WEBVTT - Live from CES and More Crypto Layoffs 0:00:13.280 --> 0:00:15.720 I'm Caroline Hyde of Bloomberg's well teadquarters in New York 0:00:17.040 --> 0:00:20.200 and Imed Ludlow at c e S the Consumer Electronics 0:00:20.200 --> 0:00:23.040 Show in Las Vegas. This is a special edition of 0:00:23.040 --> 0:00:27.880 Bloomberg Technology coming up this hour, and Amazon Genesis trading 0:00:27.960 --> 0:00:30.480 stitch fixed to the long list of tech companies cunning 0:00:30.520 --> 0:00:33.920 costs by laying off staff. But this is the macro picture. 0:00:33.960 --> 0:00:37.280 The ADP projects is stronger than expected jobs report for tomorrow. 0:00:39.200 --> 0:00:42.839 Plus the director of the Cyber Security and Infrastructure Security 0:00:42.920 --> 0:00:46.280 Agency tells me that cyber safety is a public good 0:00:46.479 --> 0:00:50.920 that demands quote radical transparency. We discussed with CrowdStrike CEO 0:00:51.159 --> 0:00:55.920 George Kurtz and d surrounded by electrical autonomous vehicle technology. 0:00:55.920 --> 0:00:58.720 Over at CS we'll hear from Mobile I CEO an 0:00:58.760 --> 0:01:02.960 ambition to target self driving tech to hit the streets. 0:01:03.480 --> 0:01:06.160 But first let's check in on the here, the now. 0:01:06.240 --> 0:01:09.000 The reality is the market, and the reality that is 0:01:09.080 --> 0:01:11.759 good news is once again bad news if you're long 0:01:11.800 --> 0:01:13.560 these markets. Tess if I've run off by one point 0:01:13.600 --> 0:01:15.800 one percent, nows that big tech taking the hit off 0:01:15.800 --> 0:01:17.559 by more than one point five percent. And that's because 0:01:17.560 --> 0:01:20.479 the macro picture once again looks resilient. When you look 0:01:20.480 --> 0:01:22.800 at the jobs picture, the ADP number coming in stronger 0:01:22.800 --> 0:01:26.080 than expected, those jobless claims once again showing resiliency. This 0:01:26.200 --> 0:01:28.760 just means the Federal Reserve has the bandwidth to keep 0:01:28.800 --> 0:01:31.400 on raising rates and many in the market therefore anticipating 0:01:31.640 --> 0:01:34.000 that the terminal rate where interest rates will eventually go 0:01:34.040 --> 0:01:36.920 from the Fed is about five percent by mid twenty three. 0:01:37.000 --> 0:01:39.679 We continue to therefore see fulishists in terms of where 0:01:39.720 --> 0:01:42.080 the dollar goes. We expect interest rates to go higher. 0:01:42.240 --> 0:01:44.759 The dollar goes higher to we're up about five tents 0:01:44.760 --> 0:01:47.040 six tents and percent. Flick it on. Let's dive into 0:01:47.040 --> 0:01:49.320 the micro because without out in cs I wanted to 0:01:49.400 --> 0:01:51.600 do a little bit of the individual companies. Western Digital 0:01:51.920 --> 0:01:55.160 talks of a merger now amid some of this concern 0:01:55.200 --> 0:01:57.760 around the market and indeed deals being done well. Maybe 0:01:57.800 --> 0:02:00.920 Western Digital world team up with its JA Pennese well 0:02:01.040 --> 0:02:03.520 competitor and maybe that force will be for good. We're 0:02:03.560 --> 0:02:05.760 seeing the stock valley six point six percent silver Gate 0:02:05.760 --> 0:02:08.480 though not a good news story. Let's look at, of course, 0:02:08.480 --> 0:02:11.720 a very crypto related lender, Crypto Capital, is currently forty 0:02:11.800 --> 0:02:15.880 two lower. Why well, because they're acting of their staff. 0:02:16.080 --> 0:02:19.720 After of course, the amount of fall in crypto assets 0:02:19.720 --> 0:02:21.720 meant that people drew down their deposits, they had to 0:02:21.720 --> 0:02:24.200 sell their own assets, offered a discount, and it means 0:02:24.240 --> 0:02:27.240 that the company is therefore in some grave issues. Silvergate Capital, 0:02:27.320 --> 0:02:29.480 as I say, one of the worst performance, Amazon off 0:02:29.480 --> 0:02:31.600 by more than two percent and ed. This is again 0:02:32.080 --> 0:02:34.280 all about jobs. This is about when we get a 0:02:34.360 --> 0:02:37.320 strong picture coming from the macro. What about the micro 0:02:37.400 --> 0:02:41.480 picture and technology? What about Amazon saying eighteen thousand jobs 0:02:41.480 --> 0:02:43.920 are now to go as they try to really rebalance 0:02:43.960 --> 0:02:46.120 where the costs come into this business. And I know 0:02:46.160 --> 0:02:48.680 you're all about the latest product, the latest unveiling, but 0:02:48.720 --> 0:02:50.760 you've got to be hearing about chat from that on 0:02:50.800 --> 0:02:55.160 the floor of CS. Yeah, there's certainly lots of fanfare 0:02:55.280 --> 0:02:58.080 right here in Las Vegas, but I've spoken to bankers 0:02:58.120 --> 0:03:01.440 and investors, for example, are in attendance, and you cannot 0:03:01.480 --> 0:03:04.239 get away from what's happening in the world of technology. 