly. I mean, we've had

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<v Speaker 1>people say it's going to come down, but you know,

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<v Speaker 1>it's still going to be four percent. We've had the

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<v Speaker 1>other people, um at the minority of the people we asked,

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<v Speaker 1>say yeah, we'll get back down to too. Yes. I

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<v Speaker 1>mean I think it's going to uh continue longer than

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<v Speaker 1>anticipated and higher than anticipated, because you know, even just

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<v Speaker 1>in earnings results this morning, we're hearing companies talk about

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<v Speaker 1>price increases in the midst at least in the mid

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<v Speaker 1>single degens, even in the food space that we haven't

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<v Speaker 1>even seen yet in stores. Um, you know, we have

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<v Speaker 1>a wage rate going up that are just starting to

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<v Speaker 1>factor in. And if I would say, like, I mean,

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<v Speaker 1>no one knows, of course what the absolute where this

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<v Speaker 1>is going to settle out. You know, is it going

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<v Speaker 1>to run seven percent plus forever? You know, I don't

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<v Speaker 1>know if it will be at high UM two percent

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<v Speaker 1>though just instinctively seems seems far too well. And I

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<v Speaker 1>really think, what what what's changed, um that that will

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<v Speaker 1>endure UM is that one one piece factor that has

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<v Speaker 1>drive kept inflation so low for many years has actually

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<v Speaker 1>been that companies have been paid um by investors to invest,

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<v Speaker 1>to grow and to grow at any at any cost

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<v Speaker 1>um in meaning it at low margins or negative margins.

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<v Speaker 1>And now that many of these companies have reached a

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<v Speaker 1>large scale and aren't able to grow UM by gaining

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<v Speaker 1>share anymore, they're actually having to raise price UM in

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<v Speaker 1>order to justify their business models. We've seen this in

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<v Speaker 1>e commerce recently, We've seen this in UM home entertainment.

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<v Speaker 1>We've seen this in that even the exercise space. Across

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<v Speaker 1>the board, companies that have been lost generating or nearly

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<v Speaker 1>lost generating and gaining massive share are now flowing growth

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<v Speaker 1>dramatically and looking to raise price in order to to

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<v Speaker 1>grow revenues. And so that dynamic I think is very

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<v Speaker 1>underappreciated it and likely to lead to a higher level

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<v Speaker 1>of inflation than we've seen in the past. All Right, So,

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<v Speaker 1>given that background every where, are you and your friends

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<v Speaker 1>advantage rock? Were you guys putting money to work these days? Yeah?

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<v Speaker 1>Great questions. So we are, um, you know, we're long

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<v Speaker 1>short and so on the long side of we're invested

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<v Speaker 1>in companies that we think have underappreciated pricing power and

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<v Speaker 1>a really position to benefit um from these inflationary dynamics.

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<v Speaker 1>From a competitive perspective, so UM, so and and and

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<v Speaker 1>then on the short side, we we actually your short

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<v Speaker 1>companies that we think UM are believed to have pricing

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<v Speaker 1>power UM and and and probably are not likely to so.

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<v Speaker 1>Two specific areas on the long side that that we're

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<v Speaker 1>we're excited about. One is retailers that have kind of

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<v Speaker 1>been disintermediate or to everyone's thought, we're going to go

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<v Speaker 1>away because of e commerce growth. And now e commerce

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<v Speaker 1>is significantly flowing. I've been talking about like peaking e

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<v Speaker 1>commerce UM, and now that that's blowing, that's the headwind

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<v Speaker 1>that's gone away to gone away to are that's that's

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<v Speaker 1>that's UM subsiding to margins. And we expect that dynamics

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<v Speaker 1>to contain you because the costs of e commerce delivery

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<v Speaker 1>are continuing to go up. In those companies that actually

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<v Speaker 1>have stores and great merchandise, we're gonna to cost advantage

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<v Speaker 1>to offer lower prices to their consumers. I think that's

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<v Speaker 1>really under appreciated. These stocks are not are all all

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<v Speaker 1>still priced like they're gonna have massive headwinds for a

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<v Speaker 1>long time. UM. Another area with under appreciate pricing power

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<v Speaker 1>is actually UM into the telecommunication space. Actually, this morning's

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<v Speaker 1>CPI if UH tele like wireless telecommunications bill came in,

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<v Speaker 1>actually get a little bit negative year over year, down

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<v Speaker 1>negative points five. And we think that that's about to change.

