Speaker 1: From Mahart where Innovation, Money and power Collie in Silicon Valley, NBN.
Speaker 1: This is Bloomberg Technology with Caroline Hyde and Ed Ludlow.
Speaker 2: Live from New York and San Francisco. This is Bloomberg
Speaker 2: Technology and take it outperforms. The stocks jump on the
Speaker 2: jumbo FED rate cut.
Speaker 3: We talk megacaps on the move.
Speaker 4: Plus Apple gets an EU warning to open up its
Speaker 4: iPhone operating system and Elon.
Speaker 3: Musk's X is back on in Brazil.
Speaker 2: How the platform bypassed a ban through a software update.
Speaker 2: But first let's check in on these markets because risk
Speaker 2: assets are up and to the right, we've finally found
Speaker 2: that bid post the FED rate cut of some fifty
Speaker 2: basis points and we raw high the best day in
Speaker 2: at least a month for the Nasdaq one hundred up
Speaker 2: almost two and a half percent, and Crypto two getting
Speaker 2: its mojo on four and a half percent. If you're
Speaker 2: looking at Bitcoin and ed, you're going to look at
Speaker 2: the megacaps.
Speaker 4: Yeah, I mean the biggest percentage end points gainers on
Speaker 4: the NAZAQ one hundred are the megacaps. And a lot
Speaker 4: of investors have come on this show and said when
Speaker 4: it comes to tech, there will be a recalculation around valuation.
Speaker 4: But actually a lot of the conversation this morning is
Speaker 4: we're going to avoid a recession, and that always comes
Speaker 4: up in the context of megacaps.
Speaker 5: They're a very diverse group, particularly Tesla.
Speaker 4: Right, how much is Elon Musk talks about the impact
Speaker 4: of higher rates on EV sales? Not that Elon Musk
Speaker 4: and Tesla are going to be focused on the business
Speaker 4: of selling cars for much longer.
Speaker 2: Carry That's the one thing that we've got to be
Speaker 2: keeping an eye on when it comes to Tesla. When
Speaker 2: it comes to cars, the robotax is the future. But
Speaker 2: for the here and then now, should megacaps be roaring.
Speaker 2: Let's talk to Zachary Hill, head of portfolio management and
Speaker 2: Horizon Investments eight million dollars in assets under management. We're
Speaker 2: going to discuss first and foremost the rate cut. What
Speaker 2: does it mean for these names that we've been so
Speaker 2: used to leading the market higher?
Speaker 1: Sure, Carolin, thanks for having me.
Speaker 6: You know, it's been quite twenty four hours, you know,
Speaker 6: after that supersized rate cut, which most people in the
Speaker 6: market US included expected to be fifty basis points, although
Speaker 6: economists were skewed more towards the twenty five camp.
Speaker 1: You know, we saw some mixed price action and overnight it.
Speaker 6: Looked like we were going to get a biable dip,
Speaker 6: and coming in this morning, things look quite a bit different.
Speaker 6: And so we do think that overall the trend is higher.
Speaker 6: Kind of look through some of this short term noise
Speaker 6: and as it relates to the top of the market,
Speaker 6: we do believe now for the first time in about
Speaker 6: eighteen months, that the market could really broaden out in
Speaker 6: a meaningful way. And so, you know, not giving up
Speaker 6: on the AI theme in the megacaps in general, they're
Speaker 6: outstanding companies, but I do think we have a little
Speaker 6: bit of a window for the rest of the market to.
Speaker 1: Catch up here.
Speaker 2: Okay, when you say broaden out, you mean small caps
Speaker 2: more broadly, or is there a way to broaden out
Speaker 2: the technology investment theme.
Speaker 1: Yeah, we like doing it across both vectors.
Speaker 6: Actually, you know, in terms of the expression of the
Speaker 6: AI trade, kind of moving away from the semiconductor because
Speaker 6: if you just look at the kind of the charred
Speaker 6: patterns there and just the overall narrative, it seems a
Speaker 6: little bit exhausted relative you know, to some other some
Speaker 6: of the other players in the growth space. Also, I
Speaker 6: do think, as you mentioned, small caps, you know, they
Speaker 6: have a window here where they can work. Regional banks
Speaker 6: is another part of the market that we like. That's
Speaker 6: probably going to be more of a trade for us.
Speaker 6: But we do think, you know, the fact that rates
Speaker 6: are coming down, growth is still strong, and the next
Speaker 6: move by the FED is going to be a cut.
Speaker 6: We can quibble about that's twenty five or fifty when
Speaker 6: that when that occurs, at the end of the day,
Speaker 6: we don't really think that matters as much for the
Speaker 6: broader picture. So those are two different areas we're playing
Speaker 6: that broadened out theme within US equity exposure.
Speaker 4: So, Zachary, with that in mind, why is it the
Speaker 4: semiconductor names and mega caps that are rallying hard this morning?
Speaker 6: Yeah, that's that's a great question, you know, and I
Speaker 6: don't have a really spot on answer for you now.
Speaker 6: I mean, I would just say, broadly speaking, over the
Speaker 6: last three weeks, we've seen a lot of volatility in
Speaker 6: these names, you know, speaking for the kind of the
Speaker 6: most popular stock in the world in video. You know,
Speaker 6: we saw earnings they were really good, but not as
Speaker 6: good as people have come to expect. We got kind
Speaker 6: of a delayed reaction on that stock the following week,
Speaker 6: and then reverse the following week. So there's just been
Speaker 6: a lot of back and forth, broadly speaking, and that's
Speaker 6: another reason that we think broadening out makes sense, just
Speaker 6: because the volatility of this trade has gotten higher, it's
Speaker 6: gotten more difficult to hold, and so from a risk
Speaker 6: adjusted perspective, you know, we think it makes sense to
Speaker 6: look outside of just the tip of the spear that's
Speaker 6: really been driving us for the last eighteen months.
