WEBVTT - Investors Look To Apple's WWDC For Guidance 0:00:00.080 --> 0:00:13.480 Bloomberg Audio Studios, podcasts, radio news. Bloomberg Tech is live 0:00:13.520 --> 0:00:17.319 from coast to coast with Caroline Hide in New York 0:00:17.600 --> 0:00:20.720 and Vlow in San Francisco. 0:00:22.480 --> 0:00:25.200 Live from New York, This is Bloomberg Technology Coming up. 0:00:25.239 --> 0:00:28.880 Apple kicks off its annual Developers conference in Coupatino. Will 0:00:28.920 --> 0:00:32.840 the event help ease or inflame? It struggles with artificial intelligence? 0:00:33.120 --> 0:00:36.280 Plus the US and China trade talks get underway, tariffs, 0:00:36.360 --> 0:00:40.680 rare earth minerals, and advanced technology topping the agenda, and 0:00:40.720 --> 0:00:44.560 Warner Brothers Discovery separates into two publicly traded companies, splitting 0:00:44.560 --> 0:00:49.040 its streaming and cable businesses. But first, what's happening over 0:00:49.080 --> 0:00:52.480 the course of Apple and we head straight out to Kopatino, 0:00:52.479 --> 0:00:53.199 of course, where. 0:00:53.000 --> 0:00:55.880 Our own led lud and Nudlow is standing by. We're 0:00:55.960 --> 0:00:57.000 up for tens of a percent. 0:00:57.040 --> 0:00:59.800 Look, there is a lot of anxiety on investors' minds 0:00:59.800 --> 0:01:02.120 at the moment, ed, and largely it's about AI. 0:01:02.200 --> 0:01:03.280 Will that get results today? 0:01:03.880 --> 0:01:06.360 Yeah, it's one of those situations where like expectations are 0:01:06.440 --> 0:01:09.039 high that Apple will tell us something about AI strategy, 0:01:09.120 --> 0:01:11.679 but actually it's highly unlikely to be the case. Right, 0:01:11.720 --> 0:01:14.720 That's not the point of WWDC. You know, the main 0:01:14.800 --> 0:01:18.560 thing with Mark Gumman's reporting in particular, I think, is 0:01:18.600 --> 0:01:22.560 about third party developer access to Apple's llms. Right, If 0:01:22.560 --> 0:01:26.640 you think about the work going on inside of open AI, Microsoft, Gemini, 0:01:26.680 --> 0:01:29.600 at Google, a lot of the innovation is built on 0:01:29.640 --> 0:01:34.319 that third party developer front. And for Apple it's critically important, 0:01:34.360 --> 0:01:35.880 just as you look at the history of the App 0:01:35.920 --> 0:01:39.640 Store and in its services offering, that's built on a 0:01:39.720 --> 0:01:42.920 history of developer innovation. And so right, the stocks down 0:01:42.920 --> 0:01:45.720 eighteen percent year today, it is underperforming its peers in 0:01:45.720 --> 0:01:49.000 that context. But that trading year today has largely been 0:01:49.000 --> 0:01:51.920 on the trade or tariff risk context, not about what's 0:01:51.920 --> 0:01:52.640 happening with AI. 0:01:52.960 --> 0:01:54.480 And I think the point our colleagues are making on the. 0:01:54.440 --> 0:01:57.040 Bloomberg terminal this morning is well, what if today's the 0:01:57.080 --> 0:02:00.200 day it changes? Because one year ago WWDC it was 0:02:00.200 --> 0:02:02.960 that same high expectation and people on the AI side 0:02:03.000 --> 0:02:03.559 didn't get. 0:02:03.400 --> 0:02:05.680 What they want. But Mark Gumman's good all the details right. 0:02:05.680 --> 0:02:08.079 He does at Ludlow hold on for a moment because 0:02:08.120 --> 0:02:11.240 Mark German, who has broken so much news ahead of 0:02:11.280 --> 0:02:14.399 what's expected from Apple today, joins us now in La 0:02:14.440 --> 0:02:16.880 and Mark just walk us through whether any of that 0:02:17.280 --> 0:02:20.920 AI well misstep can be walked back and can be 0:02:21.000 --> 0:02:22.560 indeed invigorated today. 0:02:22.600 --> 0:02:24.519 Do you think they're going. 