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<v Speaker 1>You know, if you look at cable, if you look

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<v Speaker 1>at even landline services UM, their CPI is run and

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<v Speaker 1>kind of mid single digits, and those companies are trade

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<v Speaker 1>like they're they're never gonna have any pricing power. But

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<v Speaker 1>you have consolidation in the sector UM and UH and

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<v Speaker 1>and and you actually have a lot more stability in turn,

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<v Speaker 1>which we think UM can lead to under appreciate pricing

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<v Speaker 1>powers for evaluations. And then again on the short side, UM,

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<v Speaker 1>you have e commerce players that are still very expensive

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<v Speaker 1>even if stock prices have come down. And then you

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<v Speaker 1>have companies in other areas UM that have been considered

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<v Speaker 1>to be very stable businesses with with strong barriers to entry,

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<v Speaker 1>but again growth is slowing and UH and we think

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<v Speaker 1>that they're going to be less successful in passing on

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<v Speaker 1>price increases than people thought. All right, all right, Avery,

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<v Speaker 1>thank you so much for joining us. Really appreciated. Avery Sheffield,

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<v Speaker 1>co founder and c I O Advantage Rock. It's part

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<v Speaker 1>of the Rockefeller Asset Management Group. All right, let's talk

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<v Speaker 1>about one of the fastest growing areas on wall streets,

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<v Speaker 1>certainly attracting a tremendous amount of capital. That's e t

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<v Speaker 1>F And nobody better to chat et F s than

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<v Speaker 1>Ben Slaven, Global head of ETFs at B and Y

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<v Speaker 1>Melan Assets Servicing. Ben, thanks so much for joining us here.

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<v Speaker 1>You know, I look at the E t F space

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<v Speaker 1>and it's just I'm wondering, is it just cost or

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<v Speaker 1>lack there of in terms of fees that is really

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<v Speaker 1>driving the I guess a reallocation of capitals maybe from

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<v Speaker 1>mutual funds to e t s. Is it just cost?

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<v Speaker 1>What else is the attractive or what else is the

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<v Speaker 1>driver there? Fees are a big part of this, but

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<v Speaker 1>there's really more going on. After a quiet January, we've

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<v Speaker 1>seen an absolute avalanche of flows into et F the

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<v Speaker 1>past week, um. You know of about thirty six billion

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<v Speaker 1>that came over the past five days UM. And we're

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<v Speaker 1>coming again off a record year. So clearly there are

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<v Speaker 1>investors that are looking not just for fees but other

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<v Speaker 1>ways to access investment strategies in the U t F rapper.

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<v Speaker 1>They also provided a much needed about a liquidity recently

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<v Speaker 1>with the volatility we've seen, and it sent e t

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<v Speaker 1>F soaring to overt of the total market volume, up

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<v Speaker 1>from of the total trading volume last year. And so

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<v Speaker 1>while those broad based, cheap passive e t f s

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<v Speaker 1>are getting their share and will continue to get their share,

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<v Speaker 1>we are seeing investors and cretantly look at other ways

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<v Speaker 1>to play this market, such as financial sector semiconductors, floating

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<v Speaker 1>rate ETFs, just trying to look at other ways to

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<v Speaker 1>tactically positioned for this market with what we're seeing with

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<v Speaker 1>the FED potential FED hikes, UH, the inflation print this morning,

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<v Speaker 1>and repositioning at this part of the market cycle. So

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<v Speaker 1>quite a bit going on there. How do you I mean,

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<v Speaker 1>on the one hand, UM, you want to make sure

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<v Speaker 1>you're buying the right sectors, the rappers that you have

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<v Speaker 1>are around the right companies. But on the other hand,

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<v Speaker 1>you want to make sure that you're getting UM the

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<v Speaker 1>right E t F structure, not paying UM fees that

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<v Speaker 1>are too high. How do you look at the sort

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<v Speaker 1>of more technical side UM, the kind of back office

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<v Speaker 1>side of E t F s. Well, on one hand

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<v Speaker 1>it's getting easier and on one hand it's getting more complicated.

