WEBVTT - Tech Outperforming and Elon Musk's Interview with Donald Trump

0:00:02.600 --> 0:00:12.080
<v Speaker 1>Bloomberg Audio Studios, Podcasts, radio news.

0:00:09.800 --> 0:00:12.719
<v Speaker 2>From the heart of where innovation, money, and power co

0:00:12.920 --> 0:00:15.040
<v Speaker 2>lie in Silicon Valley, Nbon.

0:00:15.400 --> 0:00:19.280
<v Speaker 3>This is Bloomberg Technology with Caroline Hyde and Ed luve.

0:00:19.239 --> 0:00:35.040
<v Speaker 4>Love live from New York and San Francisco. This is

0:00:35.040 --> 0:00:37.040
<v Speaker 4>Bloomberg Technology coming up.

0:00:37.000 --> 0:00:40.600
<v Speaker 5>For market coverage. We're tech back outperforming.

0:00:39.960 --> 0:00:43.319
<v Speaker 6>As traders brace for a big week of eco data, and.

0:00:43.280 --> 0:00:47.479
<v Speaker 1>We preview Elon Musk's interview with former President Donald Trump.

0:00:47.880 --> 0:00:51.800
<v Speaker 4>Glas, we continue Ernie's coverage the CEO of Expedia.

0:00:52.680 --> 0:00:55.120
<v Speaker 1>We left Friday show with like this element of peril,

0:00:55.200 --> 0:00:57.680
<v Speaker 1>where then as that one hundred could have gone either way.

0:00:58.000 --> 0:01:00.560
<v Speaker 1>In the ended it closed up a few tens one,

0:01:00.800 --> 0:01:03.960
<v Speaker 1>but that snapped four straight weeks of declines. Had it fallen,

0:01:04.240 --> 0:01:06.240
<v Speaker 1>you would have had five straight weeks of declines, the

0:01:06.319 --> 0:01:09.080
<v Speaker 1>worst run of weekly drops going back to maya, twenty

0:01:09.160 --> 0:01:12.920
<v Speaker 1>twenty two, ittoking eco data, growth concerns, earnings, central banks

0:01:12.920 --> 0:01:14.959
<v Speaker 1>around the world. It was a bit of a storm

0:01:14.959 --> 0:01:17.080
<v Speaker 1>throughout the week with some volatility. Let's get more on

0:01:17.120 --> 0:01:19.600
<v Speaker 1>the markets with Bloomberg's Isabelle Lee, and we can either

0:01:19.640 --> 0:01:23.319
<v Speaker 1>start looking back at last week and asking Isabelle what happened,

0:01:23.600 --> 0:01:25.520
<v Speaker 1>or we can look forward to this week where the market,

0:01:25.560 --> 0:01:28.440
<v Speaker 1>particularly technology investors are looking at ECO data.

0:01:28.959 --> 0:01:31.199
<v Speaker 7>I want to give a quick overview of markets because

0:01:31.200 --> 0:01:32.920
<v Speaker 7>that they is still wild to me. Have the S

0:01:32.959 --> 0:01:36.000
<v Speaker 7>and P falling around three percent, VIX jumping twenty three

0:01:36.040 --> 0:01:38.160
<v Speaker 7>to sixty five, with the two year and ten year

0:01:38.240 --> 0:01:41.360
<v Speaker 7>inverting bitcoin tank ym strengthen, so it was really a

0:01:41.400 --> 0:01:45.119
<v Speaker 7>Monday meltdown, but everything after that seemed to regain its footing,

0:01:45.120 --> 0:01:47.280
<v Speaker 7>and we have the S and P finishing flat on

0:01:47.400 --> 0:01:49.920
<v Speaker 7>the week, and we really just have these investors who

0:01:50.040 --> 0:01:53.240
<v Speaker 7>kind of paniced just slightly and really sold off all

0:01:53.280 --> 0:01:56.680
<v Speaker 7>their thoughts, all the reversal trades we've been seeing reverse

0:01:56.760 --> 0:01:58.240
<v Speaker 7>and the momentum trade fizzle.

0:01:58.320 --> 0:02:00.280
<v Speaker 5>But where do we go from here? This week?

0:02:00.320 --> 0:02:02.760
<v Speaker 7>We can expect a little bit more volatility because we're

0:02:02.800 --> 0:02:04.880
<v Speaker 7>just going to see a slew of data and as

0:02:04.920 --> 0:02:08.080
<v Speaker 7>we know, investors, really they're just each of these data

0:02:08.680 --> 0:02:11.360
<v Speaker 7>very closely, more than any other time in history. We

0:02:11.440 --> 0:02:16.359
<v Speaker 7>have on Tuesday, PPI, Wednesday CPI, Thursday industrial data, jobless claims,

0:02:16.440 --> 0:02:19.079
<v Speaker 7>retail sales, and on Friday consumer sentiments.

0:02:19.080 --> 0:02:20.840
<v Speaker 5>So really it's just going to be a light week for.

