1 00:00:01,400 --> 00:00:06,680 Speaker 1: From Mahart where Innovation, Money and power Collie in Silicon Valley, NBN. 2 00:00:07,040 --> 00:00:11,559 Speaker 1: This is Bloomberg Technology with Caroline Hyde and Ed Ludlow. 3 00:00:25,160 --> 00:00:27,360 Speaker 2: Live from New York and San Francisco. This is Bloomberg 4 00:00:27,400 --> 00:00:30,800 Speaker 2: Technology and take it outperforms. The stocks jump on the 5 00:00:30,920 --> 00:00:32,440 Speaker 2: jumbo FED rate cut. 6 00:00:32,680 --> 00:00:33,920 Speaker 3: We talk megacaps on the move. 7 00:00:34,840 --> 00:00:38,040 Speaker 4: Plus Apple gets an EU warning to open up its 8 00:00:38,040 --> 00:00:40,600 Speaker 4: iPhone operating system and Elon. 9 00:00:40,400 --> 00:00:42,919 Speaker 3: Musk's X is back on in Brazil. 10 00:00:43,320 --> 00:00:46,640 Speaker 2: How the platform bypassed a ban through a software update. 11 00:00:46,680 --> 00:00:49,600 Speaker 2: But first let's check in on these markets because risk 12 00:00:49,640 --> 00:00:52,440 Speaker 2: assets are up and to the right, we've finally found 13 00:00:52,479 --> 00:00:54,840 Speaker 2: that bid post the FED rate cut of some fifty 14 00:00:54,840 --> 00:00:56,840 Speaker 2: basis points and we raw high the best day in 15 00:00:56,880 --> 00:00:58,840 Speaker 2: at least a month for the Nasdaq one hundred up 16 00:00:58,840 --> 00:01:01,400 Speaker 2: almost two and a half percent, and Crypto two getting 17 00:01:01,440 --> 00:01:03,440 Speaker 2: its mojo on four and a half percent. If you're 18 00:01:03,440 --> 00:01:05,039 Speaker 2: looking at Bitcoin and ed, you're going to look at 19 00:01:05,040 --> 00:01:05,720 Speaker 2: the megacaps. 20 00:01:06,400 --> 00:01:09,120 Speaker 4: Yeah, I mean the biggest percentage end points gainers on 21 00:01:09,160 --> 00:01:11,160 Speaker 4: the NAZAQ one hundred are the megacaps. And a lot 22 00:01:11,200 --> 00:01:13,440 Speaker 4: of investors have come on this show and said when 23 00:01:13,480 --> 00:01:16,959 Speaker 4: it comes to tech, there will be a recalculation around valuation. 24 00:01:17,160 --> 00:01:19,160 Speaker 4: But actually a lot of the conversation this morning is 25 00:01:19,240 --> 00:01:22,000 Speaker 4: we're going to avoid a recession, and that always comes 26 00:01:22,040 --> 00:01:23,360 Speaker 4: up in the context of megacaps. 27 00:01:23,360 --> 00:01:25,319 Speaker 5: They're a very diverse group, particularly Tesla. 28 00:01:25,400 --> 00:01:28,360 Speaker 4: Right, how much is Elon Musk talks about the impact 29 00:01:28,440 --> 00:01:31,080 Speaker 4: of higher rates on EV sales? Not that Elon Musk 30 00:01:31,080 --> 00:01:32,679 Speaker 4: and Tesla are going to be focused on the business 31 00:01:32,720 --> 00:01:33,920 Speaker 4: of selling cars for much longer. 32 00:01:33,959 --> 00:01:36,760 Speaker 2: Carry That's the one thing that we've got to be 33 00:01:36,840 --> 00:01:38,560 Speaker 2: keeping an eye on when it comes to Tesla. When 34 00:01:38,600 --> 00:01:40,600 Speaker 2: it comes to cars, the robotax is the future. But 35 00:01:40,640 --> 00:01:43,200 Speaker 2: for the here and then now, should megacaps be roaring. 36 00:01:43,600 --> 00:01:46,160 Speaker 2: Let's talk to Zachary Hill, head of portfolio management and 37 00:01:46,240 --> 00:01:49,240 Speaker 2: Horizon Investments eight million dollars in assets under management. We're 38 00:01:49,240 --> 00:01:52,160 Speaker 2: going to discuss first and foremost the rate cut. What 39 00:01:52,240 --> 00:01:54,560 Speaker 2: does it mean for these names that we've been so 40 00:01:54,760 --> 00:01:56,080 Speaker 2: used to leading the market higher? 41 00:01:57,680 --> 00:01:59,040 Speaker 1: Sure, Carolin, thanks for having me. 42 00:01:59,120 --> 00:02:01,720 Speaker 6: You know, it's been quite twenty four hours, you know, 43 00:02:02,160 --> 00:02:05,000 Speaker 6: after that supersized rate cut, which most people in the 44 00:02:05,040 --> 00:02:08,280 Speaker 6: market US included expected to be fifty basis points, although 45 00:02:08,280 --> 00:02:11,000 Speaker 6: economists were skewed more towards the twenty five camp. 46 00:02:11,720 --> 00:02:14,799 Speaker 1: You know, we saw some mixed price action and overnight it. 47 00:02:14,720 --> 00:02:16,240 Speaker 6: Looked like we were going to get a biable dip, 48 00:02:16,680 --> 00:02:20,320 Speaker 6: and coming in this morning, things look quite a bit different. 49 00:02:20,360 --> 00:02:23,200 Speaker 6: And so we do think that overall the trend is higher. 50 00:02:23,720 --> 00:02:25,800 Speaker 6: Kind of look through some of this short term noise 51 00:02:26,120 --> 00:02:27,799 Speaker 6: and as it relates to the top of the market, 52 00:02:27,800 --> 00:02:30,240 Speaker 6: we do believe now for the first time in about 53 00:02:30,240 --> 00:02:33,080 Speaker 6: eighteen months, that the market could really broaden out in 54 00:02:33,120 --> 00:02:35,560 Speaker 6: a meaningful way. And so, you know, not giving up 55 00:02:35,560 --> 00:02:37,839 Speaker 6: on the AI theme in the megacaps in general, they're 56 00:02:37,880 --> 00:02:40,120 Speaker 6: outstanding companies, but I do think we have a little 57 00:02:40,120 --> 00:02:42,120 Speaker 6: bit of a window for the rest of the market to. 58 00:02:42,080 --> 00:02:42,720 Speaker 1: Catch up here. 59 00:02:42,919 --> 00:02:46,120 Speaker 2: Okay, when you say broaden out, you mean small caps 60 00:02:46,160 --> 00:02:48,720 Speaker 2: more broadly, or is there a way to broaden out 61 00:02:48,760 --> 00:02:50,119 Speaker 2: the technology investment theme. 62 00:02:52,040 --> 00:02:54,200 Speaker 1: Yeah, we like doing it across both vectors. 63 00:02:54,240 --> 00:02:56,920 Speaker 6: Actually, you know, in terms of the expression of the 64 00:02:56,960 --> 00:03:00,359 Speaker 6: AI trade, kind of moving away from the semiconductor because 65 00:03:00,400 --> 00:03:02,080 Speaker 6: if you just look at the kind of the charred 66 00:03:02,120 --> 00:03:04,799 Speaker 6: patterns there and just the overall narrative, it seems a 67 00:03:04,840 --> 00:03:07,680 Speaker 6: little bit exhausted relative you know, to some other some 68 00:03:07,760 --> 00:03:10,640 Speaker 6: of the other players in the growth space. Also, I 69 00:03:10,680 --> 00:03:13,919 Speaker 6: do think, as you mentioned, small caps, you know, they 70 00:03:13,960 --> 00:03:16,400 Speaker 6: have a window here where they can work. Regional banks 71 00:03:16,440 --> 00:03:18,880 Speaker 6: is another part of the market that we like. That's 72 00:03:18,880 --> 00:03:20,720 Speaker 6: probably going to be more of a trade for us. 73 00:03:21,040 --> 00:03:22,960 Speaker 6: But we do think, you know, the fact that rates 74 00:03:22,960 --> 00:03:25,680 Speaker 6: are coming down, growth is still strong, and the next 75 00:03:25,680 --> 00:03:27,560 Speaker 6: move by the FED is going to be a cut. 76 00:03:27,720 --> 00:03:30,320 Speaker 6: We can quibble about that's twenty five or fifty when 77 00:03:30,360 --> 00:03:32,440 Speaker 6: that when that occurs, at the end of the day, 78 00:03:32,480 --> 00:03:34,600 Speaker 6: we don't really think that matters as much for the 79 00:03:34,600 --> 00:03:37,040 Speaker 6: broader picture. So those are two different areas we're playing 80 00:03:37,040 --> 00:03:39,680 Speaker 6: that broadened out theme within US equity exposure. 81 00:03:40,320 --> 00:03:42,480 Speaker 4: So, Zachary, with that in mind, why is it the 82 00:03:42,520 --> 00:03:45,920 Speaker 4: semiconductor names and mega caps that are rallying hard this morning? 83 00:03:48,120 --> 00:03:50,840 Speaker 6: Yeah, that's that's a great question, you know, and I 84 00:03:50,880 --> 00:03:53,680 Speaker 6: don't have a really spot on answer for you now. 85 00:03:53,760 --> 00:03:55,880 Speaker 6: I mean, I would just say, broadly speaking, over the 86 00:03:55,960 --> 00:03:59,080 Speaker 6: last three weeks, we've seen a lot of volatility in 87 00:03:59,160 --> 00:04:02,880 Speaker 6: these names, you know, speaking for the kind of the 88 00:04:02,880 --> 00:04:05,760 Speaker 6: most popular stock in the world in video. You know, 89 00:04:05,800 --> 00:04:08,840 Speaker 6: we saw earnings they were really good, but not as 90 00:04:08,880 --> 00:04:11,920 Speaker 6: good as people have come to expect. We got kind 91 00:04:11,920 --> 00:04:15,200 Speaker 6: of a delayed reaction on that stock the following week, 92 00:04:15,880 --> 00:04:17,720 Speaker 6: and then reverse the following week. So there's just been 93 00:04:17,760 --> 00:04:19,920 Speaker 6: a lot of back and forth, broadly speaking, and that's 94 00:04:19,920 --> 00:04:22,919 Speaker 6: another reason that we think broadening out makes sense, just 95 00:04:22,920 --> 00:04:27,240 Speaker 6: because the volatility of this trade has gotten higher, it's 96 00:04:27,279 --> 00:04:29,360 Speaker 6: gotten more difficult to hold, and so from a risk 97 00:04:29,400 --> 00:04:31,919 Speaker 6: adjusted perspective, you know, we think it makes sense to 98 00:04:31,920 --> 00:04:34,160 Speaker 6: look outside of just the tip of the spear that's 99 00:04:34,200 --> 00:04:36,760 Speaker 6: really been driving us for the last eighteen months. 