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<v Speaker 1>I think the more complicated part of this is really

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<v Speaker 1>UM the explosion in the number of products UH that

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<v Speaker 1>are available. We saw a record year last year in

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<v Speaker 1>terms of new launches, but we also saw a record

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<v Speaker 1>number of new entrants come into the e t F market.

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<v Speaker 1>I think the statistic is around a quarter of issuers

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<v Speaker 1>right now in the e t F market came to

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<v Speaker 1>the market last year, and that's increasingly creating a lot

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<v Speaker 1>of noise. The good news for investors is that the

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<v Speaker 1>transparency that e t s offer UM provides an excellent

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<v Speaker 1>window and tool for investors to be able to dig

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<v Speaker 1>in and really see what those e t F s

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<v Speaker 1>own on a daily basis. And all of that information UM,

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<v Speaker 1>you know, is made available, whether it be on the

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<v Speaker 1>website or other data sources, so for investors to to

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<v Speaker 1>really understand what their exposure is and how to quickly

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<v Speaker 1>find UM the types of either broad based index trackers

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<v Speaker 1>or tactical, more thematic type funds that that investors are

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<v Speaker 1>seeking these days. And then another really hot area hot

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<v Speaker 1>topic within financial services is crypto and talk to us

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<v Speaker 1>about the crypto et F opportunities out there. I know

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<v Speaker 1>we've had some recently, but it's more on the futures

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<v Speaker 1>rather than the underlying crypto give us a sense of

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<v Speaker 1>how that market's evolving. Yeah, it's an incredibly hot space, UM.

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<v Speaker 1>As you mentioned. UM. First, we've seen you know, the

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<v Speaker 1>markets start to stabilize. I mean, you know, Bitcoin is

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<v Speaker 1>broken through the downward trend resistance level here since the

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<v Speaker 1>low in November. It's up today. It's trading around forty UM.

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<v Speaker 1>But we've seen an incredible amount of investor interest and

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<v Speaker 1>an expansion in the products that are available. They are

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<v Speaker 1>now more than eighty crypto et s trading around the world. UM.

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<v Speaker 1>But you know, the flow picture more recently has been

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<v Speaker 1>negative in the last few months, not surprising given markets,

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<v Speaker 1>but turned positive recently and we've seen inflow into those products.

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<v Speaker 1>Now in the US, we just have futures as uh

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<v Speaker 1>E t f s here available given what's currently allowable

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<v Speaker 1>under the rules UM, and we have seen uh interest

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<v Speaker 1>uh in those products, but no particular movement yet around

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<v Speaker 1>the physical or spot based bitcoin ETFs from the SEC.

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<v Speaker 1>So at this point investors have the future is based

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<v Speaker 1>products to choose from UM that are currently active and

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<v Speaker 1>trading in the market, but but again offer a different

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<v Speaker 1>type of exposure compared to a spot bitcoin position. Ben,

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<v Speaker 1>thanks so much. For joining us. Really appreciate your insight here.

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<v Speaker 1>People are working from home, they're learning from home, they're

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<v Speaker 1>putting more and more data in the cloud. That raises

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<v Speaker 1>some security issues in my mind, UM, and I think

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<v Speaker 1>in a lot of people's minds as well as again,

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<v Speaker 1>they do more banking from home and all that type

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<v Speaker 1>of stuff, more financial services. T J Jung, CEO and

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<v Speaker 1>co founder of a Point that is a public trader

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<v Speaker 1>company on nastac A VPT is the symbol there. It's

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<v Speaker 1>got a market cap about one point two billion dollars. UM.