0:02:20.880 --> 0:02:23.760
<v Speaker 4>US in as well, keeping a US focused, I mean,

0:02:23.880 --> 0:02:26.120
<v Speaker 4>is also an international play of this, the Japanese and

0:02:26.160 --> 0:02:28.280
<v Speaker 4>actually significantly weaker.

0:02:27.960 --> 0:02:28.440
<v Speaker 5>On the day.

0:02:28.960 --> 0:02:31.360
<v Speaker 4>But what I also caught my attention was one of

0:02:31.360 --> 0:02:33.760
<v Speaker 4>the most read stories on the Bloomberg was talking about

0:02:33.800 --> 0:02:35.760
<v Speaker 4>this slashing inequity exposure.

0:02:36.040 --> 0:02:37.960
<v Speaker 5>We still have that feeling of.

0:02:38.560 --> 0:02:41.959
<v Speaker 4>Just trim just perhaps start to diversify that little bit more,

0:02:42.120 --> 0:02:43.960
<v Speaker 4>having seen the volatility of last Monday.

0:02:44.320 --> 0:02:45.400
<v Speaker 5>That exactly caught my eye.

0:02:45.440 --> 0:02:47.680
<v Speaker 7>Also, we have Deutsche back day Into data saying that

0:02:47.720 --> 0:02:50.640
<v Speaker 7>investor slash equity allocations at the sharpest pace since the

0:02:50.680 --> 0:02:53.080
<v Speaker 7>onset of the pandemic, and just three weeks before we

0:02:53.120 --> 0:02:55.840
<v Speaker 7>are and we were at the ninety seventh percentile.

0:02:55.919 --> 0:02:58.000
<v Speaker 5>So you really see the shift in sentiment.

0:02:58.040 --> 0:03:01.760
<v Speaker 7>It's just interesting how just three weeks ago investors were

0:03:01.800 --> 0:03:04.760
<v Speaker 7>really kind of optimistic about the economy, about the soft landing,

0:03:04.960 --> 0:03:07.320
<v Speaker 7>and now they're like, oh my gosh, the Fed took

0:03:07.360 --> 0:03:09.320
<v Speaker 7>too long to cut rates. We're stuck in the mud,

0:03:09.360 --> 0:03:11.480
<v Speaker 7>and we're seeing all this panic and we know how

0:03:11.480 --> 0:03:14.840
<v Speaker 7>these things go. When they panic a little, it always overshoots.

0:03:14.880 --> 0:03:17.880
<v Speaker 7>And it's summer volatility is like even the Vick spiking.

0:03:18.120 --> 0:03:21.320
<v Speaker 7>Many were saying was really technical. It didn't really, It

0:03:21.360 --> 0:03:24.160
<v Speaker 7>wasn't really indicative of the outright panic that we usually

0:03:24.200 --> 0:03:26.760
<v Speaker 7>see when we associate these with a VIX. It's really

0:03:26.760 --> 0:03:31.120
<v Speaker 7>more technical because we have light liquidity, stretch, sentiment shift

0:03:31.160 --> 0:03:34.080
<v Speaker 7>and positioning. So it's really hard to read markets, especially

0:03:34.480 --> 0:03:36.640
<v Speaker 7>during the summer when we all should be on vacation.

0:03:37.040 --> 0:03:40.280
<v Speaker 7>But that's a thing. Investors are not liking tech. But

0:03:40.360 --> 0:03:43.000
<v Speaker 7>here's another thing. The great rotation trade we saw when

0:03:43.400 --> 0:03:47.040
<v Speaker 7>people were selling big tech stocks into small cap, well,

0:03:47.080 --> 0:03:49.920
<v Speaker 7>now that has fizzled. We have last week traders really

0:03:49.920 --> 0:03:52.720
<v Speaker 7>pulling out two point six billion from black Rock small

0:03:52.760 --> 0:03:53.440
<v Speaker 7>cap ETF.

0:03:53.560 --> 0:03:56.080
<v Speaker 5>So I don't know, maybe that was just a blip.

0:03:56.200 --> 0:03:58.480
<v Speaker 7>Maybe investors are shifting again.

0:03:58.640 --> 0:03:59.880
<v Speaker 5>It's really hard to read right now.

0:04:00.760 --> 0:04:03.600
<v Speaker 1>Lin Begg's Isabel Lee across the markets in a deep way.

0:04:03.600 --> 0:04:05.880
<v Speaker 1>I would also point out the biggest points moves the

0:04:06.000 --> 0:04:07.600
<v Speaker 1>upside right now is in video and I want to

0:04:07.600 --> 0:04:11.040
<v Speaker 1>bring in Daniel Newman the future from Group CEO new

0:04:11.040 --> 0:04:14.000
<v Speaker 1>approach to research and advisory, And I don't know, I

0:04:14.040 --> 0:04:18.359
<v Speaker 1>don't think it's premature to say. Nvidia reports August twenty eighth,

0:04:18.640 --> 0:04:20.400
<v Speaker 1>and we just went through the ECO data and the

0:04:20.400 --> 0:04:23.560
<v Speaker 1>impact of central banks. That's a big calendar item for

0:04:23.600 --> 0:04:27.560
<v Speaker 1>everyone that watches this market. Good morning, ed, good.

