WEBVTT - Stocks Hit Highs and Apple's EU Warning 0:00:01.400 --> 0:00:06.680 From Mahart where Innovation, Money and power Collie in Silicon Valley, NBN. 0:00:07.040 --> 0:00:11.559 This is Bloomberg Technology with Caroline Hyde and Ed Ludlow. 0:00:25.160 --> 0:00:27.360 Live from New York and San Francisco. This is Bloomberg 0:00:27.400 --> 0:00:30.800 Technology and take it outperforms. The stocks jump on the 0:00:30.920 --> 0:00:32.440 jumbo FED rate cut. 0:00:32.680 --> 0:00:33.920 We talk megacaps on the move. 0:00:34.840 --> 0:00:38.040 Plus Apple gets an EU warning to open up its 0:00:38.040 --> 0:00:40.600 iPhone operating system and Elon. 0:00:40.400 --> 0:00:42.919 Musk's X is back on in Brazil. 0:00:43.320 --> 0:00:46.640 How the platform bypassed a ban through a software update. 0:00:46.680 --> 0:00:49.600 But first let's check in on these markets because risk 0:00:49.640 --> 0:00:52.440 assets are up and to the right, we've finally found 0:00:52.479 --> 0:00:54.840 that bid post the FED rate cut of some fifty 0:00:54.840 --> 0:00:56.840 basis points and we raw high the best day in 0:00:56.880 --> 0:00:58.840 at least a month for the Nasdaq one hundred up 0:00:58.840 --> 0:01:01.400 almost two and a half percent, and Crypto two getting 0:01:01.440 --> 0:01:03.440 its mojo on four and a half percent. If you're 0:01:03.440 --> 0:01:05.039 looking at Bitcoin and ed, you're going to look at 0:01:05.040 --> 0:01:05.720 the megacaps. 0:01:06.400 --> 0:01:09.120 Yeah, I mean the biggest percentage end points gainers on 0:01:09.160 --> 0:01:11.160 the NAZAQ one hundred are the megacaps. And a lot 0:01:11.200 --> 0:01:13.440 of investors have come on this show and said when 0:01:13.480 --> 0:01:16.959 it comes to tech, there will be a recalculation around valuation. 0:01:17.160 --> 0:01:19.160 But actually a lot of the conversation this morning is 0:01:19.240 --> 0:01:22.000 we're going to avoid a recession, and that always comes 0:01:22.040 --> 0:01:23.360 up in the context of megacaps. 0:01:23.360 --> 0:01:25.319 They're a very diverse group, particularly Tesla. 0:01:25.400 --> 0:01:28.360 Right, how much is Elon Musk talks about the impact 0:01:28.440 --> 0:01:31.080 of higher rates on EV sales? Not that Elon Musk 0:01:31.080 --> 0:01:32.679 and Tesla are going to be focused on the business 0:01:32.720 --> 0:01:33.920 of selling cars for much longer. 0:01:33.959 --> 0:01:36.760 Carry That's the one thing that we've got to be 0:01:36.840 --> 0:01:38.560 keeping an eye on when it comes to Tesla. When 0:01:38.600 --> 0:01:40.600 it comes to cars, the robotax is the future. But 0:01:40.640 --> 0:01:43.200 for the here and then now, should megacaps be roaring. 0:01:43.600 --> 0:01:46.160 Let's talk to Zachary Hill, head of portfolio management and 0:01:46.240 --> 0:01:49.240 Horizon Investments eight million dollars in assets under management. We're 0:01:49.240 --> 0:01:52.160 going to discuss first and foremost the rate cut. What 0:01:52.240 --> 0:01:54.560 does it mean for these names that we've been so 0:01:54.760 --> 0:01:56.080 used to leading the market higher? 0:01:57.680 --> 0:01:59.040 Sure, Carolin, thanks for having me. 0:01:59.120 --> 0:02:01.720 You know, it's been quite twenty four hours, you know, 0:02:02.160 --> 0:02:05.000 after that supersized rate cut, which most people in the 0:02:05.040 --> 0:02:08.280 market US included expected to be fifty basis points, although 0:02:08.280 --> 0:02:11.000 economists were skewed more towards the twenty five camp. 0:02:11.720 --> 0:02:14.799 You know, we saw some mixed price action and overnight it. 0:02:14.720 --> 0:02:16.240 Looked like we were going to get a biable dip, 0:02:16.680 --> 0:02:20.320 and coming in this morning, things look quite a bit different. 0:02:20.360 --> 0:02:23.200 And so we do think that overall the trend is higher. 