100 00:04:37,600 --> 00:04:39,480 Speaker 4: Your second point earlier is that rates are going to 101 00:04:39,560 --> 00:04:42,080 Speaker 4: come down, and we can debate the increments going forward 102 00:04:42,120 --> 00:04:44,160 Speaker 4: and look at the dots through the end of next year. 103 00:04:44,520 --> 00:04:47,880 Speaker 4: But a quite reasonable question for many technology investors is 104 00:04:48,080 --> 00:04:53,320 Speaker 4: what had actually changed between July and yesterday, Right, A 105 00:04:53,360 --> 00:04:56,320 Speaker 4: fifty basis point cut yesterday and nothing through the summer, 106 00:04:57,200 --> 00:04:59,479 Speaker 4: And that, for you guys in the markets must be 107 00:04:59,520 --> 00:05:01,520 Speaker 4: difficult to calculate. 108 00:05:03,360 --> 00:05:05,000 Speaker 6: Yeah, it is difficult, and you have to play a 109 00:05:05,040 --> 00:05:07,440 Speaker 6: little bit of criminology with what's going on, you know, 110 00:05:07,480 --> 00:05:10,240 Speaker 6: within the FOMC, I mean, you know, our our read 111 00:05:10,279 --> 00:05:12,680 Speaker 6: of it is, I think Chair Pal, who's more dubvish 112 00:05:12,720 --> 00:05:13,400 Speaker 6: than the committee. 113 00:05:13,400 --> 00:05:16,800 Speaker 1: More broadly, he wanted to cut rates in July, but couldn't. 114 00:05:16,440 --> 00:05:19,479 Speaker 6: Get anyone there, and so you know, the actions that 115 00:05:19,520 --> 00:05:22,560 Speaker 6: we saw in the blackout period to kind of move 116 00:05:22,600 --> 00:05:26,400 Speaker 6: the market towards a fifty basis pointcut, that that was 117 00:05:26,680 --> 00:05:29,120 Speaker 6: indicative of Chair Pal kind of trying to make up 118 00:05:29,160 --> 00:05:33,640 Speaker 6: for you know, what didn't happen in July. You know, 119 00:05:33,960 --> 00:05:36,480 Speaker 6: I think one of the reasons that Stockston rally initially 120 00:05:36,600 --> 00:05:40,440 Speaker 6: yesterday after everything was released in the afternoon is that 121 00:05:40,720 --> 00:05:43,359 Speaker 6: it's pretty clear the committee is more split than we thought. 122 00:05:44,200 --> 00:05:46,640 Speaker 6: And so, you know, the almost half the committee wrote 123 00:05:46,720 --> 00:05:50,760 Speaker 6: down only one further cut you know, this year, which 124 00:05:50,839 --> 00:05:53,120 Speaker 6: is quite a bit different than where the market is priced, 125 00:05:53,120 --> 00:05:54,719 Speaker 6: and so, you know, I do think there'll be some 126 00:05:54,800 --> 00:05:57,359 Speaker 6: back and forth on that, but broadly speaking, you know, 127 00:05:57,400 --> 00:06:00,560 Speaker 6: the messages if the labor market continues to slow down 128 00:06:00,600 --> 00:06:02,479 Speaker 6: into an area where we start to get concerned, the 129 00:06:02,520 --> 00:06:04,719 Speaker 6: FED will be more aggressive. And the fact that we 130 00:06:04,800 --> 00:06:09,200 Speaker 6: have that FED put back in scope, something we haven't 131 00:06:09,200 --> 00:06:10,920 Speaker 6: had for about two and a half three years, I 132 00:06:10,920 --> 00:06:13,760 Speaker 6: think that's really important thing that you can lose sight 133 00:06:13,800 --> 00:06:15,320 Speaker 6: of if you're you know, just in the day to 134 00:06:15,400 --> 00:06:18,000 Speaker 6: day trying to explain hour by hour. 135 00:06:17,880 --> 00:06:19,200 Speaker 3: Moves, Zachary. 136 00:06:19,240 --> 00:06:21,400 Speaker 2: This isn't just the central Bank to the US, it's 137 00:06:21,440 --> 00:06:24,039 Speaker 2: the central bank to the world, and we're seeing risk 138 00:06:24,080 --> 00:06:28,080 Speaker 2: assets rally across the world. What about European tech ASML 139 00:06:28,160 --> 00:06:30,880 Speaker 2: the best performer from a points perspective in Europe today? 140 00:06:30,920 --> 00:06:32,160 Speaker 3: What about Japanese tech? 141 00:06:34,080 --> 00:06:35,920 Speaker 6: Yeah, I mean, we do continue to think the story 142 00:06:36,000 --> 00:06:38,880 Speaker 6: is better in the US than abroad. You know that 143 00:06:39,040 --> 00:06:40,520 Speaker 6: a lot of that just has to do with the 144 00:06:40,560 --> 00:06:44,680 Speaker 6: innate innovation and the structure of our capital markets versus 145 00:06:44,680 --> 00:06:46,120 Speaker 6: the rest of the world. But we do think there's 146 00:06:46,120 --> 00:06:48,880 Speaker 6: some opportunity in Japan. You know, that's more of a 147 00:06:48,920 --> 00:06:51,960 Speaker 6: medium term story in terms of structural reforms and a 148 00:06:52,040 --> 00:06:54,520 Speaker 6: really really cheap currency that can be a tailwind to 149 00:06:54,920 --> 00:06:58,000 Speaker 6: US investors. We're starting to see the end correct, you know, 150 00:06:58,120 --> 00:07:00,839 Speaker 6: quite a bit over the last over the last few months, 151 00:07:00,880 --> 00:07:03,200 Speaker 6: and we think that is a favorable trend that will 152 00:07:03,200 --> 00:07:06,320 Speaker 6: continue there. But broadly speaking, we do we do like 153 00:07:06,360 --> 00:07:09,600 Speaker 6: to express this theme more within the US, you know, 154 00:07:09,680 --> 00:07:12,840 Speaker 6: talking about the European angle more more broadly. I do 155 00:07:12,880 --> 00:07:15,440 Speaker 6: think it's a little bit wild that there's only about 156 00:07:15,480 --> 00:07:17,800 Speaker 6: a twenty five percent chance that the ECB cuts rates 157 00:07:17,800 --> 00:07:20,280 Speaker 6: in October. You know, if you look at the growth trajectory, 158 00:07:20,320 --> 00:07:23,600 Speaker 6: you look at the inflation dynamics, I really think they've 159 00:07:23,640 --> 00:07:25,760 Speaker 6: been just waiting for some air cover from the FED, 160 00:07:25,800 --> 00:07:28,520 Speaker 6: and so I think that's something the market may start 161 00:07:28,520 --> 00:07:30,560 Speaker 6: to think about, you know, over the next few weeks. 162 00:07:30,640 --> 00:07:33,800 Speaker 6: And you know, from a currency perspective, certainly that wouldn't 163 00:07:33,840 --> 00:07:37,560 Speaker 6: be you know, beneficial for for European equities. 164 00:07:38,720 --> 00:07:39,000 Speaker 5: Zachary. 165 00:07:39,080 --> 00:07:42,920 Speaker 4: Let's conclude our conversation with an important question for technology 166 00:07:42,960 --> 00:07:45,720 Speaker 4: investors and the technology industry around the world. 167 00:07:46,400 --> 00:07:48,240 Speaker 5: Recession or no recession. 168 00:07:50,240 --> 00:07:52,520 Speaker 1: Yeah, this this one's pretty clear, no recession. 169 00:07:53,320 --> 00:07:56,880 Speaker 6: You know, our framework has long been do not bet 170 00:07:56,920 --> 00:08:00,480 Speaker 6: against the US consumer that is employed. So we've been focused, 171 00:08:00,520 --> 00:08:03,200 Speaker 6: laser focused on the labor market, and our read there 172 00:08:03,480 --> 00:08:06,120 Speaker 6: is we're just coming back to normal from a period 173 00:08:06,160 --> 00:08:09,920 Speaker 6: of extreme strength. Certainly, we're paying attention to the data 174 00:08:09,920 --> 00:08:12,160 Speaker 6: flow as they come in and marking that. 175 00:08:12,160 --> 00:08:14,040 Speaker 1: To market, you know, every day. 176 00:08:14,440 --> 00:08:17,080 Speaker 6: But you know, broadly speaking, that has been our view 177 00:08:17,080 --> 00:08:19,760 Speaker 6: and continues to be our view. And we think that 178 00:08:19,880 --> 00:08:22,280 Speaker 6: plus the fact that the next move from the FED 179 00:08:22,360 --> 00:08:24,840 Speaker 6: and other global center banks are going to be cuts, 180 00:08:25,560 --> 00:08:27,360 Speaker 6: is going to buy as equities higher into the end 181 00:08:27,360 --> 00:08:27,720 Speaker 6: of the year. 182 00:08:28,800 --> 00:08:31,400 Speaker 4: Zachary Hill from Horizon Investment. It's great to have you 183 00:08:31,440 --> 00:08:33,559 Speaker 4: here on bloom Bed Technology. Thank you very much. Like 184 00:08:33,640 --> 00:08:36,280 Speaker 4: coming up on the show, we joined by the Latvia 185 00:08:36,320 --> 00:08:40,360 Speaker 4: president Eggars Rinkovic about his visit to San Francisco Silicon 186 00:08:40,440 --> 00:08:43,960 Speaker 4: Valley meetings with technology companies now in the markets carried. 187 00:08:44,000 --> 00:08:46,320 Speaker 4: There are some single name moves that we've got to cover. 188 00:08:46,720 --> 00:08:49,000 Speaker 3: We do in Intel, the Mobile I are among them. 189 00:08:49,200 --> 00:08:51,920 Speaker 2: Ed Intel oup almost three percent Mobile I as you'll 190 00:08:51,920 --> 00:08:55,240 Speaker 2: see jumping some fifteen percent. This is as it seems, 191 00:08:55,320 --> 00:08:58,960 Speaker 2: Intel will not be currently planning to divest a majority 192 00:08:59,000 --> 00:09:02,559 Speaker 2: interest in the microsoftware and hardware tech for autos. They 193 00:09:02,600 --> 00:09:05,119 Speaker 2: believe in the future of autonomous driving technology. 194 00:09:05,800 --> 00:09:10,600 Speaker 3: This is brumot technology. 195 00:09:16,240 --> 00:09:19,480 Speaker 2: Apple it's been warned by the European Union to open 196 00:09:19,559 --> 00:09:22,599 Speaker 2: up it's highly guarded iPhone and iPad operating systems to 197 00:09:22,920 --> 00:09:26,560 Speaker 2: rival technologies or eventually risk some significant finds under its 198 00:09:26,600 --> 00:09:30,760 Speaker 2: flagship digital antitrust rules. Plimos, jian Or Picelli joins us 199 00:09:30,800 --> 00:09:34,600 Speaker 2: Now and John. How serious is this warning? 200 00:09:34,840 --> 00:09:36,920 Speaker 3: How likely our fines. 