0:04:27.360 --> 0:04:27.880
<v Speaker 3>To see you.

0:04:28.080 --> 0:04:31.000
<v Speaker 8>Yes, I mean after the first wave of big tech,

0:04:31.360 --> 0:04:35.760
<v Speaker 8>there isn't an earnings report that's more in the throes

0:04:35.800 --> 0:04:38.000
<v Speaker 8>of everyone's hearts right now than what's going to happen

0:04:38.040 --> 0:04:41.039
<v Speaker 8>with Nvidia. The AI bubble bears, as I like to

0:04:41.080 --> 0:04:44.320
<v Speaker 8>call them, are looking for something to break. The announcement

0:04:44.360 --> 0:04:47.080
<v Speaker 8>of some delays on Blackwell got a lot of excitement

0:04:47.160 --> 0:04:49.800
<v Speaker 8>last week, but maybe was muted a little bit by

0:04:49.920 --> 0:04:52.760
<v Speaker 8>everything that went on with the macroeconomy. And then on

0:04:52.800 --> 0:04:55.719
<v Speaker 8>the other side of it, the bulls, they're listening to

0:04:55.760 --> 0:04:58.240
<v Speaker 8>all these Capex reports, They're listening to what Zuck had

0:04:58.240 --> 0:05:02.320
<v Speaker 8>to say, Sun, dar Osatia, all of these companies intending

0:05:02.320 --> 0:05:04.720
<v Speaker 8>to spend big on Capex, and that tends to be

0:05:05.279 --> 0:05:06.440
<v Speaker 8>a win for Nvidia.

0:05:06.640 --> 0:05:08.680
<v Speaker 3>So if you're looking at what's going on, you're.

0:05:08.520 --> 0:05:12.000
<v Speaker 8>Saying AI is booming on the capex side, on the

0:05:12.040 --> 0:05:13.800
<v Speaker 8>investment and the infrastructure side.

0:05:13.880 --> 0:05:16.160
<v Speaker 3>But the bears that the bears are saying, well.

0:05:16.200 --> 0:05:18.440
<v Speaker 8>How was that turning into practical use in the market,

0:05:18.480 --> 0:05:19.960
<v Speaker 8>And that's created a big.

0:05:19.680 --> 0:05:23.400
<v Speaker 4>Golf Okay, let's dwell on that big golf. Therefore, is

0:05:23.440 --> 0:05:26.040
<v Speaker 4>it that if you're going to buy some of the

0:05:26.160 --> 0:05:28.479
<v Speaker 4>volatility that we've seen of late, buy in some of

0:05:28.480 --> 0:05:31.240
<v Speaker 4>the lower price points, you do it with what's already

0:05:31.240 --> 0:05:32.799
<v Speaker 4>won the videos.

0:05:32.920 --> 0:05:34.000
<v Speaker 5>You don't do it with a.

0:05:34.000 --> 0:05:36.960
<v Speaker 4>Breadth that we might see of AI working in software.

0:05:36.600 --> 0:05:36.960
<v Speaker 9>And the like.

0:05:38.160 --> 0:05:40.680
<v Speaker 8>Yeah, Caroline, I like to talk about this ingestion period

0:05:40.720 --> 0:05:43.160
<v Speaker 8>that is going on with AI. It isn't going to

0:05:43.240 --> 0:05:46.960
<v Speaker 8>happen over the next quarter or two where AI is

0:05:47.000 --> 0:05:50.520
<v Speaker 8>going to be democratized and implemented into every enterprise. We're

0:05:50.520 --> 0:05:53.000
<v Speaker 8>seeing small wins. We saw Palenteer had a great quarter.

0:05:53.080 --> 0:05:56.799
<v Speaker 8>We saw service Now showed some really resilient results against

0:05:57.080 --> 0:06:00.640
<v Speaker 8>some of the people betting against software. But we're also

0:06:00.680 --> 0:06:03.760
<v Speaker 8>waiting to see strength from companies like SAP Oracle.

0:06:04.160 --> 0:06:06.000
<v Speaker 3>IBM looked okay, these are the.

0:06:05.960 --> 0:06:08.600
<v Speaker 8>Companies that are doing the implementations of AI. But if

0:06:08.640 --> 0:06:12.200
<v Speaker 8>you're looking at this big spend, this predictable big spend

0:06:12.200 --> 0:06:15.640
<v Speaker 8>that's going on, all the big tech, mega tech companies

0:06:15.640 --> 0:06:18.000
<v Speaker 8>are basically saying, we don't want to be the blockbuster,

0:06:18.120 --> 0:06:20.839
<v Speaker 8>the BlackBerry of the AI era. We're going to spend

0:06:20.839 --> 0:06:24.080
<v Speaker 8>in advance Zuck did a perfect job on his earnings

0:06:24.120 --> 0:06:25.720
<v Speaker 8>call and nobody flinched.

0:06:25.800 --> 0:06:27.680
<v Speaker 3>Some of the other calls were met with a little

0:06:27.680 --> 0:06:28.080
<v Speaker 3>bit more.

