WEBVTT - Ubisoft Jumps on Buyout Reports, EU Tariffs on Chinese EVs 0:00:01.440 --> 0:00:05.720 From Bahard where Innovation, Money and power Collie in Silicon 0:00:05.840 --> 0:00:10.280 Vallet NBN. This is Bloomberg Technology with Caroline Hyde and 0:00:10.480 --> 0:00:11.559 Ed Ludlow. 0:00:25.040 --> 0:00:27.360 Lie from New York and San Francisco. This is Bloomberg 0:00:27.400 --> 0:00:31.440 Technology coming up. Ubisoft jumps on buy out reports as 0:00:31.520 --> 0:00:36.159 Tencent and its founders I'm taking Assassin's Cream maker private. 0:00:36.680 --> 0:00:39.720 And the EU votes to impose tariffs up to forty 0:00:39.800 --> 0:00:42.680 five percent on Chinese electric vehicles. 0:00:42.720 --> 0:00:44.560 We discussed the trade tensions. 0:00:44.200 --> 0:00:47.760 And Meta unveils an AI video generator as it's AI 0:00:47.840 --> 0:00:50.120 pushmak Zuckerberg the world's second richest position. 0:00:51.080 --> 0:00:53.800 But first we go to our top stock story. 0:00:53.960 --> 0:00:54.000 Ed. 0:00:54.880 --> 0:00:57.800 Yes, French video game maker Ubisoft actually in the thirty 0:00:57.840 --> 0:01:00.960 minutes left in European trading in Paris, the stock on 0:01:01.000 --> 0:01:03.920 track for its biggest jump on record one day jump. 0:01:04.120 --> 0:01:08.280 Bloomberg reporting in the last ninety minutes according to sources 0:01:08.720 --> 0:01:13.320 that ten Cents, the Chinese technology company and the Guimo family, 0:01:13.440 --> 0:01:17.040 the founding family behind Ubisoft, the French video game might 0:01:17.120 --> 0:01:20.119 make a are considering a buyout of the company. There 0:01:20.120 --> 0:01:22.720 are a number of factors behind that. Let's get right 0:01:22.720 --> 0:01:26.720 out to our Paris bureau and bloom Bloomberg's Benoir Buttelo, 0:01:26.920 --> 0:01:30.920 who broke this story with colleagues. It's been under pressure, right, 0:01:31.000 --> 0:01:34.440 this is about stabilizing Ubisoft. What do we know from sources, 0:01:34.760 --> 0:01:35.959 what's on the table here? 0:01:38.160 --> 0:01:38.840 Yeah, exactly. 0:01:39.000 --> 0:01:44.640 So it's a reflection that the biggest investors yourself right now, 0:01:44.720 --> 0:01:49.280 the Guimo family, the funding family, and also shareholder ten 0:01:49.360 --> 0:01:54.000 Cent are having at the moment because that follows a 0:01:54.120 --> 0:01:58.560 rough time for the company and they had issued profit welling. Recently, 0:01:58.720 --> 0:02:01.600 they've been disappointed by the release of an important game, 0:02:01.720 --> 0:02:05.840 Star Wars game, and they delayed another important game as 0:02:05.840 --> 0:02:09.280 since scret shadows to next year. That has sent the 0:02:09.480 --> 0:02:13.400 shares plunging. The company has lost half of its market 0:02:13.520 --> 0:02:17.720 value this year. So they are also activist investors at 0:02:17.720 --> 0:02:21.079 the moment asking for either take private or sale of 0:02:21.120 --> 0:02:24.240 the company. So this is all happening in this context. 0:02:24.840 --> 0:02:29.639 One of the options they consider, as we report, according 0:02:29.680 --> 0:02:33.720 to our sources, is take private joint take private of 0:02:33.760 --> 0:02:37.880 the company. There are also other options being considered and 0:02:38.600 --> 0:02:39.480 that are on the table. 0:02:40.560 --> 0:02:43.000 Ultimately, ten Cents an interesting name. 0:02:43.440 --> 0:02:46.840 We know they're already an investor alongside the Gemo family, 0:02:46.960 --> 0:02:50.080 but would Chinese buyers be able to get their hands 0:02:50.120 --> 0:02:51.200 on a prized French. 0:02:51.000 --> 0:02:56.120 Treasure, they would do it. 0:02:56.240 --> 0:02:58.680 So they are in a concert. They are in a 0:02:58.720 --> 0:03:00.720 close collaboration with the more family. 