0:02:24.400 --> 0:02:26.799 To try to tell a good story on AI? Right, 0:02:26.840 --> 0:02:30.040 They're going to come out full force, talk about how 0:02:30.200 --> 0:02:34.400 they're different, talk about how they're highly integrated, talk about privacy, 0:02:34.919 --> 0:02:38.320 talk about how the other companies are stealing your data. Right, 0:02:38.440 --> 0:02:41.400 But the reality is they're not going to show much 0:02:41.520 --> 0:02:43.679 of substance when it comes to AI. The big thing 0:02:44.000 --> 0:02:46.760 is they're going to open up their Apple Intelligence they're 0:02:46.800 --> 0:02:49.720 called the AFM or the Apple Foundation models to third 0:02:49.760 --> 0:02:52.560 party developers, so developers will able to use Apple's AI 0:02:52.639 --> 0:02:55.640 technology if they want to to build their apps and 0:02:55.680 --> 0:02:58.440 build their features. There's going to be an upgraded version 0:02:58.440 --> 0:03:02.680 of their shortcutsapp for con to allow customers end users 0:03:02.680 --> 0:03:05.480 on the iPhone, iPad and Mac to create shortcuts or 0:03:05.600 --> 0:03:09.880 little widgets and features themselves using AI. The biggest thing 0:03:09.919 --> 0:03:11.960 when it comes to AI is that translation. 0:03:12.520 --> 0:03:12.720 Right. 0:03:12.760 --> 0:03:14.800 This is something Google has had for a couple of 0:03:14.840 --> 0:03:17.280 decades now is now going to be a very core 0:03:17.360 --> 0:03:20.680 system element, so you'll be able to live translate a 0:03:20.680 --> 0:03:24.119 phone call you're speaking to someone in another language, you'll 0:03:24.120 --> 0:03:27.840 be able to hear that back in your native language. Likewise, 0:03:27.960 --> 0:03:30.440 in text messages, there's going to be changes in the 0:03:30.440 --> 0:03:35.280 messages app, new backgrounds and polls to better compete with WhatsApp. 0:03:35.360 --> 0:03:40.279 But the biggest announcements today will be around the user interface. 0:03:40.360 --> 0:03:43.840 They're coming out with a new liquid glass digital material, 0:03:44.480 --> 0:03:47.440 a new look for all of their operating systems across 0:03:47.560 --> 0:03:50.680 all of their devices, and then the iPad getting a 0:03:50.680 --> 0:03:54.480 big productivity lift to make it more usable like a Mac, 0:03:54.520 --> 0:03:57.840 particularly for things like multitasking and PDF management. 0:03:58.640 --> 0:04:00.280 I think it's seen lag you by out of a 0:04:00.280 --> 0:04:03.320 community right mark that the move from version to year 0:04:03.440 --> 0:04:05.720 version labeling for the operating systems. 0:04:05.720 --> 0:04:06.680 That's kind of helpful. 0:04:06.760 --> 0:04:09.880 But when I read you're reporting around liquid glass, it's 0:04:09.920 --> 0:04:12.880 almost as if there's a roadmap as well, down the 0:04:13.000 --> 0:04:15.120 road to future generations of hardware. 0:04:15.200 --> 0:04:16.240 Could you explain that bit? 0:04:16.920 --> 0:04:17.040 So? 0:04:17.080 --> 0:04:20.360 The new user interface is very glassy, lots of use 0:04:20.400 --> 0:04:26.000 of transparency, translucency throughout the operating system, letting your wallpaper 0:04:26.040 --> 0:04:29.839 and light shine through different user interface elements. It's very 0:04:29.839 --> 0:04:32.000 similar to the UI or seeing on the Vision Pro. 0:04:32.920 --> 0:04:36.559 Apple's working on a new mostly glass iPhone for twenty 0:04:36.600 --> 0:04:40.279 twenty seven, the iPhone twenty as I'm calling it, for 0:04:40.320 --> 0:04:43.880 the twentieth anniversary of the iPhone, and so you're going 0:04:43.920 --> 0:04:48.080 to see that hardware software really make it difficult to 0:04:48.200 --> 0:04:50.919 understand where it begins, where it ends, more of a 0:04:51.040 --> 0:04:54.719 unified product experience things that Apple's had in the past. 0:04:54.760 --> 0:04:58.000 They've done the iPhone five C in twenty thirteen. The 0:04:58.040 --> 0:05:01.880 idea was the same molding color from the operating system 0:05:01.960 --> 0:05:04.240 to color on the phone. And so this is going 0:05:04.240 --> 0:05:06.640 to be pretty exciting. And so yes, this portends to 0:05:07.080 --> 0:05:09.680 some major hardware developments in the coming years, but in 0:05:09.760 --> 0:05:13.719 terms of this year and the short term, nothing that 0:05:13.839 --> 0:05:16.560 exciting coming from Apple other than the UI, I would. 