WEBVTT - MicroStrategy Buys $10M More Bitcoin and the iPhone Turns 15 0:00:02.240 --> 0:00:05.600 From the heart of where innovation, money and power collive 0:00:06.360 --> 0:00:10.879 in Silicon Valley and beyond. This is Bloomberg Technology with 0:00:10.960 --> 0:00:26.680 Emily Jay. I'm Emily Chant, San Francisco, and this is 0:00:26.680 --> 0:00:29.640 Bloomberg Technology. Coming up in the next hour, micro Strategy 0:00:29.680 --> 0:00:34.159 makes another ten million dollar event on bitcoin, even as 0:00:34.200 --> 0:00:38.280 cryptocurrencies continue to slide, plus n f T sales getting 0:00:38.280 --> 0:00:42.960 a new low for the year. We will discuss and 0:00:43.080 --> 0:00:46.480 subscribing to Snapchat, the social media company announcing a new 0:00:46.680 --> 0:00:51.040 monthly subscription to premium content. But what does premium content 0:00:51.159 --> 0:00:54.760 look like on snap and well, customers pay three a month. 0:00:55.880 --> 0:00:58.440 Clause Maderna co founder New bar Fa, and we'll join 0:00:58.520 --> 0:01:01.320 us to talk about the future of the Crown specific 0:01:01.480 --> 0:01:06.840 boosters and why he's taking on the fight against climate change. Meantime, 0:01:06.840 --> 0:01:10.600 Michael Sailor is doubling down on bitcoin, micro Strategy buying 0:01:10.640 --> 0:01:14.320 another four eight coins worth about ten million dollars at 0:01:14.319 --> 0:01:17.200 the height of the crypto market collapse. According to a 0:01:17.200 --> 0:01:21.560 filing from the SEC, micro Strategy purchased the coins between 0:01:21.760 --> 0:01:25.600 May three in June for about twenty dollars and eight 0:01:25.640 --> 0:01:29.880 hundred seventeen dollars each. Blue Works Katie Gray felt with 0:01:29.959 --> 0:01:33.920 us now to discuss and not necessarily a surprise given 0:01:33.920 --> 0:01:38.480 our last interview with Michael, but still now even below 0:01:39.480 --> 0:01:43.039 it's so fascinating. I mean, the fact that you're getting 0:01:43.040 --> 0:01:45.479 this big whale buying at a time when no one 0:01:45.560 --> 0:01:47.600 really else is and Emily, like you said, and you 0:01:47.640 --> 0:01:50.400 know this very well, he's a true believer Michael Sailors. 0:01:50.400 --> 0:01:53.160 So maybe not surprising in this sense, but it is 0:01:53.200 --> 0:01:54.960 a little interesting if you look into the details. So 0:01:55.040 --> 0:01:58.800 this was micro Strategy smallest bitcoin by in over a year, 0:01:58.960 --> 0:02:01.440 and I mean, if you look at their entire ward, 0:02:01.560 --> 0:02:05.280 micro Strategy owns a hundred twenty nine thousand bitcoin in 0:02:05.320 --> 0:02:09.280 total at this pert point, the average price for all 0:02:09.320 --> 0:02:13.359 of those purchases it's thirty dollars. So micro Strategy it's 0:02:13.440 --> 0:02:16.760 well underwater on this bet. But Michael Sailor, I mean 0:02:16.760 --> 0:02:21.000 he's known as the biggest corporate advocate of bitcoin, and truly, 0:02:21.040 --> 0:02:23.519 I mean his actions are backing that up. Whether that 0:02:23.639 --> 0:02:26.120 will pay off for means to be seen. And clearly 0:02:26.200 --> 0:02:28.520 that wasn't created as good news in the stock market, 0:02:28.560 --> 0:02:32.239 but I mean, he does stick to his word. So 0:02:32.680 --> 0:02:36.120 here's a clip from my interview with Sailor. A couple 0:02:36.120 --> 0:02:39.880 of weeks ago. First question, any regrets. Take a listen 0:02:40.160 --> 0:02:43.160 to what he had to say. The bottom line is 0:02:43.280 --> 0:02:46.920 the bitcoin strategy is ten x better than any other alternative, 0:02:47.600 --> 0:02:50.680 and so no, I don't regret it. We've got two 0:02:50.720 --> 0:02:53.560 point eight billion dollars worth the bitcoin on our balance 0:02:53.600 --> 0:02:55.800 sheet right now, and we feel like we're positioned well 0:02:56.440 --> 0:02:59.720 for when the markets turn around, and our only other 0:02:59.760 --> 0:03:01.679 choice would be to give all the capital back to 0:03:01.720 --> 0:03:05.040 the shareholders, in which case we would have nothing and 0:03:05.080 --> 0:03:10.200 we would be struggling, uh to get by without any assets. 