Speaker 1: Bloomberg Audio Studios, Podcasts, radio news.
Speaker 2: From the heart of where innovation, money, and power co
Speaker 2: lie in Silicon Valley, Nbon.
Speaker 3: This is Bloomberg Technology with Caroline Hyde and Ed luve.
Speaker 4: Love live from New York and San Francisco. This is
Speaker 4: Bloomberg Technology coming up.
Speaker 5: For market coverage. We're tech back outperforming.
Speaker 6: As traders brace for a big week of eco data, and.
Speaker 1: We preview Elon Musk's interview with former President Donald Trump.
Speaker 4: Glas, we continue Ernie's coverage the CEO of Expedia.
Speaker 1: We left Friday show with like this element of peril,
Speaker 1: where then as that one hundred could have gone either way.
Speaker 1: In the ended it closed up a few tens one,
Speaker 1: but that snapped four straight weeks of declines. Had it fallen,
Speaker 1: you would have had five straight weeks of declines, the
Speaker 1: worst run of weekly drops going back to maya, twenty
Speaker 1: twenty two, ittoking eco data, growth concerns, earnings, central banks
Speaker 1: around the world. It was a bit of a storm
Speaker 1: throughout the week with some volatility. Let's get more on
Speaker 1: the markets with Bloomberg's Isabelle Lee, and we can either
Speaker 1: start looking back at last week and asking Isabelle what happened,
Speaker 1: or we can look forward to this week where the market,
Speaker 1: particularly technology investors are looking at ECO data.
Speaker 7: I want to give a quick overview of markets because
Speaker 7: that they is still wild to me. Have the S
Speaker 7: and P falling around three percent, VIX jumping twenty three
Speaker 7: to sixty five, with the two year and ten year
Speaker 7: inverting bitcoin tank ym strengthen, so it was really a
Speaker 7: Monday meltdown, but everything after that seemed to regain its footing,
Speaker 7: and we have the S and P finishing flat on
Speaker 7: the week, and we really just have these investors who
Speaker 7: kind of paniced just slightly and really sold off all
Speaker 7: their thoughts, all the reversal trades we've been seeing reverse
Speaker 7: and the momentum trade fizzle.
Speaker 5: But where do we go from here? This week?
Speaker 7: We can expect a little bit more volatility because we're
Speaker 7: just going to see a slew of data and as
Speaker 7: we know, investors, really they're just each of these data
Speaker 7: very closely, more than any other time in history. We
Speaker 7: have on Tuesday, PPI, Wednesday CPI, Thursday industrial data, jobless claims,
Speaker 7: retail sales, and on Friday consumer sentiments.
Speaker 5: So really it's just going to be a light week for.
Speaker 4: US in as well, keeping a US focused, I mean,
Speaker 4: is also an international play of this, the Japanese and
Speaker 4: actually significantly weaker.
Speaker 5: On the day.
Speaker 4: But what I also caught my attention was one of
Speaker 4: the most read stories on the Bloomberg was talking about
Speaker 4: this slashing inequity exposure.
Speaker 5: We still have that feeling of.
Speaker 4: Just trim just perhaps start to diversify that little bit more,
Speaker 4: having seen the volatility of last Monday.
Speaker 5: That exactly caught my eye.
Speaker 7: Also, we have Deutsche back day Into data saying that
Speaker 7: investor slash equity allocations at the sharpest pace since the
Speaker 7: onset of the pandemic, and just three weeks before we
Speaker 7: are and we were at the ninety seventh percentile.
Speaker 5: So you really see the shift in sentiment.
Speaker 7: It's just interesting how just three weeks ago investors were
Speaker 7: really kind of optimistic about the economy, about the soft landing,
Speaker 7: and now they're like, oh my gosh, the Fed took
Speaker 7: too long to cut rates. We're stuck in the mud,
Speaker 7: and we're seeing all this panic and we know how
Speaker 7: these things go. When they panic a little, it always overshoots.
Speaker 7: And it's summer volatility is like even the Vick spiking.
Speaker 7: Many were saying was really technical. It didn't really, It
Speaker 7: wasn't really indicative of the outright panic that we usually
Speaker 7: see when we associate these with a VIX. It's really
Speaker 7: more technical because we have light liquidity, stretch, sentiment shift
Speaker 7: and positioning. So it's really hard to read markets, especially
Speaker 7: during the summer when we all should be on vacation.
Speaker 7: But that's a thing. Investors are not liking tech. But
Speaker 7: here's another thing. The great rotation trade we saw when
Speaker 7: people were selling big tech stocks into small cap, well,
Speaker 7: now that has fizzled. We have last week traders really
Speaker 7: pulling out two point six billion from black Rock small
Speaker 7: cap ETF.
Speaker 5: So I don't know, maybe that was just a blip.
Speaker 7: Maybe investors are shifting again.
Speaker 5: It's really hard to read right now.
Speaker 1: Lin Begg's Isabel Lee across the markets in a deep way.
Speaker 1: I would also point out the biggest points moves the
Speaker 1: upside right now is in video and I want to
Speaker 1: bring in Daniel Newman the future from Group CEO new
Speaker 1: approach to research and advisory, And I don't know, I
Speaker 1: don't think it's premature to say. Nvidia reports August twenty eighth,
Speaker 1: and we just went through the ECO data and the
Speaker 1: impact of central banks. That's a big calendar item for
Speaker 1: everyone that watches this market. Good morning, ed, good.
Speaker 3: To see you.
Speaker 8: Yes, I mean after the first wave of big tech,
Speaker 8: there isn't an earnings report that's more in the throes
Speaker 8: of everyone's hearts right now than what's going to happen
Speaker 8: with Nvidia. The AI bubble bears, as I like to
Speaker 8: call them, are looking for something to break. The announcement
Speaker 8: of some delays on Blackwell got a lot of excitement
Speaker 8: last week, but maybe was muted a little bit by
Speaker 8: everything that went on with the macroeconomy. And then on
Speaker 8: the other side of it, the bulls, they're listening to
Speaker 8: all these Capex reports, They're listening to what Zuck had
Speaker 8: to say, Sun, dar Osatia, all of these companies intending
Speaker 8: to spend big on Capex, and that tends to be
Speaker 8: a win for Nvidia.