0:02:23.720 --> 0:02:25.800 Kind of look through some of this short term noise 0:02:26.120 --> 0:02:27.799 and as it relates to the top of the market, 0:02:27.800 --> 0:02:30.240 we do believe now for the first time in about 0:02:30.240 --> 0:02:33.080 eighteen months, that the market could really broaden out in 0:02:33.120 --> 0:02:35.560 a meaningful way. And so, you know, not giving up 0:02:35.560 --> 0:02:37.839 on the AI theme in the megacaps in general, they're 0:02:37.880 --> 0:02:40.120 outstanding companies, but I do think we have a little 0:02:40.120 --> 0:02:42.120 bit of a window for the rest of the market to. 0:02:42.080 --> 0:02:42.720 Catch up here. 0:02:42.919 --> 0:02:46.120 Okay, when you say broaden out, you mean small caps 0:02:46.160 --> 0:02:48.720 more broadly, or is there a way to broaden out 0:02:48.760 --> 0:02:50.119 the technology investment theme. 0:02:52.040 --> 0:02:54.200 Yeah, we like doing it across both vectors. 0:02:54.240 --> 0:02:56.920 Actually, you know, in terms of the expression of the 0:02:56.960 --> 0:03:00.359 AI trade, kind of moving away from the semiconductor because 0:03:00.400 --> 0:03:02.080 if you just look at the kind of the charred 0:03:02.120 --> 0:03:04.799 patterns there and just the overall narrative, it seems a 0:03:04.840 --> 0:03:07.680 little bit exhausted relative you know, to some other some 0:03:07.760 --> 0:03:10.640 of the other players in the growth space. Also, I 0:03:10.680 --> 0:03:13.919 do think, as you mentioned, small caps, you know, they 0:03:13.960 --> 0:03:16.400 have a window here where they can work. Regional banks 0:03:16.440 --> 0:03:18.880 is another part of the market that we like. That's 0:03:18.880 --> 0:03:20.720 probably going to be more of a trade for us. 0:03:21.040 --> 0:03:22.960 But we do think, you know, the fact that rates 0:03:22.960 --> 0:03:25.680 are coming down, growth is still strong, and the next 0:03:25.680 --> 0:03:27.560 move by the FED is going to be a cut. 0:03:27.720 --> 0:03:30.320 We can quibble about that's twenty five or fifty when 0:03:30.360 --> 0:03:32.440 that when that occurs, at the end of the day, 0:03:32.480 --> 0:03:34.600 we don't really think that matters as much for the 0:03:34.600 --> 0:03:37.040 broader picture. So those are two different areas we're playing 0:03:37.040 --> 0:03:39.680 that broadened out theme within US equity exposure. 0:03:40.320 --> 0:03:42.480 So, Zachary, with that in mind, why is it the 0:03:42.520 --> 0:03:45.920 semiconductor names and mega caps that are rallying hard this morning? 0:03:48.120 --> 0:03:50.840 Yeah, that's that's a great question, you know, and I 0:03:50.880 --> 0:03:53.680 don't have a really spot on answer for you now. 0:03:53.760 --> 0:03:55.880 I mean, I would just say, broadly speaking, over the 0:03:55.960 --> 0:03:59.080 last three weeks, we've seen a lot of volatility in 0:03:59.160 --> 0:04:02.880 these names, you know, speaking for the kind of the 0:04:02.880 --> 0:04:05.760 most popular stock in the world in video. You know, 0:04:05.800 --> 0:04:08.840 we saw earnings they were really good, but not as 0:04:08.880 --> 0:04:11.920 good as people have come to expect. We got kind 0:04:11.920 --> 0:04:15.200 of a delayed reaction on that stock the following week, 0:04:15.880 --> 0:04:17.720 and then reverse the following week. So there's just been 0:04:17.760 --> 0:04:19.920 a lot of back and forth, broadly speaking, and that's 0:04:19.920 --> 0:04:22.919 another reason that we think broadening out makes sense, just 0:04:22.920 --> 0:04:27.240 because the volatility of this trade has gotten higher, it's 0:04:27.279 --> 0:04:29.360 gotten more difficult to hold, and so from a risk 0:04:29.400 --> 0:04:31.919 adjusted perspective, you know, we think it makes sense to 0:04:31.920 --> 0:04:34.160 look outside of just the tip of the spear that's 0:04:34.200 --> 0:04:36.760 really been driving us for the last eighteen months. 