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<v Speaker 1>T J, thanks so much for joining us here. I

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<v Speaker 1>just can you step back and just give us a

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<v Speaker 1>sense of how the average person's data is secure? How

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<v Speaker 1>secure is it generally speaking? Good morning, It's a pleasure

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<v Speaker 1>to be here. UM. Well, so, we actually really focused

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<v Speaker 1>on large enterprise and B two B data usage patterns

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<v Speaker 1>and even small businesses. We found is actually nine of

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<v Speaker 1>the data leakage happened unintentionally done by internal actors. At

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<v Speaker 1>the same time, though, we actually did a survey of

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<v Speaker 1>over a thousand what we call managed service providers. These

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<v Speaker 1>are small service outfits that helped small businesses get onto cloud.

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<v Speaker 1>UM and over fifty of them have reported uh we

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<v Speaker 1>and ransomware attacks. So there's a saying our industry. Uh,

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<v Speaker 1>it's really not a matter of um, you know, whether

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<v Speaker 1>you got attacked hacked. It's it's just a matter of

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<v Speaker 1>when you realize it or when. So yeah, it's it's

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<v Speaker 1>it's a scary time right now. UM. That means you know,

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<v Speaker 1>your data, your enterprise data in cloud on prem need

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<v Speaker 1>to be secure. And this is where Appling comes in,

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<v Speaker 1>or a software company that build technology to help businesses

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<v Speaker 1>to collaborate on prem in the cloud with confidence across

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<v Speaker 1>Microsoft Space five, Google work Space and Salesforce. So, um,

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<v Speaker 1>how can this be changed? I mean it seems to

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<v Speaker 1>be it's just getting worse and worse the uh you know,

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<v Speaker 1>the attacks. Um, and I can't I can't be confident

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<v Speaker 1>that the defense can keep up. Yeah, it's definitely a

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<v Speaker 1>multi layered approach. Obviously you have the authentication then pass word,

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<v Speaker 1>uh you know control multi factor authentication just too. From

0:13:05.840 --> 0:13:08.679
<v Speaker 1>the parameter, what we do is we also focus on,

0:13:08.880 --> 0:13:13.160
<v Speaker 1>you know, internally, who's accessing what when. So we actually

0:13:13.200 --> 0:13:17.559
<v Speaker 1>recently released a cloud product called confide that allow business

0:13:17.640 --> 0:13:21.240
<v Speaker 1>users to control who has access uh security share that,

0:13:21.400 --> 0:13:24.760
<v Speaker 1>but also mindful of the data residency requirements that you

0:13:24.880 --> 0:13:29.319
<v Speaker 1>may have uh to satisfy regulatory requirements. So we actually

0:13:29.360 --> 0:13:32.400
<v Speaker 1>support this over a million cloud users today, so it's

0:13:32.400 --> 0:13:36.200
<v Speaker 1>truly a multi layer approach. We're also um looking at

0:13:36.280 --> 0:13:41.240
<v Speaker 1>releasing solutions where we can alert business users in real

0:13:41.360 --> 0:13:46.160
<v Speaker 1>time when a ransomware attack is happening, so that detection capabilities.

0:13:46.559 --> 0:13:49.800
<v Speaker 1>So but it is you know, there's that technology. There's

0:13:49.840 --> 0:13:53.880
<v Speaker 1>also the education because you're only astroids your weakest link.

0:13:54.520 --> 0:13:57.480
<v Speaker 1>There's all kinds of social engineering happening now in real

0:13:57.559 --> 0:14:01.040
<v Speaker 1>time around you know, getting somebody to like something right,

0:14:01.440 --> 0:14:04.719
<v Speaker 1>so then the taper getting system. So what we focus on,

0:14:04.960 --> 0:14:08.240
<v Speaker 1>you know, looking in the system and looking for weird

0:14:08.320 --> 0:14:11.280
<v Speaker 1>patterns and and try to catch that. But you're right,

0:14:11.679 --> 0:14:15.360
<v Speaker 1>it is a catamouse game and it's a it's also