Speaker 3: So if you're looking at what's going on, you're.
Speaker 8: Saying AI is booming on the capex side, on the
Speaker 8: investment and the infrastructure side.
Speaker 3: But the bears that the bears are saying, well.
Speaker 8: How was that turning into practical use in the market,
Speaker 8: And that's created a big.
Speaker 4: Golf Okay, let's dwell on that big golf. Therefore, is
Speaker 4: it that if you're going to buy some of the
Speaker 4: volatility that we've seen of late, buy in some of
Speaker 4: the lower price points, you do it with what's already
Speaker 4: won the videos.
Speaker 5: You don't do it with a.
Speaker 4: Breadth that we might see of AI working in software.
Speaker 9: And the like.
Speaker 8: Yeah, Caroline, I like to talk about this ingestion period
Speaker 8: that is going on with AI. It isn't going to
Speaker 8: happen over the next quarter or two where AI is
Speaker 8: going to be democratized and implemented into every enterprise. We're
Speaker 8: seeing small wins. We saw Palenteer had a great quarter.
Speaker 8: We saw service Now showed some really resilient results against
Speaker 8: some of the people betting against software. But we're also
Speaker 8: waiting to see strength from companies like SAP Oracle.
Speaker 3: IBM looked okay, these are the.
Speaker 8: Companies that are doing the implementations of AI. But if
Speaker 8: you're looking at this big spend, this predictable big spend
Speaker 8: that's going on, all the big tech, mega tech companies
Speaker 8: are basically saying, we don't want to be the blockbuster,
Speaker 8: the BlackBerry of the AI era. We're going to spend
Speaker 8: in advance Zuck did a perfect job on his earnings
Speaker 8: call and nobody flinched.
Speaker 3: Some of the other calls were met with a little
Speaker 3: bit more.
Speaker 8: Resistance because the justification of Capex wasn't as clear to
Speaker 8: the investors.
Speaker 4: The justification also of a fundamental change in policy from
Speaker 4: the Federal Reserve. How much does the broader macro backdrop
Speaker 4: paint a picture for whether you should be buying tech
Speaker 4: at the moment?
Speaker 8: Ded you know, you and I've had this discussion a
Speaker 8: few times on this show, Caroline, and I've said tech
Speaker 8: is incredibly deflationary. It's going to enable companies to do
Speaker 8: more with less resources. We've seen the job numbers in
Speaker 8: San Francisco go back to the pre pandemic levels, seeing cuts.
Speaker 8: We've heard about Cisco, Dell major cuts over the past
Speaker 8: few weeks, and this has been necessary.
Speaker 3: But also these.
Speaker 8: Companies, the whisper conversations I'm having with CEOs is they
Speaker 8: believe AI will enable a.
Speaker 3: Prune to grow strategy.
Speaker 8: They can make some cuts in their overhead and their
Speaker 8: cost and in their human capital in order to create
Speaker 8: scale and create worlth.
Speaker 3: So that is the opportunity.
Speaker 8: At the same time, we are still waiting to see
Speaker 8: is the macroka You look at some of these credit numbers,
Speaker 8: you look at some of the loan default numbers, you
Speaker 8: look at some of the consumer confidence numbers. The market
Speaker 8: isn't that strong despite that, we're not in a recession.
Speaker 8: So we're balancing these couple of things. But tech is
Speaker 8: ultimately deflationary and ends up being a good bet for investors,
Speaker 8: especially long investors.
Speaker 1: Dan in tabulating headwinds and tailwinds. In which column does
Speaker 1: regulation sit for AI, it's.
Speaker 3: A great one.
Speaker 8: I believe it is a headwind, but at I do believe,
Speaker 8: like every technological mega trend that we've had, regular will
Speaker 8: always be playing ketchup.
Speaker 3: They're going to be playing defense.
Speaker 8: I've had a number of conversations about what in Vidia's
Speaker 8: stature is written relation to regulation. We're hearing some of
Speaker 8: the concerns across Europe. In the US probes, of course,
Speaker 8: we saw what happened with Google last week. The regulators
Speaker 8: want the markets to understand that they're going to play
Speaker 8: a role, but at the same time, the US is
Speaker 8: very steadfast to stay in the lead on innovation. With
Speaker 8: that in mind, I think M and A is the
Speaker 8: area where regulators will be the most involved.
Speaker 3: They're going to make it.
Speaker 8: Difficult for these mega cap companies, the Microsofts, the Googles
Speaker 8: now in videos Amazons to make acquisitions. We saw Microsoft
Speaker 8: sort of doing an interesting move on one of their
Speaker 8: most recent acquisitions, and that is going to play into this.
Speaker 8: They're going to be playing the cat and mouse game,
Speaker 8: but the regulators are going to have a really hard
Speaker 8: time at keeping up.
Speaker 4: Dianie Newman, great to have you on the Future and Group.
Speaker 4: We appreciate it. Meanwhile, coming up, look, Elomas will be
Speaker 4: sitting down with Donald Trump later today.
Speaker 5: We'll discuss what to except us next.
Speaker 6: This is the Bloombag Technology.
Speaker 5: Elil Musk and Donald Trump.
Speaker 4: Well, Le's lated to sit down for an interview this
Speaker 4: evening on X. It will be the first public interaction
Speaker 4: between the two men since the Tesla CEO endorsed the
Speaker 4: Republican nominee last month. Let's discuss at all with what
Speaker 4: to expect the Blue MENZ Kurt Wagner. So timing for us,
Speaker 4: what we anticipate in terms of subject matter.
Speaker 10: Yeah, so this is scheduled to be at eight o'clock
Speaker 10: Eastern time, so you know, primetime if you will.
Speaker 3: In terms of what to predict.
Speaker 10: I mean, these are two incredibly unpredictable people, as you
Speaker 10: both know. I imagine that you know, we'll hear President
Speaker 10: Trump go through some of his key points, especially the
Speaker 10: ones that we see Elon Musk continually tweeting about. That's
Speaker 10: you know, immigration, some of the social issues maybe around
Speaker 10: DEI trans rites, but certainly the economy.