201 00:09:37,679 --> 00:09:42,280 Speaker 7: Hil I mean, this is not an investigation yet. It's 202 00:09:42,280 --> 00:09:47,760 Speaker 7: something called specification proceedings, meaning that it is a step 203 00:09:48,280 --> 00:09:52,400 Speaker 7: shy of an actual investigation. In a statement, the Commissioner 204 00:09:52,520 --> 00:09:57,800 Speaker 7: for Competition, Margaret Vistaya, said that the intent is guiding 205 00:09:57,920 --> 00:10:02,079 Speaker 7: Apple on the way to interoperability, so there is still 206 00:10:02,600 --> 00:10:07,280 Speaker 7: some time for Apple to disconcerts. For sure. If nothing 207 00:10:07,360 --> 00:10:10,720 Speaker 7: changes over the next six months, there might be steps, 208 00:10:10,720 --> 00:10:14,520 Speaker 7: there might be consequences, but right now it's not as 209 00:10:14,520 --> 00:10:15,640 Speaker 7: serious as it could be. 210 00:10:15,679 --> 00:10:20,439 Speaker 4: Yet genders some misunderstanding about the technology side of this story. 211 00:10:20,800 --> 00:10:24,040 Speaker 4: For example, in Europe, Apple is held back some of 212 00:10:24,080 --> 00:10:27,400 Speaker 4: its latest features due to compliance what it sees as 213 00:10:27,400 --> 00:10:30,360 Speaker 4: a compliance issue with the DMA. But the idea is 214 00:10:30,400 --> 00:10:33,480 Speaker 4: not that you take a Samsung phone or a Gaomi 215 00:10:33,640 --> 00:10:35,880 Speaker 4: phone and you suddenly have iOS on It just explain 216 00:10:35,960 --> 00:10:38,400 Speaker 4: the basics of what they want Apple to do. 217 00:10:39,880 --> 00:10:43,080 Speaker 7: But what I understand is a couple of things. It 218 00:10:43,200 --> 00:10:48,600 Speaker 7: is essentially allowing developers to access features of iOS that 219 00:10:49,120 --> 00:10:55,120 Speaker 7: right now work only with Apple software. I think for instance, 220 00:10:55,160 --> 00:10:59,280 Speaker 7: of Siri, Siri is of course something that only works 221 00:10:59,720 --> 00:11:03,080 Speaker 7: with it in the Apple ecosystem. Technically, you could imagine 222 00:11:03,080 --> 00:11:05,760 Speaker 7: a developer wanting to access some features so sirey for 223 00:11:05,840 --> 00:11:10,320 Speaker 7: its own app on of course, the iOS ecosystem or 224 00:11:10,960 --> 00:11:17,240 Speaker 7: payment features. Some payment features only work within Apple apps, 225 00:11:17,320 --> 00:11:22,079 Speaker 7: Apple software. And that's another thing. One thing that also 226 00:11:22,160 --> 00:11:28,120 Speaker 7: the Commission addresses is interoperability of devices against Some features, 227 00:11:28,160 --> 00:11:33,080 Speaker 7: for instance of Siri only are accessible to, for instance, 228 00:11:33,160 --> 00:11:38,199 Speaker 7: devices such as the airports or other Apple types of gear. 229 00:11:38,800 --> 00:11:42,160 Speaker 7: And so we want, I mean the European Union would 230 00:11:42,240 --> 00:11:46,240 Speaker 7: want ideally that to change and be accessible to other devices. 231 00:11:46,800 --> 00:11:48,840 Speaker 5: Bloomberg Gimbobicelli out of Brussels. 232 00:11:48,840 --> 00:11:51,600 Speaker 4: Thank you very much. Now we have a visitor from 233 00:11:51,640 --> 00:11:55,080 Speaker 4: the European Union. Edgar Rinkovic, the president of Latvia, is 234 00:11:55,080 --> 00:11:58,720 Speaker 4: in San Francisco. He's meeting with tech companies like open Ai, 235 00:11:59,000 --> 00:12:02,640 Speaker 4: Meta and Google. He'll also meet with California Governor Gavin 236 00:12:02,679 --> 00:12:07,480 Speaker 4: Newsom an investment firm Apollo. President Rikovich joins me here 237 00:12:07,480 --> 00:12:10,880 Speaker 4: in San Francisco. Good morning, President, Thank you for being here. 238 00:12:11,040 --> 00:12:14,080 Speaker 4: You heard from our colleague in Brussels, the latest piece 239 00:12:14,080 --> 00:12:18,640 Speaker 4: of EU oversight of a large American technology company. There's 240 00:12:18,679 --> 00:12:23,000 Speaker 4: also sort of a personnel consideration. Hennah Verkinen will become 241 00:12:23,000 --> 00:12:26,120 Speaker 4: an important leader in Europe when it comes to tech. 242 00:12:26,400 --> 00:12:28,880 Speaker 5: What is Latvia's attitude to. 243 00:12:28,840 --> 00:12:31,439 Speaker 4: The policy side, but also the new people at the top. 244 00:12:32,600 --> 00:12:35,959 Speaker 8: Well, actually we have heard the proposal from the President 245 00:12:36,000 --> 00:12:39,720 Speaker 8: of the European Commission about the new commissioners. I do 246 00:12:39,840 --> 00:12:42,680 Speaker 8: believe that this is quite balanced proposal. But let's not 247 00:12:42,720 --> 00:12:45,839 Speaker 8: forget that European Parliament still needs to approve each and 248 00:12:45,880 --> 00:12:49,040 Speaker 8: every commissioner. There is going to be a grilling. But 249 00:12:49,679 --> 00:12:52,000 Speaker 8: I do hope that the new Commission is going to 250 00:12:52,040 --> 00:12:56,959 Speaker 8: be very much focused on competitiveness of the European Union. 251 00:12:57,440 --> 00:13:00,560 Speaker 8: I think defense and security is going to play a 252 00:13:00,640 --> 00:13:03,240 Speaker 8: huge role also when it comes to the new budget. 253 00:13:03,720 --> 00:13:06,520 Speaker 8: And then indeed, we have new issues. You already mentioned 254 00:13:06,960 --> 00:13:10,080 Speaker 8: about a couple of my meetings. Also we have those. 255 00:13:10,000 --> 00:13:13,760 Speaker 4: Well those meetings, Miss President meta open Ai. 256 00:13:13,320 --> 00:13:14,000 Speaker 5: Those are today. 257 00:13:14,440 --> 00:13:18,880 Speaker 8: I'm just starting from this morning meeting with others. 258 00:13:19,760 --> 00:13:22,079 Speaker 5: What's your ambition for those meetings, mister President. 259 00:13:22,440 --> 00:13:26,840 Speaker 8: There are actually two big issues. One latterly is striving 260 00:13:26,880 --> 00:13:30,360 Speaker 8: to become one of the i would say pioneers and 261 00:13:30,720 --> 00:13:35,520 Speaker 8: leaders of artificial intelligence in the European Union. We are 262 00:13:35,559 --> 00:13:39,680 Speaker 8: now creating our National Artificial Intelligence Center that is a 263 00:13:39,720 --> 00:13:44,880 Speaker 8: private public partnership. Actually the idea started from security concerns, 264 00:13:44,960 --> 00:13:48,440 Speaker 8: but now we have expanded it not only to include 265 00:13:48,600 --> 00:13:54,080 Speaker 8: security like deep fakes, like interference intellections, but also in 266 00:13:54,200 --> 00:14:01,440 Speaker 8: order to create a competitive environment and two take let's 267 00:14:01,440 --> 00:14:05,000 Speaker 8: say lead in this matter. And one thing that I'm 268 00:14:05,040 --> 00:14:09,920 Speaker 8: going to discuss and look at is the way how 269 00:14:10,000 --> 00:14:12,640 Speaker 8: we can cooperate. We already have very good cooperation with 270 00:14:12,760 --> 00:14:17,240 Speaker 8: Google withri meta, and we very much hope to expand it. 271 00:14:17,480 --> 00:14:22,600 Speaker 8: So that's one second. Indeed, I do believe that it 272 00:14:22,680 --> 00:14:26,040 Speaker 8: is very important that we discuss how we are going 273 00:14:26,080 --> 00:14:30,760 Speaker 8: to address artificial intelligence social media. You know, all those 274 00:14:31,400 --> 00:14:36,960 Speaker 8: discussions whether we should view them as challenges or opportunities. 275 00:14:37,600 --> 00:14:40,360 Speaker 8: I'm still trying to find a way how to find 276 00:14:40,360 --> 00:14:43,720 Speaker 8: a middle ground and being the part of the European Union, 277 00:14:43,760 --> 00:14:45,040 Speaker 8: of course, to influence also the. 278 00:14:45,000 --> 00:14:50,280 Speaker 2: Discussion President, is more regulation necessary when it comes to 279 00:14:50,320 --> 00:14:51,440 Speaker 2: AI and social media? 280 00:14:52,600 --> 00:14:53,640 Speaker 3: Well, this is. 281 00:14:53,640 --> 00:14:57,040 Speaker 8: A very tough question. I do believe that if we 282 00:14:57,120 --> 00:15:02,600 Speaker 8: look at some challenges have seen the use of social media, 283 00:15:03,320 --> 00:15:09,000 Speaker 8: artificial intelligence for this information de fakes, interference in elections, 284 00:15:09,680 --> 00:15:14,160 Speaker 8: I think we need some framework. But at the same time, 285 00:15:14,920 --> 00:15:18,120 Speaker 8: and this is sometimes a challenge for the European Union 286 00:15:18,200 --> 00:15:21,560 Speaker 8: and about the European Union. Let's face it, we sometimes 287 00:15:21,800 --> 00:15:26,800 Speaker 8: back in Europe get overly regulatory. Sometimes we believe that 288 00:15:26,840 --> 00:15:31,000 Speaker 8: here in the United States there is too much liberal approach. 289 00:15:31,360 --> 00:15:33,800 Speaker 8: So from that point of view, I would say that 290 00:15:33,920 --> 00:15:38,760 Speaker 8: the balance to you some regulation, especially when it comes 291 00:15:40,040 --> 00:15:45,000 Speaker 8: to serious issues the crime, political interference. Yes, we do 292 00:15:45,120 --> 00:15:51,480 Speaker 8: need rules, but let's not overreact. Also here let's. 293 00:15:51,240 --> 00:15:54,920 Speaker 2: Talk about serious issues at the moment that the you 294 00:15:55,040 --> 00:15:58,160 Speaker 2: and your country in particular faces when it comes to 295 00:15:58,240 --> 00:16:03,080 Speaker 2: Russia and armed Russia. Understand and drone recently crashed in Latvia. 296 00:16:03,960 --> 00:16:08,200 Speaker 2: How should NATO respond to this sort of technology two drones? 297 00:16:08,240 --> 00:16:10,920 Speaker 3: Should they shoot them down? What is your view? 298 00:16:12,280 --> 00:16:16,160 Speaker 8: Well, actually, this is a really very good question because 299 00:16:16,440 --> 00:16:20,440 Speaker 8: also as part of my visit I've been in NASA, 300 00:16:21,080 --> 00:16:25,920 Speaker 8: we were talking about the corporation in Aronautics, in drone industry. 