0:03:04.280 --> 0:03:06.840 I think what I'm hearing is that broadly they're talking 0:03:06.840 --> 0:03:09.320 about how hard it is out there, the difficulty in 0:03:09.400 --> 0:03:12.960 raising funds, the difficulty in managing the macro environment. Whether 0:03:13.000 --> 0:03:15.800 you are a startup exhibiting here for the first time 0:03:15.800 --> 0:03:17.720 on the show and floor, or you're one of the 0:03:17.760 --> 0:03:20.959 many hundreds of Fortune five companies that have gone big 0:03:21.000 --> 0:03:24.040 on the event. This is a speed dating opportunity, right. 0:03:24.080 --> 0:03:27.520 You have some of the world's biggest CEOs, investors, their bankers, 0:03:27.560 --> 0:03:30.480 their top customers, all in one place for three days 0:03:30.520 --> 0:03:32.560 of the year, to start the year, and of course 0:03:32.600 --> 0:03:35.560 they are talking about what is happening in this global economy, 0:03:35.600 --> 0:03:37.760 and of course not just trying to pitch to the 0:03:37.800 --> 0:03:40.960 consumer their latest innovations, but also what's happening with the 0:03:41.000 --> 0:03:44.480 consumer in general. Indeed, and of course the job layoffs 0:03:44.520 --> 0:03:47.360 or reflection of some of that worry around the consumer overall. 0:03:47.400 --> 0:03:49.640 We've got to dig into that story. Well. Of course, 0:03:49.680 --> 0:03:52.120 we bring in a key name, a key voice on 0:03:52.160 --> 0:03:54.440 all things Amazon and indeed all things technology. It is 0:03:54.480 --> 0:03:56.920 one Brad Stoneman, bugs head Global Tech Coverage, because of 0:03:56.960 --> 0:03:59.400 course the author of Amazon Unbound and the Everything Store, 0:03:59.440 --> 0:04:02.280 and to it an in perspective, Brad eighteen thousand is 0:04:02.360 --> 0:04:04.120 kind of a drop in the bucket when you look 0:04:04.120 --> 0:04:07.600 at the overall hiring and talented Amazon has, but still 0:04:07.920 --> 0:04:12.160 it signifies something. It certainly does. Um you go back 0:04:12.160 --> 0:04:14.840 twenty years ago after the dot com bust and Amazon 0:04:14.920 --> 0:04:17.719 was laying people off, and Jeff Bezos had a mantra 0:04:18.000 --> 0:04:20.080 and it was the only way out of this is 0:04:20.120 --> 0:04:22.359 to invent our way out. And I think that the 0:04:22.440 --> 0:04:25.120 charge right now from Andy Jazz is much different. It's 0:04:25.160 --> 0:04:27.120 the only way out of this is to cut our 0:04:27.160 --> 0:04:29.200 way out. And that's because if you look at the 0:04:29.240 --> 0:04:32.560 retail business, the oldest business at Amazon, it's just in 0:04:32.640 --> 0:04:35.880 really bad shape. It lost about two point five billion 0:04:35.920 --> 0:04:39.080 dollars last quarter, but if you back out advertising, it's 0:04:39.080 --> 0:04:42.039 probably much more nine or ten billion dollars. It's hard 0:04:42.040 --> 0:04:44.240 to believe in some of that. Of course, his investments 0:04:44.279 --> 0:04:48.840 in video and autonomous driving other experiments, but the basic 0:04:49.040 --> 0:04:54.040 oldest business at Amazon is miserably unprofitable. Investors are clamoring 0:04:54.360 --> 0:04:56.920 for Jasse to improve it, and his metal is really 0:04:56.920 --> 0:04:59.720 going to be tested over these next few quarters and years, 0:04:59.720 --> 0:05:02.960 and he's starting by cutting the cost structure. It's tough 0:05:03.320 --> 0:05:06.840 find Jesse. How much does he have the confidence of 0:05:06.880 --> 0:05:08.800 an investimation, how much does he have the confidence of 0:05:08.839 --> 0:05:12.480 the founder of the