Speaker 4: Your second point earlier is that rates are going to
Speaker 4: come down, and we can debate the increments going forward
Speaker 4: and look at the dots through the end of next year.
Speaker 4: But a quite reasonable question for many technology investors is
Speaker 4: what had actually changed between July and yesterday, Right, A
Speaker 4: fifty basis point cut yesterday and nothing through the summer,
Speaker 4: And that, for you guys in the markets must be
Speaker 4: difficult to calculate.
Speaker 6: Yeah, it is difficult, and you have to play a
Speaker 6: little bit of criminology with what's going on, you know,
Speaker 6: within the FOMC, I mean, you know, our our read
Speaker 6: of it is, I think Chair Pal, who's more dubvish
Speaker 6: than the committee.
Speaker 1: More broadly, he wanted to cut rates in July, but couldn't.
Speaker 6: Get anyone there, and so you know, the actions that
Speaker 6: we saw in the blackout period to kind of move
Speaker 6: the market towards a fifty basis pointcut, that that was
Speaker 6: indicative of Chair Pal kind of trying to make up
Speaker 6: for you know, what didn't happen in July. You know,
Speaker 6: I think one of the reasons that Stockston rally initially
Speaker 6: yesterday after everything was released in the afternoon is that
Speaker 6: it's pretty clear the committee is more split than we thought.
Speaker 6: And so, you know, the almost half the committee wrote
Speaker 6: down only one further cut you know, this year, which
Speaker 6: is quite a bit different than where the market is priced,
Speaker 6: and so, you know, I do think there'll be some
Speaker 6: back and forth on that, but broadly speaking, you know,
Speaker 6: the messages if the labor market continues to slow down
Speaker 6: into an area where we start to get concerned, the
Speaker 6: FED will be more aggressive. And the fact that we
Speaker 6: have that FED put back in scope, something we haven't
Speaker 6: had for about two and a half three years, I
Speaker 6: think that's really important thing that you can lose sight
Speaker 6: of if you're you know, just in the day to
Speaker 6: day trying to explain hour by hour.
Speaker 3: Moves, Zachary.
Speaker 2: This isn't just the central Bank to the US, it's
Speaker 2: the central bank to the world, and we're seeing risk
Speaker 2: assets rally across the world. What about European tech ASML
Speaker 2: the best performer from a points perspective in Europe today?
Speaker 3: What about Japanese tech?
Speaker 6: Yeah, I mean, we do continue to think the story
Speaker 6: is better in the US than abroad. You know that
Speaker 6: a lot of that just has to do with the
Speaker 6: innate innovation and the structure of our capital markets versus
Speaker 6: the rest of the world. But we do think there's
Speaker 6: some opportunity in Japan. You know, that's more of a
Speaker 6: medium term story in terms of structural reforms and a
Speaker 6: really really cheap currency that can be a tailwind to
Speaker 6: US investors. We're starting to see the end correct, you know,
Speaker 6: quite a bit over the last over the last few months,
Speaker 6: and we think that is a favorable trend that will
Speaker 6: continue there. But broadly speaking, we do we do like
Speaker 6: to express this theme more within the US, you know,
Speaker 6: talking about the European angle more more broadly. I do
Speaker 6: think it's a little bit wild that there's only about
Speaker 6: a twenty five percent chance that the ECB cuts rates
Speaker 6: in October. You know, if you look at the growth trajectory,
Speaker 6: you look at the inflation dynamics, I really think they've
Speaker 6: been just waiting for some air cover from the FED,
Speaker 6: and so I think that's something the market may start
Speaker 6: to think about, you know, over the next few weeks.
Speaker 6: And you know, from a currency perspective, certainly that wouldn't
Speaker 6: be you know, beneficial for for European equities.
Speaker 5: Zachary.
Speaker 4: Let's conclude our conversation with an important question for technology
Speaker 4: investors and the technology industry around the world.
Speaker 5: Recession or no recession.
Speaker 1: Yeah, this this one's pretty clear, no recession.
Speaker 6: You know, our framework has long been do not bet
Speaker 6: against the US consumer that is employed. So we've been focused,
Speaker 6: laser focused on the labor market, and our read there
Speaker 6: is we're just coming back to normal from a period
Speaker 6: of extreme strength. Certainly, we're paying attention to the data
Speaker 6: flow as they come in and marking that.
Speaker 1: To market, you know, every day.
Speaker 6: But you know, broadly speaking, that has been our view
Speaker 6: and continues to be our view. And we think that
Speaker 6: plus the fact that the next move from the FED
Speaker 6: and other global center banks are going to be cuts,
Speaker 6: is going to buy as equities higher into the end
Speaker 6: of the year.
Speaker 4: Zachary Hill from Horizon Investment. It's great to have you
Speaker 4: here on bloom Bed Technology. Thank you very much. Like
Speaker 4: coming up on the show, we joined by the Latvia
Speaker 4: president Eggars Rinkovic about his visit to San Francisco Silicon
Speaker 4: Valley meetings with technology companies now in the markets carried.
Speaker 4: There are some single name moves that we've got to cover.
Speaker 3: We do in Intel, the Mobile I are among them.
Speaker 2: Ed Intel oup almost three percent Mobile I as you'll
Speaker 2: see jumping some fifteen percent. This is as it seems,
Speaker 2: Intel will not be currently planning to divest a majority
Speaker 2: interest in the microsoftware and hardware tech for autos. They
Speaker 2: believe in the future of autonomous driving technology.
Speaker 3: This is brumot technology.
Speaker 2: Apple it's been warned by the European Union to open
Speaker 2: up it's highly guarded iPhone and iPad operating systems to
Speaker 2: rival technologies or eventually risk some significant finds under its
Speaker 2: flagship digital antitrust rules. Plimos, jian Or Picelli joins us
Speaker 2: Now and John. How serious is this warning?
Speaker 3: How likely our fines.