0:06:28.000 --> 0:06:31.960
<v Speaker 8>Resistance because the justification of Capex wasn't as clear to

0:06:32.560 --> 0:06:33.240
<v Speaker 8>the investors.

0:06:34.120 --> 0:06:38.120
<v Speaker 4>The justification also of a fundamental change in policy from

0:06:38.400 --> 0:06:42.840
<v Speaker 4>the Federal Reserve. How much does the broader macro backdrop

0:06:42.960 --> 0:06:44.600
<v Speaker 4>paint a picture for whether you should be buying tech

0:06:44.600 --> 0:06:44.960
<v Speaker 4>at the moment?

0:06:45.040 --> 0:06:48.040
<v Speaker 8>Ded you know, you and I've had this discussion a

0:06:48.040 --> 0:06:50.200
<v Speaker 8>few times on this show, Caroline, and I've said tech

0:06:50.240 --> 0:06:53.360
<v Speaker 8>is incredibly deflationary. It's going to enable companies to do

0:06:53.440 --> 0:06:56.840
<v Speaker 8>more with less resources. We've seen the job numbers in

0:06:56.880 --> 0:07:00.679
<v Speaker 8>San Francisco go back to the pre pandemic levels, seeing cuts.

0:07:00.720 --> 0:07:03.320
<v Speaker 8>We've heard about Cisco, Dell major cuts over the past

0:07:03.400 --> 0:07:05.560
<v Speaker 8>few weeks, and this has been necessary.

0:07:05.560 --> 0:07:06.520
<v Speaker 3>But also these.

0:07:06.360 --> 0:07:09.840
<v Speaker 8>Companies, the whisper conversations I'm having with CEOs is they

0:07:09.880 --> 0:07:11.720
<v Speaker 8>believe AI will enable a.

0:07:11.680 --> 0:07:13.000
<v Speaker 3>Prune to grow strategy.

0:07:13.040 --> 0:07:16.040
<v Speaker 8>They can make some cuts in their overhead and their

0:07:16.040 --> 0:07:18.280
<v Speaker 8>cost and in their human capital in order to create

0:07:18.360 --> 0:07:19.760
<v Speaker 8>scale and create worlth.

0:07:19.840 --> 0:07:21.800
<v Speaker 3>So that is the opportunity.

0:07:22.000 --> 0:07:25.080
<v Speaker 8>At the same time, we are still waiting to see

0:07:25.480 --> 0:07:27.680
<v Speaker 8>is the macroka You look at some of these credit numbers,

0:07:27.680 --> 0:07:29.560
<v Speaker 8>you look at some of the loan default numbers, you

0:07:29.560 --> 0:07:32.480
<v Speaker 8>look at some of the consumer confidence numbers. The market

0:07:32.520 --> 0:07:35.520
<v Speaker 8>isn't that strong despite that, we're not in a recession.

0:07:35.600 --> 0:07:38.280
<v Speaker 8>So we're balancing these couple of things. But tech is

0:07:38.320 --> 0:07:41.480
<v Speaker 8>ultimately deflationary and ends up being a good bet for investors,

0:07:41.560 --> 0:07:42.880
<v Speaker 8>especially long investors.

0:07:44.160 --> 0:07:49.880
<v Speaker 1>Dan in tabulating headwinds and tailwinds. In which column does

0:07:49.960 --> 0:07:53.200
<v Speaker 1>regulation sit for AI, it's.

0:07:53.040 --> 0:07:53.600
<v Speaker 3>A great one.

0:07:53.680 --> 0:07:56.720
<v Speaker 8>I believe it is a headwind, but at I do believe,

0:07:56.880 --> 0:08:00.600
<v Speaker 8>like every technological mega trend that we've had, regular will

0:08:00.600 --> 0:08:01.960
<v Speaker 8>always be playing ketchup.

0:08:01.960 --> 0:08:03.320
<v Speaker 3>They're going to be playing defense.

0:08:04.000 --> 0:08:06.960
<v Speaker 8>I've had a number of conversations about what in Vidia's

0:08:07.000 --> 0:08:09.960
<v Speaker 8>stature is written relation to regulation. We're hearing some of

0:08:10.000 --> 0:08:13.120
<v Speaker 8>the concerns across Europe. In the US probes, of course,

0:08:13.120 --> 0:08:16.040
<v Speaker 8>we saw what happened with Google last week. The regulators

0:08:16.080 --> 0:08:18.240
<v Speaker 8>want the markets to understand that they're going to play

0:08:18.240 --> 0:08:20.280
<v Speaker 8>a role, but at the same time, the US is

0:08:20.560 --> 0:08:23.520
<v Speaker 8>very steadfast to stay in the lead on innovation. With

0:08:23.600 --> 0:08:25.320
<v Speaker 8>that in mind, I think M and A is the

0:08:25.360 --> 0:08:28.320
<v Speaker 8>area where regulators will be the most involved.

0:08:28.320 --> 0:08:29.040
<v Speaker 3>They're going to make it.