0:03:10.200 --> 0:03:12.800 Ten x better than any other alternative. He's thinking in 0:03:12.840 --> 0:03:15.960 the really, really really long term. But even in the 0:03:16.160 --> 0:03:19.520 short term, how is bitcoin standing up to alt coins 0:03:19.520 --> 0:03:22.120 and the alternatives out there? Well, if you look across 0:03:22.120 --> 0:03:24.840 the crypto ecosystem, I mean a really crude way to 0:03:24.880 --> 0:03:27.760 think about Bitcoin is sort of the Amazon or the 0:03:27.800 --> 0:03:30.600 apple of the crypto sphere. I mean, this is sort 0:03:30.600 --> 0:03:33.640 of the biggest coin out there. It tends to move 0:03:33.760 --> 0:03:35.480 less than some of the other coins, and you definitely 0:03:35.480 --> 0:03:38.000 saw that today. I mean to borrow a phrase from 0:03:38.120 --> 0:03:41.119 Ed Ludlow, I think he said flat as a floppy 0:03:41.200 --> 0:03:44.280 disk of bitcoin fell just three tents of percent. If 0:03:44.320 --> 0:03:46.560 you look at some of the old coins, they're more 0:03:46.640 --> 0:03:49.280 like the speculative tech stocks out there, the high flyers. 0:03:49.280 --> 0:03:53.400 You saw ether full almost five per cent, Salona even 0:03:53.440 --> 0:03:55.320 more than that. And this is why you typically see 0:03:55.560 --> 0:03:59.360 on the downside and the upside too, when Bitcoin moves higher, 0:03:59.440 --> 0:04:02.640 it the old coins that lead the gains. And as 0:04:02.680 --> 0:04:04.520 we've learned over the past few months, the same is 0:04:04.520 --> 0:04:06.640 true on the downside. When you do have this big 0:04:06.720 --> 0:04:10.240 draw down in bitcoin, it tends to be even bigger 0:04:10.400 --> 0:04:13.240 out the risk curve well. And at the same time, 0:04:13.280 --> 0:04:15.680 you have the bitcoin believer as you've got the folks 0:04:15.800 --> 0:04:17.880 are never ever going to give up on n f 0:04:17.960 --> 0:04:21.799 T s, and yet n f T s continuing to fall. 0:04:21.839 --> 0:04:24.800 I mean, you know, would you say we were were 0:04:24.839 --> 0:04:27.279 past the peak? It's a good question. I mean, just 0:04:27.560 --> 0:04:30.080 looking at the data, because you're gonna get a thousand 0:04:30.240 --> 0:04:32.000 different opinions. But if you look at the data on 0:04:32.080 --> 0:04:34.760 open see that is the biggest n f T marketplace 0:04:34.880 --> 0:04:37.080 out there. This is a really shocking stat In a 0:04:37.120 --> 0:04:42.279 Bloomberg News article today, sales volume has fallen just since 0:04:42.480 --> 0:04:46.479 ny It's at the lowest level since July. So I 0:04:46.520 --> 0:04:48.680 don't know, perhaps some of the air is coming out 0:04:48.720 --> 0:04:51.240 of that n F T bubble and whatever this is, 0:04:51.440 --> 0:04:54.279 you know, approaching the bottom remains to be seen. But Emily, 0:04:54.320 --> 0:04:56.719 this is what a crypto winter looks like. You tend 0:04:56.720 --> 0:04:58.920 to see a shakeout like this, and you're clearly seeing 0:04:58.960 --> 0:05:01.240 it in n F T S and all coins. It 0:05:01.360 --> 0:05:04.719 is cold. Indeed, Now the deadline for US regulators to 0:05:04.880 --> 0:05:08.680 rule on gray stales campaign to convert its bitcoin trust 0:05:08.720 --> 0:05:12.039 into a spot E t F is coming up. What 0:05:12.080 --> 0:05:15.720 are we expecting there? I am laser focused on this decision. 0:05:15.720 --> 0:05:17.600 I cover crypto, I cover E t F s. Now 0:05:17.640 --> 0:05:20.920 we have them coming full circle. So the consensus in 0:05:20.960 --> 0:05:22.920 both industries is that this is going to be a 0:05:22.920 --> 0:05:25.800 denial that the SEC isn't going to allow Gray Skill 0:05:25.880 --> 0:05:28.440 to convert it streuss into a physically backed e t F. 0:05:28.520 --> 0:05:30.760 That isn't a structure that exists in the U S. 0:05:30.760 --> 0:05:32.840 But I crunched the numbers on what that would actually 0:05:32.839 --> 0:05:35.839 mean for Gray Skill if this fund were to convert 0:05:35.880 --> 0:05:37.960 into an E t F. Again, not the base case. 0:05:38.320 --> 0:05:41.719 Right now, as a trust, it's able to charge two percent, 0:05:42.000 --> 0:05:45.160 So if you times that by the assets under management, 0:05:45.200 --> 0:05:48.000 about thirteen billion dollars. That works out to over two 0:05:48.040 --> 0:05:51.360 hundred thirty million dollars in revenue for gray Skill per 0:05:51.440 --> 0:05:53.560 year as a trust. But if it converts to an 0:05:53.560 --> 0:05:56.760 e t F, two percent is very very high for 0:05:56.800 --> 0:05:58.840 an e t F, You're almost never going to see that. 0:05:59.040 --> 0:06:02.080 Feel the most expre one of the most expensions crypto 0:06:02.120 --> 0:06:04.479 et f s out there, charges a fee of less 0:06:04.520 --> 0:06:07.080 than one percent, So even if they get a win 0:06:07.520 --> 0:06:09.880 in the next week, I mean, that would mean hundreds 0:06:09.880 --> 0:06:13.240 of millions of dollars lost in revenue. And Emily, we're 0:06:13.240 --> 0:06:15.600 in a crypto winter. All right, Katie, what are you 0:06:15.640 --> 0:06:18.440 gonna be watching tomorrow? Tomorrow? I mean, I'm right back 0:06:18.440 --> 0:06:20.520 to the fundamentals of the U S economy. I'm looking 0:06:20.560 --> 0:06:24.359 at core PC figures. But as we've learned, bitcoin tends 0:06:24.400 --> 0:06:27.559 to move along with stocks, and stocks are absolutely moving 0:06:27.600 --> 0:06:32.120 with inflation. Bloomberg's Katie Greifeld, thank you for telling us 0:06:32.160 --> 0:06:35.080 what's on your radar? All right? Coming up, the co 0:06:35.200 --> 0:06:37.960 founder of maderna new bar off and joins me next 0:06:38.000 --> 0:06:41.480 as a pandemic moves into yet another phase. Plus how 0:06:41.520 --> 0:06:44.599 the newest ruling from the U. S. Supreme Court could 0:06:44.640 --> 0:06:49.000 impact climate change and his portfolio. That is all. Next, 0:06:49.000 --> 0:07:03.279 this is Bloomberg. On Thursday, the U s. Supreme Court 0:07:03.360 --> 0:07:06.160 is set to issue another major decision. This one will 0:07:06.200 --> 0:07:09.080 have a big impact on climate change. Specifically, the power 0:07:09.120 --> 0:07:11.760 of the US government has to tell companies to reduce 0:07:12.200 --> 0:07:15.280 their greenhouse gas emissions. As we wait for the decision, 0:07:15.480 --> 0:07:17.800 many tech companies have been taking it upon themselves to 0:07:17.880 --> 0:07:21.840 reduce their carbon footprints. Indigo Agriculture is one such company 0:07:21.840 --> 0:07:24.760 helping fight climate change with carbon removal technologies backed by 0:07:24.760 --> 0:07:28.920 the venture capital firm Flagship Pioneering, which might sound familiar 0:07:28.960 --> 0:07:31.320 to you because the CEO of Flagship New Bar, a Fan, 0:07:31.360 --> 0:07:33.200 has been on our show many times. He is also 0:07:33.240 --> 0:07:36.360 the co founder of Maderna New Bar. It's great to 0:07:36.400 --> 0:07:38.040 talk to you again. I want to talk to you 0:07:38.080 --> 0:07:41.240 about Indigo Agriculture their carbon farming program. What is the 0:07:41.320 --> 0:07:45.200 dent you expect this or hope? Uh? This will make 0:07:45.640 --> 0:07:50.240 in the climate fight. Emily, thanks for having me. This 0:07:50.280 --> 0:07:52.679 is very exciting day today because it's really the first 0:07:52.720 --> 0:07:57.320 time that a certified carbon credit has been issued against 0:07:58.040 --> 0:08:02.520 basically output from farmers. And while today we announced twenty 0:08:02.560 --> 0:08:07.920 thousand tons of of of certified carbon being captured Uh, 0:08:08.080 --> 0:08:12.000 that really can scale and can scale rapidly, we think, uh, 0:08:12.000 --> 0:08:14.920 And so it really is a proof point. Um, there's 0:08:15.000 --> 0:08:18.280 there's probably several orders of magnitude a hundred of thousandfold 0:08:18.280 --> 0:08:20.920 more that can be expected from this. And I think 0:08:20.960 --> 0:08:25.240 that agriculture is kind of a very interesting way to 0:08:25.320 --> 0:08:30.600 think about carbon storing, capturing and storing carbon and creating 0:08:30.600 --> 0:08:34.520 with urns for