business. Well, I mean, first of all, 0:05:12.800 --> 0:05:15.839 I think it's always worth noting that he inherited a 0:05:15.839 --> 0:05:18.080 lot of these problems. It was Bezos and maybe the 0:05:18.160 --> 0:05:22.240 distracted final years of his tenure at Amazon, who authorized 0:05:22.240 --> 0:05:25.800 the major ex pre pandemic and mid pandemic expansion of 0:05:25.800 --> 0:05:30.040 fulfillment centers, of product lines, geographic expansion, and a lot 0:05:30.080 --> 0:05:32.279 of that. Jesse has had to kind of kind of 0:05:32.440 --> 0:05:35.280 unwide and narrow some of the ambitions and place more 0:05:35.320 --> 0:05:38.800 strategic bets. I think he does have the confidence of 0:05:38.800 --> 0:05:43.239 of investors, Like there's no activist investor at Amazon. There's 0:05:43.400 --> 0:05:47.800 there's fantastical rumor about Bezos coming back that will never happen. 0:05:48.200 --> 0:05:51.000 Jesse is the CEO for these next couple of years, 0:05:51.040 --> 0:05:52.719 but I think it's gonna be a big test. He's 0:05:52.720 --> 0:05:54.920 known for what he did at a WS and now 0:05:54.920 --> 0:05:57.400 he has to prove himself as CEO of the whole business. 0:05:59.120 --> 0:06:01.240 He's only just the day, right, Brad, that you were 0:06:01.240 --> 0:06:04.560 speaking to Dave lymp who kind of runs the devices business. 0:06:04.960 --> 0:06:07.160 Do we have any kind of sense of the granularity 0:06:07.279 --> 0:06:10.320 where Amazon's cutting, where it got too bloated and needs 0:06:10.320 --> 0:06:12.920 to pull back. Because Andy Jase was an AWS guy, 0:06:12.960 --> 0:06:15.320 and you'd imagine that that part of the business is 0:06:15.320 --> 0:06:19.680 almost sacred. Absolutely. I mean, you know, double digit growth 0:06:19.800 --> 0:06:23.039 rates for for the for at least the near term future. 0:06:23.440 --> 0:06:26.359 Still the engine of Amazon, you know, leave it alone. 0:06:26.760 --> 0:06:29.000 Dave Limp on the Device as side got in touch 0:06:29.120 --> 0:06:32.080 actually with myself and my colleague Matt Day to say 0:06:32.160 --> 0:06:35.800 that the reductions in his group were more limited than 0:06:35.839 --> 0:06:39.279 people thought. And this is my my point. These eighteen thousand, 0:06:39.360 --> 0:06:42.520 laughs are in the core business into retail, and then 0:06:42.560 --> 0:06:45.320 it's it's hr and recruiting, because if you're not hiring, 0:06:45.360 --> 0:06:48.520 you don't need the recruiters. So this is really jazzy 0:06:48.640 --> 0:06:51.600 looking at the cost structure for the very basic part 0:06:51.600 --> 0:06:54.320 of the business. Last year was about widowing down the 0:06:54.360 --> 0:06:57.440 experiments that that weren't that weren't working. This year is 0:06:57.480 --> 0:07:00.880 about right sizing that main core part the business, retail, 0:07:01.080 --> 0:07:04.560 and showing investors that Amazon's oldest business is still a 0:07:04.560 --> 0:07:08.480 good one. We just showed that beautiful child on the screen, 0:07:08.520 --> 0:07:11.640 which kind of demonstrates the eighteen thousand jobs being caught 0:07:12.160 --> 0:07:15.040 in the grand scheme of Amazon size. It is small, 0:07:15.080 --> 0:07:17.679 but it's never pleasant, of course to lose one's job. 0:07:18.480 --> 0:07:20.720 It's not the only tech name either, that's that's taking 0:07:20.720 --> 0:07:25.120 this action. Brad Salesforce also kind of building out already 0:07:25.160 --> 0:07:29.280 reported plans to kind of downsize what do we know, right, 0:07:29.920 --> 0:07:33.080 eight thousand layoffs a smaller than at Amazon, but more 0:07:33.120 --> 0:07:35.880 consequential because that's ten percent of the staff. But look, 0:07:35.960 --> 0:07:38.720 the story is still the same if you're a if 0:07:38.720 --> 0:07:42.600 you're a fast growing company, investors are okay with low margins, 0:07:42.800 --> 0:07:45.880 but when growth rates slow, they want to see profitability 0:07:46.200 --> 0:07:48.600 and salesforce for the first time in as long as 0:07:48.640 --> 0:07:51.720 I can remember, is guiding for the current corridor under 0:07:51.760 --> 0:07:55.720 a ten percent growth rate. Okay, that is not great. Uh. 0:07:55.920 --> 