0:04:37.600 --> 0:04:39.480 Your second point earlier is that rates are going to 0:04:39.560 --> 0:04:42.080 come down, and we can debate the increments going forward 0:04:42.120 --> 0:04:44.160 and look at the dots through the end of next year. 0:04:44.520 --> 0:04:47.880 But a quite reasonable question for many technology investors is 0:04:48.080 --> 0:04:53.320 what had actually changed between July and yesterday, Right, A 0:04:53.360 --> 0:04:56.320 fifty basis point cut yesterday and nothing through the summer, 0:04:57.200 --> 0:04:59.479 And that, for you guys in the markets must be 0:04:59.520 --> 0:05:01.520 difficult to calculate. 0:05:03.360 --> 0:05:05.000 Yeah, it is difficult, and you have to play a 0:05:05.040 --> 0:05:07.440 little bit of criminology with what's going on, you know, 0:05:07.480 --> 0:05:10.240 within the FOMC, I mean, you know, our our read 0:05:10.279 --> 0:05:12.680 of it is, I think Chair Pal, who's more dubvish 0:05:12.720 --> 0:05:13.400 than the committee. 0:05:13.400 --> 0:05:16.800 More broadly, he wanted to cut rates in July, but couldn't. 0:05:16.440 --> 0:05:19.479 Get anyone there, and so you know, the actions that 0:05:19.520 --> 0:05:22.560 we saw in the blackout period to kind of move 0:05:22.600 --> 0:05:26.400 the market towards a fifty basis pointcut, that that was 0:05:26.680 --> 0:05:29.120 indicative of Chair Pal kind of trying to make up 0:05:29.160 --> 0:05:33.640 for you know, what didn't happen in July. You know, 0:05:33.960 --> 0:05:36.480 I think one of the reasons that Stockston rally initially 0:05:36.600 --> 0:05:40.440 yesterday after everything was released in the afternoon is that 0:05:40.720 --> 0:05:43.359 it's pretty clear the committee is more split than we thought. 0:05:44.200 --> 0:05:46.640 And so, you know, the almost half the committee wrote 0:05:46.720 --> 0:05:50.760 down only one further cut you know, this year, which 0:05:50.839 --> 0:05:53.120 is quite a bit different than where the market is priced, 0:05:53.120 --> 0:05:54.719 and so, you know, I do think there'll be some 0:05:54.800 --> 0:05:57.359 back and forth on that, but broadly speaking, you know, 0:05:57.400 --> 0:06:00.560 the messages if the labor market continues to slow down 0:06:00.600 --> 0:06:02.479 into an area where we start to get concerned, the 0:06:02.520 --> 0:06:04.719 FED will be more aggressive. And the fact that we 0:06:04.800 --> 0:06:09.200 have that FED put back in scope, something we haven't 0:06:09.200 --> 0:06:10.920 had for about two and a half three years, I 0:06:10.920 --> 0:06:13.760 think that's really important thing that you can lose sight 0:06:13.800 --> 0:06:15.320 of if you're you know, just in the day to 0:06:15.400 --> 0:06:18.000 day trying to explain hour by hour. 0:06:17.880 --> 0:06:19.200 Moves, Zachary. 0:06:19.240 --> 0:06:21.400 This isn't just the central Bank to the US, it's 0:06:21.440 --> 0:06:24.039 the central bank to the world, and we're seeing risk 0:06:24.080 --> 0:06:28.080 assets rally across the world. What about European tech ASML 0:06:28.160 --> 0:06:30.880 the best performer from a points perspective in Europe today? 0:06:30.920 --> 0:06:32.160 What about Japanese tech? 0:06:34.080 --> 0:06:35.920 Yeah, I mean, we do continue to think the story 0:06:36.000 --> 0:06:38.880 is better in the US than abroad. You know that 0:06:39.040 --> 0:06:40.520 a lot of that just has to do with the 0:06:40.560 --> 0:06:44.680 innate innovation and the structure of our capital markets versus 0:06:44.680 --> 0:06:46.120 the rest of the world. But we do think there's 0:06:46.120 --> 0:06:48.880 some opportunity in Japan. You know, that's more of a 0:06:48.920 --> 0:06:51.960 medium term story in terms of structural reforms and a 0:06:52.040 --> 0:06:54.520 really really cheap currency that can be a tailwind to 0:06:54.920 --> 0:06:58.000 US investors. We're starting to see the end correct, you know, 0:06:58.120 --> 0:07:00.839 quite a bit over the last over the last few months, 0:07:00.880 --> 0:07:03.200 and we think that is a favorable trend that will 0:07:03.200 --> 0:07:06.320 continue there. But broadly speaking, we do we do like 0:07:06.360 --> 0:07:09.600 to express this theme more within the US, you know, 0:07:09.680 --> 0:07:12.840 talking about the European angle more more broadly. I do 0:07:12.880 --> 0:07:15.440 think it's a little bit wild that there's only about 0:07:15.480 --> 0:07:17.800 a twenty five percent chance that the ECB cuts rates 0:07:17.800 --> 0:07:20.280 in October. You know, if you look at the growth trajectory, 0:07:20.320 --> 0:07:23.600 you look at the inflation dynamics, I really think they've 0:07:23.640 --> 0:07:25.760 been just waiting for some air cover from the FED, 0:07:25.800 --> 0:07:28.520 and so I think that's something the market may start 0:07:28.520 --> 0:07:30.560 to think about, you know, over the next few weeks. 