301 00:16:26,320 --> 00:16:31,160 Speaker 8: My country also leads drone coalition that is supportive of Ukraine. 302 00:16:31,760 --> 00:16:35,280 Speaker 8: But when we talk about defense, I do believe that 303 00:16:35,960 --> 00:16:40,320 Speaker 8: we currently lack common approach in NATO. We have already 304 00:16:40,400 --> 00:16:44,240 Speaker 8: three countries my country, Latvia, Romania, Poland where we have 305 00:16:44,360 --> 00:16:48,920 Speaker 8: seen drones crushed. Investigation is still ongoing, but there is 306 00:16:48,960 --> 00:16:54,160 Speaker 8: a great reason to suspect that Shahid type drone was 307 00:16:54,200 --> 00:17:01,760 Speaker 8: actually flowing applying from Ukraine. Seeing wellados sound simply crushed. 308 00:17:02,480 --> 00:17:06,640 Speaker 8: My belief is, yes, we need to shut down those dronts. 309 00:17:06,920 --> 00:17:11,000 Speaker 8: We need to give more air defense equipment to Ukraine. 310 00:17:11,080 --> 00:17:14,720 Speaker 8: But also back in NATO, we are talking about the 311 00:17:14,800 --> 00:17:17,919 Speaker 8: need to increase also NATO presence when it comes to 312 00:17:17,960 --> 00:17:21,800 Speaker 8: air defense in so called eastern flanks. So yes, NATO 313 00:17:22,240 --> 00:17:27,160 Speaker 8: must adapt to the new reality and we must shot 314 00:17:27,200 --> 00:17:30,560 Speaker 8: down drones. We must protect the territory of the alliance. 315 00:17:30,880 --> 00:17:34,520 Speaker 4: Mister President, Latvia has has a role here because of 316 00:17:34,560 --> 00:17:39,360 Speaker 4: its location, it's geographic proximity to what's happening. A big 317 00:17:39,480 --> 00:17:42,920 Speaker 4: question asked of leaders across the European Union is what 318 00:17:43,000 --> 00:17:49,440 Speaker 4: to do next and weather. From a technology and weapons standpoint, 319 00:17:50,000 --> 00:17:52,520 Speaker 4: there is an argument to approve the use of sort 320 00:17:52,560 --> 00:17:56,480 Speaker 4: of longer range technology to go into Russia in support 321 00:17:56,520 --> 00:17:57,840 Speaker 4: of Ukraine doing such an action. 322 00:17:57,920 --> 00:17:59,960 Speaker 5: What is your policy on. 323 00:17:59,840 --> 00:18:03,960 Speaker 8: That, well, I think it would be very surprising if 324 00:18:03,960 --> 00:18:06,040 Speaker 8: I would be saying that we have to be cautious. No, 325 00:18:07,520 --> 00:18:11,760 Speaker 8: the longstanding view of Latin government, my personal view is 326 00:18:11,800 --> 00:18:16,199 Speaker 8: that when it comes to Ukraine, when it comes to 327 00:18:17,160 --> 00:18:23,040 Speaker 8: support for Ukraine, we must allow using all weapons, all 328 00:18:23,119 --> 00:18:27,280 Speaker 8: weapons systems, that we provide to Ukraine unconditionally. I don't 329 00:18:27,280 --> 00:18:30,200 Speaker 8: believe in that talk about escalation. Yes, we hear a 330 00:18:30,520 --> 00:18:34,199 Speaker 8: noise from Moscow, but if you look back at the 331 00:18:34,240 --> 00:18:37,560 Speaker 8: beginning of the invasion in February twenty twenty two, we 332 00:18:37,680 --> 00:18:42,080 Speaker 8: have heard that kind of messages from Moscow, and actually 333 00:18:42,080 --> 00:18:48,399 Speaker 8: what is happening. When Russia escalates, Ukraine is not able 334 00:18:48,440 --> 00:18:53,600 Speaker 8: to respond. But when Ukraine gets weapons and is able 335 00:18:53,600 --> 00:18:58,760 Speaker 8: to respond, actually Russia is not escalating, It actually de escalates. 336 00:19:00,200 --> 00:19:03,680 Speaker 8: My own firm belief is that we must change the 337 00:19:03,800 --> 00:19:09,919 Speaker 8: narrative from we must help Ukraine deal or whatever it takes, 338 00:19:10,040 --> 00:19:13,600 Speaker 8: or how long it takes, two we must help Ukraine until. 339 00:19:14,119 --> 00:19:19,320 Speaker 2: There no diplomatic breakthrough to the deadlock. We've got much 340 00:19:19,320 --> 00:19:22,400 Speaker 2: of that being discussed in a presidential election race here 341 00:19:22,400 --> 00:19:24,760 Speaker 2: in the United States. 342 00:19:25,280 --> 00:19:29,159 Speaker 8: I think that there is already some political process. We 343 00:19:29,320 --> 00:19:33,399 Speaker 8: had peace summit in Switzerland in June. President Zelenski is 344 00:19:33,400 --> 00:19:37,439 Speaker 8: talking about another peace summit, maybe somewhere in November, maybe 345 00:19:37,480 --> 00:19:42,159 Speaker 8: after US elections. But I do believe that diplomatic breaks 346 00:19:42,200 --> 00:19:46,879 Speaker 8: through or political process can start only when Russia sees 347 00:19:46,960 --> 00:19:51,080 Speaker 8: that it cannot move forward. That we are supporting Ukraine 348 00:19:51,359 --> 00:19:53,399 Speaker 8: and that it needs to sit at the table. 349 00:19:53,680 --> 00:19:54,200 Speaker 3: It's not. 350 00:19:55,720 --> 00:20:00,600 Speaker 8: For Ukrainians currently to call the first shot, it's actually 351 00:20:00,920 --> 00:20:03,560 Speaker 8: for Russia. But I also think that it's not going 352 00:20:03,560 --> 00:20:08,920 Speaker 8: to be any political process until yes elections. Most probably 353 00:20:08,960 --> 00:20:11,840 Speaker 8: we can talk about some kind of political process or 354 00:20:12,000 --> 00:20:15,679 Speaker 8: some kind of diplomatic efforts next year. But here I 355 00:20:15,720 --> 00:20:19,639 Speaker 8: think that we also should not make mistake. If we start, 356 00:20:20,520 --> 00:20:23,800 Speaker 8: let's say, putting some kind of limitations on Ukraine, then 357 00:20:23,840 --> 00:20:26,440 Speaker 8: we are not going to see Russia willing to sit 358 00:20:26,480 --> 00:20:29,320 Speaker 8: at the table. Just the opposite. 359 00:20:29,440 --> 00:20:31,479 Speaker 4: This present, we have less than a minute. You'll meet 360 00:20:31,520 --> 00:20:34,000 Speaker 4: with Apollo, You'll meet with open Ai. I'm curious if 361 00:20:34,040 --> 00:20:38,840 Speaker 4: you want to attract investment infrastructure like data center talent 362 00:20:38,960 --> 00:20:39,720 Speaker 4: in your country. 363 00:20:39,920 --> 00:20:42,400 Speaker 8: Absolutely, that's one of the things that we are going 364 00:20:42,440 --> 00:20:47,000 Speaker 8: to talk about attracting investment. Yesterday I had the event 365 00:20:47,440 --> 00:20:51,119 Speaker 8: where some of our startups were pitching for investment. I 366 00:20:51,160 --> 00:20:53,320 Speaker 8: think they were doing great. There was quite an interest, 367 00:20:53,359 --> 00:20:57,399 Speaker 8: and yes, I will be doing my best bet also 368 00:20:57,640 --> 00:21:02,359 Speaker 8: to attract talents, investment. Get partnership is open AI and 369 00:21:02,440 --> 00:21:03,120 Speaker 8: other companies. 370 00:21:03,720 --> 00:21:05,160 Speaker 3: We wish you well with those meetings. 371 00:21:05,320 --> 00:21:07,640 Speaker 2: We thank a few of time today, President of Latvia 372 00:21:07,720 --> 00:21:09,240 Speaker 2: eggers Nkovic. 373 00:21:17,280 --> 00:21:19,080 Speaker 5: It's time for talking tech and first up. 374 00:21:19,119 --> 00:21:23,119 Speaker 4: Open Ai has hired former Corsera executive Leah Belski as 375 00:21:23,160 --> 00:21:27,640 Speaker 4: its first General Manager of Education, leading the AI startups 376 00:21:27,680 --> 00:21:31,639 Speaker 4: efforts in bringing its products to schools and classrooms. Belskuwer's 377 00:21:31,680 --> 00:21:36,000 Speaker 4: formerly chief revenue officer of Courserah Class. Microsoft president Brad 378 00:21:36,040 --> 00:21:39,399 Speaker 4: Smith issues a warning of US election meddling, telling the 379 00:21:39,960 --> 00:21:43,960 Speaker 4: Intelligence Committee that foreign interference will likely surge in the 380 00:21:44,000 --> 00:21:46,840 Speaker 4: final forty eight hours before the election. The hearing comes 381 00:21:46,880 --> 00:21:51,000 Speaker 4: after a Microsoft report found Russian efforts to influence the 382 00:21:51,040 --> 00:21:55,360 Speaker 4: election and Germany's EV market plunges, with deliveries falling sixty 383 00:21:55,440 --> 00:21:59,120 Speaker 4: nine percent in August. Carmakers now calling on the European 384 00:21:59,160 --> 00:22:02,800 Speaker 4: Commission for urgent relief and revisions to its fleet emission 385 00:22:02,840 --> 00:22:13,480 Speaker 4: targets that could have Europe's auto industry facing hefty fines. 386 00:22:14,119 --> 00:22:16,359 Speaker 2: Welcome back to Blue Meg Technology. I'm Caroline Hide in 387 00:22:16,359 --> 00:22:16,920 Speaker 2: New York. 388 00:22:17,119 --> 00:22:18,720 Speaker 5: And I'm ed love Low in San Francisco. 389 00:22:18,840 --> 00:22:20,560 Speaker 2: Le's get a tech on these markets, said, because we 390 00:22:20,560 --> 00:22:22,920 Speaker 2: are powering higher on the back of that FED rate cut, 391 00:22:23,080 --> 00:22:25,080 Speaker 2: we are now having a very strong day, best since 392 00:22:25,080 --> 00:22:27,119 Speaker 2: in a month. Really for the Nasdaq one hundred. But 393 00:22:27,200 --> 00:22:29,920 Speaker 2: so too are global stocks feeling the risk on vibes. 394 00:22:29,920 --> 00:22:33,680 Speaker 2: And we're looking at the European tech industry doing very well. 395 00:22:33,680 --> 00:22:35,439 Speaker 2: They're closing up their training on the day, we're up 396 00:22:35,440 --> 00:22:36,920 Speaker 2: three point four percent for that part. 397 00:22:36,760 --> 00:22:37,680 Speaker 3: Of the stock six hundred. 