0:08:29.000 --> 0:08:32.520
<v Speaker 8>Difficult for these mega cap companies, the Microsofts, the Googles

0:08:32.800 --> 0:08:36.800
<v Speaker 8>now in videos Amazons to make acquisitions. We saw Microsoft

0:08:36.920 --> 0:08:39.079
<v Speaker 8>sort of doing an interesting move on one of their

0:08:39.120 --> 0:08:42.240
<v Speaker 8>most recent acquisitions, and that is going to play into this.

0:08:42.280 --> 0:08:44.200
<v Speaker 8>They're going to be playing the cat and mouse game,

0:08:44.360 --> 0:08:46.280
<v Speaker 8>but the regulators are going to have a really hard

0:08:46.280 --> 0:08:47.240
<v Speaker 8>time at keeping up.

0:08:47.880 --> 0:08:51.079
<v Speaker 4>Dianie Newman, great to have you on the Future and Group.

0:08:51.240 --> 0:08:54.319
<v Speaker 4>We appreciate it. Meanwhile, coming up, look, Elomas will be

0:08:54.360 --> 0:08:56.160
<v Speaker 4>sitting down with Donald Trump later today.

0:08:56.520 --> 0:08:58.920
<v Speaker 5>We'll discuss what to except us next.

0:08:58.960 --> 0:09:25.959
<v Speaker 6>This is the Bloombag Technology.

0:09:14.360 --> 0:09:15.600
<v Speaker 5>Elil Musk and Donald Trump.

0:09:15.640 --> 0:09:17.880
<v Speaker 4>Well, Le's lated to sit down for an interview this

0:09:18.000 --> 0:09:21.520
<v Speaker 4>evening on X. It will be the first public interaction

0:09:21.640 --> 0:09:23.960
<v Speaker 4>between the two men since the Tesla CEO endorsed the

0:09:23.960 --> 0:09:27.520
<v Speaker 4>Republican nominee last month. Let's discuss at all with what

0:09:27.640 --> 0:09:31.000
<v Speaker 4>to expect the Blue MENZ Kurt Wagner. So timing for us,

0:09:31.200 --> 0:09:33.160
<v Speaker 4>what we anticipate in terms of subject matter.

0:09:34.640 --> 0:09:37.000
<v Speaker 10>Yeah, so this is scheduled to be at eight o'clock

0:09:37.040 --> 0:09:39.640
<v Speaker 10>Eastern time, so you know, primetime if you will.

0:09:40.280 --> 0:09:41.880
<v Speaker 3>In terms of what to predict.

0:09:41.960 --> 0:09:45.160
<v Speaker 10>I mean, these are two incredibly unpredictable people, as you

0:09:45.240 --> 0:09:48.959
<v Speaker 10>both know. I imagine that you know, we'll hear President

0:09:49.000 --> 0:09:51.720
<v Speaker 10>Trump go through some of his key points, especially the

0:09:51.720 --> 0:09:54.520
<v Speaker 10>ones that we see Elon Musk continually tweeting about. That's

0:09:54.559 --> 0:09:58.120
<v Speaker 10>you know, immigration, some of the social issues maybe around

0:09:58.160 --> 0:10:01.600
<v Speaker 10>DEI trans rites, but certainly the economy.

0:10:01.720 --> 0:10:01.840
<v Speaker 8>Right.

0:10:01.880 --> 0:10:03.800
<v Speaker 3>I mean, this is one of the things that I.

0:10:03.800 --> 0:10:06.440
<v Speaker 10>Think President Trump talked about a lot in that Donald

0:10:06.440 --> 0:10:09.880
<v Speaker 10>Trump excuse me, Elon Musk will matter it managed to him,

0:10:09.920 --> 0:10:12.520
<v Speaker 10>of course, with TESLA and EVS and all the regulations

0:10:12.520 --> 0:10:15.200
<v Speaker 10>around there. So again, as far as you can predict,

0:10:15.400 --> 0:10:17.400
<v Speaker 10>I think those are pretty safe predictions, but with these

0:10:17.440 --> 0:10:19.520
<v Speaker 10>two you just really never know where the conversation is

0:10:19.559 --> 0:10:19.920
<v Speaker 10>going to go.

0:10:20.760 --> 0:10:23.920
<v Speaker 1>Okay, So Musk has spoken about his attitude towards Trump.

0:10:24.040 --> 0:10:25.760
<v Speaker 1>Let's reflect on that. Listen to this.

0:10:27.080 --> 0:10:29.320
<v Speaker 3>I guess that there would be like some impact, but

0:10:29.840 --> 0:10:32.360
<v Speaker 3>I think it would be devastating for OM editors and

0:10:33.240 --> 0:10:41.040
<v Speaker 3>would slightly but long term probably actually helps TESLA.

0:10:42.080 --> 0:10:43.000
<v Speaker 9>My guess.

0:10:45.720 --> 0:10:48.560
<v Speaker 1>Impact of TESLA hurts slightly competits his long term but

0:10:48.600 --> 0:10:51.040
<v Speaker 1>then he's also got his Boeing cap on his SpaceX

0:10:51.080 --> 0:10:55.839
<v Speaker 1>cap on NEURALI, et cetera. You know, you're right, he's unpredictable.