Speaker 8: Right.
Speaker 3: I mean, this is one of the things that I.
Speaker 10: Think President Trump talked about a lot in that Donald
Speaker 10: Trump excuse me, Elon Musk will matter it managed to him,
Speaker 10: of course, with TESLA and EVS and all the regulations
Speaker 10: around there. So again, as far as you can predict,
Speaker 10: I think those are pretty safe predictions, but with these
Speaker 10: two you just really never know where the conversation is
Speaker 10: going to go.
Speaker 1: Okay, So Musk has spoken about his attitude towards Trump.
Speaker 1: Let's reflect on that. Listen to this.
Speaker 3: I guess that there would be like some impact, but
Speaker 3: I think it would be devastating for OM editors and
Speaker 3: would slightly but long term probably actually helps TESLA.
Speaker 9: My guess.
Speaker 1: Impact of TESLA hurts slightly competits his long term but
Speaker 1: then he's also got his Boeing cap on his SpaceX
Speaker 1: cap on NEURALI, et cetera. You know, you're right, he's unpredictable.
Speaker 1: Do we have any sense if they have common ground
Speaker 1: on some of the other Musk companies in.
Speaker 10: Yeah, I mean, I think that clip sort of gives
Speaker 10: you a sense, right is like even Elon sees that
Speaker 10: there is a long term benefit here to having Trump
Speaker 10: in the White House. I think they aligned probably on
Speaker 10: crypto right. Donald Trump has sort of come out and
Speaker 10: been the pro cryptocurrency candidate here, which Elon may care about.
Speaker 10: I think, you know, the idea of when President Trump
Speaker 10: was in office, he cared about space, he cared about
Speaker 10: the Space force, this idea of protecting the country through space.
Speaker 3: Right.
Speaker 10: Obviously, that's a huge part of Elon's portfolio. So I
Speaker 10: do think there are some areas here where these two overlap.
Speaker 10: I think there's also a benefit here, a mutual potential
Speaker 10: mutual benefit of simply getting the former president back onto X,
Speaker 10: where Elon is, you know, trying to drum up attention,
Speaker 10: trying to build a base. And I think that could
Speaker 10: be another side effect here of this conversation, and it will.
Speaker 1: Be interesting to see if X can handle it. All
Speaker 1: of those people tuning in Bloombers Kirt Wagner will get
Speaker 1: you back on to discuss later in the week, So
Speaker 1: trump attitude toward electric vehicles and charging is likely to
Speaker 1: come up during that conversation. After all, Musk is the
Speaker 1: head of the world's ev incumbent Tesla, and the former
Speaker 1: president talked about EV's at length in that interview of
Speaker 1: Bloomberg Business Week just a few weeks ago, suggesting the
Speaker 1: topic is also top of mind for him. Let's discuss
Speaker 1: with Terry O'Day, COO and co founder of in Charge Energy,
Speaker 1: which provides commercial fleet charging solutions. Terry, good morning to you.
Speaker 1: Is your industry waiting and bracing for this to be
Speaker 1: a guide of Trump policy on charging, infrastructure and evs well.
Speaker 2: I think that it's clear that Trump has staked out
Speaker 2: a position here, but what is also clear is that
Speaker 2: the march towards electrification in this country is inexorable. At
Speaker 2: this point, the total cost of owning an electric car
Speaker 2: or an electric truck is now lower than gasoline or diesel,
Speaker 2: and people are making decisions based on.
Speaker 3: That economic factor.
Speaker 2: So we think that the market will continue to mark
Speaker 2: forward and perhaps, as Musk said, this is a short term.
Speaker 4: Blip Okay, So, what, if anything, do you think could
Speaker 4: knock what has been, ultimately from a consumer standpoint, a
Speaker 4: stagnation in interest in evs.
Speaker 5: What are you seeing from the business side of it?
Speaker 5: Is that not been the case?
Speaker 2: Well, there is definitely a slowdown. I think there was
Speaker 2: a this past year. There was a glut of supply
Speaker 2: in the market for chargers and for vehicles and companies
Speaker 2: adjusting to their capital decisions. What we're beginning to see
Speaker 2: is thinking coming from some of our major customers like
Speaker 2: Pepsi and FedEx and ups and Walmart. They are planning
Speaker 2: multi year rollouts now of electric trucks and medium duty vehicles,
Speaker 2: and so we're doing the charging stations, planning their long
Speaker 2: term plans for their facilities, and they're making investments over
Speaker 2: a multi year calendar. That is, you know, very different
Speaker 2: than the political camelinner terry.
Speaker 1: The Biden administration gave Elon Musk and Tesla the cold shoulder,
Speaker 1: but focus on the IRA, which gave benefits to your industry. Right,
Speaker 1: how much do you want to see Trump gives some
Speaker 1: substance about how he'd handle funding an investment into EV infrastructure.
Speaker 1: Is it something that you kind of think is important
Speaker 1: to carry forward.
Speaker 2: Yeah, those infrastructure builds had a major impact on this industry.
Speaker 2: We have now school buses being deployed with school children
Speaker 2: being driven to schools this month in electric vehicles, in
Speaker 2: electric school buses. As a result of the Biden infrastructure built,
Speaker 2: we have additional investments coming for public charging stations across
Speaker 2: the US, and those investments should continue to come forward
Speaker 2: because that is what will enable consumers and fleets to
Speaker 2: feel comfortable driving these vehicles and making this choice in
Speaker 2: the long run.
Speaker 4: But there's a politicization terry that's unavoidable of oil versus
Speaker 4: ev Is there any risk in your mind that it
Speaker 4: gets unwound?
Speaker 3: It's definitely.
Speaker 2: This industry has been started in part by forward looking
Speaker 2: regulation and by these kinds of public investments. Commercial investments,
Speaker 2: as I suggest, are very important and our moving forward.
Speaker 2: The whole thing will continue to go faster if there
Speaker 2: is investment from the public sector and if these regulations continue.
Speaker 3: So there is some real risk for sure Terry oday.