0:07:30.640 --> 0:07:33.800 And you know, from a currency perspective, certainly that wouldn't 0:07:33.840 --> 0:07:37.560 be you know, beneficial for for European equities. 0:07:38.720 --> 0:07:39.000 Zachary. 0:07:39.080 --> 0:07:42.920 Let's conclude our conversation with an important question for technology 0:07:42.960 --> 0:07:45.720 investors and the technology industry around the world. 0:07:46.400 --> 0:07:48.240 Recession or no recession. 0:07:50.240 --> 0:07:52.520 Yeah, this this one's pretty clear, no recession. 0:07:53.320 --> 0:07:56.880 You know, our framework has long been do not bet 0:07:56.920 --> 0:08:00.480 against the US consumer that is employed. So we've been focused, 0:08:00.520 --> 0:08:03.200 laser focused on the labor market, and our read there 0:08:03.480 --> 0:08:06.120 is we're just coming back to normal from a period 0:08:06.160 --> 0:08:09.920 of extreme strength. Certainly, we're paying attention to the data 0:08:09.920 --> 0:08:12.160 flow as they come in and marking that. 0:08:12.160 --> 0:08:14.040 To market, you know, every day. 0:08:14.440 --> 0:08:17.080 But you know, broadly speaking, that has been our view 0:08:17.080 --> 0:08:19.760 and continues to be our view. And we think that 0:08:19.880 --> 0:08:22.280 plus the fact that the next move from the FED 0:08:22.360 --> 0:08:24.840 and other global center banks are going to be cuts, 0:08:25.560 --> 0:08:27.360 is going to buy as equities higher into the end 0:08:27.360 --> 0:08:27.720 of the year. 0:08:28.800 --> 0:08:31.400 Zachary Hill from Horizon Investment. It's great to have you 0:08:31.440 --> 0:08:33.559 here on bloom Bed Technology. Thank you very much. Like 0:08:33.640 --> 0:08:36.280 coming up on the show, we joined by the Latvia 0:08:36.320 --> 0:08:40.360 president Eggars Rinkovic about his visit to San Francisco Silicon 0:08:40.440 --> 0:08:43.960 Valley meetings with technology companies now in the markets carried. 0:08:44.000 --> 0:08:46.320 There are some single name moves that we've got to cover. 0:08:46.720 --> 0:08:49.000 We do in Intel, the Mobile I are among them. 0:08:49.200 --> 0:08:51.920 Ed Intel oup almost three percent Mobile I as you'll 0:08:51.920 --> 0:08:55.240 see jumping some fifteen percent. This is as it seems, 0:08:55.320 --> 0:08:58.960 Intel will not be currently planning to divest a majority 0:08:59.000 --> 0:09:02.559 interest in the microsoftware and hardware tech for autos. They 0:09:02.600 --> 0:09:05.119 believe in the future of autonomous driving technology. 0:09:05.800 --> 0:09:10.600 This is brumot technology. 0:09:16.240 --> 0:09:19.480 Apple it's been warned by the European Union to open 0:09:19.559 --> 0:09:22.599 up it's highly guarded iPhone and iPad operating systems to 0:09:22.920 --> 0:09:26.560 rival technologies or eventually risk some significant finds under its 0:09:26.600 --> 0:09:30.760 flagship digital antitrust rules. Plimos, jian Or Picelli joins us 0:09:30.800 --> 0:09:34.600 Now and John. How serious is this warning? 0:09:34.840 --> 0:09:36.920 How likely our fines. 