0:05:16.400 --> 0:05:19.839 Say, and therefore mark the age old question is is 0:05:19.839 --> 0:05:23.400 it going to be enough to really invigorate purchasing because 0:05:23.560 --> 0:05:27.200 there's a laundry list of issues that Apple faces. And yes, 0:05:27.400 --> 0:05:30.640 it's about AI and indeed the product is also about 0:05:30.640 --> 0:05:33.400 the supply chain, and it's also about regulation here in 0:05:33.440 --> 0:05:34.240 the United States. 0:05:35.080 --> 0:05:37.560 I mean, for this fall, you've got the iPhone seventeen 0:05:37.640 --> 0:05:40.520 Pro that's going to have a redesigned back, a redesigned 0:05:40.520 --> 0:05:44.760 camera area, and anytime Apple does a design change, whether 0:05:44.800 --> 0:05:48.840 it's for usability or just aesthetic right, that gets lines flowing, 0:05:48.880 --> 0:05:51.880 gets people interested. So I do think the iPhone seventeen 0:05:51.920 --> 0:05:55.040 Pro will be a success. By then the AI features 0:05:55.040 --> 0:05:58.480 will be a bit better. They're doing some fundamental changes 0:05:58.800 --> 0:06:01.960 to the large language models themselves. But if you compare 0:06:01.960 --> 0:06:04.720 and contrast what you've seen from Google and open AI 0:06:04.760 --> 0:06:06.960 and Anthropic over the last several months to what you're 0:06:07.000 --> 0:06:09.760 going to see from Apple today, it's going to be 0:06:09.920 --> 0:06:12.359 very stark and it's going to be very clear that 0:06:12.400 --> 0:06:14.280 Apple's behind. Of course, they're going to tell a very 0:06:14.279 --> 0:06:16.760 good story, right, They're going to market their way through this. 0:06:17.320 --> 0:06:19.640 But if you focus on the substance, you'll see the 0:06:19.640 --> 0:06:20.400 big differences. 0:06:20.800 --> 0:06:23.080 Well, we'll see if that can change the opinion of 0:06:23.080 --> 0:06:25.240 the investor base right now, Mark Germ and Ed Ludlow 0:06:25.279 --> 0:06:27.080 as well, Thank you both so much. 0:06:27.440 --> 0:06:28.160 Now, coming up. 0:06:28.279 --> 0:06:30.320 US and China, they're trying to avoid a clash as 0:06:30.320 --> 0:06:33.200 trade talks kickoff in London with a global tech supply 0:06:33.320 --> 0:06:35.160 chain at the heart of discussions. 0:06:35.480 --> 0:06:46.599 We'll have the latest. This is Bloomberg Technology. 0:06:48.000 --> 0:06:50.599 Talks between the US and China. They are underway in 0:06:50.640 --> 0:06:53.480 London in a bid to restore confidence that both sides 0:06:53.640 --> 0:06:56.320 are well living up to commitments made back in Geneva, 0:06:56.360 --> 0:06:59.359 with the US signaling actually a willingness to remove restrictions 0:06:59.400 --> 0:07:02.719 on exports in exchange for assurances that China is easing 0:07:02.760 --> 0:07:04.040 limits on rare earth shipments. 0:07:04.240 --> 0:07:06.320 Let's bring in Bloomberg's Amorhoden, who. 0:07:06.200 --> 0:07:09.120 Is in London live any signal this is going well. 0:07:10.160 --> 0:07:12.760 Well, Caroline. They have been in talks now since just 0:07:12.800 --> 0:07:15.840 a little bit after one pm, so a few hours 0:07:15.840 --> 0:07:18.240 and likely we could see these talks bleed into tomorrow, 0:07:18.280 --> 0:07:21.600 which we saw actually happen a month ago in Geneva. 0:07:21.680 --> 0:07:23.760 It does seem like things are going well if you 0:07:23.840 --> 0:07:26.400 take the word from Kevin Hassett, the ANC director or 0:07:26.440 --> 0:07:28.960 the President of the United States, who talked about this 0:07:29.040 --> 0:07:31.240 on social media after he got off the phone from 0:07:31.280 --> 0:07:34.880 President Shijiingping. As you said, the two big points here 0:07:35.080 --> 0:07:37.160 that they really want to try to diffuse the tension 0:07:37.240 --> 0:07:40.520 in these talks has to do with China's ability potentially 0:07:40.640 --> 0:07:44.760 to get more semiconductors things that there's been export controls 0:07:44.800 --> 0:07:47.600 on when it comes to some semiconductors as well as 0:07:47.680 --> 0:07:50.880 jet engine chips. The