0:03:00.880 --> 0:03:04.160 They made a deal two years ago and they invested 0:03:04.200 --> 0:03:08.240 actually in the family holding. There are five Givemo brothers 0:03:08.280 --> 0:03:12.880 and also the extended family and Tencent already bought less 0:03:12.919 --> 0:03:17.280 than half of their family holding, so they are they're 0:03:17.440 --> 0:03:22.840 sort of intertwined. Uh and Tencent has been investing in 0:03:22.919 --> 0:03:27.240 European video games company. Obviously ubi Soft is interesting for 0:03:27.320 --> 0:03:31.480 them because of the ips they have. Assassins Creed, a 0:03:31.600 --> 0:03:35.440 hugely popular game. Ubisoft has been developing a mobile version 0:03:35.480 --> 0:03:39.640 of the game, especially for tencent Chinese Chinese market, and 0:03:40.440 --> 0:03:44.760 also Raymond Rabbits. And it's one of the rare big 0:03:44.800 --> 0:03:49.680 independent studios, let's say, in the world. So so yeah, 0:03:50.560 --> 0:03:53.800 they sort of are close to the Gimo and evaluating 0:03:54.080 --> 0:03:57.680 the situation. That was an important investment for them, and 0:03:57.720 --> 0:03:59.360 they're figuring out the situation. 0:04:00.880 --> 0:04:04.680 So Eve Gimo is the CEO of Ubersoft, And you're 0:04:04.720 --> 0:04:08.360 absolutely right, Like the new Assassin's Creed Shadows coming Rayman, 0:04:08.520 --> 0:04:11.720 so many people watching Bloomberg Technology excuse me, it would 0:04:11.720 --> 0:04:12.400 have grown. 0:04:12.240 --> 0:04:14.120 Up playing rayman. 0:04:15.240 --> 0:04:18.279 I don't understand that though he's the CEO, the family 0:04:18.360 --> 0:04:21.440 is part of the buyout. According to sources, just explain 0:04:21.520 --> 0:04:25.640 the basics of how the company is structured in the governance. 0:04:28.200 --> 0:04:31.360 Yeah, so they founded the Gimo brothers, they found the 0:04:31.480 --> 0:04:34.560 ubis off almost forty years ago and they are still 0:04:34.640 --> 0:04:36.839 very much in control of the company and they have 0:04:38.839 --> 0:04:42.000 the five brothers are at the board of the company. 0:04:42.360 --> 0:04:45.600 But if Gimo is now sixty four and they made 0:04:45.640 --> 0:04:49.680 that deal with ten Cent to sort of protect the 0:04:49.720 --> 0:04:53.520 company from buyout in twenty twenty two, at least it 0:04:53.720 --> 0:04:57.520 was seen as such bi analysts and it's it's sort 0:04:57.560 --> 0:05:01.680 of limiting what ten Cent can do. There are different timelines, 0:05:01.880 --> 0:05:07.159 but ten cents cannot have a bigger than ten percent stake. 0:05:07.240 --> 0:05:10.000 For example, the Gimo. 0:05:09.800 --> 0:05:14.680 Familia still still has a majority of the voting rights. 0:05:15.000 --> 0:05:17.640 Ten Cent has no vital voting rights. So it was 0:05:17.680 --> 0:05:22.840 really a deal that was seen as killing speculation around 0:05:22.839 --> 0:05:28.640 the company. But obviously times have a little changed recently 0:05:29.000 --> 0:05:32.200 and they wonder if it would be a good moment 0:05:32.240 --> 0:05:33.360 to make that move. 0:05:34.040 --> 0:05:36.640 Manoir, We thank you Benwell Berfalo there. 0:05:37.200 --> 0:05:39.320 Now let's have a quick check on these markets because 0:05:39.360 --> 0:05:41.720 it is soft moving a lot, but actually the market's 0:05:41.760 --> 0:05:44.880 steadily higher at the moment after what was a blowout 0:05:45.080 --> 0:05:49.279 jobs report. We're just seeing the US hiring topped all estimates. 0:05:49.800 --> 0:05:52.400 So what does that mean for rape bets when you've 0:05:52.440 --> 0:05:54.520 got nonfarm payrolls coming in at two hundred and fifty 0:05:54.560 --> 0:05:58.080 four thousand in September and indeed some inflationary pressure people 0:05:58.120 --> 0:06:01.440 diving back the rate kept bets on the federal reserve 0:06:01.480 --> 0:06:03.520 and that's that, though managing to be about eight tenser percent. 0:06:03.680 --> 0:06:05.200 The bomb market is where the big moves are. 0:06:05.240 --> 0:06:08.000 Let's go to see BIS Chief investment Officer Anna rathbun 0:06:08.240 --> 0:06:10.360 so much to discuss whether it's M and A tach 0:06:10.480 --> 0:06:14.160 privates and whether it's just ultimately the fundamentals. We start there. 