0:14:16.240 --> 0:14:19.040
<v Speaker 1>weapons race at the same time, it's it's not a

0:14:20.120 --> 0:14:22.520
<v Speaker 1>easy problem to solve and t J you know, I

0:14:22.560 --> 0:14:25.920
<v Speaker 1>guess I have some level of confidence that large corporations

0:14:26.040 --> 0:14:29.560
<v Speaker 1>can you know, make the investments needed to secure their data,

0:14:29.600 --> 0:14:32.880
<v Speaker 1>although there's lots of examples where that they get hacked

0:14:32.920 --> 0:14:35.880
<v Speaker 1>as well. But small and midsized businesses and people and

0:14:36.000 --> 0:14:39.360
<v Speaker 1>people what and what can small midsize businesses? In the

0:14:39.480 --> 0:14:43.720
<v Speaker 1>last week, I've been fished yep, and also kind of

0:14:43.880 --> 0:14:47.280
<v Speaker 1>scammed on the phone. And it sounds like I feel

0:14:47.320 --> 0:14:49.040
<v Speaker 1>it's worse in the US and isn't Germany. It's never

0:14:49.120 --> 0:14:51.200
<v Speaker 1>happened to me in Germany. As soon as I get

0:14:51.240 --> 0:14:53.960
<v Speaker 1>back to the US, it's like I'm getting all these

0:14:54.080 --> 0:14:59.760
<v Speaker 1>calls telemarketers, scammers, and then I get fished. And so

0:15:00.040 --> 0:15:02.480
<v Speaker 1>thirty seconds t J. What do the small midsized businesses do?

0:15:05.400 --> 0:15:08.720
<v Speaker 1>So small to mid sized businesses. One obviously education right

0:15:08.800 --> 0:15:12.520
<v Speaker 1>to be aware. Uh. Secondly is deployed technology that can

0:15:12.600 --> 0:15:17.080
<v Speaker 1>also recover for them in case of a attack. But

0:15:17.160 --> 0:15:19.240
<v Speaker 1>will you talk about the fishing. I actually had the

0:15:19.280 --> 0:15:23.560
<v Speaker 1>experience where when I landed into a country, third world

0:15:23.600 --> 0:15:26.000
<v Speaker 1>country at one point, where as soon as my phone

0:15:26.080 --> 0:15:29.720
<v Speaker 1>PINZA antenna, they actually sent me a SMS from City

0:15:29.760 --> 0:15:33.800
<v Speaker 1>Bank right and mascurating as a logging page. So yeah,

0:15:34.000 --> 0:15:37.760
<v Speaker 1>it is scary. Were here almost another week. Uh, it's

0:15:37.760 --> 0:15:41.840
<v Speaker 1>a it's a you know, a combination of process with

0:15:42.200 --> 0:15:44.720
<v Speaker 1>education as well as deployment technology. And this is what

0:15:44.840 --> 0:15:47.480
<v Speaker 1>we actually help a lot of small businesses with the

0:15:47.640 --> 0:15:51.920
<v Speaker 1>century even ransomware data recovery warranties. So yeah, it's a

0:15:51.960 --> 0:15:55.120
<v Speaker 1>it's a combination, but it is someone something that we

0:15:55.240 --> 0:15:58.000
<v Speaker 1>have to be very mindful of. The continue to be vigimin.

0:15:58.160 --> 0:15:59.880
<v Speaker 1>All right, t J, thanks so much for joining us.