question I have is what is 0:07:50.920 --> 0:07:53.160 going to be the red line is the United States 0:07:53.200 --> 0:07:56.120 willing potentially to ease the export controls on things as 0:07:56.280 --> 0:08:01.280 in Vidia's advanced chip that had built basically to comply 0:08:01.480 --> 0:08:04.600 with the Biden administration export controls when it comes to China, 0:08:04.640 --> 0:08:06.320 and then with the United States wants out of all 0:08:06.360 --> 0:08:08.640 of this is the easing of those restrictions for the 0:08:08.760 --> 0:08:12.640 rare earths to magnets, the materials that you need for 0:08:13.280 --> 0:08:16.160 mobile phones, for the defense industry and the high tech industry. 0:08:16.360 --> 0:08:18.160 So coming out of this, we're really going to want 0:08:18.160 --> 0:08:20.320 to part the details of what was agreed upon. 0:08:20.760 --> 0:08:22.120 Of course, reading. 0:08:21.840 --> 0:08:24.600 Through the tea leaves, potentially we can see other matters 0:08:24.800 --> 0:08:27.640 agreed upon at this meeting. The President did say they 0:08:27.680 --> 0:08:30.800 discussed potentially traveling to China or Shujing pain coming to 0:08:30.880 --> 0:08:33.560 United States on that phone call. But we should just 0:08:33.679 --> 0:08:37.240 note it's only been four weeks since the Geneva talks 0:08:37.280 --> 0:08:40.120 and already we had to see Beijing and Washington sit 0:08:40.200 --> 0:08:42.480 down again to de escalate. 0:08:42.600 --> 0:08:44.600 A Marie, I love that you point us towards the 0:08:44.640 --> 0:08:50.160 semiconductor resilience and indeed what's been held back from China 0:08:50.240 --> 0:08:53.079 going forward, the H twenty is not able to be 0:08:53.160 --> 0:08:55.600 sent now from Nvidia into China. The fact that Howard 0:08:55.679 --> 0:08:57.400 Lutnik is there is that key. 0:08:58.400 --> 0:09:01.200 Yeah, absolutely, the fact that you at Howard Lutnak join 0:09:01.679 --> 0:09:05.199 this delegation. Remember in Geneva, it was just Secretary Scott 0:09:05.240 --> 0:09:09.680 Besson of the Treasury and USTR representative Ambassador Jamison Greer 0:09:09.800 --> 0:09:13.600 leading that delegation. Then following the phone call between Shiji 0:09:13.600 --> 0:09:16.720 Ping and President Trump, you at Howard Lutnik added to 0:09:16.760 --> 0:09:21.360 the delegation. So already everyone was speculating how far potentially 0:09:21.360 --> 0:09:24.319 the United States would go on export controls because export 0:09:24.360 --> 0:09:28.120 controls squarely lie within the Commerce Department. So clearly that's 0:09:28.160 --> 0:09:30.400 why he's at the table. Clearly these export controls are 0:09:30.400 --> 0:09:32.400 at the table. But really the key question is what 0:09:32.559 --> 0:09:34.840 is the US red line when it comes to those 0:09:34.840 --> 0:09:37.520 export controls and how far are they going to go? 0:09:37.760 --> 0:09:40.040 And then, depending on what comes out of this meeting, 0:09:40.360 --> 0:09:42.480 what does this mean for the future, because we have 0:09:42.520 --> 0:09:46.040 seen the United States ratchet up export controls administration after 0:09:46.040 --> 0:09:48.800 administration when it comes to China in the name of 0:09:48.880 --> 0:09:49.760 national security. 0:09:50.080 --> 0:09:53.080 I'm Marie Holden live from London. We appreciate it so much. 0:09:53.160 --> 0:09:55.480 Let's get more on the global tariff impact. What to 0:09:55.520 --> 0:09:57.920 expect from today's trade talks. Ben Harberg's with us another 0:09:57.960 --> 0:10:01.199 capital managing partner, Core Values Alpha portfolio Manager as well, 0:10:01.440 --> 0:10:03.360 not the capital. It's a private fund managing over two 0:10:03.360 --> 0:10:06.240 billion dollars in assets on management. But call for US 0:10:06.320 --> 0:10:09.560 is Core Values, which brings particular exposure to Chinese companies. 0:10:10.120 --> 0:10:13.439 Then will we see a walk back in restrictions of 0:10:13.480 --> 0:10:15.880 a semiconductors and their access into China. 