0:10:55.880 --> 0:10:57.680
<v Speaker 1>Do we have any sense if they have common ground

0:10:57.679 --> 0:10:59.720
<v Speaker 1>on some of the other Musk companies in.

0:11:01.920 --> 0:11:03.840
<v Speaker 10>Yeah, I mean, I think that clip sort of gives

0:11:03.840 --> 0:11:07.080
<v Speaker 10>you a sense, right is like even Elon sees that

0:11:07.080 --> 0:11:10.680
<v Speaker 10>there is a long term benefit here to having Trump

0:11:10.760 --> 0:11:13.080
<v Speaker 10>in the White House. I think they aligned probably on

0:11:13.120 --> 0:11:15.920
<v Speaker 10>crypto right. Donald Trump has sort of come out and

0:11:15.960 --> 0:11:20.960
<v Speaker 10>been the pro cryptocurrency candidate here, which Elon may care about.

0:11:21.520 --> 0:11:24.400
<v Speaker 10>I think, you know, the idea of when President Trump

0:11:24.440 --> 0:11:26.800
<v Speaker 10>was in office, he cared about space, he cared about

0:11:26.800 --> 0:11:30.920
<v Speaker 10>the Space force, this idea of protecting the country through space.

0:11:31.080 --> 0:11:31.280
<v Speaker 3>Right.

0:11:31.360 --> 0:11:34.040
<v Speaker 10>Obviously, that's a huge part of Elon's portfolio. So I

0:11:34.080 --> 0:11:36.360
<v Speaker 10>do think there are some areas here where these two overlap.

0:11:36.360 --> 0:11:39.160
<v Speaker 10>I think there's also a benefit here, a mutual potential

0:11:39.240 --> 0:11:42.960
<v Speaker 10>mutual benefit of simply getting the former president back onto X,

0:11:43.280 --> 0:11:45.640
<v Speaker 10>where Elon is, you know, trying to drum up attention,

0:11:45.800 --> 0:11:47.800
<v Speaker 10>trying to build a base. And I think that could

0:11:47.880 --> 0:11:51.640
<v Speaker 10>be another side effect here of this conversation, and it will.

0:11:51.440 --> 0:11:54.959
<v Speaker 1>Be interesting to see if X can handle it. All

0:11:54.960 --> 0:11:57.719
<v Speaker 1>of those people tuning in Bloombers Kirt Wagner will get

0:11:57.760 --> 0:11:59.680
<v Speaker 1>you back on to discuss later in the week, So

0:11:59.720 --> 0:12:03.840
<v Speaker 1>trump attitude toward electric vehicles and charging is likely to

0:12:03.840 --> 0:12:06.480
<v Speaker 1>come up during that conversation. After all, Musk is the

0:12:06.520 --> 0:12:09.040
<v Speaker 1>head of the world's ev incumbent Tesla, and the former

0:12:09.080 --> 0:12:11.959
<v Speaker 1>president talked about EV's at length in that interview of

0:12:12.000 --> 0:12:15.040
<v Speaker 1>Bloomberg Business Week just a few weeks ago, suggesting the

0:12:15.080 --> 0:12:17.520
<v Speaker 1>topic is also top of mind for him. Let's discuss

0:12:17.720 --> 0:12:21.720
<v Speaker 1>with Terry O'Day, COO and co founder of in Charge Energy,

0:12:21.760 --> 0:12:25.640
<v Speaker 1>which provides commercial fleet charging solutions. Terry, good morning to you.

0:12:26.559 --> 0:12:30.160
<v Speaker 1>Is your industry waiting and bracing for this to be

0:12:30.760 --> 0:12:36.680
<v Speaker 1>a guide of Trump policy on charging, infrastructure and evs well.

0:12:36.720 --> 0:12:39.520
<v Speaker 2>I think that it's clear that Trump has staked out

0:12:39.559 --> 0:12:42.480
<v Speaker 2>a position here, but what is also clear is that

0:12:42.840 --> 0:12:47.520
<v Speaker 2>the march towards electrification in this country is inexorable. At

0:12:47.520 --> 0:12:50.920
<v Speaker 2>this point, the total cost of owning an electric car

0:12:51.120 --> 0:12:53.960
<v Speaker 2>or an electric truck is now lower than gasoline or diesel,

0:12:54.400 --> 0:12:56.440
<v Speaker 2>and people are making decisions based on.

0:12:56.360 --> 0:12:57.559
<v Speaker 3>That economic factor.

0:12:57.920 --> 0:12:59.920
<v Speaker 2>So we think that the market will continue to mark

0:13:00.160 --> 0:13:04.679
<v Speaker 2>forward and perhaps, as Musk said, this is a short term.

0:13:04.520 --> 0:13:10.520
<v Speaker 4>Blip Okay, So, what, if anything, do you think could

0:13:10.880 --> 0:13:15.360
<v Speaker 4>knock what has been, ultimately from a consumer standpoint, a

0:13:15.440 --> 0:13:18.000
<v Speaker 4>stagnation in interest in evs.

0:13:18.400 --> 0:13:21.040
<v Speaker 5>What are you seeing from the business side of it?