Speaker 4: Sure you'll be tuning in later to that X discussion.
Speaker 4: We thank you in charge, co founder COO. Meanwhile, let's
Speaker 4: just talk about re ride from a moment. Is a
Speaker 4: Chinese self driving automotive company. It's seeking to raise as
Speaker 4: much as four hundred forty million dollars in a US
Speaker 4: IPO and concurrent private placement too. It was granted approval
Speaker 4: last year by the Chinese Securities regulator for a US listing.
Speaker 4: It is offering six zero point four to five million
Speaker 4: American Depository shares, which would give we ride in market
Speaker 4: value of about five billion dollars at the top of
Speaker 4: its range. It's based on a US SEC filing. And
Speaker 4: what are you looking at?
Speaker 1: Okay, let's get some more news stories in talking tech
Speaker 1: and first Up. India's Party Global has agreed to buy
Speaker 1: a major stake in BT Group. Barty is set to
Speaker 1: purchase a twenty four point five percent stake from shareholder
Speaker 1: Altese in a deal that would bolster the company's international expansion.
Speaker 1: The state gives the Indian firm a marquee holding in
Speaker 1: the United Kingdom. Plus film Studios have dropped its opposition
Speaker 1: to a California measure that would give actors more leeway
Speaker 1: over AI face usage. The measure would implement new legal
Speaker 1: safeguards for performer contracts in using digital replicas of voices
Speaker 1: and likeness. Lawmakers have until the end of this month
Speaker 1: to pass the measure before they adjourn, and it's a
Speaker 1: return to formula for Disney. The company announcing a slewer
Speaker 1: sequels over the weekend at its D twenty three event
Speaker 1: in Anaheim, California. This after re billion dollar box office
Speaker 1: successes from Inside Out, to and Deadpool and Wolverine. Movie
Speaker 1: slated for release include Moana two, Zutopia two, Incredibles three, Frozen, Free,
Speaker 1: Toy Story five. You get the idea. This is Bloomberg Technology.
Speaker 4: A sad loss for the technology industry.
Speaker 5: Over the weekend.
Speaker 4: Susan Widgetski has died after a two year battle with
Speaker 4: cancer at the age of fifty six. Wijetski was an
Speaker 4: early Google executive and longtime head of its.
Speaker 5: YouTube video platform, who.
Speaker 4: Shaped how fortunes and fame are created on the Internet.
Speaker 4: Wijetski was one of just a few women at the
Speaker 4: top ranks of the tech industry.
Speaker 5: Bloomberg's Mark Bergen.
Speaker 4: Joins us to discuss her legacy.
Speaker 5: And assender pitch I put it himself, she.
Speaker 4: Is as core to the history of Google as anyone.
Speaker 5: It's really hard to get our arms.
Speaker 4: Around really the extent of her impact there.
Speaker 11: Mark Yeah, it's absolutely. I mean, you know, it all
Speaker 11: starts with literally her garage, right. She kind of famously
Speaker 11: lent that out to Larry Page and Sergey Brinn and
Speaker 11: to nineteen ninety eight and they formed the company there.
Speaker 11: She joined shortly thereafter, was sort of this quiet presence.
Speaker 12: You know.
Speaker 11: I had sources that told me that kind of one
Speaker 11: of her nicknames inside the company was like the mini CEO,
Speaker 11: because there was this leadership that had She was one
Speaker 11: of these leaders that basically ran a lot of these
Speaker 11: operations and management for the founders were sort of famous
Speaker 11: for neglecting that at time, right they were sort of
Speaker 11: the visionaries and Eric Schmidt that that kind of came
Speaker 11: in as the adult, and she was responsible for building
Speaker 11: out a lot of its core advertising business, and that
Speaker 11: was one of the main reasons that she was brought
Speaker 11: over to YouTube in twenty fourteen.
Speaker 1: Mark she announced plans to leave YouTube in February of
Speaker 1: twenty twenty three and talked about other projects focusing on
Speaker 1: her health. But I don't think at that time she
Speaker 1: or the company elaborated on why. The main point being
Speaker 1: that she had a profound impact on YouTube. You've written
Speaker 1: about it in your book. What are kind of the
Speaker 1: key action she took during her time as CEO and
Speaker 1: Alida there.
Speaker 11: Yeah, one of her key priorities was to really spotlight
Speaker 11: the creators. And I think even though this is eight
Speaker 11: years ago now to our ten years ago now and
Speaker 11: this idea just beak, this nascent idea of influencers of
Speaker 11: online creators, it still wasn't really proven as a business.
Speaker 1: And I think we can.
Speaker 11: Certainly say that's that's changed dramatically. Like one of their
Speaker 11: initial campaigns was actually kind of spotlight a lot of
Speaker 11: these home run creators. For a long time, YouTube tried
Speaker 11: to get celebrities to come onto the platform. I think
Speaker 11: the shift when we just keep took over was, hey,
Speaker 11: we have our own kind of a list style celebrities
Speaker 11: right here at these homegrown YouTube stars. Of course, as
Speaker 11: we've covered a lot, you know, that has its share problems,
Speaker 11: right the brand safety issues that she dealt with over
Speaker 11: the tenure. I think that the focus on advertising sort
Speaker 11: of her course strength has paid off in the extent
Speaker 11: of that YouTube is becoming this dominant advertising platform, you know,
Speaker 11: the the other areas that it's no longer to drop
Speaker 11: its plans to compete with Netflix in Amazon Prime. It's
Speaker 11: still kind of a YouTube music is a service, but
Speaker 11: it's nowhere close to Spotify, you know, I think her
Speaker 11: legacy is primarily going to be building out that what
Speaker 11: is still remains Google's core business. And at the time
Speaker 11: she took over there was there were still questions about.
Speaker 1: You know, could YouTube turn a profit?
Speaker 11: And now it's obviously one of the key pillars of
Speaker 11: Google and Alphabet's growth.
Speaker 7: Mark.