0:06:14.520 --> 0:06:17.520 This job market on fire? Do we still support big 0:06:17.560 --> 0:06:18.320 tech investments? 0:06:19.880 --> 0:06:22.479 Good morning, labor market is on fire, But we have 0:06:22.560 --> 0:06:26.440 to remember it is one month release, so we can 0:06:26.480 --> 0:06:29.080 take it at a base value because it's great and 0:06:29.160 --> 0:06:32.360 let's celebrate it, but we can't extrapolate it way too 0:06:32.400 --> 0:06:37.280 far because in totality there are definitely weaknesses. I believe 0:06:37.360 --> 0:06:41.799 Reuters came out with some report about and the Challengers 0:06:41.880 --> 0:06:46.680 report about losing tech jobs, right, Does that mean I 0:06:46.800 --> 0:06:49.760 don't support tech investments? No, because I do think that 0:06:50.000 --> 0:06:54.400 part of the tech job's loss is correction on over 0:06:54.520 --> 0:06:57.120 hiring for AI. This is happening all over the world, 0:06:57.240 --> 0:07:01.640 especially with Samsung coming out with some layof announcements. Tech 0:07:01.880 --> 0:07:05.320 investments I would still support because I know a lot 0:07:05.320 --> 0:07:07.400 of people think it's a bubble, but it's opposed to 0:07:07.400 --> 0:07:09.760 be a bubble when you have something this innovative. This 0:07:09.880 --> 0:07:12.240 is sort of part for the course, so I think 0:07:12.240 --> 0:07:14.239 it's still worth it to go along for the ride. 0:07:14.360 --> 0:07:16.800 But in the short term I do understand the concern, 0:07:17.080 --> 0:07:19.160 but long term it's still an investment. 0:07:19.720 --> 0:07:21.560 Let's just dwell on that for a moment. 0:07:21.600 --> 0:07:24.360 In terms of the overall data, I think it was 0:07:25.240 --> 0:07:28.640 what was it ed the Challenger data showing that half 0:07:28.760 --> 0:07:31.200 of all the tech layoffs and tech layoffs have been 0:07:31.240 --> 0:07:33.960 behind most of the layoffs this year, half of them 0:07:33.960 --> 0:07:35.520 are because of artificial intelligence head. 0:07:36.360 --> 0:07:38.400 Yeah, and then there's a difference, or you've got to 0:07:38.440 --> 0:07:41.720 distinguish between layoffs that are announced and layoffs that are enacted. 0:07:42.000 --> 0:07:44.160 I also just want to like spend a second on 0:07:44.240 --> 0:07:47.720 the moment and how wild jobs. Dating is on social 0:07:47.760 --> 0:07:50.080 media in particular. And I don't know what your life 0:07:50.120 --> 0:07:53.320 is like before coming on Bloomboat Technology, but you'd think 0:07:53.360 --> 0:07:55.440 that this was a once in a lifetime moment if 0:07:55.480 --> 0:07:58.680 you go on X Bloomboat Joe Wisenthal going, this is 0:07:58.680 --> 0:08:00.920 what we wake up for why we all go on. 0:08:00.880 --> 0:08:01.600 To social media? 0:08:01.680 --> 0:08:04.360 I mean he does do that every single job exactly. 0:08:05.120 --> 0:08:07.120 Is that if you're a technology investor, is that what 0:08:07.200 --> 0:08:10.040 it's really like when you get economic data like this? 0:08:11.200 --> 0:08:13.600 Well, you know, maybe maybe not. 0:08:14.200 --> 0:08:18.240 It's not like that for me. So we're long term investors. 0:08:18.280 --> 0:08:20.680 So it is exciting, and I do participate in some 0:08:20.720 --> 0:08:24.440 of the excitement in the short term. But again, like 0:08:24.480 --> 0:08:26.840 if we're if I'm looking at AI, I'm looking at 0:08:26.840 --> 0:08:30.040 the long term potential, This one job number is just 0:08:30.120 --> 0:08:33.120 not going to really do anything for me, right, So 0:08:34.040 --> 0:08:36.800 yes and no, I do participate, but it doesn't affect 0:08:37.000 --> 0:08:37.520 what I do. 0:08:39.480 --> 0:08:41.960 If it doesn't affect ultimately what you're up to, let's 0:08:42.000 --> 0:08:44.360 think about what it affects in terms of market sentiment 0:08:44.400 --> 0:08:47.559 for big tech and indeed the opportunity to see consolidation. 