398 00:22:37,880 --> 00:22:40,880 Speaker 2: Move on, look at the individual movers because look, we've 399 00:22:40,880 --> 00:22:43,560 Speaker 2: got the megacaps that we've known and loved and have 400 00:22:43,640 --> 00:22:47,119 Speaker 2: done so well even in a rate higher environment, still 401 00:22:47,119 --> 00:22:49,240 Speaker 2: doing well as rates get cut. We're up five percent 402 00:22:49,280 --> 00:22:53,080 Speaker 2: for Nvidia, where Ali Baba. Seeing Chinese names really rally too, 403 00:22:53,119 --> 00:22:55,119 Speaker 2: and we're higher since May twenty twenty four for this 404 00:22:55,160 --> 00:22:57,280 Speaker 2: particular name. And I leave you with PayPal because there 405 00:22:57,320 --> 00:23:00,480 Speaker 2: are some individual news around as well. PayPal, that button 406 00:23:00,600 --> 00:23:02,199 Speaker 2: is going to be there if you're buying with crimes. 407 00:23:02,240 --> 00:23:05,040 Speaker 2: So then sealing a deal with Amazon Mazooho really standing 408 00:23:05,160 --> 00:23:08,760 Speaker 2: like that. They are so important to the broader payment ecosystem. 409 00:23:08,960 --> 00:23:11,640 Speaker 5: What have you got ed? Let's head out to Latin America. 410 00:23:11,720 --> 00:23:16,240 Speaker 4: Elon Musk's X has found a workaround to bypass its 411 00:23:16,280 --> 00:23:20,200 Speaker 4: suspension in Brazil and paying the price. X was suddenly 412 00:23:20,240 --> 00:23:24,840 Speaker 4: back online after a software update used cloudfare ip addresses 413 00:23:25,320 --> 00:23:28,440 Speaker 4: to gain access Brazil's top called band X last month 414 00:23:28,640 --> 00:23:31,480 Speaker 4: after it refused to abide by certain standards. Now the 415 00:23:31,520 --> 00:23:34,960 Speaker 4: same court is implementing a nine hundred and twenty thousand 416 00:23:35,520 --> 00:23:40,560 Speaker 4: daily fine for skirting the band. Bloomberg's Andrew Rizzardi joins 417 00:23:40,640 --> 00:23:41,840 Speaker 4: us from Rio de Janeiro. 418 00:23:42,480 --> 00:23:45,399 Speaker 5: Okay, let's start with the workaround. How does it work? 419 00:23:49,560 --> 00:23:53,800 Speaker 9: It should have been a providers X change the way 420 00:23:53,880 --> 00:23:56,560 Speaker 9: it routes traffic on the site, and it's now using 421 00:23:58,200 --> 00:24:01,720 Speaker 9: IP addresses that are shared with really popular Brazilian websites 422 00:24:01,760 --> 00:24:06,040 Speaker 9: like bands and even government banks and even government websites. 423 00:24:06,440 --> 00:24:09,440 Speaker 9: So it's very hard for regulators to clamp down now 424 00:24:09,520 --> 00:24:11,639 Speaker 9: because if they do, that would imply that lots of 425 00:24:11,680 --> 00:24:16,880 Speaker 9: other popular websites would also be invertently blocked. So it's 426 00:24:16,920 --> 00:24:19,800 Speaker 9: really put many regulators in a difficult position here. 427 00:24:21,000 --> 00:24:25,480 Speaker 2: X has responded a spokesperson saying was inadvertent and temporary 428 00:24:25,520 --> 00:24:29,000 Speaker 2: service restoration to Brazilian users and we expect the platform 429 00:24:29,040 --> 00:24:32,760 Speaker 2: to be inaccessible again in Brazil soon. But this is 430 00:24:32,920 --> 00:24:35,280 Speaker 2: hest defines being laid down. 431 00:24:35,760 --> 00:24:37,960 Speaker 3: Is this usually the response from the Supreme Court. 432 00:24:39,960 --> 00:24:45,280 Speaker 9: The Supreme Court has specifically one Supreme Court judge Alexander 433 00:24:45,320 --> 00:24:49,080 Speaker 9: Nimris has been locked in a month's long feud with 434 00:24:49,400 --> 00:24:56,040 Speaker 9: Excess owner Elon Musk. The Supreme Court judge is heading 435 00:24:56,040 --> 00:24:58,600 Speaker 9: this campaign here, which he says is needed to clean 436 00:24:58,680 --> 00:25:01,560 Speaker 9: up the Internet and really take down a lot of 437 00:25:01,880 --> 00:25:06,719 Speaker 9: vitriol hate speech that has been really really spreading over 438 00:25:06,720 --> 00:25:07,159 Speaker 9: the last. 439 00:25:07,040 --> 00:25:08,040 Speaker 5: Few years in Brazil. 440 00:25:08,480 --> 00:25:12,040 Speaker 9: You know, Musk, for his part, has often referred to 441 00:25:12,080 --> 00:25:15,640 Speaker 9: himself as a free speech absolutists. So these are kind 442 00:25:15,640 --> 00:25:18,320 Speaker 9: of like two trains clashing with one in each other. 443 00:25:18,960 --> 00:25:21,640 Speaker 9: And this is just the latest twist in this long 444 00:25:21,680 --> 00:25:26,600 Speaker 9: standing feud. The Supreme Court has applied fines and on 445 00:25:27,200 --> 00:25:32,240 Speaker 9: must companies already for over content moderation, and we're seeing 446 00:25:32,240 --> 00:25:37,040 Speaker 9: an increasingly harsher tone and more threats to apply of 447 00:25:37,040 --> 00:25:38,320 Speaker 9: initial finds that we're seeing today. 448 00:25:39,560 --> 00:25:40,960 Speaker 5: Andy, you're in Rio. 449 00:25:41,640 --> 00:25:45,399 Speaker 4: How is this story being discussed in the local press? 450 00:25:45,400 --> 00:25:48,199 Speaker 4: What does social media use as a Brazil make of 451 00:25:48,240 --> 00:25:48,680 Speaker 4: all of it? 452 00:25:50,359 --> 00:25:55,040 Speaker 9: So yesterday or in late Tuesday or early Tuesday morning, 453 00:25:55,240 --> 00:25:58,639 Speaker 9: when these reports that XS coming back, you know, this 454 00:25:58,840 --> 00:26:02,639 Speaker 9: really stunned a lot of users in Brazil because the 455 00:26:02,680 --> 00:26:07,680 Speaker 9: band has been really widespread and for most aportutions, we 456 00:26:08,000 --> 00:26:10,359 Speaker 9: just simply not have access to the site anymore. So 457 00:26:10,400 --> 00:26:12,959 Speaker 9: people were really shocked. And there result of this speculation 458 00:26:13,200 --> 00:26:15,840 Speaker 9: that you know, maybe the band had been revoked, maybe 459 00:26:16,160 --> 00:26:21,439 Speaker 9: maybe Elon Musk had you kind of started to obey 460 00:26:21,480 --> 00:26:24,080 Speaker 9: the court orders and that other perhaps the band had 461 00:26:24,119 --> 00:26:27,920 Speaker 9: been revoked. So this is you know, a lot of 462 00:26:27,960 --> 00:26:29,679 Speaker 9: people were excited when it's back, but now you know, 463 00:26:29,760 --> 00:26:31,840 Speaker 9: we're kind of seeing that we're not may we may 464 00:26:31,920 --> 00:26:33,480 Speaker 9: not be any closer to seeing it come back. And 465 00:26:33,520 --> 00:26:35,120 Speaker 9: here in Brazil you. 466 00:26:35,119 --> 00:26:37,480 Speaker 2: Might be back with you soon, Andrew Rossatti, thank you 467 00:26:37,600 --> 00:26:40,800 Speaker 2: very much. Indeed, now Amazon has announced it's launching a 468 00:26:40,880 --> 00:26:45,880 Speaker 2: new AI assistant to online merchants's codenamed Project Emilia from 469 00:26:45,880 --> 00:26:48,800 Speaker 2: Albany Mergs. Matt Day joins us Another Day, another female 470 00:26:48,880 --> 00:26:51,160 Speaker 2: name for an AI generative AI chat. 471 00:26:51,200 --> 00:26:53,440 Speaker 3: But what is this going to do? Matt? 472 00:26:53,800 --> 00:26:55,800 Speaker 10: So this one is any of that Amazon sellers. That's 473 00:26:55,840 --> 00:26:58,120 Speaker 10: the you know, millions of people, you know, small businesses 474 00:26:58,119 --> 00:27:00,280 Speaker 10: in the US and Europe, a lot of manufacturers and 475 00:27:00,600 --> 00:27:03,800 Speaker 10: direct to consumer outfits out of China that sell on 476 00:27:03,840 --> 00:27:06,040 Speaker 10: Amazon's site. Right these folks account for most of the 477 00:27:06,080 --> 00:27:08,320 Speaker 10: sales Amazon makes around the world. 478 00:27:08,400 --> 00:27:09,720 Speaker 5: And now there's a tool that. 479 00:27:09,720 --> 00:27:11,159 Speaker 10: You know, if a seller has a question about their 480 00:27:11,200 --> 00:27:13,679 Speaker 10: inventory or what might sell well for the holidays, they 481 00:27:13,680 --> 00:27:16,280 Speaker 10: can just you know, use the chat but interface we're 482 00:27:16,280 --> 00:27:20,119 Speaker 10: also familiar with by now after chat GPT Matt. 483 00:27:19,880 --> 00:27:23,000 Speaker 4: We kind of take for granted how Amazon dot Com works, Right, 484 00:27:23,040 --> 00:27:25,600 Speaker 4: if you're a consumer, you're used to using the Prime app, 485 00:27:25,640 --> 00:27:27,720 Speaker 4: then you might not ever think about the merchant or 486 00:27:27,720 --> 00:27:30,840 Speaker 4: the seller. How does Amazon kind of invest in them 487 00:27:30,880 --> 00:27:33,000 Speaker 4: try to keep them on side. My understanding is like, 488 00:27:33,000 --> 00:27:36,040 Speaker 4: if you're approaching a busy holiday season, you asked the 489 00:27:36,080 --> 00:27:38,800 Speaker 4: tool that was showing on the screen, like, tell me 490 00:27:38,840 --> 00:27:39,720 Speaker 4: how to prepare for this? 491 00:27:39,880 --> 00:27:41,200 Speaker 5: How do I run my business? 