farmers, which is also a very important, uh, 0:08:34.600 --> 0:08:36.920 kind of part of the circular economy aspect of this. 0:08:37.920 --> 0:08:41.120 So we're bracing for yet another Supreme Court ruling, this 0:08:41.200 --> 0:08:43.920 one on whether the e p A has the authority 0:08:44.000 --> 0:08:48.439 to tell companies to regulate greenhouse gas emissions. What are 0:08:48.480 --> 0:08:52.000 you bracing for here and how could this impact your 0:08:52.040 --> 0:08:56.480 new venture? Well, I mean, certainly, I think that that 0:08:56.480 --> 0:08:59.559 that we see a lot of mixed signals as when 0:08:59.600 --> 0:09:04.160 it comes to how consistently we want to to to 0:09:04.160 --> 0:09:08.160 to make sure that corporations and and other entities are 0:09:08.200 --> 0:09:12.439 being responsible for their carbon footprint. Certainly that the momentum 0:09:12.440 --> 0:09:15.760 has been in favor of more and more responsibility, but 0:09:15.800 --> 0:09:19.520 I think that regulation aside, the vast majority of companies 0:09:19.559 --> 0:09:22.360 are moving down a path where they're taking it upon themselves. 0:09:22.400 --> 0:09:27.000 Today's announcement by Indigo involves eleven major brands that actually 0:09:27.000 --> 0:09:30.560 have stepped up and and and associated with the work 0:09:30.600 --> 0:09:33.760 that the farmers do some forty dollars per ton of carbon, 0:09:34.440 --> 0:09:36.920 which is twice what it was a year ago. And 0:09:36.960 --> 0:09:40.640 we think that these incentives that that will drive the 0:09:40.679 --> 0:09:43.800 creation these credits will be part of the solution, and 0:09:43.840 --> 0:09:46.600 I think corporations might be forced to do it, but 0:09:46.640 --> 0:09:49.000 they also may choose to do it because it's the 0:09:49.080 --> 0:09:54.640 right thing to do and it's scalable. Now, regulatory advisors 0:09:55.160 --> 0:09:59.120 just recommended that shots from Maderna and Visor be updated 0:09:59.200 --> 0:10:02.560 to target Oh Macron, what are the next steps from 0:10:02.559 --> 0:10:06.600 a journal here and how will your concoction be different 0:10:06.640 --> 0:10:10.520 than what Fiser has to offer. Well, the context switch 0:10:10.559 --> 0:10:13.160 is pretty sudden, but I think it's it's memorable for me, 0:10:13.200 --> 0:10:16.000 Emily because at some level we're talking about the health 0:10:16.040 --> 0:10:17.960 of the planet, and then we're also talking about the 0:10:17.960 --> 0:10:20.320 health of the inhabitants of the planet. So for us, 0:10:20.360 --> 0:10:23.000 it's really all the same thing from a point of 0:10:23.040 --> 0:10:26.400 view of the science and the innovation. Uh specifically to 0:10:26.440 --> 0:10:29.320 your to your question, clearly we've been caught up in 0:10:29.320 --> 0:10:32.800 this battle for two years now between a virus and 0:10:33.080 --> 0:10:36.199 the detect human technology to combat it, and as the 0:10:36.320 --> 0:10:40.400 virus adapts, we've had to adapt our own vaccine to 0:10:40.480 --> 0:10:43.280 be able to stay ahead of it and provide the 0:10:43.360 --> 0:10:46.840 kind of immune protection. We showed yesterday's hearing with the 0:10:46.880 --> 0:10:50.520 FDA that the data we're generating out of a bi 0:10:50.640 --> 0:10:54.040 valent that is two different spike protein sequences in our 0:10:54.080 --> 0:10:58.480 new vaccines are a robust protection package for what we 0:10:58.520 --> 0:11:01.000 expect to be uh it's coming up in the fall. 0:11:01.120 --> 0:11:03.040 So what we need to do is to work with 0:11:03.080 --> 0:11:06.440 the authorities making sure that we we kind of uh 0:11:06.720 --> 0:11:09.840 put in place that what will be the next vaccine 0:11:09.880 --> 0:11:13.280 that's going to be used. Certainly, yesterday's book encouraged a 0:11:13.440 --> 0:11:16.520 macron to be incorporated into that, and once that's done, 0:11:16.520 --> 0:11:19.160 we're ready to ramp up production and be ready by 0:11:19.200 --> 0:11:22.680 early fall to provide the vaccines needed for protection. I 0:11:22.720 --> 0:11:25.559 think a lot of people, as you know, Emily, are tired. 