0:09:37.679 --> 0:09:42.280 Hil I mean, this is not an investigation yet. It's 0:09:42.280 --> 0:09:47.760 something called specification proceedings, meaning that it is a step 0:09:48.280 --> 0:09:52.400 shy of an actual investigation. In a statement, the Commissioner 0:09:52.520 --> 0:09:57.800 for Competition, Margaret Vistaya, said that the intent is guiding 0:09:57.920 --> 0:10:02.079 Apple on the way to interoperability, so there is still 0:10:02.600 --> 0:10:07.280 some time for Apple to disconcerts. For sure. If nothing 0:10:07.360 --> 0:10:10.720 changes over the next six months, there might be steps, 0:10:10.720 --> 0:10:14.520 there might be consequences, but right now it's not as 0:10:14.520 --> 0:10:15.640 serious as it could be. 0:10:15.679 --> 0:10:20.439 Yet genders some misunderstanding about the technology side of this story. 0:10:20.800 --> 0:10:24.040 For example, in Europe, Apple is held back some of 0:10:24.080 --> 0:10:27.400 its latest features due to compliance what it sees as 0:10:27.400 --> 0:10:30.360 a compliance issue with the DMA. But the idea is 0:10:30.400 --> 0:10:33.480 not that you take a Samsung phone or a Gaomi 0:10:33.640 --> 0:10:35.880 phone and you suddenly have iOS on It just explain 0:10:35.960 --> 0:10:38.400 the basics of what they want Apple to do. 0:10:39.880 --> 0:10:43.080 But what I understand is a couple of things. It 0:10:43.200 --> 0:10:48.600 is essentially allowing developers to access features of iOS that 0:10:49.120 --> 0:10:55.120 right now work only with Apple software. I think for instance, 0:10:55.160 --> 0:10:59.280 of Siri, Siri is of course something that only works 0:10:59.720 --> 0:11:03.080 with it in the Apple ecosystem. Technically, you could imagine 0:11:03.080 --> 0:11:05.760 a developer wanting to access some features so sirey for 0:11:05.840 --> 0:11:10.320 its own app on of course, the iOS ecosystem or 0:11:10.960 --> 0:11:17.240 payment features. Some payment features only work within Apple apps, 0:11:17.320 --> 0:11:22.079 Apple software. And that's another thing. One thing that also 0:11:22.160 --> 0:11:28.120 the Commission addresses is interoperability of devices against Some features, 0:11:28.160 --> 0:11:33.080 for instance of Siri only are accessible to, for instance, 0:11:33.160 --> 0:11:38.199 devices such as the airports or other Apple types of gear. 0:11:38.800 --> 0:11:42.160 And so we want, I mean the European Union would 0:11:42.240 --> 0:11:46.240 want ideally that to change and be accessible to other devices. 0:11:46.800 --> 0:11:48.840 Bloomberg Gimbobicelli out of Brussels. 0:11:48.840 --> 0:11:51.600 Thank you very much. Now we have a visitor from 0:11:51.640 --> 0:11:55.080 the European Union. Edgar Rinkovic, the president of Latvia, is 0:11:55.080 --> 0:11:58.720 in San Francisco. He's meeting with tech companies like open Ai, 0:11:59.000 --> 0:12:02.640 Meta and Google. He'll also meet with California Governor Gavin 0:12:02.679 --> 0:12:07.480 Newsom an investment firm Apollo. President Rikovich joins me here 0:12:07.480 --> 0:12:10.880 in San Francisco. Good morning, President, Thank you for being here. 0:12:11.040 --> 0:12:14.080 You heard from our colleague in Brussels, the latest piece 0:12:14.080 --> 0:12:18.640 of EU oversight of a large American technology company. There's 0:12:18.679 --> 0:12:23.000 also sort of a personnel consideration. Hennah Verkinen will become 0:12:23.000 --> 0:12:26.120 an important leader in Europe when it comes to tech. 0:12:26.400 --> 0:12:28.880 What is Latvia's attitude to. 0:12:28.840 --> 0:12:31.439 The policy side, but also the new people at the top. 0:12:32.600 --> 0:12:35.959 Well, actually we have heard the proposal from the President 0:12:36.000 --> 0:12:39.720 of the European Commission about the new commissioners. I do 0:12:39.840 --> 0:12:42.680 believe that this is quite balanced proposal. But let's not 0:12:42.720 --> 0:12:45.839 forget that European Parliament still needs to approve each and 0:12:45.880 --> 0:12:49.040 every commissioner. There is going to be a grilling. But 0:12:49.679 --> 0:12:52.000 I do hope that the new Commission is going to 0:12:52.040 --> 0:12:56.959 be very much focused on competitiveness of the European Union. 0:12:57.440 --> 0:13:00.560 I think defense and security is going to play a 0:13:00.640 --> 0:13:03.240 huge role also when it comes to the new budget. 