0:07:58.080 You know, at the same time, they've got starboard, an 0:07:58.120 --> 0:08:01.160 activist and investor clamoring for them to cut costs. You 0:08:01.240 --> 0:08:05.000 have executives like Brett Taylor, who was the co CEO 0:08:05.520 --> 0:08:09.640 leaving Stewart Butterfield as Slack leaving UM you know, big 0:08:09.680 --> 0:08:13.880 inflated head counts from recent acquisitions like Tableau that they're 0:08:13.880 --> 0:08:17.520 now cutting back on. So it's in many respects the 0:08:17.560 --> 0:08:20.920 same story. Investors are getting impatient and they want to 0:08:20.920 --> 0:08:25.720 see tech companies now show more profitability. Brad, great to 0:08:25.760 --> 0:08:28.520 catch up with you, and well, for many of viewer 0:08:28.640 --> 0:08:30.560 they're still thinking that the worst is still to come. 0:08:30.600 --> 0:08:32.559 So still more reports than that. Brad Stone, of course 0:08:32.640 --> 0:08:35.600 is albody's ahead of global tech coverage and when you might, 0:08:35.679 --> 0:08:37.679 of course have caught some of the headlines coming out 0:08:37.679 --> 0:08:40.120 of crypto that are also jobs related. Just remember we're 0:08:40.120 --> 0:08:43.320 thinking about Genesis, they're cutting about of their head count. 0:08:43.360 --> 0:08:45.760 We've also heard from like the silver Gate Capital I 0:08:45.800 --> 0:08:48.640 was talking about it earlier, laying there's also a barrels 0:08:48.640 --> 0:08:51.520 of headlines around US authorities closing in on Sam Martin's 0:08:51.559 --> 0:08:55.439 Fred's inner circle, New York prosecutors suing Celsius is Alex 0:08:55.480 --> 0:08:58.760 Matchynsky of course for fraud, and fanatics slashing its steak 0:08:58.800 --> 0:09:03.280 and soft back backed ft FAM County Digital Pool. There 0:09:03.360 --> 0:09:05.120 was only one woman in the business who can take 0:09:05.200 --> 0:09:08.280 us to all these different headliness is in the house. 0:09:08.440 --> 0:09:09.920 When do we start? Can we start with the jobs 0:09:09.920 --> 0:09:11.600 cut just because we come off the back of Amazon 0:09:11.600 --> 0:09:14.720 and they're likes I mean silver Gate absolutely dramatic move 0:09:14.800 --> 0:09:16.640 in the share price on the back of dramatic moves 0:09:16.640 --> 0:09:18.360 that having to make. There's a lot of concerns that 0:09:18.400 --> 0:09:20.920 have been drawing around silver Gate for a while now 0:09:21.000 --> 0:09:23.840 given their exposure to the crypto industry. A few interesting 0:09:23.840 --> 0:09:28.080 things here to note here, because eight point one billion 0:09:28.120 --> 0:09:31.560 dollars of a run on deposits here and more than 0:09:31.640 --> 0:09:34.920 seven hundred million dollars worth of a loss on securities 0:09:34.920 --> 0:09:38.520 because they had to foresell essentially here. But interestingly, you 0:09:38.520 --> 0:09:40.480 have analysts coming out and saying there are very few 0:09:40.840 --> 0:09:43.320 banks I could sit there and take eight billion dollars 0:09:43.320 --> 0:09:46.480 worth of withdrawals here and run on deposits. So there 0:09:46.559 --> 0:09:48.520 is a two sided story here. But again something to 0:09:48.520 --> 0:09:51.480 watch very very very closely, because seriously, eight billion dollars 0:09:51.480 --> 0:09:56.000 of deposits usually run on deposits leads usually to more 0:09:56.120 --> 0:09:59.439 runs on deposits. So have they stemmed the bleeding here? Genesis? 0:09:59.480 --> 0:10:01.880 I actually think the reason that it's so interesting with 0:10:01.920 --> 0:10:06.240 the job cut issue is that broader issue you were 0:10:06.240 --> 0:10:08.480 looking at the stomach risk here, not just these single 0:10:08.520 --> 0:10:12.280 one off issues. Is it's Genesis Global Trading that is 0:10:12.720 --> 0:10:15.720 facing a lot of these cuts. Genesis Global Trading, remember, 0:10:15.760 --> 0:10:18.960 did not halt its activity. It was Genesis Lending the 0:10:19.000 --> 0:10:22.400 subsidiary that had halted withdrawals. So the fact now that 0:10:22.480 --> 0:10:27.160 you're seeing issues here financially and looking to stem issues 0:10:27.200 --> 0:10:30.400 here through the vein of job cuts for a larger 0:10:30.480 --> 