0:10:16.400 --> 0:10:17.840 I think we will, and I think there will be, 0:10:17.920 --> 0:10:20.199 you know, a move from these kind of broad based 0:10:20.679 --> 0:10:25.480 numerical sanctions and terror figures to something that's more pointed 0:10:25.520 --> 0:10:28.439 and targeted. And we've seen already those levers being pulled 0:10:28.440 --> 0:10:31.520 on both sides. Obviously the you know, the US imposing 0:10:31.559 --> 0:10:34.040 the export restrictions on the Age twenty chips that could 0:10:34.040 --> 0:10:37.280 impact four and a half billion dollars of sales of Nvidia, 0:10:37.320 --> 0:10:40.160 the Chinese obviously restricting the magnets which are hitting everything 0:10:40.200 --> 0:10:45.880 from electric vehicles to smartphones. The Americans retaliating with efforts, 0:10:46.200 --> 0:10:48.840 you know, to block the Leap one sea engines that 0:10:48.880 --> 0:10:51.400 are being used by commacs jets as China tries to 0:10:51.400 --> 0:10:54.240 build its own aerospace industry. So there's a lot of 0:10:54.240 --> 0:10:57.959 I think individual sectors or even specific companies that can 0:10:58.000 --> 0:11:00.920 be sanctioned or named rather than the odd based sanctions, 0:11:00.960 --> 0:11:02.520 and so I think if they can kind of carve 0:11:02.600 --> 0:11:05.959 their way around those and get through some of these 0:11:06.040 --> 0:11:11.119 very sensitive areas that really acutely pain the respective economies, 0:11:11.480 --> 0:11:14.120 then we can start to make some progress that sensitivity. 0:11:14.160 --> 0:11:15.960 That fine line, though, Ben is one that you have 0:11:16.040 --> 0:11:18.160 walked and talked about a lot. When I think about 0:11:18.160 --> 0:11:21.760 what the core Values Alpha ETF family does, particularly the 0:11:21.760 --> 0:11:24.760 Greater China Growth ETF, you basically say on the website, 0:11:25.000 --> 0:11:29.160 it's accessing China Alpha without compromising American national security or 0:11:29.200 --> 0:11:32.760 American values. How do we get this agreement with China 0:11:32.800 --> 0:11:35.440 without compromising American national security? 0:11:36.600 --> 0:11:39.880 So I think there are specific Chinese companies and specific 0:11:39.960 --> 0:11:42.760 Chinese verticals that are coming in direct competition with their 0:11:42.800 --> 0:11:46.439 American counterparts that we're seeing that on chips, We're seeing 0:11:46.440 --> 0:11:47.959 that in the aerospace and the event space. 0:11:47.960 --> 0:11:48.640 We're seeing that in. 0:11:48.559 --> 0:11:54.040 The critical mineral supply chains, We're seeing that in telecommunications. 0:11:54.480 --> 0:11:58.400 Those are all verticals where there is direct Chinese threat 0:11:58.480 --> 0:12:01.920 to American superior when it comes to leadership and those 0:12:01.920 --> 0:12:04.120 technology verticals and what we really describe as kind of 0:12:04.120 --> 0:12:06.360 the industries of the future. There are, of course, plenty 0:12:06.440 --> 0:12:10.920 of Chinese companies and specific business lines that don't intersect 0:12:10.960 --> 0:12:14.360 with American interests, for instance, Chinese e commerce companies that 0:12:14.400 --> 0:12:21.280 are selling into developing markets, Chinese entertainment communication businesses, and 0:12:21.360 --> 0:12:24.480 so that line needs to be walked very carefully, and 0:12:24.520 --> 0:12:26.520 that can be done through these negotiations and through an 0:12:26.559 --> 0:12:29.880 investment platform that enables you to access the high alpha 0:12:29.920 --> 0:12:34.120 that Chinas generated both domestically and through its foreign kind 0:12:34.120 --> 0:12:36.280 of counterparts, where it is the leading trade partner to 0:12:36.320 --> 0:12:39.040 over one hundred and forty countries around the world. But 0:12:39.200 --> 0:12:44.559 also it restricts America sending its most prize technological IP 0:12:44.800 --> 0:12:46.760 towards the Chinese as they try to compete with us 0:12:46.760 --> 0:12:48.160 in those industries of the future. 