Speaker 7: Hil I mean, this is not an investigation yet. It's
Speaker 7: something called specification proceedings, meaning that it is a step
Speaker 7: shy of an actual investigation. In a statement, the Commissioner
Speaker 7: for Competition, Margaret Vistaya, said that the intent is guiding
Speaker 7: Apple on the way to interoperability, so there is still
Speaker 7: some time for Apple to disconcerts. For sure. If nothing
Speaker 7: changes over the next six months, there might be steps,
Speaker 7: there might be consequences, but right now it's not as
Speaker 7: serious as it could be.
Speaker 4: Yet genders some misunderstanding about the technology side of this story.
Speaker 4: For example, in Europe, Apple is held back some of
Speaker 4: its latest features due to compliance what it sees as
Speaker 4: a compliance issue with the DMA. But the idea is
Speaker 4: not that you take a Samsung phone or a Gaomi
Speaker 4: phone and you suddenly have iOS on It just explain
Speaker 4: the basics of what they want Apple to do.
Speaker 7: But what I understand is a couple of things. It
Speaker 7: is essentially allowing developers to access features of iOS that
Speaker 7: right now work only with Apple software. I think for instance,
Speaker 7: of Siri, Siri is of course something that only works
Speaker 7: with it in the Apple ecosystem. Technically, you could imagine
Speaker 7: a developer wanting to access some features so sirey for
Speaker 7: its own app on of course, the iOS ecosystem or
Speaker 7: payment features. Some payment features only work within Apple apps,
Speaker 7: Apple software. And that's another thing. One thing that also
Speaker 7: the Commission addresses is interoperability of devices against Some features,
Speaker 7: for instance of Siri only are accessible to, for instance,
Speaker 7: devices such as the airports or other Apple types of gear.
Speaker 7: And so we want, I mean the European Union would
Speaker 7: want ideally that to change and be accessible to other devices.
Speaker 5: Bloomberg Gimbobicelli out of Brussels.
Speaker 4: Thank you very much. Now we have a visitor from
Speaker 4: the European Union. Edgar Rinkovic, the president of Latvia, is
Speaker 4: in San Francisco. He's meeting with tech companies like open Ai,
Speaker 4: Meta and Google. He'll also meet with California Governor Gavin
Speaker 4: Newsom an investment firm Apollo. President Rikovich joins me here
Speaker 4: in San Francisco. Good morning, President, Thank you for being here.
Speaker 4: You heard from our colleague in Brussels, the latest piece
Speaker 4: of EU oversight of a large American technology company. There's
Speaker 4: also sort of a personnel consideration. Hennah Verkinen will become
Speaker 4: an important leader in Europe when it comes to tech.
Speaker 5: What is Latvia's attitude to.
Speaker 4: The policy side, but also the new people at the top.
Speaker 8: Well, actually we have heard the proposal from the President
Speaker 8: of the European Commission about the new commissioners. I do
Speaker 8: believe that this is quite balanced proposal. But let's not
Speaker 8: forget that European Parliament still needs to approve each and
Speaker 8: every commissioner. There is going to be a grilling. But
Speaker 8: I do hope that the new Commission is going to
Speaker 8: be very much focused on competitiveness of the European Union.
Speaker 8: I think defense and security is going to play a
Speaker 8: huge role also when it comes to the new budget.
Speaker 8: And then indeed, we have new issues. You already mentioned
Speaker 8: about a couple of my meetings. Also we have those.
Speaker 4: Well those meetings, Miss President meta open Ai.
Speaker 5: Those are today.
Speaker 8: I'm just starting from this morning meeting with others.
Speaker 5: What's your ambition for those meetings, mister President.
Speaker 8: There are actually two big issues. One latterly is striving
Speaker 8: to become one of the i would say pioneers and
Speaker 8: leaders of artificial intelligence in the European Union. We are
Speaker 8: now creating our National Artificial Intelligence Center that is a
Speaker 8: private public partnership. Actually the idea started from security concerns,
Speaker 8: but now we have expanded it not only to include
Speaker 8: security like deep fakes, like interference intellections, but also in
Speaker 8: order to create a competitive environment and two take let's
Speaker 8: say lead in this matter. And one thing that I'm
Speaker 8: going to discuss and look at is the way how
Speaker 8: we can cooperate. We already have very good cooperation with
Speaker 8: Google withri meta, and we very much hope to expand it.
Speaker 8: So that's one second. Indeed, I do believe that it
Speaker 8: is very important that we discuss how we are going
Speaker 8: to address artificial intelligence social media. You know, all those
Speaker 8: discussions whether we should view them as challenges or opportunities.
Speaker 8: I'm still trying to find a way how to find
Speaker 8: a middle ground and being the part of the European Union,
Speaker 8: of course, to influence also the.
Speaker 2: Discussion President, is more regulation necessary when it comes to
Speaker 2: AI and social media?
Speaker 3: Well, this is.
Speaker 8: A very tough question. I do believe that if we
Speaker 8: look at some challenges have seen the use of social media,
Speaker 8: artificial intelligence for this information de fakes, interference in elections,
Speaker 8: I think we need some framework. But at the same time,
Speaker 8: and this is sometimes a challenge for the European Union
Speaker 8: and about the European Union. Let's face it, we sometimes
Speaker 8: back in Europe get overly regulatory. Sometimes we believe that
Speaker 8: here in the United States there is too much liberal approach.
Speaker 8: So from that point of view, I would say that
Speaker 8: the balance to you some regulation, especially when it comes
Speaker 8: to serious issues the crime, political interference. Yes, we do
Speaker 8: need rules, but let's not overreact. Also here let's.
Speaker 2: Talk about serious issues at the moment that the you
Speaker 2: and your country in particular faces when it comes to
Speaker 2: Russia and armed Russia. Understand and drone recently crashed in Latvia.
Speaker 2: How should NATO respond to this sort of technology two drones?
Speaker 3: Should they shoot them down? What is your view?