0:10:33.880 part of this digital currency group Empire is really the 0:10:33.920 --> 0:10:38.679 heart of the issue. Snali, Hello from Las Vegas. Another 0:10:38.720 --> 0:10:41.760 busy day for you, my friend. It's hard to keep 0:10:41.800 --> 0:10:45.559 track of all the headlines from the crypto community. From 0:10:45.559 --> 0:10:47.280 here in Las Vegas, folks are talking about it. I 0:10:47.280 --> 0:10:49.800 think there's a big focusing on SPF right and and 0:10:50.120 --> 0:10:52.880 the latest with what's happening with him. There's a probe 0:10:53.160 --> 0:10:56.400 I believe into sp and SPF confidant. What's the latest there. 0:10:56.800 --> 0:10:58.720 I would take a look at it this way because 0:10:58.720 --> 0:11:02.000 remember we have nichads seeing now there's already been Caroline 0:11:02.000 --> 0:11:06.200 Ellison and there's already been Gary Wang who have pled guilty. 0:11:06.280 --> 0:11:09.199 When you look at the accounts brought forward, the criminal 0:11:09.240 --> 0:11:12.079 accounts wet followed by US authorities. Now the question then 0:11:12.120 --> 0:11:15.480 becomes about in Shad Singh, who is another deputy part 0:11:15.480 --> 0:11:18.040 of the penthouse suite here that stayed in the Bahamas 0:11:18.040 --> 0:11:20.640 penthouse when it came to where Sam Bankban Freed lived. 0:11:20.960 --> 0:11:24.000 This man was also close to Sam bankman Fried's brother, 0:11:24.080 --> 0:11:26.920 friends with him since high school and a director of 0:11:26.960 --> 0:11:29.640 engineering over at f t X, so very part of 0:11:29.640 --> 0:11:32.840 the inner circle here. So we have now that authorities 0:11:32.880 --> 0:11:36.120 are looking more closely at him as well. We don't 0:11:36.160 --> 0:11:39.160 know whether he'll be accused of any wrongdoing. We don't 0:11:39.200 --> 0:11:42.679 know whether he's cooperating. Both of those facts will become very, 0:11:42.760 --> 0:11:45.840 very important when we look at this overall investigation into 0:11:45.880 --> 0:11:49.360 the f t X empire itself. Who knew what and 0:11:49.520 --> 0:11:53.440 who did what when it came to customer money and 0:11:53.760 --> 0:11:57.280 potentially taking it. Remember they were accused here of taking 0:11:57.280 --> 0:11:59.360 the money and paying for personal assets. At the end 0:11:59.360 --> 0:12:01.640 of the day, talking about customer money and people taking 0:12:01.679 --> 0:12:05.400 it in accusations. Tis James getting busy to start off 0:12:05.679 --> 0:12:08.640 the year. Of course, she's the Attorney General of New York. 0:12:08.720 --> 0:12:12.680 Kind of looking at Celsius another key area that just 0:12:12.720 --> 0:12:15.880 crumbled in two There have been so many strong words 0:12:15.960 --> 0:12:18.680 crossing wires this week, and I want to read what 0:12:18.840 --> 0:12:21.880 Leticia James had said in the statement about Alex Maschinski 0:12:21.960 --> 0:12:25.160 here of Celsius, who had said Leticia James saying he 0:12:25.160 --> 0:12:28.880 promised to lead investors to financial freedom but led them 0:12:28.920 --> 0:12:31.640 down a path of financial ruin. Remember when we talked 0:12:31.640 --> 0:12:33.840 about crypto the last couple of years, we've talked about 0:12:33.840 --> 0:12:37.280 whether these big lenders what the responsibility to investors was 0:12:37.400 --> 0:12:39.200 when they're not f d I c ensured like a 0:12:39.240 --> 0:12:42.120 typical lenders in the United States. And what the Attorney 0:12:42.120 --> 0:12:44.760 General is you're really telling you here, you're the New 0:12:44.840 --> 0:12:48.520 York attorney is telling you is that they are responsible 0:12:48.880 --> 0:12:52.679 for her customer money, regardless of that backs up or not. 0:12:53.000 --> 0:12:56.400 And so that is a really important precedent, let alone 0:12:56.800 --> 0:12:59.800 the issue that Alex Maschinski here and Selsius is facing. 