0:12:48.360 --> 0:12:51.040 What's so interesting, though, is that maybe some of those 0:12:51.760 --> 0:12:54.520 entertainment and e commerce companies that you talk of have 0:12:54.679 --> 0:12:57.559 been embroiled and what's deemed national security threats. We think 0:12:57.600 --> 0:12:59.960 about what Tencent was painted as in some way, ben 0:13:00.400 --> 0:13:03.920 is this the art or lack of art around negotiation 0:13:04.080 --> 0:13:07.280 and diplomacy. Our company is going to get dragged in 0:13:07.440 --> 0:13:09.959 rightly or wrongly, that may not have a direct exposure 0:13:09.960 --> 0:13:10.800 to national security. 0:13:12.280 --> 0:13:15.119 China, through you know It's its own initiative, has recognized 0:13:15.160 --> 0:13:17.800 that these these large scale businesses, the Ali Baba's, the 0:13:17.840 --> 0:13:21.240 ten Cents, the byteedances, the Matwons of the world, became 0:13:21.320 --> 0:13:25.080 bloated and had too many business lines under one hood 0:13:25.080 --> 0:13:29.440 that stretch from innocuous you know, grocery delivery all the 0:13:29.440 --> 0:13:33.680 way to you know, to web you know, to to 0:13:34.640 --> 0:13:38.440 military applications in the aerospace and defense, you know, maps, 0:13:38.520 --> 0:13:41.480 geospatial et cetera. And so even they, I think are 0:13:41.520 --> 0:13:45.040 starting to piece apart those businesses and start to require 0:13:45.120 --> 0:13:47.400 that some of those are divested or spun off, and 0:13:47.440 --> 0:13:49.520 that the kind of core assets are left alone. And 0:13:49.720 --> 0:13:52.440 I think that will actually aid them as they work 0:13:52.520 --> 0:13:55.240 to negotiate with the Americans, because it's easier than to 0:13:55.280 --> 0:13:58.840 sanction those specific verticals rather than the entire company getting 0:13:58.880 --> 0:14:01.240 caught up in one dragonet. So it's it's beneficial for 0:14:01.280 --> 0:14:04.480 anti trust, anti monopoly efforts domestically in China as well 0:14:04.480 --> 0:14:07.000 as for US trade and sanctioned talks. 0:14:07.880 --> 0:14:11.920 What does therefore, a portfolio with exposure to Chinese names 0:14:11.960 --> 0:14:14.240 look like in the future for you, ben, what should 0:14:14.280 --> 0:14:16.960 be accessed, Which bets should you be making at this time? 0:14:18.000 --> 0:14:20.320 Well, I think there will continue to be verticals where 0:14:20.360 --> 0:14:22.600 the United States and China are not going to be 0:14:22.640 --> 0:14:23.560 directly competitive. 0:14:23.600 --> 0:14:25.080 It's it's it's very. 0:14:24.880 --> 0:14:27.240 Hard for America today to build, for instance, a low 0:14:27.320 --> 0:14:30.880 cost handset that competes with the Shaomi's, Opos and Vivos 0:14:30.920 --> 0:14:33.800 of the world. We've we've seen the likes of Apple 0:14:33.880 --> 0:14:38.960 pricing themselves significantly outside of those companies at you know, 0:14:39.080 --> 0:14:40.800 and at a point where that was kind of next 0:14:40.800 --> 0:14:44.360 billion consumers that are in say Africa, Southeast Asia, South 0:14:44.400 --> 0:14:47.680 Asia just simply cannot pay. And so there will be 0:14:47.680 --> 0:14:51.280 continue to be verticals where China, through low cost, high 0:14:51.400 --> 0:14:56.080 end manufacturing of consumer facing products, will continue to grow 0:14:56.120 --> 0:15:00.080 in market leadership, but not directly intersect American national secure 0:15:00.240 --> 0:15:03.920 or strategic comparatives. America, for its part, has huge leadership 0:15:03.960 --> 0:15:07.080 and a head start in the in the AI space 0:15:07.240 --> 0:15:10.640 and obviously the chipset space, historically in aerospace and defense, 0:15:10.920 --> 0:15:12.880 and so those are verticals that should stay very much 0:15:12.920 --> 0:15:15.640 within the American camp and whose supply chains need to 0:15:15.640 --> 0:15:18.560 be reinforced such that there isn't dependence in the future 0:15:18.920 --> 0:15:22.960 Chinese magnets or other key inputs to fortify those supply chains. 