0:13:03.720 --> 0:13:06.520 And then indeed, we have new issues. You already mentioned 0:13:06.960 --> 0:13:10.080 about a couple of my meetings. Also we have those. 0:13:10.000 --> 0:13:13.760 Well those meetings, Miss President meta open Ai. 0:13:13.320 --> 0:13:14.000 Those are today. 0:13:14.440 --> 0:13:18.880 I'm just starting from this morning meeting with others. 0:13:19.760 --> 0:13:22.079 What's your ambition for those meetings, mister President. 0:13:22.440 --> 0:13:26.840 There are actually two big issues. One latterly is striving 0:13:26.880 --> 0:13:30.360 to become one of the i would say pioneers and 0:13:30.720 --> 0:13:35.520 leaders of artificial intelligence in the European Union. We are 0:13:35.559 --> 0:13:39.680 now creating our National Artificial Intelligence Center that is a 0:13:39.720 --> 0:13:44.880 private public partnership. Actually the idea started from security concerns, 0:13:44.960 --> 0:13:48.440 but now we have expanded it not only to include 0:13:48.600 --> 0:13:54.080 security like deep fakes, like interference intellections, but also in 0:13:54.200 --> 0:14:01.440 order to create a competitive environment and two take let's 0:14:01.440 --> 0:14:05.000 say lead in this matter. And one thing that I'm 0:14:05.040 --> 0:14:09.920 going to discuss and look at is the way how 0:14:10.000 --> 0:14:12.640 we can cooperate. We already have very good cooperation with 0:14:12.760 --> 0:14:17.240 Google withri meta, and we very much hope to expand it. 0:14:17.480 --> 0:14:22.600 So that's one second. Indeed, I do believe that it 0:14:22.680 --> 0:14:26.040 is very important that we discuss how we are going 0:14:26.080 --> 0:14:30.760 to address artificial intelligence social media. You know, all those 0:14:31.400 --> 0:14:36.960 discussions whether we should view them as challenges or opportunities. 0:14:37.600 --> 0:14:40.360 I'm still trying to find a way how to find 0:14:40.360 --> 0:14:43.720 a middle ground and being the part of the European Union, 0:14:43.760 --> 0:14:45.040 of course, to influence also the. 0:14:45.000 --> 0:14:50.280 Discussion President, is more regulation necessary when it comes to 0:14:50.320 --> 0:14:51.440 AI and social media? 0:14:52.600 --> 0:14:53.640 Well, this is. 0:14:53.640 --> 0:14:57.040 A very tough question. I do believe that if we 0:14:57.120 --> 0:15:02.600 look at some challenges have seen the use of social media, 0:15:03.320 --> 0:15:09.000 artificial intelligence for this information de fakes, interference in elections, 0:15:09.680 --> 0:15:14.160 I think we need some framework. But at the same time, 0:15:14.920 --> 0:15:18.120 and this is sometimes a challenge for the European Union 0:15:18.200 --> 0:15:21.560 and about the European Union. Let's face it, we sometimes 0:15:21.800 --> 0:15:26.800 back in Europe get overly regulatory. Sometimes we believe that 0:15:26.840 --> 0:15:31.000 here in the United States there is too much liberal approach. 0:15:31.360 --> 0:15:33.800 So from that point of view, I would say that 0:15:33.920 --> 0:15:38.760 the balance to you some regulation, especially when it comes 0:15:40.040 --> 0:15:45.000 to serious issues the crime, political interference. Yes, we do 0:15:45.120 --> 0:15:51.480 need rules, but let's not overreact. Also here let's. 0:15:51.240 --> 0:15:54.920 Talk about serious issues at the moment that the you 0:15:55.040 --> 0:15:58.160 and your country in particular faces when it comes to 0:15:58.240 --> 0:16:03.080 Russia and armed Russia. Understand and drone recently crashed in Latvia. 0:16:03.960 --> 0:16:08.200 How should NATO respond to this sort of technology two drones? 0:16:08.240 --> 0:16:10.920 Should they shoot them down? What is your view? 0:16:12.280 --> 0:16:16.160 Well, actually, this is a really very good question because 0:16:16.440 --> 0:16:20.440 also as part of my visit I've been in NASA, 0:16:21.080 --> 0:16:25.920 we were talking about the corporation in Aronautics, in drone industry. 0:16:26.320 --> 0:16:31.160 My country also leads drone coalition that is supportive of Ukraine. 