0:16:00.000 --> 0:16:02.200
<v Speaker 1>Really appreciate getting your thoughts here on this big issue

0:16:02.240 --> 0:16:04.640
<v Speaker 1>cybersecurity board. You can talk about it all day. T J. Jung,

0:16:05.160 --> 0:16:13.160
<v Speaker 1>CEO and co founder of A Point. All right, let's

0:16:13.160 --> 0:16:15.600
<v Speaker 1>bring on somebody who actually knows what's going on in

0:16:15.720 --> 0:16:18.800
<v Speaker 1>this whole space. Dan Ives, Managing Director Senior Equity an

0:16:18.800 --> 0:16:20.880
<v Speaker 1>also Wedbush Securities. We talked to Dan about a whole

0:16:21.480 --> 0:16:24.680
<v Speaker 1>number of topics related to technology. Dan, thanks so much

0:16:24.680 --> 0:16:26.680
<v Speaker 1>for joining us here. Had some good numbers out of

0:16:26.720 --> 0:16:29.360
<v Speaker 1>Disney last night. The streaming business seems to be doing

0:16:29.440 --> 0:16:32.920
<v Speaker 1>pretty well for them. You know, as you take a

0:16:32.960 --> 0:16:36.520
<v Speaker 1>look at Peloton again, the stock bounced back Dan from

0:16:36.600 --> 0:16:40.720
<v Speaker 1>those lows here. Do you think there's a natural owner

0:16:41.120 --> 0:16:45.880
<v Speaker 1>for Peloton that other than it being a standalone company. Yeah,

0:16:46.000 --> 0:16:50.120
<v Speaker 1>And I think the streets interpreting the Peloton's there's gonna

0:16:50.120 --> 0:16:52.240
<v Speaker 1>be first sale sign on the lawn, right And and

0:16:52.280 --> 0:16:54.880
<v Speaker 1>now that's why the stocks up because I think when

0:16:54.920 --> 0:16:57.360
<v Speaker 1>you look at Apple, that's probably, in our opinion, the

0:16:57.440 --> 0:17:01.960
<v Speaker 1>most natural buyer that would see it. It's accursor size

0:17:02.360 --> 0:17:05.960
<v Speaker 1>as well as sort of next gen healthcare initiatives, and

0:17:06.040 --> 0:17:08.800
<v Speaker 1>I think other bidders could be there and Amazon and Nike.

0:17:09.359 --> 0:17:13.040
<v Speaker 1>You tell about Disney because it's all about content getting

0:17:13.080 --> 0:17:15.320
<v Speaker 1>more into the living room, and you've got three million

0:17:15.359 --> 0:17:18.679
<v Speaker 1>subscribers in a premium brand. And if you look at

0:17:18.760 --> 0:17:24.000
<v Speaker 1>the history of consumer brands that then started to cut cost, Fitbit,

0:17:24.200 --> 0:17:27.119
<v Speaker 1>go Pro, there's a graveyard of them, right, So I

0:17:27.200 --> 0:17:30.320
<v Speaker 1>think Peloton that the rings in the law. But what

0:17:30.440 --> 0:17:34.040
<v Speaker 1>about streaming fitness? Does that make sense to you as

0:17:34.040 --> 0:17:37.440
<v Speaker 1>an emerging market? I mean, um, if Disney starts to

0:17:37.520 --> 0:17:42.600
<v Speaker 1>pick up Peloton trainers and Tonal trainers, can it eventually, Um,

0:17:43.040 --> 0:17:47.359
<v Speaker 1>you know, get a Netflix style foothold in that market. Well,

0:17:47.400 --> 0:17:49.000
<v Speaker 1>And I think what you're seeing with Disney, I mean

0:17:49.000 --> 0:17:52.400
<v Speaker 1>they're on the aggressive starting to close that gap with Netflix.

0:17:52.480 --> 0:17:54.399
<v Speaker 1>And I think part of why the stocks were acting

0:17:54.440 --> 0:17:58.639
<v Speaker 1>way did after that Netflix disaster quarter, the view has

0:17:58.680 --> 0:18:00.840
<v Speaker 1>ripped a band aid off with Disney. Instead, it was

0:18:00.880 --> 0:18:03.440
<v Speaker 1>the opposite on with Strong on the park side. So

0:18:03.920 --> 0:18:07.480
<v Speaker 1>I think Disney is going to continue agrestaurant content. Yeah,

0:18:07.520 --> 0:18:09.640
<v Speaker 1>you look at things like the Sunday Night ticket, which

0:18:09.720 --> 0:18:13.000
<v Speaker 1>we believe Apple would also bid for as well. More

0:18:13.040 --> 0:18:15.840
<v Speaker 1>and more, there's gonna be an arms race. It's content

0:18:16.359 --> 0:18:18.880
<v Speaker 1>and that's why even when you look at Peloton, can't

0:18:18.920 --> 0:18:23.000
<v Speaker 1>just about extreaming exercise. It's it's a content service that

0:18:23.119 --> 0:18:26.560
<v Speaker 1>goes more and more another touch point to the consumer.