Speaker 8: Well, actually, this is a really very good question because
Speaker 8: also as part of my visit I've been in NASA,
Speaker 8: we were talking about the corporation in Aronautics, in drone industry.
Speaker 8: My country also leads drone coalition that is supportive of Ukraine.
Speaker 8: But when we talk about defense, I do believe that
Speaker 8: we currently lack common approach in NATO. We have already
Speaker 8: three countries my country, Latvia, Romania, Poland where we have
Speaker 8: seen drones crushed. Investigation is still ongoing, but there is
Speaker 8: a great reason to suspect that Shahid type drone was
Speaker 8: actually flowing applying from Ukraine. Seeing wellados sound simply crushed.
Speaker 8: My belief is, yes, we need to shut down those dronts.
Speaker 8: We need to give more air defense equipment to Ukraine.
Speaker 8: But also back in NATO, we are talking about the
Speaker 8: need to increase also NATO presence when it comes to
Speaker 8: air defense in so called eastern flanks. So yes, NATO
Speaker 8: must adapt to the new reality and we must shot
Speaker 8: down drones. We must protect the territory of the alliance.
Speaker 4: Mister President, Latvia has has a role here because of
Speaker 4: its location, it's geographic proximity to what's happening. A big
Speaker 4: question asked of leaders across the European Union is what
Speaker 4: to do next and weather. From a technology and weapons standpoint,
Speaker 4: there is an argument to approve the use of sort
Speaker 4: of longer range technology to go into Russia in support
Speaker 4: of Ukraine doing such an action.
Speaker 5: What is your policy on.
Speaker 8: That, well, I think it would be very surprising if
Speaker 8: I would be saying that we have to be cautious. No,
Speaker 8: the longstanding view of Latin government, my personal view is
Speaker 8: that when it comes to Ukraine, when it comes to
Speaker 8: support for Ukraine, we must allow using all weapons, all
Speaker 8: weapons systems, that we provide to Ukraine unconditionally. I don't
Speaker 8: believe in that talk about escalation. Yes, we hear a
Speaker 8: noise from Moscow, but if you look back at the
Speaker 8: beginning of the invasion in February twenty twenty two, we
Speaker 8: have heard that kind of messages from Moscow, and actually
Speaker 8: what is happening. When Russia escalates, Ukraine is not able
Speaker 8: to respond. But when Ukraine gets weapons and is able
Speaker 8: to respond, actually Russia is not escalating, It actually de escalates.
Speaker 8: My own firm belief is that we must change the
Speaker 8: narrative from we must help Ukraine deal or whatever it takes,
Speaker 8: or how long it takes, two we must help Ukraine until.
Speaker 2: There no diplomatic breakthrough to the deadlock. We've got much
Speaker 2: of that being discussed in a presidential election race here
Speaker 2: in the United States.
Speaker 8: I think that there is already some political process. We
Speaker 8: had peace summit in Switzerland in June. President Zelenski is
Speaker 8: talking about another peace summit, maybe somewhere in November, maybe
Speaker 8: after US elections. But I do believe that diplomatic breaks
Speaker 8: through or political process can start only when Russia sees
Speaker 8: that it cannot move forward. That we are supporting Ukraine
Speaker 8: and that it needs to sit at the table.
Speaker 3: It's not.
Speaker 8: For Ukrainians currently to call the first shot, it's actually
Speaker 8: for Russia. But I also think that it's not going
Speaker 8: to be any political process until yes elections. Most probably
Speaker 8: we can talk about some kind of political process or
Speaker 8: some kind of diplomatic efforts next year. But here I
Speaker 8: think that we also should not make mistake. If we start,
Speaker 8: let's say, putting some kind of limitations on Ukraine, then
Speaker 8: we are not going to see Russia willing to sit
Speaker 8: at the table. Just the opposite.
Speaker 4: This present, we have less than a minute. You'll meet
Speaker 4: with Apollo, You'll meet with open Ai. I'm curious if
Speaker 4: you want to attract investment infrastructure like data center talent
Speaker 4: in your country.
Speaker 8: Absolutely, that's one of the things that we are going
Speaker 8: to talk about attracting investment. Yesterday I had the event
Speaker 8: where some of our startups were pitching for investment. I
Speaker 8: think they were doing great. There was quite an interest,
Speaker 8: and yes, I will be doing my best bet also
Speaker 8: to attract talents, investment. Get partnership is open AI and
Speaker 8: other companies.
Speaker 3: We wish you well with those meetings.
Speaker 2: We thank a few of time today, President of Latvia
Speaker 2: eggers Nkovic.
Speaker 5: It's time for talking tech and first up.
Speaker 4: Open Ai has hired former Corsera executive Leah Belski as
Speaker 4: its first General Manager of Education, leading the AI startups
Speaker 4: efforts in bringing its products to schools and classrooms. Belskuwer's
Speaker 4: formerly chief revenue officer of Courserah Class. Microsoft president Brad
Speaker 4: Smith issues a warning of US election meddling, telling the
Speaker 4: Intelligence Committee that foreign interference will likely surge in the
Speaker 4: final forty eight hours before the election. The hearing comes
Speaker 4: after a Microsoft report found Russian efforts to influence the
Speaker 4: election and Germany's EV market plunges, with deliveries falling sixty
Speaker 4: nine percent in August. Carmakers now calling on the European
Speaker 4: Commission for urgent relief and revisions to its fleet emission
Speaker 4: targets that could have Europe's auto industry facing hefty fines.
Speaker 2: Welcome back to Blue Meg Technology. I'm Caroline Hide in
Speaker 2: New York.
Speaker 5: And I'm ed love Low in San Francisco.
Speaker 2: Le's get a tech on these markets, said, because we
Speaker 2: are powering higher on the back of that FED rate cut,
Speaker 2: we are now having a very strong day, best since
Speaker 2: in a month. Really for the Nasdaq one hundred. But
Speaker 2: so too are global stocks feeling the risk on vibes.