Speaker 4: While making a profound impact at Google, she made a
Speaker 4: profound impact for many women in technology, and I know
Speaker 4: that many have spoken about it the way she tried
Speaker 4: to show up as someone who had some sort of
Speaker 4: work life balance, dropping her kids at soccer in a minivan,
Speaker 4: taking that maternity leave, speaking out about it, Mark, But
Speaker 4: how else have colleagues have former people who've worked alongside her,
Speaker 4: sat on boards with her, thought about her and her loss, not.
Speaker 1: Just taking in maternally.
Speaker 11: But I think she's widely credited for actually forming it
Speaker 11: at Google. The founders didn't really think about that when
Speaker 11: they created the company, so it was the first one
Speaker 11: they actually write that policy and to take it. I
Speaker 11: think this is certainly that you know, women I've talked
Speaker 11: to there, this is quite clearly a strength of her
Speaker 11: leadership being out there very publicly.
Speaker 1: As a mom.
Speaker 11: You know, I think it's really interesting to contrast her
Speaker 11: with with Cheryl Sandberg and mursa mayor her peers that
Speaker 11: certainly had a much bigger public profile. I think Susan Wojiski,
Speaker 11: even from what I understand personally, didn't want that high,
Speaker 11: high public profile. And maybe for Google strategically it's it's
Speaker 11: actually been been quite important. I would argue like that
Speaker 11: that this is not like you know, Elon Musk and X,
Speaker 11: It's not like Mark Zuckerberg at Facebook. You don't have
Speaker 11: this one executive well known for this platform. I think
Speaker 11: that's maybe one of the reasons why, you know, YouTube
Speaker 11: has in many ways dodge some of the criticisms that
Speaker 11: other social.
Speaker 1: Media sites have dealt with.
Speaker 11: You know, there's some people that come out and argue
Speaker 11: that's because Susan is more sort of a student, mature leadership,
Speaker 11: and perhaps it's also because she just had this this
Speaker 11: background role.
Speaker 1: She was not a public profile. Bloomberg's Mark Bergen, thank you,
Speaker 1: Susan Jiski was fifty six. Welcome back to Bluebery Technology
Speaker 1: Ed Ludlow here in San Francisco and Caroline hid.
Speaker 4: In New York and looking at Intel down by some
Speaker 4: eight tens of percent. Look, they're actually postponing a very
Speaker 4: key event ed that I want to dive into because
Speaker 4: here is a name that got beaten up after its earnings.
Speaker 5: They're having to cut cost.
Speaker 4: Cut head count, and it's proving out and sort of
Speaker 4: culling their marketing spend as well.
Speaker 5: What have you got on it?
Speaker 1: Well, let's bring in Bloomberzi and King, who hopefully has answers.
Speaker 1: I mean, you and I have sort of wandered across
Speaker 1: the news roomto each other's desks and said, well, there's
Speaker 1: not a lot of good news to be had for
Speaker 1: Intel at the moment. This expo is not a major headline,
Speaker 1: but it continues the negativity really around the name.
Speaker 13: Yeah, there are a couple of things we need to
Speaker 13: think about. Intel used to basically set the agenda for
Speaker 13: the whole of the computer industry with its conferences. Right now,
Speaker 13: what investors want is Intel, somebody from Intel to walk
Speaker 13: out on stage and say, hey, look at this new thing,
Speaker 13: to basically change the conversation, to get people excited about
Speaker 13: what they're doing. Again, if they're canceling events, how are
Speaker 13: they going.
Speaker 3: To do that.
Speaker 4: Just talk about the relevance of this event, Ian, it
Speaker 4: was all about developers.
Speaker 5: How are they.
Speaker 4: Trying to stay well, earn back the reputation of leading
Speaker 4: the sector that they're so well known and rather than
Speaker 4: while playing catch up to in the names that are
Speaker 4: doing well, such as n Video.
Speaker 13: Yeah, I mean, I think you already answered your question
Speaker 13: in the question. Unfortunately they're not right now. That's the problem. Yeah,
Speaker 13: you know, the the accelerators, which is the key AI market.
Speaker 13: That's what's leading in that crucial data center market for them.
Speaker 13: That's an Invidia story, it's not an Intel story. Intel
Speaker 13: has hundreds of millions of dollars of sales in that market.
Speaker 13: In Vidia has close to one hundred billion dollars of
Speaker 13: sales in that market. So right now they're nowhere, and
Speaker 13: we need to see something from them that changes that
Speaker 13: narrative and changes it quickly.
Speaker 1: I went back and checked the statement from Intel, because,
Speaker 1: believe it or not, Ian I was invited. I got
Speaker 1: to save the date for innovation. But the last line
Speaker 1: is please stay tuned for several exciting products and technology
Speaker 1: announcements coming this full So they're working on something in
Speaker 1: the meantime.
Speaker 13: Yeah, I mean what they're going to do is concentrate
Speaker 13: on some smaller events, other people's events, smaller events of themselves,
Speaker 13: to try to again draw attention back into what's going.
Speaker 13: But right now there's a real sense of like, come on,
Speaker 13: show us something anything, right, that's what people.
Speaker 4: Want in King always still on the money, We thank
Speaker 4: you so much.
Speaker 5: Meanwhile, let's turn.
Speaker 4: To Apple now, because just a month out from the
Speaker 4: release of its iPhone sixteen, which is expected to keep sales.
Speaker 5: Stable, but is it bringing major innovation.
Speaker 4: Let's talk to Mark Gumman all about it, because he
Speaker 4: covered it in his weekly power On column. And ultimately,
Speaker 4: your argument is that we're not getting that much rich
Speaker 4: innovation coming from Apple at the moment, even though they
Speaker 4: can really talk up the AI side of things.
Speaker 12: The iPhone certainly will sell well this fall, right, They're
Speaker 12: probably going to produce between eighty and ninety million units,
Speaker 12: we've reported, but there's not going to be major growth
Speaker 12: over the prior year, or the year before that, or
Speaker 12: even the year before that. This is a company that
Speaker 12: is making essentially minor changes on an annual basis to
Speaker 12: their phones at this point, right, and that's going to
Speaker 12: continue with the sixteen line, you're going to see a
Speaker 12: new button, at least on the profhones that turns the
Speaker 12: phone more into a DSLR. You'll be able to lightly
Speaker 12: press it to auto focus and hard press it to
Speaker 12: take a picture, so that will be cool. But bigger
Speaker 12: changes will come next year, including a new slimmer iPhone
Speaker 12: seventeen model to replace the iPhone sixteen plus, as well
Speaker 12: as a new lower end iPhone se which could really
Speaker 12: boost sales in emerging markets.