0:08:48.040 --> 0:08:50.360 We've seen themes of M and A, whether it's out 0:08:50.360 --> 0:08:53.199 of die need and distress like we saw ultimately in 0:08:53.200 --> 0:08:56.080 the PayTV deals earlier this week, we now hear of 0:08:56.440 --> 0:09:00.199 reports that companies that have been really beaten up from 0:09:00.200 --> 0:09:03.160 a market cap perspective and now being allyed to take private. 0:09:03.280 --> 0:09:05.040 It's not going to be something we see even as 0:09:05.120 --> 0:09:05.959 rates come down. 0:09:07.080 --> 0:09:10.240 Well, the rates have to come down considerably, and you know, 0:09:10.360 --> 0:09:12.760 talking about the job market today, there's a lot of fear. 0:09:13.080 --> 0:09:16.240 I mean, I think the market's repricing itself from fifty 0:09:16.280 --> 0:09:18.280 basis point total for the rest of the year to 0:09:18.320 --> 0:09:22.560 seventy five, and I think it's it's gonna matter how 0:09:22.600 --> 0:09:25.840 far we go down. The FED should still cut because 0:09:25.960 --> 0:09:28.720 I don't think the M and A market can be 0:09:28.880 --> 0:09:32.600 healthy at this rate. There's a lot of liquidity, people say, 0:09:32.640 --> 0:09:36.640 but there's liquidity for certain people, not enough liquidity for others. 0:09:36.840 --> 0:09:39.640 It's not like, you know, you can't paint with a 0:09:39.679 --> 0:09:43.920 single brush here. So for the market to be healthy again, 0:09:43.960 --> 0:09:46.240 for there to be healthy level of M and A activity, 0:09:46.320 --> 0:09:49.079 especially in the IPO market, I think the FED has 0:09:49.120 --> 0:09:51.760 to continue cutting. And I don't think today's jobs number 0:09:51.840 --> 0:09:53.680 is going to change the course of what the FED 0:09:53.720 --> 0:09:54.240 has started. 0:09:55.559 --> 0:09:57.559 We must look I guess forward to the rest of 0:09:57.600 --> 0:10:00.160 the year where we have a presidential election here in 0:10:00.200 --> 0:10:05.280 the United States. Does that impact the technology investor, even 0:10:05.280 --> 0:10:07.360 if you're a long term investor, when you take into 0:10:07.440 --> 0:10:10.360 account policy antitrust regulation in this. 0:10:10.400 --> 0:10:16.640 Country, Yeah, I would watch for a one party rule 0:10:17.160 --> 0:10:21.000 because any law that is passed in through Congress. There's 0:10:21.040 --> 0:10:23.880 a lot of fear about AI. What we saw in 0:10:23.880 --> 0:10:27.080 California about you know, and and it became a free 0:10:27.480 --> 0:10:30.440 free speech issue. But there are a lot of these 0:10:30.480 --> 0:10:33.400 fears about you know, what can be passed through in 0:10:33.480 --> 0:10:35.600 terms of deep fakes and AI et cetera. 0:10:36.520 --> 0:10:37.079 These things. 0:10:37.120 --> 0:10:39.440 If we don't do it right, it can actually turn 0:10:39.480 --> 0:10:43.320 into something that can be a regulate regulation that can 0:10:43.360 --> 0:10:48.600 actually hinder innovation. So I think this is doesn't matter 0:10:48.679 --> 0:10:51.480 which party it is right, but certainly if you have 0:10:51.559 --> 0:10:55.320 one party rule, it would definitely increase the probability of 0:10:55.320 --> 0:10:56.640 something like that getting passed. 0:10:57.000 --> 0:11:00.600 Save It's Chief Investment Officer, Anna Rathbun, Thanks as always 0:11:00.640 --> 0:11:03.560 for your time. Meanwhile, coming up, the EU preparing for 0:11:03.640 --> 0:11:07.720 tarofs up to forty five percent on Chinese made electric vehicles. 