0:11:25.679 --> 0:11:28.840 I'm tired. Everybody's tired of this, of this pandemic. But 0:11:28.880 --> 0:11:31.600 the bad news is devirus doesn't get tired, and we're 0:11:31.600 --> 0:11:34.640 gonna have to stay vigilant. However tired we get, we 0:11:34.640 --> 0:11:37.480 we are tired. I agree, and also you know there 0:11:37.480 --> 0:11:39.920 are a lot of folks waiting on these boosters and 0:11:39.960 --> 0:11:44.240 guidance on boosters. It's it's it's been kind of confusing 0:11:44.440 --> 0:11:48.160 the messaging from the US government. You said early fall, 0:11:48.480 --> 0:11:51.280 is that the soonest like when do you think O 0:11:51.400 --> 0:11:55.920 macron specific shots will be going into the arms of Americans? 0:11:57.080 --> 0:12:01.480 Ending working out with the FDA and other authorities the 0:12:01.640 --> 0:12:05.040 final vaccine composition that we're going with, and there's a 0:12:05.080 --> 0:12:07.720 little bit of this that begins to look like early 0:12:07.840 --> 0:12:10.400 versions of what we've done with seasonal flu, where there's 0:12:10.440 --> 0:12:13.480 got to be a definition set on what the next 0:12:13.920 --> 0:12:16.840 vaccine looks like. But once that's done, we think the 0:12:16.880 --> 0:12:19.080 sooner that's done, the sooner we can get on we're 0:12:19.120 --> 0:12:23.839 poised to manufacture significant quantities. And like we're looking at 0:12:24.080 --> 0:12:26.040 as early in the fall as we can. You know, 0:12:26.080 --> 0:12:29.200 early September would be great. May well be depending on 0:12:29.320 --> 0:12:32.480 when the go ahead is given that will affect it. 0:12:32.520 --> 0:12:35.840 But but we certainly have planned for in our poise 0:12:35.880 --> 0:12:38.679 to be able to move very very quickly. Now COVID 0:12:38.760 --> 0:12:40.880 vaccines are starting to roll out for kids, and I'm 0:12:40.920 --> 0:12:43.560 curious how you think that campaign is going we've seen 0:12:43.600 --> 0:12:48.360 a kind of a slow vaccination campaign under under pediatricians. 0:12:48.840 --> 0:12:51.840 What's it gonna take to make parents less hesitant to 0:12:51.920 --> 0:12:56.120 get this done? Look, I think that it took a 0:12:56.160 --> 0:12:58.720 while to get to this point, which is unfortunate because 0:12:58.800 --> 0:13:01.840 during that time, people were opposed to any any number 0:13:01.920 --> 0:13:06.400 of conflicting points of view, and and everybody uh seems 0:13:06.440 --> 0:13:08.959 to have a view about any number of topics that 0:13:09.000 --> 0:13:12.280 relate to public health, even though there's public health professionals 0:13:12.320 --> 0:13:16.000 that I'd say are probably much more uh prepared to 0:13:16.200 --> 0:13:19.400 and and qualified to to guide what it is we're 0:13:19.400 --> 0:13:22.160 doing as a population. I think it's gonna take a 0:13:22.160 --> 0:13:24.199 little bit of time for people to get the right information. 0:13:24.280 --> 0:13:27.600 The fact is, rigorous testing has been done. The fact 0:13:27.760 --> 0:13:30.839 is that protecting the youngest kids from getting infected is 0:13:30.880 --> 0:13:33.280 not only important for their health, but the health of 0:13:33.280 --> 0:13:35.120 the people surrounding them and the people who want to 0:13:35.120 --> 0:13:38.400 be with them. And so I think that overall, just 0:13:38.440 --> 0:13:41.880 like we're vaccinated for lots of other things, we care 0:13:41.920 --> 0:13:44.040 about our kids health and this is a very important 0:13:44.400 --> 0:13:46.880 next step. The other thing you have to keep in mind, Emily, 0:13:46.880 --> 0:13:49.360 and again this is I think getting lost in the 0:13:49.440 --> 0:13:52.560 information wars that seem to be going on, is that 0:13:52.640 --> 0:13:55.200 actually just getting COVID, let alone, getting it over and 0:13:55.240 --> 0:13:58.679 over again is from a long term health standpoint dangerous 0:13:59.160 --> 0:14:00.960 and and and I think that we think of this 0:14:01.040 --> 0:14:02.719 as a cold and we go, well, we get it 0:14:02.760 --> 