0:18:27.200 --> 0:18:30.520
<v Speaker 1>It's interesting, uh, Danny, I guess it is all about content.

0:18:30.640 --> 0:18:32.720
<v Speaker 1>Some of the red Stoner's right, content is king, but

0:18:33.480 --> 0:18:36.080
<v Speaker 1>it's hard to kind of, you know, sync up the

0:18:36.320 --> 0:18:39.560
<v Speaker 1>disappointing sub numbers from Netflix versus the better and expected

0:18:39.640 --> 0:18:42.440
<v Speaker 1>for Disney. I mean, I'm a huge Ozark fan, so

0:18:42.560 --> 0:18:45.320
<v Speaker 1>I'm all in on that Netflix in this quarter. But

0:18:46.440 --> 0:18:49.040
<v Speaker 1>is it just about content? And uh, is it just

0:18:49.080 --> 0:18:52.080
<v Speaker 1>whoever spends the most? I guess when else they're bundled

0:18:52.520 --> 0:18:56.800
<v Speaker 1>with ESPN? You know, has as I think been very successful.

0:18:56.920 --> 0:19:00.840
<v Speaker 1>The Beatles was another driver in terms of watch that

0:19:01.080 --> 0:19:03.960
<v Speaker 1>it comes down to. They have a unique ecosystem. But Netflix,

0:19:04.720 --> 0:19:07.200
<v Speaker 1>Netflix is on the top of the mountain, so from

0:19:07.240 --> 0:19:09.720
<v Speaker 1>there you can only go down. Right, There's much more,

0:19:10.720 --> 0:19:13.880
<v Speaker 1>especially on the international subside. But I mean we'll give

0:19:13.880 --> 0:19:16.480
<v Speaker 1>you take a step back. This has been a Nathan

0:19:16.640 --> 0:19:20.360
<v Speaker 1>Chin like earning season for Tech bringing it. That's see,

0:19:20.400 --> 0:19:23.400
<v Speaker 1>Matt didn't get your reference. But I watched the figure

0:19:23.440 --> 0:19:25.359
<v Speaker 1>skating last night. I'm all over that. I was like,

0:19:25.480 --> 0:19:30.640
<v Speaker 1>who's Nathan Chen? He killed it is he does for America. Yeah,

0:19:31.280 --> 0:19:33.200
<v Speaker 1>so he didn't switch his allegiance to China. You know

0:19:33.359 --> 0:19:38.120
<v Speaker 1>he didn't. He's the ice skating good Yeah, he beat

0:19:38.160 --> 0:19:40.399
<v Speaker 1>it all right. You know, I know Matt doesn't like

0:19:40.480 --> 0:19:43.480
<v Speaker 1>to talk about autos very much, damn, but I gotta

0:19:43.520 --> 0:19:48.280
<v Speaker 1>get your thought here on Tesla as just I really

0:19:48.359 --> 0:19:51.560
<v Speaker 1>want to get it. From the perspective of competitive position,

0:19:51.640 --> 0:19:55.240
<v Speaker 1>how do you think Tesla positions itself and what will

0:19:55.280 --> 0:19:59.359
<v Speaker 1>be an increasingly competitive EV market? Why didn't they further

0:19:59.440 --> 0:20:02.560
<v Speaker 1>flexed him muscles? From a supply perspective, right now, demands

0:20:02.600 --> 0:20:06.480
<v Speaker 1>outstripment supply by and if you look at electric vehicles

0:20:06.800 --> 0:20:10.680
<v Speaker 1>for GM VW and know others are gonna significantly go

0:20:10.880 --> 0:20:13.680
<v Speaker 1>after this and there's mean many winners. But in terms

0:20:13.720 --> 0:20:17.280
<v Speaker 1>of Tesla, because of the distribution and because of the

0:20:17.359 --> 0:20:20.680
<v Speaker 1>factory build out, what's happened in Austin as well as

0:20:20.880 --> 0:20:23.639
<v Speaker 1>the further build down in China and wee wee Berlin.