0:11:07.920 --> 0:11:10.720 That says Europe risks a broader trade conflict with China 0:11:10.960 --> 0:11:12.239 and what are you looking at? 0:11:12.559 --> 0:11:13.839 Well, I'm looking at EV's as well. 0:11:13.960 --> 0:11:16.760 Rivian is down six percent off its session lows, but 0:11:16.840 --> 0:11:20.679 it has cut its production outlook to forty seven thousand 0:11:20.679 --> 0:11:23.480 to forty nine thousand EV's this year. It had been 0:11:23.520 --> 0:11:27.760 fifty seven thousand. Why a specific supply chain issue they're 0:11:27.800 --> 0:11:31.200 not disclosing. That became more acute in recent weeks. And 0:11:31.240 --> 0:11:34.040 that's their two consumer models and the van they make 0:11:34.080 --> 0:11:36.480 for Amazon, and the streets concerned. 0:11:36.760 --> 0:11:37.560 I'm digging into it. 0:11:37.640 --> 0:11:39.920 And by the way, if you're a Rivian employee that's 0:11:39.960 --> 0:11:41.800 out there, you know something, phone me. I think a 0:11:41.840 --> 0:11:43.920 lot of people want to know what's going on here. 0:11:43.920 --> 0:11:47.120 It's a Rivian problem rather than an industry problem. 0:11:47.200 --> 0:11:48.439 This is Bloomberg technology. 0:11:57.960 --> 0:12:01.199 The European Union is voted to impose tariffs as high 0:12:01.200 --> 0:12:04.920 as forty five percent on electric vehicles from China. Here's 0:12:04.960 --> 0:12:09.240 how European Commission spokesperson Betrayed all off Gil explain the reasoning. 0:12:10.679 --> 0:12:13.439 We do not and we never have wanted to impose 0:12:13.480 --> 0:12:15.960 tariffs in this case for the sake of imposing tariffs. 0:12:16.280 --> 0:12:21.440 What we want is to remove the injurious subsidization, the 0:12:21.480 --> 0:12:30.560 effect of the injurious subsidization that are painstakingly detailed, wto 0:12:30.640 --> 0:12:34.760 compatible and thorough investigation identified. 0:12:36.920 --> 0:12:41.439 Let's discuss with Transport and Environment Senior Director Julia Poliskanova 0:12:42.160 --> 0:12:46.120 up to forty five percent tariff on Chinese built and 0:12:46.200 --> 0:12:50.560 imported electric vehicles. Your reaction and analysis of that number. 0:12:51.840 --> 0:12:55.440 So overall, we do think that today is a good 0:12:55.520 --> 0:12:59.839 day for European industrial policy. It means there's one single vision, 0:13:00.080 --> 0:13:02.960 That means we are serious about trying to create the 0:13:03.000 --> 0:13:07.240 business case for local manufacturing in Europe. We believe that, 0:13:07.520 --> 0:13:10.120 and I certainly already see in some of the data 0:13:10.240 --> 0:13:12.720 that some of the Chinese companies will still be doing 0:13:12.720 --> 0:13:15.120 really well. They have a good product. We still will 0:13:15.160 --> 0:13:17.520 see those brands on the European market, but they will 0:13:17.559 --> 0:13:21.520 likely be producing here rather than importing it from China. 0:13:21.640 --> 0:13:22.760 Julia, I push back. 0:13:22.640 --> 0:13:24.960 On the one single vision a little bit sly because 0:13:25.000 --> 0:13:27.400 when you look at how the vote went out, Yes, 0:13:27.559 --> 0:13:30.320 ten came out and supported France here among them, but 0:13:30.760 --> 0:13:34.280 twelve abstained and a whole number actually voted against, for 0:13:34.320 --> 0:13:37.559 example Germany. How much behind the scenes work is there 0:13:37.600 --> 0:13:39.320 now to try and iron this out that they don't 0:13:39.360 --> 0:13:40.719 have to be imposed. 0:13:41.720 --> 0:13:45.320 I think they're ultimately given the amount of pressure that 0:13:45.360 --> 0:13:48.840 there has been against the terrorists, amount of negotiation, and 0:13:48.880 --> 0:13:52.839 the fact that the largest European country have actually voted against. 0:13:53.200 --> 0:13:56.040 Given all this, the fact that teriffts went through does 0:13:56.200 --> 0:13:58.800 actually mean that behind the scenes there must be an 0:13:58.840 --> 0:14:02.440 agreement that even though we continue negotiating, we are going 0:14:02.440 --> 0:14:06.360 with the tariffs. So it means Europe did decide that 0:14:06.440 --> 0:14:09.439 the case for local manufacturing is more important than the 0:14:09.520 --> 0:14:11.280 risk of retaliation from China. 