Speaker 2: And we're looking at the European tech industry doing very well.
Speaker 2: They're closing up their training on the day, we're up
Speaker 2: three point four percent for that part.
Speaker 3: Of the stock six hundred.
Speaker 2: Move on, look at the individual movers because look, we've
Speaker 2: got the megacaps that we've known and loved and have
Speaker 2: done so well even in a rate higher environment, still
Speaker 2: doing well as rates get cut. We're up five percent
Speaker 2: for Nvidia, where Ali Baba. Seeing Chinese names really rally too,
Speaker 2: and we're higher since May twenty twenty four for this
Speaker 2: particular name. And I leave you with PayPal because there
Speaker 2: are some individual news around as well. PayPal, that button
Speaker 2: is going to be there if you're buying with crimes.
Speaker 2: So then sealing a deal with Amazon Mazooho really standing
Speaker 2: like that. They are so important to the broader payment ecosystem.
Speaker 5: What have you got ed? Let's head out to Latin America.
Speaker 4: Elon Musk's X has found a workaround to bypass its
Speaker 4: suspension in Brazil and paying the price. X was suddenly
Speaker 4: back online after a software update used cloudfare ip addresses
Speaker 4: to gain access Brazil's top called band X last month
Speaker 4: after it refused to abide by certain standards. Now the
Speaker 4: same court is implementing a nine hundred and twenty thousand
Speaker 4: daily fine for skirting the band. Bloomberg's Andrew Rizzardi joins
Speaker 4: us from Rio de Janeiro.
Speaker 5: Okay, let's start with the workaround. How does it work?
Speaker 9: It should have been a providers X change the way
Speaker 9: it routes traffic on the site, and it's now using
Speaker 9: IP addresses that are shared with really popular Brazilian websites
Speaker 9: like bands and even government banks and even government websites.
Speaker 9: So it's very hard for regulators to clamp down now
Speaker 9: because if they do, that would imply that lots of
Speaker 9: other popular websites would also be invertently blocked. So it's
Speaker 9: really put many regulators in a difficult position here.
Speaker 2: X has responded a spokesperson saying was inadvertent and temporary
Speaker 2: service restoration to Brazilian users and we expect the platform
Speaker 2: to be inaccessible again in Brazil soon. But this is
Speaker 2: hest defines being laid down.
Speaker 3: Is this usually the response from the Supreme Court.
Speaker 9: The Supreme Court has specifically one Supreme Court judge Alexander
Speaker 9: Nimris has been locked in a month's long feud with
Speaker 9: Excess owner Elon Musk. The Supreme Court judge is heading
Speaker 9: this campaign here, which he says is needed to clean
Speaker 9: up the Internet and really take down a lot of
Speaker 9: vitriol hate speech that has been really really spreading over
Speaker 9: the last.
Speaker 5: Few years in Brazil.
Speaker 9: You know, Musk, for his part, has often referred to
Speaker 9: himself as a free speech absolutists. So these are kind
Speaker 9: of like two trains clashing with one in each other.
Speaker 9: And this is just the latest twist in this long
Speaker 9: standing feud. The Supreme Court has applied fines and on
Speaker 9: must companies already for over content moderation, and we're seeing
Speaker 9: an increasingly harsher tone and more threats to apply of
Speaker 9: initial finds that we're seeing today.
Speaker 5: Andy, you're in Rio.
Speaker 4: How is this story being discussed in the local press?
Speaker 4: What does social media use as a Brazil make of
Speaker 4: all of it?
Speaker 9: So yesterday or in late Tuesday or early Tuesday morning,
Speaker 9: when these reports that XS coming back, you know, this
Speaker 9: really stunned a lot of users in Brazil because the
Speaker 9: band has been really widespread and for most aportutions, we
Speaker 9: just simply not have access to the site anymore. So
Speaker 9: people were really shocked. And there result of this speculation
Speaker 9: that you know, maybe the band had been revoked, maybe
Speaker 9: maybe Elon Musk had you kind of started to obey
Speaker 9: the court orders and that other perhaps the band had
Speaker 9: been revoked. So this is you know, a lot of
Speaker 9: people were excited when it's back, but now you know,
Speaker 9: we're kind of seeing that we're not may we may
Speaker 9: not be any closer to seeing it come back. And
Speaker 9: here in Brazil you.
Speaker 2: Might be back with you soon, Andrew Rossatti, thank you
Speaker 2: very much. Indeed, now Amazon has announced it's launching a
Speaker 2: new AI assistant to online merchants's codenamed Project Emilia from
Speaker 2: Albany Mergs. Matt Day joins us Another Day, another female
Speaker 2: name for an AI generative AI chat.
Speaker 3: But what is this going to do? Matt?
Speaker 10: So this one is any of that Amazon sellers. That's
Speaker 10: the you know, millions of people, you know, small businesses
Speaker 10: in the US and Europe, a lot of manufacturers and
Speaker 10: direct to consumer outfits out of China that sell on
Speaker 10: Amazon's site. Right these folks account for most of the
Speaker 10: sales Amazon makes around the world.
Speaker 5: And now there's a tool that.
Speaker 10: You know, if a seller has a question about their
Speaker 10: inventory or what might sell well for the holidays, they
Speaker 10: can just you know, use the chat but interface we're
Speaker 10: also familiar with by now after chat GPT Matt.
Speaker 4: We kind of take for granted how Amazon dot Com works, Right,
Speaker 4: if you're a consumer, you're used to using the Prime app,
Speaker 4: then you might not ever think about the merchant or
Speaker 4: the seller. How does Amazon kind of invest in them
Speaker 4: try to keep them on side. My understanding is like,
Speaker 4: if you're approaching a busy holiday season, you asked the
Speaker 4: tool that was showing on the screen, like, tell me
Speaker 4: how to prepare for this?
Speaker 5: How do I run my business?