0:15:23.320 --> 0:15:26.280 Ben Will there be any change to global supply chains 0:15:26.320 --> 0:15:28.000 when it comes to air US in the future, though 0:15:28.040 --> 0:15:31.040 for now it is incredibly dependent on China. How quickly 0:15:31.080 --> 0:15:33.000 can that turn around? Should you want to have them 0:15:33.000 --> 0:15:34.560 accessed here in the United States? 0:15:35.480 --> 0:15:37.840 Absolutely we should. And this is one of the biggest 0:15:37.840 --> 0:15:39.720 problems that we face and why we needed change and 0:15:39.720 --> 0:15:43.120 why Donald Trump was elected. He's you know, the objective 0:15:43.160 --> 0:15:45.440 of this Trump administration is to tear down a lot 0:15:45.520 --> 0:15:48.960 of those barriers that were impeding growth of the American industry. 0:15:48.960 --> 0:15:53.080 And we're seeing a resurgence of American aerospace defense and 0:15:53.080 --> 0:15:56.360 then this accounting company supply chain there was a result 0:15:56.440 --> 0:15:59.680 of the President coming to office. Silicon Valley historically has 0:15:59.680 --> 0:16:02.600 been almost entirely aligned behind this Trip administration because they 0:16:02.680 --> 0:16:06.160 see that he's tearing down a lot of those barriers, 0:16:06.200 --> 0:16:10.720 be it EPA or other forms of barrier, ensuring that 0:16:10.720 --> 0:16:13.640 there are stimulus and other forms of support, ensuring that 0:16:13.720 --> 0:16:16.080 procurement is done in an efficient way without the kind 0:16:16.120 --> 0:16:19.280 of cost plus archaic methods that we're used historically. We 0:16:19.360 --> 0:16:22.000 have a lot of these natural resources within our own borders, 0:16:22.160 --> 0:16:25.280 but we weren't extracting them because of environmental concerns and 0:16:25.320 --> 0:16:27.600 other DEI issues that got in the way of that. 0:16:27.640 --> 0:16:29.600 And so I think that that will be unlocked and 0:16:29.680 --> 0:16:32.440 must be unlocked to ensure American national security. 0:16:32.760 --> 0:16:36.080 Ben Habag ofv Nova Capital, thanks for your time today. 0:16:41.280 --> 0:16:44.360 Let's go back to today's main tech story, Apple's Developers Conference, 0:16:44.520 --> 0:16:46.600 where our own ed Ludlow is standing by Ed. 0:16:47.600 --> 0:16:50.560 Yeah, WWDC is a developers conference, and I kind of 0:16:50.560 --> 0:16:53.520 want to get to that conversation with Creative Strategies, Princeville 0:16:53.520 --> 0:16:56.720 analysts and President Curly In a milianacy like I always. 0:16:56.440 --> 0:16:59.520 Remind myself, why are we here. We're here for the developers. 0:17:00.040 --> 0:17:02.800 In terms of expectation, right, what the reporting tells us 0:17:02.880 --> 0:17:06.200 is that Apple will open up the lllms it's been 0:17:06.480 --> 0:17:09.400 working on to third party developers. That seems very important. 0:17:09.680 --> 0:17:11.800 It is absolutely critical because that's at the end of 0:17:11.800 --> 0:17:14.880 the day, how developers will take advantage of the core 0:17:14.960 --> 0:17:17.760 of Apple intelligence going forward, and how they can do 0:17:17.840 --> 0:17:20.840 that on device in a private and secure way if 0:17:20.840 --> 0:17:23.760 it wants so, and differentiate what they can do with 0:17:24.000 --> 0:17:27.040 others like CHURCHIPD open AI and so forth. 0:17:27.359 --> 0:17:31.480 If you accept that Apple is behind in AI, why 0:17:31.520 --> 0:17:34.919 would the step of opening up access to developers to 0:17:34.960 --> 0:17:35.560 the work. 0:17:35.359 --> 0:17:37.760 It has done in AI remedy. 