0:13:21.120 --> 0:13:22.520
<v Speaker 5>Is that not been the case?

0:13:23.640 --> 0:13:26.040
<v Speaker 2>Well, there is definitely a slowdown. I think there was

0:13:26.080 --> 0:13:28.720
<v Speaker 2>a this past year. There was a glut of supply

0:13:28.800 --> 0:13:32.280
<v Speaker 2>in the market for chargers and for vehicles and companies

0:13:32.320 --> 0:13:36.720
<v Speaker 2>adjusting to their capital decisions. What we're beginning to see

0:13:36.840 --> 0:13:40.160
<v Speaker 2>is thinking coming from some of our major customers like

0:13:40.240 --> 0:13:44.040
<v Speaker 2>Pepsi and FedEx and ups and Walmart. They are planning

0:13:44.120 --> 0:13:50.120
<v Speaker 2>multi year rollouts now of electric trucks and medium duty vehicles,

0:13:50.520 --> 0:13:53.560
<v Speaker 2>and so we're doing the charging stations, planning their long

0:13:53.640 --> 0:13:58.040
<v Speaker 2>term plans for their facilities, and they're making investments over

0:13:58.080 --> 0:14:00.920
<v Speaker 2>a multi year calendar. That is, you know, very different

0:14:00.920 --> 0:14:03.920
<v Speaker 2>than the political camelinner terry.

0:14:04.360 --> 0:14:07.920
<v Speaker 1>The Biden administration gave Elon Musk and Tesla the cold shoulder,

0:14:08.440 --> 0:14:12.680
<v Speaker 1>but focus on the IRA, which gave benefits to your industry. Right,

0:14:12.920 --> 0:14:15.679
<v Speaker 1>how much do you want to see Trump gives some

0:14:15.840 --> 0:14:21.840
<v Speaker 1>substance about how he'd handle funding an investment into EV infrastructure.

0:14:22.680 --> 0:14:25.240
<v Speaker 1>Is it something that you kind of think is important

0:14:25.240 --> 0:14:26.120
<v Speaker 1>to carry forward.

0:14:27.520 --> 0:14:31.240
<v Speaker 2>Yeah, those infrastructure builds had a major impact on this industry.

0:14:31.320 --> 0:14:35.120
<v Speaker 2>We have now school buses being deployed with school children

0:14:35.240 --> 0:14:39.880
<v Speaker 2>being driven to schools this month in electric vehicles, in

0:14:40.240 --> 0:14:44.120
<v Speaker 2>electric school buses. As a result of the Biden infrastructure built,

0:14:44.320 --> 0:14:49.240
<v Speaker 2>we have additional investments coming for public charging stations across

0:14:49.800 --> 0:14:54.520
<v Speaker 2>the US, and those investments should continue to come forward

0:14:54.600 --> 0:14:58.160
<v Speaker 2>because that is what will enable consumers and fleets to

0:14:58.240 --> 0:15:01.360
<v Speaker 2>feel comfortable driving these vehicles and making this choice in

0:15:01.400 --> 0:15:01.960
<v Speaker 2>the long run.

0:15:02.400 --> 0:15:06.880
<v Speaker 4>But there's a politicization terry that's unavoidable of oil versus

0:15:06.880 --> 0:15:08.880
<v Speaker 4>ev Is there any risk in your mind that it

0:15:08.880 --> 0:15:09.600
<v Speaker 4>gets unwound?

0:15:11.200 --> 0:15:11.960
<v Speaker 3>It's definitely.

0:15:13.280 --> 0:15:16.480
<v Speaker 2>This industry has been started in part by forward looking

0:15:16.520 --> 0:15:21.040
<v Speaker 2>regulation and by these kinds of public investments. Commercial investments,

0:15:21.040 --> 0:15:24.480
<v Speaker 2>as I suggest, are very important and our moving forward.

0:15:24.840 --> 0:15:28.080
<v Speaker 2>The whole thing will continue to go faster if there

0:15:28.200 --> 0:15:33.320
<v Speaker 2>is investment from the public sector and if these regulations continue.

0:15:33.440 --> 0:15:37.040
<v Speaker 3>So there is some real risk for sure Terry oday.

0:15:37.640 --> 0:15:40.800
<v Speaker 4>Sure you'll be tuning in later to that X discussion.

0:15:40.920 --> 0:15:44.480
<v Speaker 4>We thank you in charge, co founder COO. Meanwhile, let's

0:15:44.520 --> 0:15:46.640
<v Speaker 4>just talk about re ride from a moment. Is a

0:15:46.720 --> 0:15:49.440
<v Speaker 4>Chinese self driving automotive company. It's seeking to raise as

0:15:49.480 --> 0:15:51.680
<v Speaker 4>much as four hundred forty million dollars in a US

0:15:52.000 --> 0:15:56.040
<v Speaker 4>IPO and concurrent private placement too. It was granted approval

0:15:56.080 --> 0:15:58.960
<v Speaker 4>last year by the Chinese Securities regulator for a US listing.