0:14:05.600 every year, so a big deal. There's no evidence that 0:14:05.720 --> 0:14:09.480 the way this disease plays out. Quite the contrary, there's 0:14:09.520 --> 0:14:12.640 evidence that in some subset of people, several percent of 0:14:12.720 --> 0:14:14.840 the people, it has long term effects. And I don't 0:14:14.880 --> 0:14:18.160 see that that's going to be different once enough young 0:14:18.280 --> 0:14:21.520 kids get this. So we have to be less cavalier 0:14:21.680 --> 0:14:23.880 about it and do everything we can to prevent it, 0:14:24.120 --> 0:14:27.120 at least until we learn more about the disease. We 0:14:27.240 --> 0:14:29.480 just got a new headline that Fiser and bion Tech 0:14:29.480 --> 0:14:31.360 are going to get an extra three point two billion 0:14:31.400 --> 0:14:35.320 dollars from the United States for COVID vaccine development. Are 0:14:35.360 --> 0:14:39.440 you expecting more money from Maderna as well? I can't 0:14:39.480 --> 0:14:44.400 comment on that, alright, So let's talk about the national 0:14:44.440 --> 0:14:47.520 bio defense strategy. I'm so curious if you and Flagship 0:14:47.560 --> 0:14:50.160 have spoken to the by Buying administration about this and 0:14:50.200 --> 0:14:53.720 what the role of Flagship could be there. You know, 0:14:53.760 --> 0:14:57.280 obviously the hope is that at some point this pandemic abates, 0:14:57.320 --> 0:15:01.240 but we will be facing other threats, so emily we 0:15:01.240 --> 0:15:04.880 we have indirect contacts or through a number of channels, 0:15:05.000 --> 0:15:08.480 and I'd say that I'm happy to see more discussion 0:15:08.520 --> 0:15:11.280 happening about this whole notion of health security. This is 0:15:11.280 --> 0:15:13.360 something that we've talked about for three years, in fact, 0:15:13.600 --> 0:15:16.520 preceding the pandemic. We do think that we need to 0:15:16.560 --> 0:15:20.120 elevate our health to a matter of security, not just care. 0:15:20.520 --> 0:15:23.040 It's not enough that our health kind of is under 0:15:23.080 --> 0:15:25.920 attack and then we try to then do something about it. 0:15:25.960 --> 0:15:28.080 We have to get ahead of it and health security, 0:15:28.120 --> 0:15:32.000 whether it's against pathogen threats or against a lot of 0:15:32.000 --> 0:15:34.800 the slow pandemics that we are attacked by every day, 0:15:34.800 --> 0:15:38.360 whether that's cancer or Alzheimer's, or obesity or any number 0:15:38.360 --> 0:15:41.640 of diseases, all of these are the same kind of 0:15:41.680 --> 0:15:44.240 threat that can take down our lives, take down our health, 0:15:44.560 --> 0:15:46.640 and we need to get ahead of it. Health security, 0:15:46.680 --> 0:15:50.520 by defense. All of that is part of a comprehensive solution. 0:15:50.600 --> 0:15:54.520 And I certainly hope and expect that the kind of 0:15:54.560 --> 0:15:58.120 damage this pandemic is done will be at least converted 0:15:58.160 --> 0:16:02.320 into some long term lasting value to society. Just like 0:16:02.440 --> 0:16:07.160 major wars have led to significant kind of after effects 0:16:07.160 --> 0:16:09.840 that have been good for mankind. I expect that to 0:16:09.880 --> 0:16:12.440 be the case in this case through a more serious 0:16:12.560 --> 0:16:17.560 effort at preparedness and prevention. All right, well, really appreciate 0:16:17.600 --> 0:16:19.600 all the work you are doing and your team on 0:16:19.640 --> 0:16:22.840 the front lines to keep us all safe and also 0:16:22.960 --> 0:16:26.640 now to fight climate change as well. Majorna, co founder, 0:16:26.840 --> 0:16:29.960 CEO Flagship Pioneering New Bar a fan. Good to have 0:16:30.000 --> 0:16:43.000 you back. The iconic iPhone turns fifteen today. Steve Jobs 0:16:43.040 --> 0:16:46.880 introduced the revolutionary product back in two thousand seven, changing 0:16:46.920 --> 0:16:51.280 the phone and app landscape forever and archuably the world. 