0:13:00.160 --> 0:13:02.679 So all of these stories, it is worth it broadening 0:13:02.679 --> 0:13:05.240 out and saying what does this mean for other lenders 0:13:05.240 --> 0:13:07.880 in the space At a time where we're already concerned 0:13:07.880 --> 0:13:10.719 the industry has been so concerned about that big pullback 0:13:11.160 --> 0:13:14.120 of lending in the industry, it will be interesting to 0:13:14.160 --> 0:13:16.839 see how this plays out. Remember, Celsius is also going 0:13:16.880 --> 0:13:19.640 through its own process here. And now what you're having 0:13:19.800 --> 0:13:24.120 is Alex mccinski really being accused here of running a 0:13:24.200 --> 0:13:30.520 scheme that ran for years before freezing withdrawals. All right, 0:13:30.520 --> 0:13:35.080 Bloomberg's Crypto Wall Street, All Things Finance correspondent shin Ali Bastak, 0:13:35.200 --> 0:13:47.400 thank you very much. There's still some focus on consumer 0:13:47.400 --> 0:13:51.440 gadgets and electronics as sees this year. Samsung, for example, 0:13:51.600 --> 0:13:55.600 is thinking about cheaper multi functional devices. The electronics Giant 0:13:55.679 --> 0:13:57.800 is showing off the new two hundred dollar version of 0:13:57.880 --> 0:14:01.120 It's a series budget smartphone, A four teen five G 0:14:01.520 --> 0:14:05.240 as a new upgraded thirteen megapixel front facing camera and 0:14:05.520 --> 0:14:09.120 at six point six in screen with an economic slowdown. Globally, 0:14:09.120 --> 0:14:12.280 Samsung's hoping that entry level phone appeals to more budget 0:14:12.280 --> 0:14:16.080 conscious consumers. Mid two smartphones were hit in two and 0:14:16.120 --> 0:14:20.200 more expensive handsets could be hit in the Korean tech 0:14:20.240 --> 0:14:24.000 giants also thinking about what you're doing at home, Samsung's 0:14:24.000 --> 0:14:27.000 bedding but doubling up a new smart home control device 0:14:27.160 --> 0:14:30.119 as a wireless charging pad will help it beat competition 0:14:30.200 --> 0:14:34.560 from the likes of Amazon. The smarting stage costs eighty 0:14:34.560 --> 0:14:37.000 dollars and can connect to a user's phone or tablet. 0:14:37.280 --> 0:14:39.400 The hub can also be used to operate smart home 0:14:39.440 --> 0:14:44.280 accessories wirelessly think fridges, firmostats, locks and lights. And to 0:14:44.360 --> 0:14:46.920 set it apart, Samsung's added that whiless charging to the 0:14:47.000 --> 0:14:49.720 hub to give juice to your phones and your ear buds. 0:14:53.360 --> 0:14:56.800 So that's what it's like. Carrow out on the exhibition floor, right, 0:14:56.840 --> 0:14:59.320 we're there in Samsung's blue if looking at their latest products, 0:14:59.320 --> 0:15:01.800 we're kind of poking fun at the idea that CS 0:15:01.880 --> 0:15:04.000 has been all about cars for so long you forget 0:15:04.200 --> 0:15:06.480 there are some consumer electronics. I thought it was so 0:15:06.560 --> 0:15:09.840 interesting that Samsung did focus on the low end, right 0:15:09.880 --> 0:15:13.920 two hundred dollars, budget conscious consumer value for money, not 0:15:14.080 --> 0:15:17.000 the dazzling one thousand dollar handsets that perhaps others have 0:15:17.080 --> 0:15:20.560 focused on in recent releases. Yeah, and it is interesting also, 0:15:20.600 --> 0:15:23.440 of course you tap such more broader global market by 0:15:23.880 --> 0:15:26.560 having entry points at that such price point. Tell me, though, 0:15:26.880 --> 0:15:29.360 I feel like the buzzword is also AI rite and 0:15:29.360 --> 0:15:31.920 I was reading some great stories and courage from you 0:15:32.080 --> 0:15:34.360 and from others talking about I mean, apparently I can 0:15:34.400 --> 0:15:36.960 get an AI bird feeder, I can get an AI 0:15:37.000 --> 0:15:40.720 focused baby carriage, fatigue fighting wristwatch. What are some of 0:15:40.720 --> 0:15:43.160 the more extraordinary things that you're seeing at the moment? 