Speaker 1: Mark Bloombay Technology Senior producer Jackie Lopez doesn't allow props,
Speaker 1: so I'm just going to I'm gonna demo like this.
Speaker 1: It's a DSLR camera that I'm pretending to hold. That's it.
Speaker 1: That's the innovation they've come up with the iPhone sixteen generation.
Speaker 1: A button for the camera.
Speaker 12: Well, it's going to be a cool button, and I
Speaker 12: think a lot of the cool homemakers Samsung, Huawei, etc.
Speaker 12: You can expect them probably they're going to copy it
Speaker 12: down the road. It'll be a little bit of a
Speaker 12: gesture area, so you can swipe left to right, right
Speaker 12: to left to move between media modes and zoom.
Speaker 9: In and out.
Speaker 12: There's also going to be larger screens on the Pro models,
Speaker 12: faster processors, and of course the big push is going
Speaker 12: to be around Apple Intelligence. Right now, only the Pro
Speaker 12: fifteen models support Apple Intelligence. Now all four iPhone models
Speaker 12: was for Apple Intelligence because they're adding additional memory and horsepower.
Speaker 12: So certainly that's going to be a significant deal there.
Speaker 12: But I personally don't think Apple Intelligence right now is
Speaker 12: something that you're going to see really boost sales. I
Speaker 12: think that's going to happen next year or the year
Speaker 12: after as people are making more upgrade decisions from older models.
Speaker 3: They don't support it.
Speaker 1: My team are not happy with the demonstration that I gave,
Speaker 1: but we appreciate the reporting. A camera button on the
Speaker 1: next generation iPhone A cool button. Bloomos, Mark German, thank
Speaker 1: you very much. Like coming up on the show, we're
Speaker 1: going to take a look at IPO, trends, AI investing
Speaker 1: and much more with Mitchell Green from lead Edge Capital.
Speaker 1: That conversation coming up next. This is Bloomberg Technology.
Speaker 4: So last week's market volatility has not yet deterred the
Speaker 4: handful of issue is working.
Speaker 5: On tender listings over in Europe.
Speaker 4: I'm just say though top en pricing may prove Elusive
Speaker 4: Partners Group Holding is still weighing a launch of the
Speaker 4: IPO of German metering company Techem as soon as September.
Speaker 4: Joining others would be issuers eyeing this September window, like
Speaker 4: Polish retailers Upcurr and academic publishers Bring in Nature also all.
Speaker 5: Looking at second half listings. That's over in Europe.
Speaker 4: But let's talk about US IPO the window if it's
Speaker 4: open or not, and really what's on track in terms
Speaker 4: of exits for the VC community. Mitchell Green, founder and
Speaker 4: managing partner of lead Edge Capital, joined us now for
Speaker 4: our VC spotlight And how you, Philly, you got any
Speaker 4: optimism around this window amid of political agenda that keeps
Speaker 4: things volatile to.
Speaker 14: Political agenda, there's no you know, policy things like that
Speaker 14: going crazy.
Speaker 9: But no, it's funny.
Speaker 14: Jeffery's put out a report about ten days ago saying
Speaker 14: that the IPO market was, you know, open and ready
Speaker 14: for business. And then the markets we joked internally maybe
Speaker 14: it was a week too early.
Speaker 9: They're being said.
Speaker 14: If you look at how the IPO market is open,
Speaker 14: and if you look how the companies that have gone
Speaker 14: public Rubric and some Instacart and some of these other
Speaker 14: ones have traded, they've actually done remarkably well. But yet
Speaker 14: you wouldn't know that based on the volume, which is
Speaker 14: like almost dried up to next to nil. However, I
Speaker 14: think you need to step back in two thousand and
Speaker 14: six to two thousand and nine, when companies went public,
Speaker 14: they would raise, you know, one hundred to three hundred
Speaker 14: million dollars. Now, Microsoft in nineteen eighty eight or eighty
Speaker 14: seven prior raised forty million dollars. When those companies went public,
Speaker 14: they never raised money again. Now fast forward to twenty
Speaker 14: and twenty one, companies were private and raised one hundred
Speaker 14: to three hundred million dollars.
Speaker 9: So now fast forward.
Speaker 14: A couple of years, and you basically have two types
Speaker 14: of companies. You have those you have great companies in
Speaker 14: those companies have hundreds of millions of dollars of cash,
Speaker 14: have hit their numbers, and they could go public tomorrow,
Speaker 14: and they would go public.
Speaker 9: At probably a reasonable valuation.
Speaker 14: Some would go higher than the twenty and twenty run round,
Speaker 14: some would be flat. But again, and then there's a
Speaker 14: whole class of companies that couldn't go public because they
Speaker 14: didn't have him performed.
Speaker 9: But those that have could go public. They just why
Speaker 9: go public when you have three hundred million of cash?
Speaker 4: I mean, but that was the same thing as Microsoft
Speaker 4: and Microsoft when public didn't need to raise money, but
Speaker 4: they needed a liquidity moment for the people that work
Speaker 4: there and to ultimately have the rigor of being a
Speaker 4: publicly traded company. So is that the same for the
Speaker 4: business models now?
Speaker 14: I think what you're seeing is is it It will
Speaker 14: definitely make a more rigor. The whole process and you
Speaker 14: know of being public today is way more expensive and
Speaker 14: way more time consuming than it was twenty five thirty
Speaker 14: years plus years ago. So you're just seeing companies wait
Speaker 14: to be even bigger. The markets are totally changed. It
Speaker 14: was a world of active invest in, you know, individual stockpickers,
Speaker 14: more and more of the markets becoming passive ETFs.
Speaker 9: If you're a sub five.