0:20:23.720 --> 0:20:25.960
<v Speaker 1>In the coming months, they're going to be able to

0:20:26.040 --> 0:20:28.520
<v Speaker 1>really expand supply two million units per year and that's

0:20:28.520 --> 0:20:30.760
<v Speaker 1>the key. And you know, I think part of Tesla's

0:20:30.840 --> 0:20:34.800
<v Speaker 1>language is because Musk talk about the supply chain. I

0:20:34.880 --> 0:20:37.480
<v Speaker 1>think really, you know, sort of fan the flames there

0:20:38.240 --> 0:20:41.200
<v Speaker 1>and I think now it's just about a supply issue,

0:20:41.280 --> 0:20:45.320
<v Speaker 1>not a demand issue. How do you think the UH

0:20:45.960 --> 0:20:50.760
<v Speaker 1>supply chain crisis and the chip shortage is sorting out?

0:20:50.800 --> 0:20:55.400
<v Speaker 1>Are you getting um this earning season better visibility? Yeah,

0:20:55.440 --> 0:20:59.000
<v Speaker 1>I mean we're seeing a queer moderation going into February

0:20:59.160 --> 0:21:02.160
<v Speaker 1>and marks we saw not just from GM, We're seeing

0:21:02.160 --> 0:21:05.400
<v Speaker 1>it across our check snesia and I think we could

0:21:05.400 --> 0:21:08.880
<v Speaker 1>talk inflation and tenure all we want. The biggest overranging

0:21:08.960 --> 0:21:12.439
<v Speaker 1>tech is the supply chain that starts to moderate hugely bullish.

0:21:12.800 --> 0:21:15.040
<v Speaker 1>And that's why I think you coming at earning season

0:21:15.920 --> 0:21:19.000
<v Speaker 1>techer earnings really across the board, from chips to software,

0:21:19.440 --> 0:21:23.400
<v Speaker 1>some of the large players and cloud, Microsoft, Apple, Amazon

0:21:23.480 --> 0:21:26.720
<v Speaker 1>and others robust. And that's why we've tech socks move

0:21:26.840 --> 0:21:30.440
<v Speaker 1>higher here in terms of what we're seeing on the fundamentals. Hey, Dan,

0:21:30.800 --> 0:21:33.240
<v Speaker 1>always good catching up with you. We just throw all

0:21:33.320 --> 0:21:35.320
<v Speaker 1>things that come to our minds at you, and you've

0:21:35.359 --> 0:21:38.240
<v Speaker 1>got great color. We appreciate it. Dan Ive's managing director

0:21:38.280 --> 0:21:41.440
<v Speaker 1>and senior equity analysts that web Bush Securities covering off

0:21:41.560 --> 0:21:46.960
<v Speaker 1>things tech. Thanks for listening to the Bloomberg Markets podcast.

0:21:47.400 --> 0:21:50.520
<v Speaker 1>You can subscribe and listen to interviews with Apple Podcasts

0:21:50.720 --> 0:21:54.640
<v Speaker 1>or whatever podcast platform you prefer. I'm Matt Miller. I'm

0:21:54.680 --> 0:21:58.840
<v Speaker 1>on Twitter at Matt Miller three. On bal Sweeney, I'm

0:21:58.880 --> 0:22:01.320
<v Speaker 1>on Twitter at PTS we need before the podcast. You

0:22:01.359 --> 0:22:04.440
<v Speaker 1>can always catch us worldwide at Bloomberg Radio. M