492 00:27:42,560 --> 00:27:44,720 Speaker 10: Yeah, behind the scenes, Amazon is in sort of a 493 00:27:44,760 --> 00:27:47,440 Speaker 10: fever competition for sellers. And we all remember the rise 494 00:27:47,520 --> 00:27:50,119 Speaker 10: during the pandemic of Shopify and sort of direct to 495 00:27:50,160 --> 00:27:52,760 Speaker 10: consumer sites, brands selling on their own you know. Obviously 496 00:27:52,800 --> 00:27:56,639 Speaker 10: eBay is still out there, Walmart is courting independent merchants 497 00:27:56,640 --> 00:27:58,760 Speaker 10: that sell on its site, so it's target So there's 498 00:27:58,760 --> 00:28:00,840 Speaker 10: really a race right now to lock down folks who 499 00:28:00,880 --> 00:28:03,200 Speaker 10: just want online shelf space for lack of a better word, 500 00:28:03,359 --> 00:28:05,159 Speaker 10: and so Amazon, you know, has clearly felt in the 501 00:28:05,200 --> 00:28:08,320 Speaker 10: last few years despite their leaders the largest online marketplace, 502 00:28:08,480 --> 00:28:10,080 Speaker 10: that they have to keep investing in tools for those 503 00:28:10,080 --> 00:28:11,840 Speaker 10: sellers or else they might go elsewhere. Right, if they're 504 00:28:11,840 --> 00:28:14,680 Speaker 10: seeing returns on shopifire returns on Walmart, you know, maybe 505 00:28:14,680 --> 00:28:16,960 Speaker 10: they put a little bit less effort into Amazon. 506 00:28:17,200 --> 00:28:19,000 Speaker 3: That day for the latest We thank you. 507 00:28:19,440 --> 00:28:21,760 Speaker 2: Meanwhile, coming up, we're going to be hearing from Gary 508 00:28:21,800 --> 00:28:25,040 Speaker 2: Gensler and the potential risks he sees arising from the 509 00:28:25,119 --> 00:28:29,080 Speaker 2: use of AI that's in finance. Meanwhile, talking of other 510 00:28:29,119 --> 00:28:31,719 Speaker 2: areas of finance risk on and the world of crypto. 511 00:28:31,800 --> 00:28:34,480 Speaker 2: Right now, Bitcoin currently up almost five percent. We're are 512 00:28:34,520 --> 00:28:38,280 Speaker 2: clips in sixty three thousand having a strong day post 513 00:28:38,400 --> 00:28:39,360 Speaker 2: those fed Ray cuts. 514 00:28:39,640 --> 00:28:40,800 Speaker 3: This is blue meg technology. 515 00:28:52,480 --> 00:28:55,440 Speaker 4: If too many brokers and money managers use the same 516 00:28:55,560 --> 00:28:59,880 Speaker 4: AI for work, it could set the stage for market turmoil. 517 00:29:00,200 --> 00:29:03,680 Speaker 4: According to SEC chair Gary Gensler, who's fokes to Bloomberg's 518 00:29:03,680 --> 00:29:06,320 Speaker 4: remain boss stick and I still yesterday, I have listened 519 00:29:06,360 --> 00:29:06,560 Speaker 4: to this. 520 00:29:07,240 --> 00:29:09,640 Speaker 11: We've been automating for a long time. I mean, I'm 521 00:29:09,640 --> 00:29:11,480 Speaker 11: told that well over one hundred years ago there were 522 00:29:11,480 --> 00:29:13,840 Speaker 11: debates on whether to let telephones. 523 00:29:13,200 --> 00:29:14,960 Speaker 1: On the floor of the New York stock chain. 524 00:29:15,120 --> 00:29:19,720 Speaker 11: So automation is a good thing overall, but you're absolutely right, 525 00:29:19,760 --> 00:29:23,840 Speaker 11: we have to also make sure that we still protect 526 00:29:23,920 --> 00:29:28,600 Speaker 11: the investing public. In terms of artificial intelligence, I think 527 00:29:28,640 --> 00:29:31,920 Speaker 11: it could bring greater access and promote markets, but at 528 00:29:31,960 --> 00:29:33,760 Speaker 11: the same time we have to guard against. 529 00:29:33,560 --> 00:29:34,480 Speaker 1: Fraud and frauds. 530 00:29:34,560 --> 00:29:37,240 Speaker 11: Fraud, and whether you're using an algorithm to defraud the 531 00:29:37,240 --> 00:29:42,600 Speaker 11: market or your human is doing it, it's against the rules. 532 00:29:42,960 --> 00:29:46,240 Speaker 11: I do think that there's a challenge that the financial 533 00:29:46,280 --> 00:29:49,920 Speaker 11: crisis of the future might be that we say, oh, 534 00:29:49,920 --> 00:29:53,600 Speaker 11: my gosh, we were all relying on the same model, 535 00:29:53,720 --> 00:29:56,840 Speaker 11: the same algorithm, the same data. That's a challenge that 536 00:29:57,160 --> 00:30:00,560 Speaker 11: is on this guy's mind is how we sure there's 537 00:30:00,600 --> 00:30:05,000 Speaker 11: still a diversity of views sort of amongst it, that 538 00:30:05,080 --> 00:30:08,600 Speaker 11: the algorithms compete with each other, rather than all relying 539 00:30:08,680 --> 00:30:12,320 Speaker 11: on one. You know, you know, if you ever saw 540 00:30:12,360 --> 00:30:15,240 Speaker 11: that movie two thousand and four and everything one hal 541 00:30:15,440 --> 00:30:21,320 Speaker 11: or one big computer, like Scarlett Johansson was that romantic 542 00:30:21,400 --> 00:30:25,720 Speaker 11: interest in her and then when she went offline, all 543 00:30:25,800 --> 00:30:31,320 Speaker 11: eighty three hundred and sixteen of her romantic partners were heartbroken. 544 00:30:31,640 --> 00:30:33,719 Speaker 11: I don't want that to happen in the financial sector. 545 00:30:34,440 --> 00:30:38,520 Speaker 2: Weaving romance into the world of regulation. Sec j Gary 546 00:30:38,560 --> 00:30:42,040 Speaker 2: Genzer there speaking of AI and finance fintech style up 547 00:30:42,080 --> 00:30:45,200 Speaker 2: Intelligent Alpha is launching is a new investment firm designed 548 00:30:45,240 --> 00:30:48,400 Speaker 2: to capitalize on you guess it, artificial intelligence. Yesterday we 549 00:30:48,480 --> 00:30:52,240 Speaker 2: mentioned that it is offering a chatbot powered ETF, promising 550 00:30:52,280 --> 00:30:54,680 Speaker 2: to harness the brain power of the likes of Warren Buffett, 551 00:30:54,720 --> 00:30:57,920 Speaker 2: s dudyed Drcamilla, David Tepper, and Moore. Please to welcome 552 00:30:57,960 --> 00:31:01,600 Speaker 2: Doug Clinton, founder and cy of Intelligent Alpha. So you 553 00:31:01,680 --> 00:31:06,320 Speaker 2: have an investment committee of chatbots claud chatchept and they're like, 554 00:31:06,520 --> 00:31:07,440 Speaker 2: what inputs have. 555 00:31:07,400 --> 00:31:09,280 Speaker 3: You been giving them? What have you been getting out 556 00:31:09,360 --> 00:31:10,520 Speaker 3: to design this ETF. 557 00:31:10,880 --> 00:31:13,760 Speaker 12: Well, we give them inputs to help them understand how 558 00:31:13,840 --> 00:31:16,920 Speaker 12: humans actually think about investing. And I can speak directly 559 00:31:16,960 --> 00:31:19,760 Speaker 12: to what we just heard Chairman Genzler say. I mean, Carolyn, 560 00:31:19,800 --> 00:31:22,200 Speaker 12: this is a question that we get from investors, actually, 561 00:31:22,280 --> 00:31:25,440 Speaker 12: won't AI just all do the same thing? And our research, 562 00:31:25,480 --> 00:31:28,440 Speaker 12: our studying over the past year, is that the answers no, 563 00:31:28,760 --> 00:31:32,960 Speaker 12: they don't, because our technology really depends on the inputs 564 00:31:33,000 --> 00:31:35,800 Speaker 12: and the philosophy that you try to give the AI 565 00:31:35,920 --> 00:31:38,840 Speaker 12: to act on its investments. With so you can make 566 00:31:38,880 --> 00:31:41,680 Speaker 12: it think like a Warren Buffett and be very value conscious, 567 00:31:41,800 --> 00:31:44,200 Speaker 12: or you can make it think like an aggressive growth investor. 568 00:31:44,640 --> 00:31:47,160 Speaker 12: No matter what you want to do, AI can be adaptable, 569 00:31:47,440 --> 00:31:49,160 Speaker 12: and I think that's why we're not going to see 570 00:31:49,160 --> 00:31:50,880 Speaker 12: AI sort of do all the same thing. It's going 571 00:31:50,960 --> 00:31:52,680 Speaker 12: to be very different like human investors are. 572 00:31:52,840 --> 00:31:55,200 Speaker 2: So I'm assuming you've been testing this all in beta 573 00:31:55,240 --> 00:31:59,000 Speaker 2: before you offer the ETF to the world. This investment committee, 574 00:31:59,200 --> 00:32:01,959 Speaker 2: I'm sure you will come clean with didn't get the 575 00:32:02,000 --> 00:32:04,160 Speaker 2: FED cut right. Thought it would be a twenty five 576 00:32:04,200 --> 00:32:06,200 Speaker 2: basis point cut. Don't get me wrong. A lot of 577 00:32:06,200 --> 00:32:09,440 Speaker 2: people got it wrong. But what have they been getting right? 578 00:32:09,480 --> 00:32:11,560 Speaker 2: What output have you seen in terms of their stock 579 00:32:11,600 --> 00:32:13,040 Speaker 2: picking that's been interesting? 580 00:32:13,360 --> 00:32:14,560 Speaker 5: AI is fallible. 581 00:32:14,560 --> 00:32:16,920 Speaker 12: It did get the rate cut wrong. It did predict 582 00:32:17,000 --> 00:32:19,120 Speaker 12: that we'll get a skip in November, which I still 583 00:32:19,160 --> 00:32:21,400 Speaker 12: think is interesting. I mean, a fifty basis point cut. 584 00:32:21,640 --> 00:32:23,840 Speaker 12: Maybe the FED was actually kind of thinking there's a 585 00:32:23,920 --> 00:32:26,200 Speaker 12: chance where we just want to be aggressive and see 586 00:32:26,200 --> 00:32:29,080 Speaker 12: how things go and maybe they will skip to AI's prediction. 587 00:32:29,520 --> 00:32:30,320 Speaker 5: But in terms of what. 588 00:32:30,280 --> 00:32:32,800 Speaker 12: We're seeing from AI right now in our first fund 589 00:32:32,800 --> 00:32:35,800 Speaker 12: that we just launched, yesterday, the Intelligent liver More ETF 590 00:32:35,840 --> 00:32:40,080 Speaker 12: the tickers livr. AI is focused on a few different areas, 591 00:32:40,080 --> 00:32:43,360 Speaker 12: so AI is actually one area it likes, It likes itself. 592 00:32:43,680 --> 00:32:47,440 Speaker 12: It's also focused on Asia, Latin America and defensive stocks. 593 00:32:47,520 --> 00:32:50,560 Speaker 12: And so what we've created, or what our committee has created, 594 00:32:50,600 --> 00:32:53,640 Speaker 12: really is a portfolio that's sort of balanced between offense 595 00:32:54,040 --> 00:32:57,000 Speaker 12: and defense. Offense with those AI names and then defense 596 00:32:57,040 --> 00:32:59,800 Speaker 12: with things like healthcare and consumer stables. 