0:16:51.600 --> 0:16:53.760 For more on this, I want to bring in Bloomberg's 0:16:53.760 --> 0:16:56.960 Mark German, of course covers all things Apple. It is 0:16:57.000 --> 0:17:01.000 hard to overstate Mark just how much the iPhone has 0:17:01.120 --> 0:17:04.560 changed a lot of things about this world. How do 0:17:04.560 --> 0:17:08.360 you assess the impact of this one particular product and 0:17:08.800 --> 0:17:13.080 the future impact on the Apple ecosystem. So I think 0:17:13.080 --> 0:17:15.880 the iPhone is so much more than just the iPhone, 0:17:15.920 --> 0:17:18.520 even for Apple. If you think about Apple, the company 0:17:18.560 --> 0:17:21.000 that exists today and where they get all of their 0:17:21.000 --> 0:17:23.920 sales from all the revenue from and all the major 0:17:23.960 --> 0:17:27.000 elements their business, it all stems from the iPhone. So 0:17:27.040 --> 0:17:29.640 the iPhone, you look at that, but what came from 0:17:29.640 --> 0:17:32.840 the iPhone? The iPad came from the iPhone? Right, The 0:17:32.880 --> 0:17:35.720 App Store came from the iPhone. All their services, News 0:17:35.800 --> 0:17:40.040 plus TV, plus Apple Arcade, iCloud, all those things work 0:17:40.040 --> 0:17:42.520 hand in hand with the iPhone. So none of their 0:17:42.600 --> 0:17:45.680 peripheral products, the Apple Watch, the air pods, the Apple TV, 0:17:45.960 --> 0:17:49.280 those are all very iPhone reliant. So Apple is the 0:17:49.280 --> 0:17:52.080 iPhone company because the iPhone not only is their biggest seller, 0:17:52.520 --> 0:17:54.840 but it needed to exist for all of their other 0:17:54.880 --> 0:17:57.679 products to exist. So Apple, you might as well rename 0:17:57.720 --> 0:18:01.159 them to iPhone in from that standpoint, and obviously you 0:18:01.200 --> 0:18:03.720 see what it's done for the world. Right. People don't 0:18:03.720 --> 0:18:06.560 talk to each other in lines anymore, right, People can't 0:18:06.560 --> 0:18:09.800 focus on screens in a movie theater anymore. Right. Everyone 0:18:09.880 --> 0:18:11.800 is glued to their phone constantly, and people can do 0:18:11.840 --> 0:18:14.920 anything from their phone, whether it's an iPhone or Samsung. 0:18:15.080 --> 0:18:17.560 It all stemmed from the iPhone. So what are the 0:18:17.600 --> 0:18:20.639 next fifteen years of growth going to come from for Apple? 0:18:20.880 --> 0:18:23.440 Are we gonna be using phones at all? In fifteen years. 0:18:23.520 --> 0:18:25.359 Is it going to be an a R headset? Is 0:18:25.359 --> 0:18:29.480 it going to be recurring revenue from services? I think 0:18:29.480 --> 0:18:32.119 there's always gonna be a place for a handheld device 0:18:32.200 --> 0:18:34.520 of product that you keep in your pocket, in your 0:18:34.560 --> 0:18:37.080 bag or whatnot. I think maybe you'll sleep see people 0:18:37.359 --> 0:18:40.680 wean off of tablets and laptops more in the iPhone 0:18:40.680 --> 0:18:44.359 itself becomes sort of a phone, quote desktop computer or 0:18:44.359 --> 0:18:47.359 your home computer, your laptop, and what was the phone 0:18:47.680 --> 0:18:49.800 sort of shifts to the wrists for the smart watch 0:18:49.880 --> 0:18:51.800 and for the A R glasses. So I think the 0:18:51.800 --> 0:18:54.680 iPhone will have a place fifteen years from now still right. 0:18:54.880 --> 0:18:56.880 I still think there will be new iPhones in over 0:18:56.920 --> 0:18:59.040 a decade from now, but you'll see that sort of 0:18:59.040 --> 0:19:03.200 to use the Steve Jobs analogy, the iPhone become the truck, right, 0:19:03.240 --> 0:19:06.360 and the air glasses in the watch become par So 0:19:06.400 --> 0:19:08.000 I still think there's a place for the phone. One 0:19:08.080 --> 0:19:12.199 term interesting bloom Brooks Mark German, who covers Apple and 0:19:12.240 --> 0:19:15.040 will be hopefully for much, if not all, of those 0:19:15.080 --> 0:19:26.400 texts fifteen years, Mark, thank you, Welcome back to Bloomberg Technology. 0:19:26.400 --> 0:19:30.200 I'm Emily changing in San Francisco, subscribing to Snapchat. That's right. 