Speaker 10: Yeah, behind the scenes, Amazon is in sort of a
Speaker 10: fever competition for sellers. And we all remember the rise
Speaker 10: during the pandemic of Shopify and sort of direct to
Speaker 10: consumer sites, brands selling on their own you know. Obviously
Speaker 10: eBay is still out there, Walmart is courting independent merchants
Speaker 10: that sell on its site, so it's target So there's
Speaker 10: really a race right now to lock down folks who
Speaker 10: just want online shelf space for lack of a better word,
Speaker 10: and so Amazon, you know, has clearly felt in the
Speaker 10: last few years despite their leaders the largest online marketplace,
Speaker 10: that they have to keep investing in tools for those
Speaker 10: sellers or else they might go elsewhere. Right, if they're
Speaker 10: seeing returns on shopifire returns on Walmart, you know, maybe
Speaker 10: they put a little bit less effort into Amazon.
Speaker 3: That day for the latest We thank you.
Speaker 2: Meanwhile, coming up, we're going to be hearing from Gary
Speaker 2: Gensler and the potential risks he sees arising from the
Speaker 2: use of AI that's in finance. Meanwhile, talking of other
Speaker 2: areas of finance risk on and the world of crypto.
Speaker 2: Right now, Bitcoin currently up almost five percent. We're are
Speaker 2: clips in sixty three thousand having a strong day post
Speaker 2: those fed Ray cuts.
Speaker 3: This is blue meg technology.
Speaker 4: If too many brokers and money managers use the same
Speaker 4: AI for work, it could set the stage for market turmoil.
Speaker 4: According to SEC chair Gary Gensler, who's fokes to Bloomberg's
Speaker 4: remain boss stick and I still yesterday, I have listened
Speaker 4: to this.
Speaker 11: We've been automating for a long time. I mean, I'm
Speaker 11: told that well over one hundred years ago there were
Speaker 11: debates on whether to let telephones.
Speaker 1: On the floor of the New York stock chain.
Speaker 11: So automation is a good thing overall, but you're absolutely right,
Speaker 11: we have to also make sure that we still protect
Speaker 11: the investing public. In terms of artificial intelligence, I think
Speaker 11: it could bring greater access and promote markets, but at
Speaker 11: the same time we have to guard against.
Speaker 1: Fraud and frauds.
Speaker 11: Fraud, and whether you're using an algorithm to defraud the
Speaker 11: market or your human is doing it, it's against the rules.
Speaker 11: I do think that there's a challenge that the financial
Speaker 11: crisis of the future might be that we say, oh,
Speaker 11: my gosh, we were all relying on the same model,
Speaker 11: the same algorithm, the same data. That's a challenge that
Speaker 11: is on this guy's mind is how we sure there's
Speaker 11: still a diversity of views sort of amongst it, that
Speaker 11: the algorithms compete with each other, rather than all relying
Speaker 11: on one. You know, you know, if you ever saw
Speaker 11: that movie two thousand and four and everything one hal
Speaker 11: or one big computer, like Scarlett Johansson was that romantic
Speaker 11: interest in her and then when she went offline, all
Speaker 11: eighty three hundred and sixteen of her romantic partners were heartbroken.
Speaker 11: I don't want that to happen in the financial sector.
Speaker 2: Weaving romance into the world of regulation. Sec j Gary
Speaker 2: Genzer there speaking of AI and finance fintech style up
Speaker 2: Intelligent Alpha is launching is a new investment firm designed
Speaker 2: to capitalize on you guess it, artificial intelligence. Yesterday we
Speaker 2: mentioned that it is offering a chatbot powered ETF, promising
Speaker 2: to harness the brain power of the likes of Warren Buffett,
Speaker 2: s dudyed Drcamilla, David Tepper, and Moore. Please to welcome
Speaker 2: Doug Clinton, founder and cy of Intelligent Alpha. So you
Speaker 2: have an investment committee of chatbots claud chatchept and they're like,
Speaker 2: what inputs have.
Speaker 3: You been giving them? What have you been getting out
Speaker 3: to design this ETF.
Speaker 12: Well, we give them inputs to help them understand how
Speaker 12: humans actually think about investing. And I can speak directly
Speaker 12: to what we just heard Chairman Genzler say. I mean, Carolyn,
Speaker 12: this is a question that we get from investors, actually,
Speaker 12: won't AI just all do the same thing? And our research,
Speaker 12: our studying over the past year, is that the answers no,
Speaker 12: they don't, because our technology really depends on the inputs
Speaker 12: and the philosophy that you try to give the AI
Speaker 12: to act on its investments. With so you can make
Speaker 12: it think like a Warren Buffett and be very value conscious,
Speaker 12: or you can make it think like an aggressive growth investor.
Speaker 12: No matter what you want to do, AI can be adaptable,
Speaker 12: and I think that's why we're not going to see
Speaker 12: AI sort of do all the same thing. It's going
Speaker 12: to be very different like human investors are.
Speaker 2: So I'm assuming you've been testing this all in beta
Speaker 2: before you offer the ETF to the world. This investment committee,
Speaker 2: I'm sure you will come clean with didn't get the
Speaker 2: FED cut right. Thought it would be a twenty five
Speaker 2: basis point cut. Don't get me wrong. A lot of
Speaker 2: people got it wrong. But what have they been getting right?
Speaker 2: What output have you seen in terms of their stock
Speaker 2: picking that's been interesting?
Speaker 5: AI is fallible.
Speaker 12: It did get the rate cut wrong. It did predict
Speaker 12: that we'll get a skip in November, which I still
Speaker 12: think is interesting. I mean, a fifty basis point cut.
Speaker 12: Maybe the FED was actually kind of thinking there's a
Speaker 12: chance where we just want to be aggressive and see
Speaker 12: how things go and maybe they will skip to AI's prediction.
Speaker 5: But in terms of what.
Speaker 12: We're seeing from AI right now in our first fund
Speaker 12: that we just launched, yesterday, the Intelligent liver More ETF
Speaker 12: the tickers livr. AI is focused on a few different areas,
Speaker 12: so AI is actually one area it likes, It likes itself.