0:17:37.359 --> 0:17:40.639 That I don't know if your remedies, but it preps 0:17:40.720 --> 0:17:45.040 for the future, right. It is about allowing developers to 0:17:45.160 --> 0:17:48.280 take advantage of AI within their applications. And if there's 0:17:48.320 --> 0:17:50.479 one thing that I think we can all agree with, 0:17:50.600 --> 0:17:53.080 it's about the ecosystem from a developer perspective, that Apple 0:17:53.119 --> 0:17:56.600 has always been the thing that got consumers engage with 0:17:56.760 --> 0:17:58.680 their devices and kept them where they are. 0:17:58.880 --> 0:18:01.720 So it's important today for a reason and everything that's 0:18:01.760 --> 0:18:02.240 inside of. 0:18:02.160 --> 0:18:06.000 It, absolutely, and that's what Apple is trying to do 0:18:06.160 --> 0:18:09.400 to continue especially as the pressure. If you're thinking about 0:18:09.440 --> 0:18:11.960 what Microsoft is trying to do, you know they're very 0:18:11.960 --> 0:18:14.840 clear that coming out or Build last month, they want 0:18:14.920 --> 0:18:18.399 developers to look at Microsoft as the future of development. 0:18:19.640 --> 0:18:21.160 Let's think about specifics. 0:18:21.520 --> 0:18:24.639 One of the things we might hear today is translation 0:18:25.040 --> 0:18:29.560 across imssage calls and live simultaneous translation. But the good 0:18:29.560 --> 0:18:31.960 thing about talking to you on WWDC days is you 0:18:32.000 --> 0:18:35.280 and I go to all the same conferences, particularly developers conferences, 0:18:35.480 --> 0:18:38.200 and I've got Daja view or at least I distinctly 0:18:38.200 --> 0:18:40.840 remember Meta talking about exactly the same thing. 0:18:41.320 --> 0:18:42.000 They've done it. 0:18:42.440 --> 0:18:45.719 And Google did too at some level, right, So I 0:18:45.760 --> 0:18:48.360 think part of it is catching up. Part of it 0:18:48.400 --> 0:18:51.160 is trying to give consumers what they want. If you're 0:18:51.160 --> 0:18:54.959 looking specifically at the US market, there are a lot 0:18:55.040 --> 0:18:58.560 of people who are bilingual, and so translation of all 0:18:58.600 --> 0:19:01.000 week sometimes just narrow down to all when I go 0:19:01.040 --> 0:19:04.160 on holiday somewhere is actually more important on day to day. 0:19:04.800 --> 0:19:08.640 What we're expecting are largely interface changes. What will that 0:19:08.720 --> 0:19:15.080 tell us about how Apple thinks, consumers, knowledge workers, engage 0:19:15.080 --> 0:19:17.320 where they are in the future from like a human 0:19:17.359 --> 0:19:18.639 to device perspective. 0:19:18.920 --> 0:19:21.960 Yeah, it's interesting because I do think that there are 0:19:22.160 --> 0:19:24.680 probably two things, that maybe three things where they're trying 0:19:24.680 --> 0:19:29.000 to address. One, there were some changes that came last 0:19:29.080 --> 0:19:31.800 year that consumers were not particularly happy with. Photo is 0:19:31.840 --> 0:19:35.320 a good example for instance, and so and the second 0:19:35.400 --> 0:19:38.560 thing is that this is probably the biggest redesign, as 0:19:38.640 --> 0:19:42.280 Mark was saying, since iOS seven, So it's been a 0:19:42.280 --> 0:19:45.080 long time, which means that for some users, this is 0:19:45.119 --> 0:19:48.000 the first time that they're going to use iOS and 0:19:48.200 --> 0:19:51.280 other os is in a different way. So trying to 0:19:51.480 --> 0:19:54.800 take away friction, but not actually changing things so that 0:19:54.880 --> 0:19:57.040 you have a learning curve all of a sudden is 0:19:57.080 --> 0:19:59.600 going to be one thing. The other part is there's 0:19:59.720 --> 0:20:04.399 much more cross device usage, so trying to make that 0:20:04.560 --> 0:20:08.760 easier so that AI actually is useful across all Apple 0:20:08.840 --> 0:20:11.800 devices and getting out of a way so that AI 0:20:12.000 --> 0:20:13.040 can actually shine. 0:20:13.280 --> 0:20:18.400 We go from iOS version number to IOOS year version number. 0:20:18.440 --> 0:20:20.720 It's just like the car companies do. And just like 0:20:20.800 --> 0:20:23.520 the car companies, they always go one year ahead. So 0:20:23.560 --> 0:20:25.520 what we might get is the twenty twenty six year. 0:20:25.880 --> 0:20:26.840 How do you feel about that? 0:20:27.920 --> 0:20:31.159 I think that with AI we're going to see changes 0:20:31.400 --> 0:20:35.000 on a faster cadence as we are seen with all 0:20:35.040 --> 0:20:37.480 the models that have been released over the past six months, 0:20:37.640 --> 0:20:41.920