0:19:30.280 --> 0:19:33.240 Snap is launching a paid version of the widely used 0:19:33.240 --> 0:19:38.640 social media platform, offering quote exclusive and experimental they say 0:19:38.880 --> 0:19:42.400 features gloom Skirt Wagner joins us now to discuss. So 0:19:42.640 --> 0:19:45.520 we've seen the struggles that like Netflix is having, for example, 0:19:45.520 --> 0:19:48.640 with its subscription service, why is not moving into this business? 0:19:48.840 --> 0:19:52.000 So you're noticing this both with Snap you recall Twitter 0:19:52.080 --> 0:19:54.720 did this as well. I think this has to do 0:19:54.760 --> 0:19:57.400 with the fact that these are advertising companies. Um, it's 0:19:57.440 --> 0:20:01.439 been a tough year with everything happening with Apple and 0:20:01.480 --> 0:20:03.760 the tracking changes, and I think these companies that have 0:20:04.280 --> 0:20:07.760 mostly built an entire business around advertising are realizing that 0:20:07.920 --> 0:20:09.720 it's not always in their control, it's not always in 0:20:09.760 --> 0:20:12.840 their hands. It's good to have other forms of revenue, 0:20:12.840 --> 0:20:15.760 even if they're small, to kind of counterbalance that somewhat. 0:20:15.800 --> 0:20:17.320 And so I think that's why you're starting to see 0:20:17.320 --> 0:20:19.280 some of these social platforms start to, you know, tinker 0:20:19.359 --> 0:20:21.879 with subscriptions. So what kind of premium content do I 0:20:21.920 --> 0:20:25.200 get for Yeah, it sounds pretty limited. From what I 0:20:25.240 --> 0:20:27.480 can tell. It sounds like you can, you know, similar 0:20:27.520 --> 0:20:29.920 things to to Twitter. Again. You can change your app icon, 0:20:30.200 --> 0:20:33.280 you can prioritize certain messages, right, So maybe pin things 0:20:33.880 --> 0:20:36.399 that you use regularly. So I don't think it's the 0:20:36.480 --> 0:20:38.760 kind of thing that the vast majority of people will 0:20:38.840 --> 0:20:41.280 want to use. But again, similar to Twitter, if you 0:20:41.320 --> 0:20:43.320 are a power user, if you're someone who does all 0:20:43.480 --> 0:20:46.439 or most of your communication on Snap, maybe this is, 0:20:46.640 --> 0:20:48.200 you know, something that's worth a couple of bucks too. 0:20:48.240 --> 0:20:51.400 Are we going to see more strategies like this from 0:20:51.440 --> 0:20:56.000 other similar company? I think so because of the advertising thing, right, 0:20:56.000 --> 0:20:58.240 I think if you're an advertising business, you have to 0:20:58.320 --> 0:21:01.000 sit around and look and say can we control There's 0:21:01.000 --> 0:21:03.040 a lot that you can't, as we've learned from the pandemic, 0:21:03.040 --> 0:21:05.320 as we've learned from Apple, and so I think you 0:21:05.359 --> 0:21:07.399 know you're going to see the facebooks and others of 0:21:07.400 --> 0:21:10.080 the world. Maybe it's not subscriptions, but maybe it's commerce 0:21:10.200 --> 0:21:13.480 or other types of revenue streams beyond advertising paying for 0:21:13.560 --> 0:21:16.720 certain features. Essentially. Yeah, I mean you heard Mark Zuckerberg 0:21:16.840 --> 0:21:19.879 last week talk about the metaverse and how he wants 0:21:19.880 --> 0:21:23.240 people to you know, shop and buy clothes for their avatar. 0:21:23.400 --> 0:21:25.520 Like that's not advertising in the way we think of 0:21:25.560 --> 0:21:28.439 with with Meta or Facebook. It's a different kind of revenue, 0:21:28.480 --> 0:21:30.760 But I think it's all alt. Are people going to 0:21:30.880 --> 0:21:33.399 be paying for clothes for their avatars? Is that going 0:21:33.480 --> 0:21:39.159 to be? But do you believe UM? I believe that 0:21:39.200 --> 0:21:41.840 people will pay things. Yes, I believe people will buy 0:21:41.840 --> 0:21:46.639 things for the avatar. I don't know if UM it 0:21:46.680 --> 0:21:49.239 will be widely used by people, at least early on. 0:21:49.400 --> 0:21:51.440 Right if if suddenly you and I are having this 0:21:51.520 --> 0:21:53.800 interview in the metaverse someday and I'm working from home 0:21:53.800 --> 0:21:56.160 and you're going from home, like, I'm probably gonna want 0:21:56.160 --> 0:21:58.080 to wear something a little nicer than what I have here, 0:21:58.119 --> 0:22:01.040