Speaker 12: It's also focused on Asia, Latin America and defensive stocks.
Speaker 12: And so what we've created, or what our committee has created,
Speaker 12: really is a portfolio that's sort of balanced between offense
Speaker 12: and defense. Offense with those AI names and then defense
Speaker 12: with things like healthcare and consumer stables.
Speaker 4: Hello, Doug, familiar face to the show, new name. What
Speaker 4: does Warren Buffett, Stanley Drucamilla, and David Tepper think about this?
Speaker 5: Have you spoken to them? Good to see to ed.
Speaker 12: I have not spoken to any of those three, and
Speaker 12: I'd be curious to hear what they do think of
Speaker 12: AI as it pertains to affecting the investment markets. And
Speaker 12: the reality is this, though, when we think about what
Speaker 12: does the future look like, I mean, we're the first
Speaker 12: form we think to use LMS to try to invest
Speaker 12: completely with no human intervention. I think they would be
Speaker 12: interested to learn about how they do think like humans.
Speaker 12: And if you read the readings of a buffet, if
Speaker 12: you read the readings of Stan Druckenmiller, a lot of
Speaker 12: what they talk about is really managing emotion. That's one
Speaker 12: of their secrets, and I think that's one of AI's superpowers.
Speaker 5: I actually really want to drin into the mechanics of it.
Speaker 11: You know.
Speaker 4: I think about my own interaction with generative AI tools,
Speaker 4: and they can only recall what's within the database that
Speaker 4: they were trained on.
Speaker 5: Most of the time.
Speaker 4: It's like asking what the weather is to GBT voice assist,
Speaker 4: and it's saying, well, I can't tell you what it
Speaker 4: is right now, only what it has been historically. How
Speaker 4: does that work in an investment case, like how would
Speaker 4: Warren Buffett have approached one particular name.
Speaker 5: Just explain the system.
Speaker 12: Absolutely, There's two key pieces of information that we input
Speaker 12: into the models that we use. One piece of information
Speaker 12: is sort of an investment selection universe. So if we
Speaker 12: want to build a portfolio around large cap US stocks,
Speaker 12: we'll have that data set and will include things like
Speaker 12: historical performance, will include forward estimates, and then in addition
Speaker 12: to that, will also include a philosophy that we sort
Speaker 12: of curate again going back to if we want an
Speaker 12: AI to think like Warren Buffett, we curate a philosophy
Speaker 12: around that based on his writings based on things he said,
Speaker 12: and when we combine those two pieces of information, which
Speaker 12: can be current information, that's how we end up getting
Speaker 12: our committee to act.
Speaker 2: That has been innovation going on at all of these
Speaker 2: large language model providers. We think of one now happening
Speaker 2: with open AI and the idea that they're going to think,
Speaker 2: how will your own investment committee improve a just change
Speaker 2: as innovations happen in the underlying large language models too.
Speaker 12: Yeah, Caroline, I think that's one of the most exciting
Speaker 12: parts of using AI as an investor. And I know
Speaker 12: Sam Malton has this quote which is a little double
Speaker 12: sided for us, which is the models you're using today
Speaker 12: are the dumbest models you ever have to use. So
Speaker 12: the disappointing thing is he's calling these models dumb. We
Speaker 12: don't think they're dumb because our testing shows that they're
Speaker 12: very effective as investors. But the upside to that is
Speaker 12: that these models only get smarter from here. We think
Speaker 12: about one advanced reasoning capabilities. I think as we see
Speaker 12: that kind of permeate these other models that we use,
Speaker 12: like Claude, like Gemini, I think the committee continues to
Speaker 12: get smarter over time.
Speaker 4: Doug very very quick, do you pay your license from
Speaker 4: the LM providers.
Speaker 12: We do use their APIs, so we do pay for
Speaker 12: the usage of that technology.
Speaker 4: Intelligent Alpha CEO Doug Clinton, good to see you again.
Speaker 4: Thank you for coming back on the show. Some more
Speaker 4: news and Ampare, the chip startup back by Larry Ellison's Oracle,
Speaker 4: is exploring a potential sale. This according to sources who
Speaker 4: say the chip designer has been working with a financial
Speaker 4: advisor in recent months to help field takeover interests, and
Speaker 4: the Ampare is open to talking with a larger industry
Speaker 4: player about a possible transaction. John Collison co founded one
Speaker 4: of the most valuable private companies in the country, Stripe.
Speaker 4: Now Collison and his team are expanding the company its
Speaker 4: offerings while continuing to shrug off the question of an IPO.
Speaker 4: He spoke about that on the David Rubens Sin Show.
Speaker 5: Listen to this.
Speaker 13: Some tech companies. Maybe a lot of tech companies go
Speaker 13: public a bit too early. And what I mean by
Speaker 13: that is in Strip's case, I mean we still see
Speaker 13: tons of opportunity to change and.
Speaker 5: Grow the business quite a lot.
Speaker 13: We're still constantly inventing new products and developing new business lines.
Speaker 13: And also you can do that in the public markets.
Speaker 13: But I think culturally we.
Speaker 3: Have ended up.
Speaker 13: You know, you look at analysts following public companies and
Speaker 13: obsessing over guidance and what will be this quarter and
Speaker 13: things like that.
Speaker 5: Culturally we've ended up. I think in a bit more of.
Speaker 13: A world where public companies are suited for the extract
Speaker 13: stage of the sigmoid curve rather than the expand stage.
Speaker 2: Stripe co founder or president John Collison. There you can
Speaker 2: catch a full interview from the David Rubins sideshow at
Speaker 2: Bloomberg dot com. Let's talk elsewhere and venture because virtual
Speaker 2: care clinic mini Health just finished its Series B funning
Speaker 2: round back in April. If a sixty million dollars was
Speaker 2: raised into Day's quick.