597 00:33:00,960 --> 00:33:05,960 Speaker 4: Hello, Doug, familiar face to the show, new name. What 598 00:33:06,080 --> 00:33:10,120 Speaker 4: does Warren Buffett, Stanley Drucamilla, and David Tepper think about this? 599 00:33:10,320 --> 00:33:13,320 Speaker 5: Have you spoken to them? Good to see to ed. 600 00:33:13,640 --> 00:33:16,760 Speaker 12: I have not spoken to any of those three, and 601 00:33:16,800 --> 00:33:19,200 Speaker 12: I'd be curious to hear what they do think of 602 00:33:19,680 --> 00:33:23,719 Speaker 12: AI as it pertains to affecting the investment markets. And 603 00:33:24,120 --> 00:33:26,960 Speaker 12: the reality is this, though, when we think about what 604 00:33:27,040 --> 00:33:29,320 Speaker 12: does the future look like, I mean, we're the first 605 00:33:29,320 --> 00:33:33,000 Speaker 12: form we think to use LMS to try to invest 606 00:33:33,360 --> 00:33:37,560 Speaker 12: completely with no human intervention. I think they would be 607 00:33:37,880 --> 00:33:40,479 Speaker 12: interested to learn about how they do think like humans. 608 00:33:40,520 --> 00:33:42,320 Speaker 12: And if you read the readings of a buffet, if 609 00:33:42,320 --> 00:33:45,280 Speaker 12: you read the readings of Stan Druckenmiller, a lot of 610 00:33:45,280 --> 00:33:48,920 Speaker 12: what they talk about is really managing emotion. That's one 611 00:33:48,960 --> 00:33:51,800 Speaker 12: of their secrets, and I think that's one of AI's superpowers. 612 00:33:52,760 --> 00:33:54,720 Speaker 5: I actually really want to drin into the mechanics of it. 613 00:33:54,800 --> 00:33:54,920 Speaker 11: You know. 614 00:33:55,040 --> 00:33:57,880 Speaker 4: I think about my own interaction with generative AI tools, 615 00:33:57,920 --> 00:34:01,320 Speaker 4: and they can only recall what's within the database that 616 00:34:01,320 --> 00:34:02,040 Speaker 4: they were trained on. 617 00:34:02,160 --> 00:34:03,040 Speaker 5: Most of the time. 618 00:34:03,400 --> 00:34:08,240 Speaker 4: It's like asking what the weather is to GBT voice assist, 619 00:34:08,320 --> 00:34:09,600 Speaker 4: and it's saying, well, I can't tell you what it 620 00:34:09,640 --> 00:34:12,560 Speaker 4: is right now, only what it has been historically. How 621 00:34:12,600 --> 00:34:15,680 Speaker 4: does that work in an investment case, like how would 622 00:34:16,040 --> 00:34:19,759 Speaker 4: Warren Buffett have approached one particular name. 623 00:34:19,880 --> 00:34:22,600 Speaker 5: Just explain the system. 624 00:34:22,400 --> 00:34:26,640 Speaker 12: Absolutely, There's two key pieces of information that we input 625 00:34:26,680 --> 00:34:29,560 Speaker 12: into the models that we use. One piece of information 626 00:34:29,719 --> 00:34:32,560 Speaker 12: is sort of an investment selection universe. So if we 627 00:34:32,600 --> 00:34:36,040 Speaker 12: want to build a portfolio around large cap US stocks, 628 00:34:36,320 --> 00:34:38,920 Speaker 12: we'll have that data set and will include things like 629 00:34:39,080 --> 00:34:43,640 Speaker 12: historical performance, will include forward estimates, and then in addition 630 00:34:43,680 --> 00:34:46,799 Speaker 12: to that, will also include a philosophy that we sort 631 00:34:46,800 --> 00:34:49,080 Speaker 12: of curate again going back to if we want an 632 00:34:49,080 --> 00:34:52,319 Speaker 12: AI to think like Warren Buffett, we curate a philosophy 633 00:34:52,600 --> 00:34:56,360 Speaker 12: around that based on his writings based on things he said, 634 00:34:56,680 --> 00:34:58,960 Speaker 12: and when we combine those two pieces of information, which 635 00:34:59,000 --> 00:35:02,200 Speaker 12: can be current information, that's how we end up getting 636 00:35:02,320 --> 00:35:03,360 Speaker 12: our committee to act. 637 00:35:04,440 --> 00:35:07,120 Speaker 2: That has been innovation going on at all of these 638 00:35:07,200 --> 00:35:10,960 Speaker 2: large language model providers. We think of one now happening 639 00:35:11,080 --> 00:35:14,280 Speaker 2: with open AI and the idea that they're going to think, 640 00:35:15,680 --> 00:35:20,440 Speaker 2: how will your own investment committee improve a just change 641 00:35:20,640 --> 00:35:23,480 Speaker 2: as innovations happen in the underlying large language models too. 642 00:35:23,680 --> 00:35:25,800 Speaker 12: Yeah, Caroline, I think that's one of the most exciting 643 00:35:25,840 --> 00:35:28,239 Speaker 12: parts of using AI as an investor. And I know 644 00:35:28,280 --> 00:35:30,480 Speaker 12: Sam Malton has this quote which is a little double 645 00:35:30,520 --> 00:35:33,680 Speaker 12: sided for us, which is the models you're using today 646 00:35:33,719 --> 00:35:36,359 Speaker 12: are the dumbest models you ever have to use. So 647 00:35:36,560 --> 00:35:39,319 Speaker 12: the disappointing thing is he's calling these models dumb. We 648 00:35:39,360 --> 00:35:42,080 Speaker 12: don't think they're dumb because our testing shows that they're 649 00:35:42,200 --> 00:35:45,200 Speaker 12: very effective as investors. But the upside to that is 650 00:35:45,200 --> 00:35:47,879 Speaker 12: that these models only get smarter from here. We think 651 00:35:47,920 --> 00:35:51,880 Speaker 12: about one advanced reasoning capabilities. I think as we see 652 00:35:51,880 --> 00:35:55,080 Speaker 12: that kind of permeate these other models that we use, 653 00:35:55,280 --> 00:35:58,480 Speaker 12: like Claude, like Gemini, I think the committee continues to 654 00:35:58,480 --> 00:35:59,439 Speaker 12: get smarter over time. 655 00:36:00,520 --> 00:36:04,160 Speaker 4: Doug very very quick, do you pay your license from 656 00:36:04,200 --> 00:36:05,480 Speaker 4: the LM providers. 657 00:36:06,440 --> 00:36:09,480 Speaker 12: We do use their APIs, so we do pay for 658 00:36:09,560 --> 00:36:11,600 Speaker 12: the usage of that technology. 659 00:36:12,960 --> 00:36:15,600 Speaker 4: Intelligent Alpha CEO Doug Clinton, good to see you again. 660 00:36:15,680 --> 00:36:17,799 Speaker 4: Thank you for coming back on the show. Some more 661 00:36:17,880 --> 00:36:21,280 Speaker 4: news and Ampare, the chip startup back by Larry Ellison's Oracle, 662 00:36:21,719 --> 00:36:25,040 Speaker 4: is exploring a potential sale. This according to sources who 663 00:36:25,080 --> 00:36:27,480 Speaker 4: say the chip designer has been working with a financial 664 00:36:27,480 --> 00:36:31,000 Speaker 4: advisor in recent months to help field takeover interests, and 665 00:36:31,040 --> 00:36:34,040 Speaker 4: the Ampare is open to talking with a larger industry 666 00:36:34,040 --> 00:36:46,799 Speaker 4: player about a possible transaction. John Collison co founded one 667 00:36:46,800 --> 00:36:50,239 Speaker 4: of the most valuable private companies in the country, Stripe. 668 00:36:50,480 --> 00:36:53,359 Speaker 4: Now Collison and his team are expanding the company its 669 00:36:53,360 --> 00:36:57,360 Speaker 4: offerings while continuing to shrug off the question of an IPO. 670 00:36:57,520 --> 00:37:00,600 Speaker 4: He spoke about that on the David Rubens Sin Show. 671 00:37:00,800 --> 00:37:01,399 Speaker 5: Listen to this. 672 00:37:02,960 --> 00:37:06,480 Speaker 13: Some tech companies. Maybe a lot of tech companies go 673 00:37:06,600 --> 00:37:08,960 Speaker 13: public a bit too early. And what I mean by 674 00:37:08,960 --> 00:37:12,799 Speaker 13: that is in Strip's case, I mean we still see 675 00:37:13,080 --> 00:37:16,279 Speaker 13: tons of opportunity to change and. 676 00:37:16,600 --> 00:37:17,879 Speaker 5: Grow the business quite a lot. 677 00:37:18,000 --> 00:37:22,800 Speaker 13: We're still constantly inventing new products and developing new business lines. 678 00:37:22,920 --> 00:37:25,240 Speaker 13: And also you can do that in the public markets. 679 00:37:25,480 --> 00:37:27,319 Speaker 13: But I think culturally we. 680 00:37:27,280 --> 00:37:27,920 Speaker 3: Have ended up. 681 00:37:28,320 --> 00:37:30,680 Speaker 13: You know, you look at analysts following public companies and 682 00:37:30,719 --> 00:37:33,200 Speaker 13: obsessing over guidance and what will be this quarter and 683 00:37:33,200 --> 00:37:33,799 Speaker 13: things like that. 684 00:37:34,000 --> 00:37:36,120 Speaker 5: Culturally we've ended up. I think in a bit more of. 685 00:37:36,120 --> 00:37:39,920 Speaker 13: A world where public companies are suited for the extract 686 00:37:40,120 --> 00:37:44,719 Speaker 13: stage of the sigmoid curve rather than the expand stage. 687 00:37:45,120 --> 00:37:47,400 Speaker 2: Stripe co founder or president John Collison. There you can 688 00:37:47,480 --> 00:37:50,480 Speaker 2: catch a full interview from the David Rubins sideshow at 689 00:37:50,480 --> 00:37:54,240 Speaker 2: Bloomberg dot com. Let's talk elsewhere and venture because virtual 690 00:37:54,280 --> 00:37:57,120 Speaker 2: care clinic mini Health just finished its Series B funning 691 00:37:57,200 --> 00:37:59,480 Speaker 2: round back in April. If a sixty million dollars was 692 00:37:59,560 --> 00:38:01,480 Speaker 2: raised into Day's quick. 693 00:38:01,280 --> 00:38:03,840 Speaker 3: Growth is luring some really high profile. 