Speaker 14: Billion dollar market public company, it is not fun. You know,
Speaker 14: ask small cap guys who come in here. At some point,
Speaker 14: the sequoias, the light speeds, the benchmarks of the world
Speaker 14: will be telling these companies. Now, now they're three hundred million,
Speaker 14: don't go public. But at some point five six hundred
Speaker 14: and seven million revenue, they are going to say, listen,
Speaker 14: you need to go public. You need the liquidity for
Speaker 14: the best companies. We're just not seeing that right now
Speaker 14: at all.
Speaker 1: Well, Mitchell, something that's different now probably is is more
Speaker 1: liquid secondaries markets. But it does seem to be a
Speaker 1: willingness of the private market to have a longest role
Speaker 1: support companies later into life. How would that impact the
Speaker 1: here and now of an IPO window.
Speaker 14: Well, and I think that's a great thing you said,
Speaker 14: it's one hundred percent spot on. Without going into the details.
Speaker 14: We have a company in our portfolio. It's three hundred
Speaker 14: million of recurrent revenue, it's growing sixty plus percent a year,
Speaker 14: it has you know, two hundred and fifty to three
Speaker 14: hundred million dollars of cash. They have just completed a
Speaker 14: you know, several hundred million dollars secondary and.
Speaker 9: From private investors.
Speaker 14: That are you know, a flat to slightly up round
Speaker 14: from twenty twenty one. And they historically would have gone public,
Speaker 14: but instead the CEO and the board manager team, if
Speaker 14: we agree with is why go public and operates at
Speaker 14: three undred million Our public company a million dollar revenue company.
Speaker 9: Just continue building your business. You're in a giant space.
Speaker 14: Go public in a few years now when you're ready
Speaker 14: and the company is even larger, but so's by the
Speaker 14: way that is facilitated by large secondaries one hundred percent.
Speaker 1: We reflected earlier in the program about the volatility in
Speaker 1: public markets looking ahead with the outcome of November's election,
Speaker 1: cause a pause or an acceleration for an IPO window
Speaker 1: to your mind, Mitchell.
Speaker 14: It depends if you get more days like you know,
Speaker 14: the end current, you know, the end trade unwinding, the
Speaker 14: end carry trade, and things like you know last Monday.
Speaker 9: Don't do you know good things for it?
Speaker 14: You wouldn't have been one to price an IPO on
Speaker 14: Tuesday or Wednesday. I think things have settled down a
Speaker 14: little bit, but you never know, you know. I think
Speaker 14: things will get more volatible as you get into the
Speaker 14: election cycle. But I've learned not to try to pontificate
Speaker 14: on what politics are going to do to financial markets.
Speaker 4: But politics affects certain portfolio companies. You wrote a check
Speaker 4: to bite down't for example, how much do you worry
Speaker 4: about Chinese companies tapping US money.
Speaker 9: And knew you were going there.
Speaker 14: The great thing, the White Dance, will at some point
Speaker 14: go public.
Speaker 9: No idea when it will be in Asia.
Speaker 14: It's not going to go in the US, people ask me,
Speaker 14: you know, you've made an investment. Don't you worry about
Speaker 14: their US business? Their US business is a very small
Speaker 14: part of the overall business. Frankly, I would love you know.
Speaker 14: It sounds crazy to hear me say like, but actually them,
Speaker 14: for some reason, if they got the US business got
Speaker 14: rid of, then they would be probably more likely to
Speaker 14: go public sooner. That being said, I think they should
Speaker 14: fight for it.
Speaker 9: I don't think the.
Speaker 14: US really has the right to just tell us, you know,
Speaker 14: tell companies you must shutter this business.
Speaker 9: You know, I can tell you this.
Speaker 14: You know what, two companies in America would love to
Speaker 14: see TikTok on Facebook and Snapchat. You can assure the
Speaker 14: lobbyists are all over that in Washington. And I think
Speaker 14: what's important to realize is that the Chinese have always
Speaker 14: wanted to build.
Speaker 9: A truly global business.
Speaker 14: They've wanted the Nike of the world, Nikey's and all
Speaker 14: these markets around the world. The Chinese have never built
Speaker 14: this kind of company. They finally have done it with TikTok,
Speaker 14: and I expect them to try.
Speaker 9: To push that around the around the world. And I
Speaker 9: think the whole idea that they're.
Speaker 14: Spying on us and trying to influence things, and I'm sorry,
Speaker 14: like Facebook doesn't try to influence things at all, you know,
Speaker 14: through the social media and things like that.
Speaker 1: So Mitchell Green, founder managing partner of lead Edge Capital,
Speaker 1: thank you very much. And crypto startups, by the way,
Speaker 1: also raise more money in the second quarter of this year,
Speaker 1: totally two point seven billion dollars, but they closed twelve
Speaker 1: point five percent fewer deals compared to the first quarter,
Speaker 1: mirroring a broader slow down seen in the digital asset world. Indeed,
Speaker 1: crypto market Bellwether the bitcoin fell thirteen percent in the
Speaker 1: second quarter and it's been little change so far this quarter.
Speaker 4: Expedia, it posted better than expected second quarter results. However,
Speaker 4: the company did warn of like a softening and travel
Speaker 4: demand and the current quarter, and therefore it adjusted its
Speaker 4: expectations for the rest of the year. Dig into the details,
Speaker 4: expedia CEO is with us Ariane Goren and Arian you
Speaker 4: managed to.
Speaker 5: Get the nuance because shares.
Speaker 4: Absolutely popped on the fact that you'd managed to do
Speaker 4: what you needed to do and delivered for the quarter
Speaker 4: that we were posting on, but then you downgraded for
Speaker 4: a second time.
Speaker 5: What is the consumer telling you right now.
Speaker 15: Well, first, thank you for having me. We were very
Speaker 15: happy with our second quarter results. We saw an acceleration
Speaker 15: in our consumer business, which is what we were looking for,
Speaker 15: and then continued strength in our B to B segment
Speaker 15: and in advertising. But it's true as we look at
Speaker 15: the third quarter, we have seen some softness. It's been
Speaker 15: a few quarters in a row that air ticket prices
Speaker 15: have been coming down, that the price of car rental
Speaker 15: days have been coming down, and we just started seeing
Speaker 15: a bit of that also in the third quarter, So
Speaker 15: we're keeping an eye on it.