0:16:31.760 --> 0:16:35.280 But when we talk about defense, I do believe that 0:16:35.960 --> 0:16:40.320 we currently lack common approach in NATO. We have already 0:16:40.400 --> 0:16:44.240 three countries my country, Latvia, Romania, Poland where we have 0:16:44.360 --> 0:16:48.920 seen drones crushed. Investigation is still ongoing, but there is 0:16:48.960 --> 0:16:54.160 a great reason to suspect that Shahid type drone was 0:16:54.200 --> 0:17:01.760 actually flowing applying from Ukraine. Seeing wellados sound simply crushed. 0:17:02.480 --> 0:17:06.640 My belief is, yes, we need to shut down those dronts. 0:17:06.920 --> 0:17:11.000 We need to give more air defense equipment to Ukraine. 0:17:11.080 --> 0:17:14.720 But also back in NATO, we are talking about the 0:17:14.800 --> 0:17:17.919 need to increase also NATO presence when it comes to 0:17:17.960 --> 0:17:21.800 air defense in so called eastern flanks. So yes, NATO 0:17:22.240 --> 0:17:27.160 must adapt to the new reality and we must shot 0:17:27.200 --> 0:17:30.560 down drones. We must protect the territory of the alliance. 0:17:30.880 --> 0:17:34.520 Mister President, Latvia has has a role here because of 0:17:34.560 --> 0:17:39.360 its location, it's geographic proximity to what's happening. A big 0:17:39.480 --> 0:17:42.920 question asked of leaders across the European Union is what 0:17:43.000 --> 0:17:49.440 to do next and weather. From a technology and weapons standpoint, 0:17:50.000 --> 0:17:52.520 there is an argument to approve the use of sort 0:17:52.560 --> 0:17:56.480 of longer range technology to go into Russia in support 0:17:56.520 --> 0:17:57.840 of Ukraine doing such an action. 0:17:57.920 --> 0:17:59.960 What is your policy on. 0:17:59.840 --> 0:18:03.960 That, well, I think it would be very surprising if 0:18:03.960 --> 0:18:06.040 I would be saying that we have to be cautious. No, 0:18:07.520 --> 0:18:11.760 the longstanding view of Latin government, my personal view is 0:18:11.800 --> 0:18:16.199 that when it comes to Ukraine, when it comes to 0:18:17.160 --> 0:18:23.040 support for Ukraine, we must allow using all weapons, all 0:18:23.119 --> 0:18:27.280 weapons systems, that we provide to Ukraine unconditionally. I don't 0:18:27.280 --> 0:18:30.200 believe in that talk about escalation. Yes, we hear a 0:18:30.520 --> 0:18:34.199 noise from Moscow, but if you look back at the 0:18:34.240 --> 0:18:37.560 beginning of the invasion in February twenty twenty two, we 0:18:37.680 --> 0:18:42.080 have heard that kind of messages from Moscow, and actually 0:18:42.080 --> 0:18:48.399 what is happening. When Russia escalates, Ukraine is not able 0:18:48.440 --> 0:18:53.600 to respond. But when Ukraine gets weapons and is able 0:18:53.600 --> 0:18:58.760 to respond, actually Russia is not escalating, It actually de escalates. 0:19:00.200 --> 0:19:03.680 My own firm belief is that we must change the 0:19:03.800 --> 0:19:09.919 narrative from we must help Ukraine deal or whatever it takes, 0:19:10.040 --> 0:19:13.600 or how long it takes, two we must help Ukraine until. 0:19:14.119 --> 0:19:19.320 There no diplomatic breakthrough to the deadlock. We've got much 0:19:19.320 --> 0:19:22.400 of that being discussed in a presidential election race here 0:19:22.400 --> 0:19:24.760 in the United States. 0:19:25.280 --> 0:19:29.159 I think that there is already some political process. We 0:19:29.320 --> 0:19:33.399 had peace summit in Switzerland in June. President Zelenski is 0:19:33.400 --> 0:19:37.439 talking about another peace summit, maybe somewhere in November, maybe 0:19:37.480 --> 0:19:42.159 after US elections. But I do believe that diplomatic breaks 0:19:42.200 --> 0:19:46.879 through or political process can start only when Russia sees 0:19:46.960 --> 0:19:51.080 that it cannot move forward. That we are supporting Ukraine 0:19:51.359 --> 0:19:53.399 and that it needs to sit at the table. 