694 00:38:03,400 --> 00:38:06,880 Speaker 2: Investors, including the likes of actor Amy Schumer, designer Tory Birch, 695 00:38:06,920 --> 00:38:09,719 Speaker 2: not to mention a whole raft of tech names you 696 00:38:09,800 --> 00:38:12,480 Speaker 2: will know and we've had on the show. Mindiell CEO, 697 00:38:12,600 --> 00:38:15,840 Speaker 2: Joanna Struber joins us. Now it's a who's who in 698 00:38:15,920 --> 00:38:18,160 Speaker 2: what is a special purpose vehicle that was set up 699 00:38:18,680 --> 00:38:21,440 Speaker 2: for what reason? Why did you want these women, in 700 00:38:21,480 --> 00:38:24,600 Speaker 2: particular Johanna to be signing up to your to back 701 00:38:24,680 --> 00:38:25,240 Speaker 2: your company. 702 00:38:26,239 --> 00:38:30,040 Speaker 14: So over seventy million women are in perimenopause and menopause, 703 00:38:30,160 --> 00:38:34,320 Speaker 14: and it is a massively underserved market and essentially women 704 00:38:34,360 --> 00:38:36,600 Speaker 14: don't get the care that they deserve to help them 705 00:38:36,640 --> 00:38:40,000 Speaker 14: to thrive as they age after they have children. So 706 00:38:40,120 --> 00:38:41,680 Speaker 14: what we really wanted to do is go out and 707 00:38:41,719 --> 00:38:45,480 Speaker 14: target the smartest women in the country in business, entertainment 708 00:38:46,120 --> 00:38:48,200 Speaker 14: athletes and get them to all help and join in 709 00:38:48,239 --> 00:38:50,480 Speaker 14: our cause. And we really do view this as a mission. 710 00:38:51,040 --> 00:38:53,680 Speaker 14: It is both a company that's expanding really rapidly, but 711 00:38:53,719 --> 00:38:56,120 Speaker 14: also a mission to serve women, and so we wanted 712 00:38:56,160 --> 00:38:57,200 Speaker 14: to have them to join us. 713 00:38:57,800 --> 00:38:59,120 Speaker 3: You've got an investor group. 714 00:38:59,160 --> 00:39:01,280 Speaker 2: Now, of course women a thirty five to sixty plus 715 00:39:01,320 --> 00:39:04,520 Speaker 2: forty percent people of color, You've got diversity. There is 716 00:39:04,560 --> 00:39:06,440 Speaker 2: this marketing. Are they going to go out and be 717 00:39:06,560 --> 00:39:09,200 Speaker 2: your biggest backers, Are they going to preach the world 718 00:39:09,239 --> 00:39:11,960 Speaker 2: of mini health or what are the reasons you go 719 00:39:12,040 --> 00:39:13,360 Speaker 2: to these particular people. 720 00:39:13,680 --> 00:39:15,960 Speaker 14: Well, so part of it is marketing. They give us feedback. 721 00:39:16,000 --> 00:39:17,839 Speaker 14: There are patients. They give us feedback on what we're 722 00:39:17,880 --> 00:39:20,040 Speaker 14: doing well and what we're not. They give us suggestions 723 00:39:20,040 --> 00:39:22,120 Speaker 14: on AI and how we use AI. 724 00:39:22,239 --> 00:39:23,720 Speaker 3: To better scale our product. 725 00:39:24,200 --> 00:39:27,840 Speaker 14: We're getting marketing advice from really amazing celebrities who know 726 00:39:27,880 --> 00:39:30,239 Speaker 14: how to build a brand. So really what we're doing 727 00:39:30,360 --> 00:39:33,759 Speaker 14: is getting their expertise as well as their support while 728 00:39:33,760 --> 00:39:34,680 Speaker 14: we're building the company. 729 00:39:36,000 --> 00:39:38,320 Speaker 4: John, it's almost a year to the day since you 730 00:39:38,560 --> 00:39:40,880 Speaker 4: actually announced your Series A and at that time, the 731 00:39:40,920 --> 00:39:45,279 Speaker 4: big focus for you guys was I guess onboarding clinicians 732 00:39:45,360 --> 00:39:49,000 Speaker 4: who had expertise in women's health. How much of that 733 00:39:49,120 --> 00:39:51,600 Speaker 4: is now the focus in growing the business or have 734 00:39:51,680 --> 00:39:53,800 Speaker 4: you moved on to the technology expansion. 735 00:39:54,719 --> 00:39:54,959 Speaker 3: Yeah. 736 00:39:54,960 --> 00:39:57,800 Speaker 14: So we have over two hundred providers, probably two hundred 737 00:39:57,800 --> 00:40:00,279 Speaker 14: and fifty providers right now who are providing care, and 738 00:40:00,320 --> 00:40:02,680 Speaker 14: now we are using technology to make sure that we 739 00:40:02,760 --> 00:40:07,160 Speaker 14: scale their care appropriately. We use AI to make sure 740 00:40:07,200 --> 00:40:09,440 Speaker 14: that we monitor them, to make sure that we give 741 00:40:09,480 --> 00:40:12,279 Speaker 14: them the right feedback. We add new protocols, so we 742 00:40:12,320 --> 00:40:15,920 Speaker 14: are using technology to scale the care. But essentially we 743 00:40:16,000 --> 00:40:19,320 Speaker 14: are fundamentally a care company. Our job is to talk 744 00:40:19,360 --> 00:40:22,760 Speaker 14: to people, to have those conversations and listen to women. 745 00:40:23,160 --> 00:40:25,160 Speaker 3: So it is not just about technology. 746 00:40:25,239 --> 00:40:28,080 Speaker 14: The technology is enabling us to scale, but we really 747 00:40:28,080 --> 00:40:31,960 Speaker 14: focus on the care that we're providing, not solely on technology, 748 00:40:31,960 --> 00:40:34,680 Speaker 14: but instead on making sure that our providers are able 749 00:40:34,680 --> 00:40:36,520 Speaker 14: to best listen and take care of the women who 750 00:40:36,520 --> 00:40:37,000 Speaker 14: come to us. 751 00:40:37,800 --> 00:40:41,680 Speaker 4: Yeah, increasingly in our household we have a digital relationship 752 00:40:41,760 --> 00:40:44,280 Speaker 4: with our healthcare providers, you know, either through an app, 753 00:40:45,200 --> 00:40:49,160 Speaker 4: but always the issue is the insurance component, particularly in 754 00:40:49,200 --> 00:40:49,960 Speaker 4: this country. 755 00:40:50,160 --> 00:40:51,120 Speaker 5: How do you manage that? 756 00:40:51,480 --> 00:40:54,800 Speaker 4: It can be a real frustration, particularly in the United States, 757 00:40:54,840 --> 00:40:56,799 Speaker 4: when people just want digital care. 758 00:40:57,320 --> 00:40:57,560 Speaker 5: Yeah. 759 00:40:57,600 --> 00:41:01,160 Speaker 14: So we care deeply about democratizing access to great care 760 00:41:01,239 --> 00:41:02,799 Speaker 14: and the way we have to do that is through 761 00:41:02,840 --> 00:41:05,400 Speaker 14: insurance coverage. So by the end of this year, we 762 00:41:05,400 --> 00:41:08,840 Speaker 14: should have seventy percent of all women on PPO plans 763 00:41:08,880 --> 00:41:11,680 Speaker 14: covered under our platform. 764 00:41:11,120 --> 00:41:12,840 Speaker 3: And next year we will have Medicare. 765 00:41:12,960 --> 00:41:16,640 Speaker 14: So we just care deeply that women have access to 766 00:41:16,680 --> 00:41:18,880 Speaker 14: this care and insurance needs to pay for it. So 767 00:41:18,960 --> 00:41:20,719 Speaker 14: that is how the entire company is structured. 768 00:41:21,360 --> 00:41:24,799 Speaker 2: Sixty three million Series B five million SPV. That's a 769 00:41:24,800 --> 00:41:29,719 Speaker 2: lot of money where to allocate. Is it talent, is 770 00:41:29,760 --> 00:41:33,160 Speaker 2: it actually getting out then lobbying, informing people that you 771 00:41:33,239 --> 00:41:35,160 Speaker 2: need to make these deals when it comes to insurance. 772 00:41:35,280 --> 00:41:36,239 Speaker 3: Yeah, it's all those things. 773 00:41:36,280 --> 00:41:38,040 Speaker 14: I mean, it costs us millions of dollars just to 774 00:41:38,040 --> 00:41:41,200 Speaker 14: set up the platform, to get the insurance companies on board, 775 00:41:41,239 --> 00:41:43,839 Speaker 14: to set up the credentialing, and then to create our 776 00:41:43,880 --> 00:41:46,480 Speaker 14: care protocols and be sure that we have doctors who 777 00:41:46,520 --> 00:41:48,560 Speaker 14: are helping us to create new protocols. So as we 778 00:41:48,600 --> 00:41:51,120 Speaker 14: look at the longevity space, if we look at the 779 00:41:51,160 --> 00:41:54,239 Speaker 14: breask survivorship space, so we work on creating new care 780 00:41:54,239 --> 00:41:56,400 Speaker 14: protocols as women come to us and have new needs, 781 00:41:56,960 --> 00:42:00,000 Speaker 14: and then training our providers and making sure that they're 782 00:41:59,920 --> 00:42:01,640 Speaker 14: able to give expert care. 783 00:42:01,800 --> 00:42:03,920 Speaker 3: So it is there's a lot. 784 00:42:03,800 --> 00:42:05,880 Speaker 14: That goes into scaling and that's really where most of 785 00:42:05,920 --> 00:42:06,680 Speaker 14: our money is going. 786 00:42:06,960 --> 00:42:08,960 Speaker 2: Well, keep us up to speed with the journey. We 787 00:42:09,040 --> 00:42:12,760 Speaker 2: appreciate you coming on, Johanna Stroma of Mini Health. Meanwhile, 788 00:42:12,920 --> 00:42:15,120 Speaker 2: that does it for this edition of Bloomberg Technology Ed. 789 00:42:15,360 --> 00:42:17,440 Speaker 2: Once again we go from public to private and it's 790 00:42:17,480 --> 00:42:18,520 Speaker 2: a big day for the markets. 791 00:42:19,120 --> 00:42:20,640 Speaker 5: Yeah, a massive day for the markets. 792 00:42:20,640 --> 00:42:22,680 Speaker 4: You know, I think people still now ask the next question, 793 00:42:23,280 --> 00:42:25,160 Speaker 4: what happens next, and it's hard to know in the 794 00:42:25,160 --> 00:42:28,040 Speaker 4: context of a recession for tech or the rate path 795 00:42:28,080 --> 00:42:31,680 Speaker 4: per tech. Really really tight pack show recap on the podcast. 796 00:42:31,920 --> 00:42:34,280 Speaker 4: You know exactly where to find it on the terminal 797 00:42:34,560 --> 00:42:37,520 Speaker 4: and online on all the platforms you recognize, Apple, Spotify, 798 00:42:37,840 --> 00:42:40,320 Speaker 4: and iHeart. From the team out in New York City, 799 00:42:40,600 --> 00:42:42,080 Speaker 4: the team here in San Francisco. 800 00:42:42,440 --> 00:42:43,880 Speaker 5: This is Bloomberg Technology.