0:14:13.400 --> 0:14:18.960 Julia Transport Environment call themselves the leading advocates for clean 0:14:19.080 --> 0:14:23.080 energy and transport in Europe, and this morning you published 0:14:23.120 --> 0:14:28.120 research that basically said these tariffs alone will not save 0:14:28.200 --> 0:14:31.440 the EV industry in Europe. 0:14:31.280 --> 0:14:33.640 If there is not a refocus. 0:14:33.720 --> 0:14:37.560 I think is fair to say on broader COE two 0:14:37.680 --> 0:14:40.640 targets and other climate targets. What else is it that 0:14:40.720 --> 0:14:44.400 you're calling to be done alongside the imposition of these tariffs. 0:14:45.720 --> 0:14:49.920 So tariffs only makes sense in tandem with a broader, 0:14:49.960 --> 0:14:54.080 stronger climate policy that would push carmakers to actually manufacture 0:14:54.200 --> 0:14:57.920 locally football electric vehicles as long as the wide industrial 0:14:57.960 --> 0:15:01.320 policy would. So we need to onshore battery manufacturing. For example, 0:15:01.520 --> 0:15:05.520 the battery input tariffs into Europe is one percent, while 0:15:05.560 --> 0:15:08.160 a lot of local companies are struggling. So we also 0:15:08.320 --> 0:15:11.600 need stronger defense measures there. We need to ramp up 0:15:11.680 --> 0:15:14.840 charging stations, make it easier for people to charge, for example, 0:15:15.400 --> 0:15:17.600 simplify the way we connect to the grid. So there's 0:15:17.600 --> 0:15:20.320 a number of measures that all have to come together, 0:15:20.880 --> 0:15:24.320 and alongside them, tariffs really help because they give a 0:15:24.480 --> 0:15:27.160 chance to the European electric vehicle industry. 0:15:28.080 --> 0:15:33.240 What's interesting is ultimately local analysts over in China saying 0:15:33.520 --> 0:15:35.360 this is going to have a minor impact on the 0:15:35.480 --> 0:15:38.720 Chinese ev names because when all taken in its totality, 0:15:39.280 --> 0:15:42.920 their market share just isn't that significant to Europe. So 0:15:43.000 --> 0:15:50.720 how impactful will this be on imports from Giele from BYD. 0:15:49.280 --> 0:15:52.320 So actually we see that today, given that the US 0:15:52.320 --> 0:15:55.840 market is closed automately to to Chinese manufacturers, and given 0:15:55.880 --> 0:15:59.520 the huge over supply and over capacity, to the European 0:15:59.520 --> 0:16:02.640 market is very important. Some data shows that up to 0:16:02.760 --> 0:16:07.560 sixty percent today of all global evy experts from China 0:16:07.840 --> 0:16:10.200 go to Europe, the EU, but of course also the 0:16:10.320 --> 0:16:12.880 UK and Norwich. So it is a significant market. That's 0:16:12.880 --> 0:16:15.560 why I think Europe shouldn't be so scared of retaliation. 0:16:15.760 --> 0:16:18.920 Of course it's the risk, but China also needs Europe, 0:16:18.960 --> 0:16:21.600 and ultimately, as I said before, we will see the 0:16:21.720 --> 0:16:24.400 Chinese brands in Europe, but they will manufacture here, they 0:16:24.400 --> 0:16:28.000 will build batteries here, and hopefully wild the Europeans benefit 0:16:28.120 --> 0:16:30.200 from them in terms of it and value. 0:16:30.480 --> 0:16:32.760 We really appreciate you sticking with a story throughout for 0:16:32.840 --> 0:16:37.360 US Transport Environments Senior Director Julia ris Canova sticking with China. 0:16:37.600 --> 0:16:42.400 Shanghai CSI three hundred index continues to surge. Investors see 0:16:42.440 --> 0:16:45.680 government stimulus creating an opportunity for firms. Let's discuss all 0:16:45.720 --> 0:16:49.240 of this and sustainability of the rally. Remergs Isabelle Lee 0:16:49.640 --> 0:16:51.000 twenty six percent ten days. 0:16:51.080 --> 0:16:52.119 Is this going to continue? 