Speaker 1: Arian, good morning. It's ed in San Francisco. Away from
Speaker 1: the United States. It's been an incredible summer in Europe,
Speaker 1: the Euros football or soccer tournament, the Olympics. Why is
Speaker 1: that sort of a driven process not more of a
Speaker 1: confidence giver for you in your outlook?
Speaker 15: Yeah, well, first of all, I would say events driven
Speaker 15: travel is a true trend, whether it's sports, whether it's concerts.
Speaker 9: You know, with Taylor Swift's concert tour in the.
Speaker 15: Last year, you see that that really drives travel into destinations.
Speaker 15: So that certainly plays into our optimism. But again, you know,
Speaker 15: when we look at our forecast, we're looking at what's
Speaker 15: happening on pricing, what's happening in demand, and again in
Speaker 15: the long term, people certainly want to travel, which is
Speaker 15: what makes us sort of optimistic in the long.
Speaker 1: Term, arian what's the technology story for you? If you're
Speaker 1: going to drive that outlook a little higher than you've
Speaker 1: already given. Is there a way you can more closely
Speaker 1: match what people are searching for maybe the budget conscious
Speaker 1: consumer as well, if the consumer is in real time
Speaker 1: pulling back.
Speaker 9: Well, you know.
Speaker 15: The great news is that because of the work that
Speaker 15: we've done on our platform in the last few years,
Speaker 15: in particular around having a customer identity across all of
Speaker 15: our brands, we have a better understanding of the traveler
Speaker 15: across all of our brands, looking at what are they
Speaker 15: searching for, what are they interested in, which allows us
Speaker 15: to make more personalized recommendations that are more relevant for
Speaker 15: each traveler.
Speaker 5: Let's talk about the brands and brand loyalty.
Speaker 4: Before we do that, we just want to a minor
Speaker 4: audience of TV and radio.
Speaker 5: We have sat down with the Expedia.
Speaker 4: CEO, Arianne Goren, and what's really interesting is you have
Speaker 4: this rollout of sort of a brand loyalty program one
Speaker 4: Key beyond the US and UK. But you're slowing it slightly,
Speaker 4: and there was an impact perhaps to Hotels dot Com
Speaker 4: users in the loyalty programs they had.
Speaker 5: Can you tell us about what the ultimate.
Speaker 4: Goal is there and why you've slowed it a little bit?
Speaker 9: Sure?
Speaker 15: So, we actually just came up on the one year
Speaker 15: anniversary of our one Key loyalty program. We launched it
Speaker 15: last summer in the US and it's a program that
Speaker 15: ties together Expedia, Hotels dot Com, and Verbo, which are
Speaker 15: our three biggest brands. It allows travelers to earn and
Speaker 15: burn one key cash across all of the brands and
Speaker 15: also benefit from higher discounts, especially in hotels.
Speaker 9: Sort of the more loyal they are.
Speaker 15: We've been pleased with the results in the US and
Speaker 15: we've just launched in the UK. But as we step
Speaker 15: back and looked at other countries, know what we realized
Speaker 15: is this is a program that works the best when
Speaker 15: we have all three of our big brands operating at scale,
Speaker 15: and in many countries outside of the US and UK,
Speaker 15: we have one leading brand. So what we're doing now
Speaker 15: is we're looking at how do we make sure that
Speaker 15: we have the strongest loyalty value proposition in each country
Speaker 15: for the brands that are there. And the good news
Speaker 15: is even before making any changes, all of the loyalty
Speaker 15: members outside of the US and UK are already benefiting
Speaker 15: from the higher member discounts.
Speaker 4: You are relatively new in the seat May twenty twenty four,
Speaker 4: as CEO, you were on the board a bit before that.
Speaker 4: But Ariane, you came from the B to B offering.
Speaker 4: The advertising offering which you've just articulated.
Speaker 5: Is going really well.
Speaker 4: How therefore, can you bring your learnings from that to
Speaker 4: the how you focused on driving better margins growth from
Speaker 4: a consumer that, as you say at the moment, is nervous.
Speaker 15: So I would start by saying, our consumer business has
Speaker 15: three very strong and well loved brands in Expedia, Hotels,
Speaker 15: dot Com and Verbo, and they all have great value propositions.
Speaker 15: My experience, and I think anybody's experience in business, is
Speaker 15: always that you want to make sure you understand what
Speaker 15: is your customer need and then how do you have
Speaker 15: a value proposition that matches it? And so what I'm
Speaker 15: focused on with the team is making sure that from
Speaker 15: our technology to our supply to the way we market,
Speaker 15: each of our brands is very strong in addressing a
Speaker 15: particular customer need all.
Speaker 1: An what's the one single biggest headwind or risk to
Speaker 1: you and to a consumer's choice to travel for the
Speaker 1: remainder of this year.
Speaker 15: I would go back to what I talked about earlier,
Speaker 15: which is prices coming down somewhat. You could say that's
Speaker 15: sort of a headwind in the sense that as you
Speaker 15: report earnings, obviously prices have an impact. But I like
Speaker 15: to see the glass half full rather than half empty.
Speaker 15: And when you consider it that way, you think, well,
Speaker 15: travels may be becoming more affordable.
Speaker 4: It's great to have some time in you Arianne Goren,
Speaker 4: Expedia CEO here in New York.
Speaker 5: We thank you, thank you for having me.
Speaker 4: Now that does it for this edition of Bloomberg Technology Ed.
Speaker 4: What a fig and fast conversation from public to private.
Speaker 5: We got so much more for the rest of the
Speaker 5: week as well.
Speaker 1: Caroline is back in New York City. We got Pile
Speaker 1: and Marguerite with me here in San Francisco, Jackie John
Speaker 1: and Justin in New York. The team and the Control
Speaker 1: Embrace yourselves a big week to come. Don't forget to
Speaker 1: check out the podcast. By the way, you know where
Speaker 1: to find it the terminal, as well a lot as
Speaker 1: online on Apple, Spotify, and iHeart. This is Bloomberg technology.