Speaker 3: Growth is luring some really high profile.
Speaker 2: Investors, including the likes of actor Amy Schumer, designer Tory Birch,
Speaker 2: not to mention a whole raft of tech names you
Speaker 2: will know and we've had on the show. Mindiell CEO,
Speaker 2: Joanna Struber joins us. Now it's a who's who in
Speaker 2: what is a special purpose vehicle that was set up
Speaker 2: for what reason? Why did you want these women, in
Speaker 2: particular Johanna to be signing up to your to back
Speaker 2: your company.
Speaker 14: So over seventy million women are in perimenopause and menopause,
Speaker 14: and it is a massively underserved market and essentially women
Speaker 14: don't get the care that they deserve to help them
Speaker 14: to thrive as they age after they have children. So
Speaker 14: what we really wanted to do is go out and
Speaker 14: target the smartest women in the country in business, entertainment
Speaker 14: athletes and get them to all help and join in
Speaker 14: our cause. And we really do view this as a mission.
Speaker 14: It is both a company that's expanding really rapidly, but
Speaker 14: also a mission to serve women, and so we wanted
Speaker 14: to have them to join us.
Speaker 3: You've got an investor group.
Speaker 2: Now, of course women a thirty five to sixty plus
Speaker 2: forty percent people of color, You've got diversity. There is
Speaker 2: this marketing. Are they going to go out and be
Speaker 2: your biggest backers, Are they going to preach the world
Speaker 2: of mini health or what are the reasons you go
Speaker 2: to these particular people.
Speaker 14: Well, so part of it is marketing. They give us feedback.
Speaker 14: There are patients. They give us feedback on what we're
Speaker 14: doing well and what we're not. They give us suggestions
Speaker 14: on AI and how we use AI.
Speaker 3: To better scale our product.
Speaker 14: We're getting marketing advice from really amazing celebrities who know
Speaker 14: how to build a brand. So really what we're doing
Speaker 14: is getting their expertise as well as their support while
Speaker 14: we're building the company.
Speaker 4: John, it's almost a year to the day since you
Speaker 4: actually announced your Series A and at that time, the
Speaker 4: big focus for you guys was I guess onboarding clinicians
Speaker 4: who had expertise in women's health. How much of that
Speaker 4: is now the focus in growing the business or have
Speaker 4: you moved on to the technology expansion.
Speaker 3: Yeah.
Speaker 14: So we have over two hundred providers, probably two hundred
Speaker 14: and fifty providers right now who are providing care, and
Speaker 14: now we are using technology to make sure that we
Speaker 14: scale their care appropriately. We use AI to make sure
Speaker 14: that we monitor them, to make sure that we give
Speaker 14: them the right feedback. We add new protocols, so we
Speaker 14: are using technology to scale the care. But essentially we
Speaker 14: are fundamentally a care company. Our job is to talk
Speaker 14: to people, to have those conversations and listen to women.
Speaker 3: So it is not just about technology.
Speaker 14: The technology is enabling us to scale, but we really
Speaker 14: focus on the care that we're providing, not solely on technology,
Speaker 14: but instead on making sure that our providers are able
Speaker 14: to best listen and take care of the women who
Speaker 14: come to us.
Speaker 4: Yeah, increasingly in our household we have a digital relationship
Speaker 4: with our healthcare providers, you know, either through an app,
Speaker 4: but always the issue is the insurance component, particularly in
Speaker 4: this country.
Speaker 5: How do you manage that?
Speaker 4: It can be a real frustration, particularly in the United States,
Speaker 4: when people just want digital care.
Speaker 5: Yeah.
Speaker 14: So we care deeply about democratizing access to great care
Speaker 14: and the way we have to do that is through
Speaker 14: insurance coverage. So by the end of this year, we
Speaker 14: should have seventy percent of all women on PPO plans
Speaker 14: covered under our platform.
Speaker 3: And next year we will have Medicare.
Speaker 14: So we just care deeply that women have access to
Speaker 14: this care and insurance needs to pay for it. So
Speaker 14: that is how the entire company is structured.
Speaker 2: Sixty three million Series B five million SPV. That's a
Speaker 2: lot of money where to allocate. Is it talent, is
Speaker 2: it actually getting out then lobbying, informing people that you
Speaker 2: need to make these deals when it comes to insurance.
Speaker 3: Yeah, it's all those things.
Speaker 14: I mean, it costs us millions of dollars just to
Speaker 14: set up the platform, to get the insurance companies on board,
Speaker 14: to set up the credentialing, and then to create our
Speaker 14: care protocols and be sure that we have doctors who
Speaker 14: are helping us to create new protocols. So as we
Speaker 14: look at the longevity space, if we look at the
Speaker 14: breask survivorship space, so we work on creating new care
Speaker 14: protocols as women come to us and have new needs,
Speaker 14: and then training our providers and making sure that they're
Speaker 14: able to give expert care.
Speaker 3: So it is there's a lot.
Speaker 14: That goes into scaling and that's really where most of
Speaker 14: our money is going.
Speaker 2: Well, keep us up to speed with the journey. We
Speaker 2: appreciate you coming on, Johanna Stroma of Mini Health. Meanwhile,
Speaker 2: that does it for this edition of Bloomberg Technology Ed.
Speaker 2: Once again we go from public to private and it's
Speaker 2: a big day for the markets.
Speaker 5: Yeah, a massive day for the markets.
Speaker 4: You know, I think people still now ask the next question,
Speaker 4: what happens next, and it's hard to know in the
Speaker 4: context of a recession for tech or the rate path
Speaker 4: per tech. Really really tight pack show recap on the podcast.
Speaker 4: You know exactly where to find it on the terminal
Speaker 4: and online on all the platforms you recognize, Apple, Spotify,
Speaker 4: and iHeart. From the team out in New York City,
Speaker 4: the team here in San Francisco.
Speaker 5: This is Bloomberg Technology.