0:19:53.680 --> 0:19:54.200 It's not. 0:19:55.720 --> 0:20:00.600 For Ukrainians currently to call the first shot, it's actually 0:20:00.920 --> 0:20:03.560 for Russia. But I also think that it's not going 0:20:03.560 --> 0:20:08.920 to be any political process until yes elections. Most probably 0:20:08.960 --> 0:20:11.840 we can talk about some kind of political process or 0:20:12.000 --> 0:20:15.679 some kind of diplomatic efforts next year. But here I 0:20:15.720 --> 0:20:19.639 think that we also should not make mistake. If we start, 0:20:20.520 --> 0:20:23.800 let's say, putting some kind of limitations on Ukraine, then 0:20:23.840 --> 0:20:26.440 we are not going to see Russia willing to sit 0:20:26.480 --> 0:20:29.320 at the table. Just the opposite. 0:20:29.440 --> 0:20:31.479 This present, we have less than a minute. You'll meet 0:20:31.520 --> 0:20:34.000 with Apollo, You'll meet with open Ai. I'm curious if 0:20:34.040 --> 0:20:38.840 you want to attract investment infrastructure like data center talent 0:20:38.960 --> 0:20:39.720 in your country. 0:20:39.920 --> 0:20:42.400 Absolutely, that's one of the things that we are going 0:20:42.440 --> 0:20:47.000 to talk about attracting investment. Yesterday I had the event 0:20:47.440 --> 0:20:51.119 where some of our startups were pitching for investment. I 0:20:51.160 --> 0:20:53.320 think they were doing great. There was quite an interest, 0:20:53.359 --> 0:20:57.399 and yes, I will be doing my best bet also 0:20:57.640 --> 0:21:02.359 to attract talents, investment. Get partnership is open AI and 0:21:02.440 --> 0:21:03.120 other companies. 0:21:03.720 --> 0:21:05.160 We wish you well with those meetings. 0:21:05.320 --> 0:21:07.640 We thank a few of time today, President of Latvia 0:21:07.720 --> 0:21:09.240 eggers Nkovic. 0:21:17.280 --> 0:21:19.080 It's time for talking tech and first up. 0:21:19.119 --> 0:21:23.119 Open Ai has hired former Corsera executive Leah Belski as 0:21:23.160 --> 0:21:27.640 its first General Manager of Education, leading the AI startups 0:21:27.680 --> 0:21:31.639 efforts in bringing its products to schools and classrooms. Belskuwer's 0:21:31.680 --> 0:21:36.000 formerly chief revenue officer of Courserah Class. Microsoft president Brad 0:21:36.040 --> 0:21:39.399 Smith issues a warning of US election meddling, telling the 0:21:39.960 --> 0:21:43.960 Intelligence Committee that foreign interference will likely surge in the 0:21:44.000 --> 0:21:46.840 final forty eight hours before the election. The hearing comes 0:21:46.880 --> 0:21:51.000 after a Microsoft report found Russian efforts to influence the 0:21:51.040 --> 0:21:55.360 election and Germany's EV market plunges, with deliveries falling sixty 0:21:55.440 --> 0:21:59.120 nine percent in August. Carmakers now calling on the European 0:21:59.160 --> 0:22:02.800 Commission for urgent relief and revisions to its fleet emission 0:22:02.840 --> 0:22:13.480 targets that could have Europe's auto industry facing hefty fines. 0:22:14.119 --> 0:22:16.359 Welcome back to Blue Meg Technology. I'm Caroline Hide in 0:22:16.359 --> 0:22:16.920 New York. 0:22:17.119 --> 0:22:18.720 And I'm ed love Low in San Francisco. 0:22:18.840 --> 0:22:20.560 Le's get a tech on these markets, said, because we 0:22:20.560 --> 0:22:22.920 are powering higher on the back of that FED rate cut, 0:22:23.080 --> 0:22:25.080 we are now having a very strong day, best since 0:22:25.080 --> 0:22:27.119 in a month. Really for the Nasdaq one hundred. But 0:22:27.200 --> 0:22:29.920 so too are global stocks feeling the risk on vibes. 0:22:29.920 --> 0:22:33.680 And we're looking at the European tech industry doing very well. 0:22:33.680 --> 0:22:35.439 They're closing up their training on the day, we're up 0:22:35.440 --> 0:22:36.920 three point four percent for that part. 0:22:36.760 --> 0:22:37.680 Of the stock six hundred. 0:22:37.880 --> 0:22:40.880 Move on, look at the individual movers because look, we've 0:22:40.880 --> 0:22:43.560 got the megacaps that we've known and loved and have 0:22:43.640 --> 0:22:47.119 done so well even in a rate higher environment, still 0:22:47.119 --> 0:22:49.240