0:16:52.520 --> 0:16:55.160 It's really spectacular. We've seen a wave of buying we've 0:16:55.200 --> 0:16:57.480 never seen before or at least in decades. We have 0:16:57.560 --> 0:17:01.640 economists capitulating, we have black Rocks now actually buying in 0:17:01.720 --> 0:17:05.280 after being long a bear, but who knows. We have 0:17:05.320 --> 0:17:07.920 Regiev Jane, he's the PM of a twenty five or 0:17:07.960 --> 0:17:10.200 so billion dollar em and he's saying that this rally 0:17:10.240 --> 0:17:12.560 will be fleeting. We have the more economists saying that 0:17:12.840 --> 0:17:15.959 this reminds them somewhat of the twenty fifteen bear crash, 0:17:16.200 --> 0:17:18.520 So it really I mean, if you rally this fastened, 0:17:18.560 --> 0:17:20.560 this deep, where will this go? And we have Goldman 0:17:20.600 --> 0:17:24.399 sac saying that, Okay, obviously this increases the optimism in 0:17:24.440 --> 0:17:27.320 the market, but it remains another question whether the Beijing 0:17:27.400 --> 0:17:29.840 will actually implement any of the stimulus. 0:17:29.840 --> 0:17:30.720 So it's really wait. 0:17:30.640 --> 0:17:32.159 And see now, and they will get back from their 0:17:32.200 --> 0:17:34.520 goals and we Calliday next Tuesday. So I think that's 0:17:34.520 --> 0:17:35.480 really the determinant. 0:17:37.320 --> 0:17:41.320 Where does China's technology sector fit within this narrative. We've 0:17:41.359 --> 0:17:43.800 been touching on it with you this week because there 0:17:43.840 --> 0:17:46.439 is US investor interest in some of those names. But 0:17:46.520 --> 0:17:49.399 does the same kind of broader philosophy apply. 0:17:49.480 --> 0:17:51.240 I think with a Chinese tech sector, it's kind of 0:17:51.240 --> 0:17:54.359 like the US tech sector. It's a little bit independent because, 0:17:54.840 --> 0:17:58.640 if you must recall, the Chinese government approaches that segment 0:17:58.800 --> 0:18:01.879 very differently in the past couple of years. They've doubled 0:18:01.880 --> 0:18:03.560 down on it, then they east on it, and that's 0:18:03.600 --> 0:18:06.000 why you see this kind of optimism. But for this one, 0:18:06.040 --> 0:18:08.200 it goes beyond that. It's really the whole economy they're 0:18:08.200 --> 0:18:10.919 definitely trying to really boost the sentiment, and this is 0:18:11.000 --> 0:18:13.040 why it happened before the holiday, because they have a 0:18:13.080 --> 0:18:15.320 tendency to do that so that people feel good when 0:18:15.320 --> 0:18:17.399 they're off for that week or so, so that they spend. 0:18:17.520 --> 0:18:19.680 And you have data from city groups saying that spending 0:18:19.960 --> 0:18:22.320 is indeed robust. So I think that's a different approach. 0:18:22.480 --> 0:18:24.920 But overall this seems to be more of a coordinated 0:18:25.000 --> 0:18:26.919 measure and there's buy in from the government. This is 0:18:26.920 --> 0:18:29.520 why banks, like again Goldman Sachs is saying that maybe 0:18:29.600 --> 0:18:32.080 this is different, but it still remains to be seen before. 0:18:32.119 --> 0:18:35.600 Now we have really ETFs having their best global flows 0:18:35.640 --> 0:18:38.400 and we have a lot of that coming from ETFs 0:18:38.440 --> 0:18:40.879 link to China. 0:18:40.280 --> 0:18:43.480 In beks Isabellie super smart reporting focused on tech. 0:18:43.600 --> 0:18:45.200 Really appreciate it. Thank you very much. 0:18:53.160 --> 0:18:56.600 Meta it's announced it'll start to actually integrate an AI 0:18:56.800 --> 0:19:01.119 movie generator similar to open Ai, Sora It's apps maybe 0:19:01.119 --> 0:19:01.920 sometime in the next year. 0:19:01.960 --> 0:19:04.200 Belue Most Kurt Wagner joins us for more. 0:19:04.400 --> 0:19:07.480 Again, the focus on our AI is relentless over a 0:19:07.560 --> 0:19:09.679 Meta it has been. 0:19:09.600 --> 0:19:12.000 Right, I mean, it's been this story for Mark Zuckerberg 0:19:12.040 --> 0:19:14.720 in this company for the whole year for sure, But 0:19:14.800 --> 0:19:17.480 even just last week, Caroline, You'll remember we were talking 0:19:17.520 --> 0:19:21.080 about Oriyan, these augmented reality glasses, you know, the ray band, 0:19:21.080 --> 0:19:24.280 metas their AI powered smart glasses. Now they're coming out 0:19:24.320 --> 0:19:28.200 with you know, video generated AI product. So this has 0:19:28.280 --> 0:19:31.600 been a very steady stream of updates from them. That's not, 0:19:32.400 --> 0:19:34.159 you know, a coincidence. Of course, this has been what 0:19:34.200 --> 0:19:36.360 Mark Zuckerberg has been talking about for a long time now, 0:19:36.840 --> 0:19:39.480 and now we're seeing some of the results of all 0:19:39.600 --> 0:19:40.159 that topic. 