0:15:43.400 --> 0:15:47.440 On the floor last night was really weird. Arnold Schwartzeneger 0:15:47.480 --> 0:15:49.800 was on stage, David Hasselhoff was in a video. But 0:15:50.200 --> 0:15:54.280 the reason being is BMW tapped their sci fi inner side. 0:15:54.640 --> 0:15:56.560 We'll get to that later in the show. The other 0:15:56.600 --> 0:15:59.920 big name is Panasonic that really focused on automotive tech 0:16:00.280 --> 0:16:03.400 as well, the Japanese electronic giant no exceptions kind of 0:16:03.440 --> 0:16:06.480 the rules that are going new ELECTA capability was their 0:16:06.520 --> 0:16:10.240 deal for in car entertainment. Remember, Panasonic's main business here 0:16:10.280 --> 0:16:13.240 in North America is battery cell business. It's biggest client, 0:16:13.280 --> 0:16:15.280 Tesla is top of mind. And I spoke to the 0:16:15.280 --> 0:16:19.400 North America CEO Megan one one one Lee. This is 0:16:19.400 --> 0:16:24.080 what she had to say. We're all about customers. Panasonic 0:16:24.360 --> 0:16:27.520 is in our business in US for sixty years as 0:16:27.520 --> 0:16:30.600 a company, hundred years, we really focused on our technology 0:16:30.680 --> 0:16:34.280 and solution for customers. We love our partners, but we 0:16:34.360 --> 0:16:37.920 really want to deliver a product and technology and service 0:16:38.000 --> 0:16:41.080 that bids customer needs. That's well and focus on when 0:16:41.080 --> 0:16:43.640 you make an announcement like this at CS it's supposed 0:16:43.680 --> 0:16:46.160 to be a consumer electronics show, right, it's about forward looking. 0:16:46.600 --> 0:16:50.280 But this is a product like that make you more competitive? 0:16:50.320 --> 0:16:54.240 Does it give you a pipeline of business? UM? Yes 0:16:54.280 --> 0:16:57.600 it does. And UM as a hundred years old company 0:16:57.840 --> 0:16:59.680 and we grew up with C S two we have 0:16:59.760 --> 0:17:02.440 more and fift years or partnership with C E S 0:17:02.480 --> 0:17:06.159 and C T A. And our message this year is 0:17:06.200 --> 0:17:14.440 sustainability and thank you. Yes, why he's our climate ambassador 0:17:14.840 --> 0:17:18.440 and uh what he brings and what he's passionate about 0:17:18.480 --> 0:17:22.399 and what we want to do is nice alignment for 0:17:22.480 --> 0:17:26.000 our message. So what we're demonstrating on the floor and 0:17:26.040 --> 0:17:30.359 our message is we believe in our core belief is 0:17:30.440 --> 0:17:34.960 contribution to society with technology and I am and we 0:17:35.000 --> 0:17:38.440 are really excited that this year is all about sustainability 0:17:38.480 --> 0:17:41.640 for the future but also for the current as well. 0:17:41.760 --> 0:17:45.119 Our biggest business in North America right now is eb Battery. 0:17:45.560 --> 0:17:49.440 We also made another announcement two months ago to invest 0:17:49.840 --> 0:17:54.280 additional four billion dollars for Kansas Kansas um UH for 0:17:54.400 --> 0:17:58.639 the second battery factory. And with that we have four 0:17:59.400 --> 0:18:04.000 employees as is just focused in manufacturing eby battery. That's 0:18:04.000 --> 0:18:06.760 going to have another four thousand employees. And we're really 0:18:06.800 --> 0:18:10.160 bullish about what we're doing in eby battery, sustainability and 0:18:10.480 --> 0:18:13.639 electrification of transportation. You took us there, Let's stick with 0:18:14.119 --> 0:18:16.639 the batteries. We have to talk about Tesla. You know, 0:18:16.960 --> 0:18:20.840 the story around Tesla right now is about concern for demand. 0:18:21.880 --> 0:18:25.240 My question to you is, if there's a drop off 0:18:25.240 --> 0:18:28.719 in demand for customers like Tesla, does that impact demand 0:18:28.760 --> 0:18:32.560 for Panasonic's battery cells or does a customer like Tesla 0:18:32.920 --> 0:18:35.440 have to commit to some volume anyway, even if their 0:18:35.480 --> 0:18:39.840 demand for the end products drops. We're not that concerned 0:18:39.840 --> 0:18:43.640 about that. Right now, We're trying to really provide the quality, 0:18:43.720 --> 0:18:46.919 quantity and quality that Tesla is looking for. We have 0:18:47.040 --> 0:18:50.200 about ten years of experience working with Tesla, which has 0:18:50.240 --> 0:18:55.040 been wonderful. Um as a Japanese uh hundred years old company, 0:18:55.119 --> 0:18:58.359 working with Tesla has been a wonderful learning experience. We 0:18:58.480 --> 0:19:02.640 also announced the partnership with Lucid Yes and we are 0:19:03.240 --> 0:19:08.159 diversifying our contribution in evy battery for this market and 0:19:08.840 --> 0:19:14.960 we're not worried. We're very excited. Panasonic North America CEO there. Meanwhile, 0:19:15.040 --> 0:19:17.760 we've got so much more coming from CES Instacot CMO 0:19:17.880 --> 0:19:21.720 Laura Jones, and the company's latest connected store technologies, including 0:19:21.800 --> 0:19:24.480 caper cart, that big Purchase it made, and scan and 0:19:24.520 --> 0:19:33.160 pay feature. As a Bloomberg a little more from CS 0:19:33.240 --> 0:19:35.760 now because I got to catch up with the Instacot 0:19:35.840 --> 0:19:39.280 CMO Laura Jones, asking about how the company is thinking 0:19:39.280 --> 0:19:41.919 more B two B than B to see at the 0:19:41.920 --> 0:19:45.280 moment about becoming a technology solution. It's big companies, take 0:19:45.280 --> 0:19:50.520 a listen. We're increasingly focused on becoming a retail enablement platform. 0:19:50.600 --> 0:19:53.879 And so in addition to our marketplace which you described 0:19:54.240 --> 0:19:59.640 that personalized shopping, we're also offering technology to enable our 0:19:59.680 --> 0:20:03.919 growth three partners to bring technology into their store. So 0:20:04.000 --> 0:20:08.200 at ce S Disher, we're showcasing our caper carts, which 0:20:08.200 --> 0:20:12.800 are AI computer vision enabled shopping carts that let consumers 0:20:12.920 --> 0:20:16.440 check out as they shop. We're also showing electronic shelf 0:20:16.480 --> 0:20:20.640 tags carrot tags that help consumers and insta cart shoppers 0:20:20.640 --> 0:20:23.080 more easily find what they're looking for. And we're also 0:20:23.119 --> 0:20:26.439 showcasing some integrations between our app and that hardware. So, 0:20:26.480 --> 0:20:30.159 for example, lists you're shopping list that you'll have on 0:20:30.320 --> 0:20:33.439 insta cart, you can also access if you're shopping in store. 0:20:33.520 --> 0:20:37.439 So that'll be a great integration that really recognizes the 0:20:37.440 --> 0:20:42.119 fact that customers increasingly are shopping both online and in store. Also, 0:20:42.200 --> 0:20:44.240 another way in which instacot has been trying to pull 0:20:44.280 --> 0:20:47.600 the leavers of growth is by advertising in it all 0:20:47.600 --> 0:20:50.400 of itself on the platform. You, as CMO, I'm sure 0:20:50.640 --> 0:20:53.960 deeply integrated in this. Tell me about how you're looking 0:20:54.000 --> 0:20:57.120 to make that process easy, how you're looking to make 0:20:57.160 --> 0:21:01.920 that evolve for the uses that you have. Yes, we 0:21:02.440 --> 0:21:06.960 love that our platform can help our customers discover new 0:21:07.000 --> 0:21:09.760 brands that they'll fall in love with and that will 0:21:09.800 --> 0:21:12.399 become part of their weekly shopping routine. And so we 0:21:12.480 --> 0:21:17.320 have a really robust suite of advertising products and everything 0:21:17.359 --> 0:21:20.360 from kind of our classic sponsored products all the way 0:21:20.400 --> 0:21:24.400 through to new launches like shoppable Video that let's brands 0:21:24.400 --> 0:21:27.640 really tell a more fulsome story um and and act 0:21:27.680 --> 0:21:30.359 more like a mid funnel solution in our app to 0:21:30.480 --> 0:21:33.399 inspire users who might not have considered that product to 0:21:33.400 --> 0:21:35.480 add it to their cart. And what's great is because 0:21:35.520 --> 0:21:38.920 we're a closed loop system, you can really track and 0:21:39.119 --> 0:21:41.600 the afflicacy of these ads in a way that's quite unique. 0:21:42.400 --> 0:21:52.360 Day is still the key currency. Welcome back to bow 0:21:52.400 --> 0:21:54.600 Bog Technology. I'm count on hot and new and love low. 0:21:54.640 --> 0:21:56.760 He's in Las Vegas, C Yes, and and I mean, 0:21:57.000 --> 0:21:59.960 what a hundred thousand people there, but it must be 0:22:00.200 --> 0:22:04.600 bumping into a fair few pretty senior executives, right, Yeah, 0:22:04.680 --> 0:22:07.920 it's interesting. We kind of jokes about how automotive technology dominates. 0:22:07.960 --> 0:22:10.960 But you do have Samsung here with that big splashy displays. 0:22:11.200 --> 0:22:13.760 There's a lot of emphasis as well on cybersecurity, which 0:22:13.760 --> 0:22:17.560 I thought was really interesting. I caught up with Cybersecurity 0:22:17.640 --> 0:22:22.040 and Infrastructure Security Agency Chief and Director Jen Easterly, who's 0:22:22.080 --> 0:22:24.160