0:19:41.280 --> 0:19:43.719 It is a steady stream, and it is interesting because 0:19:43.720 --> 0:19:46.240 you and I spent two days at Meta last week 0:19:46.480 --> 0:19:49.359 and this wasn't shown to us, and now they've put 0:19:49.400 --> 0:19:52.159 it out this morning. But I guess what I'd reflect 0:19:52.200 --> 0:19:55.119 on is that they are doing all things with open 0:19:55.240 --> 0:19:56.919 source being at front center. You have a sort of 0:19:56.960 --> 0:20:01.080 consumer facing technology which you can access through the ray 0:20:01.119 --> 0:20:03.840 bands or through the application. Then there is the sort 0:20:03.840 --> 0:20:07.720 of more enterprise and industry leading stuff. Where does the 0:20:07.840 --> 0:20:10.440 video tech fit in? Are they going off to developers 0:20:10.480 --> 0:20:11.200 for example? 0:20:12.440 --> 0:20:15.720 So the idea is to eventually make this a consumer product. 0:20:15.800 --> 0:20:18.800 It will be integrated into their apps with the hope 0:20:18.800 --> 0:20:21.800 that people will then create more video edit more of 0:20:21.840 --> 0:20:25.160 their own videos to make them more fun or different 0:20:25.600 --> 0:20:28.679 and increase sharing. At the same time, they're getting this 0:20:28.760 --> 0:20:30.800 in the hands of some filmmakers. They wouldn't tell us 0:20:30.800 --> 0:20:33.840 which ones, but they say they're out partnering with the 0:20:33.960 --> 0:20:37.840 film industry because they want this to be a complimentary thing, right. 0:20:38.080 --> 0:20:39.639 The last thing they want is to be seen is 0:20:39.680 --> 0:20:42.520 going after the movie houses or being a threat to them. 0:20:42.560 --> 0:20:44.520 They want to work with them. So it's a little 0:20:44.520 --> 0:20:46.360 bit of a consumer thing, but also something that they're 0:20:46.400 --> 0:20:47.879 trying to get in the hands of people who do 0:20:47.960 --> 0:20:48.639 this for a living. 0:20:49.280 --> 0:20:53.359 They've also got to be worried about fake images and 0:20:53.440 --> 0:20:55.000 ultimately how they show this as AI. 0:20:56.480 --> 0:20:58.440 Yeah, and this is a big reason that they haven't 0:20:58.480 --> 0:21:00.520 rolled it out in the product just yet, that they're 0:21:00.560 --> 0:21:02.679 still figuring out some of the safety elements of this. 0:21:02.760 --> 0:21:04.920 You know, part of the feature here is you could 0:21:04.960 --> 0:21:08.760 actually upload a picture of yourself, Caroline and say make 0:21:08.880 --> 0:21:11.160 me into this movie or put me into this movie, 0:21:11.160 --> 0:21:13.760 and it'll do it. You can imagine the consequences if 0:21:13.760 --> 0:21:16.160 you're uploading photos of someone else, right, and you're putting 0:21:16.160 --> 0:21:19.919 them in compromising situations, in appropriate situations. So they are 0:21:20.000 --> 0:21:23.320 trying to figure out the safety elements of this as 0:21:23.359 --> 0:21:25.280 they are going. It's a good sign I think that 0:21:25.320 --> 0:21:27.840 they haven't rolled this out broadly if they haven't figured 0:21:27.880 --> 0:21:29.760 that out yet, So you know, we'll take that as 0:21:29.840 --> 0:21:31.920 perhaps a meta growing up a little bit from a 0:21:32.000 --> 0:21:32.520 year's past. 0:21:33.560 --> 0:21:34.600 Go to my Instagram. 0:21:34.640 --> 0:21:37.320 I use that tool of uploading myself and making something 0:21:37.359 --> 0:21:40.479 from it, and yeah, you need an imagination. Blue Bes 0:21:40.560 --> 0:21:41.880