0:15:59.200 --> 0:16:01.000
<v Speaker 4>It is offering six zero point four to five million

0:16:01.040 --> 0:16:04.400
<v Speaker 4>American Depository shares, which would give we ride in market

0:16:04.440 --> 0:16:06.680
<v Speaker 4>value of about five billion dollars at the top of

0:16:06.680 --> 0:16:09.960
<v Speaker 4>its range. It's based on a US SEC filing. And

0:16:10.040 --> 0:16:10.760
<v Speaker 4>what are you looking at?

0:16:11.320 --> 0:16:13.760
<v Speaker 1>Okay, let's get some more news stories in talking tech

0:16:13.800 --> 0:16:16.680
<v Speaker 1>and first Up. India's Party Global has agreed to buy

0:16:16.680 --> 0:16:19.640
<v Speaker 1>a major stake in BT Group. Barty is set to

0:16:19.680 --> 0:16:23.040
<v Speaker 1>purchase a twenty four point five percent stake from shareholder

0:16:23.120 --> 0:16:27.200
<v Speaker 1>Altese in a deal that would bolster the company's international expansion.

0:16:27.440 --> 0:16:30.080
<v Speaker 1>The state gives the Indian firm a marquee holding in

0:16:30.120 --> 0:16:33.320
<v Speaker 1>the United Kingdom. Plus film Studios have dropped its opposition

0:16:33.400 --> 0:16:37.320
<v Speaker 1>to a California measure that would give actors more leeway

0:16:37.400 --> 0:16:41.160
<v Speaker 1>over AI face usage. The measure would implement new legal

0:16:41.200 --> 0:16:45.520
<v Speaker 1>safeguards for performer contracts in using digital replicas of voices

0:16:45.640 --> 0:16:48.600
<v Speaker 1>and likeness. Lawmakers have until the end of this month

0:16:48.640 --> 0:16:51.400
<v Speaker 1>to pass the measure before they adjourn, and it's a

0:16:51.440 --> 0:16:54.320
<v Speaker 1>return to formula for Disney. The company announcing a slewer

0:16:54.440 --> 0:16:57.400
<v Speaker 1>sequels over the weekend at its D twenty three event

0:16:57.560 --> 0:17:01.360
<v Speaker 1>in Anaheim, California. This after re billion dollar box office

0:17:01.360 --> 0:17:05.440
<v Speaker 1>successes from Inside Out, to and Deadpool and Wolverine. Movie

0:17:05.480 --> 0:17:10.640
<v Speaker 1>slated for release include Moana two, Zutopia two, Incredibles three, Frozen, Free,

0:17:10.800 --> 0:17:19.600
<v Speaker 1>Toy Story five. You get the idea. This is Bloomberg Technology.

0:17:25.800 --> 0:17:27.919
<v Speaker 4>A sad loss for the technology industry.

0:17:27.920 --> 0:17:28.520
<v Speaker 5>Over the weekend.

0:17:29.040 --> 0:17:32.199
<v Speaker 4>Susan Widgetski has died after a two year battle with

0:17:32.280 --> 0:17:35.520
<v Speaker 4>cancer at the age of fifty six. Wijetski was an

0:17:35.560 --> 0:17:38.480
<v Speaker 4>early Google executive and longtime head of its.

0:17:38.320 --> 0:17:40.320
<v Speaker 5>YouTube video platform, who.

0:17:40.160 --> 0:17:43.720
<v Speaker 4>Shaped how fortunes and fame are created on the Internet.

0:17:44.160 --> 0:17:47.000
<v Speaker 4>Wijetski was one of just a few women at the

0:17:47.000 --> 0:17:48.480
<v Speaker 4>top ranks of the tech industry.

0:17:48.960 --> 0:17:50.480
<v Speaker 5>Bloomberg's Mark Bergen.

0:17:50.240 --> 0:17:52.880
<v Speaker 4>Joins us to discuss her legacy.

0:17:52.480 --> 0:17:54.840
<v Speaker 5>And assender pitch I put it himself, she.

0:17:55.080 --> 0:17:57.920
<v Speaker 4>Is as core to the history of Google as anyone.

0:17:58.520 --> 0:18:00.000
<v Speaker 5>It's really hard to get our arms.

0:18:00.000 --> 0:18:01.840
<v Speaker 4>Around really the extent of her impact there.

0:18:02.119 --> 0:18:05.160
<v Speaker 11>Mark Yeah, it's absolutely. I mean, you know, it all

0:18:05.200 --> 0:18:08.520
<v Speaker 11>starts with literally her garage, right. She kind of famously

0:18:09.080 --> 0:18:12.080
<v Speaker 11>lent that out to Larry Page and Sergey Brinn and

0:18:12.200 --> 0:18:14.840
<v Speaker 11>to nineteen ninety eight and they formed the company there.

0:18:14.920 --> 0:18:18.199
<v Speaker 11>She joined shortly thereafter, was sort of this quiet presence.

0:18:18.240 --> 0:18:18.399
<v Speaker 12>You know.

0:18:18.520 --> 0:18:20.400
<v Speaker 11>I had sources that told me that kind of one

0:18:20.400 --> 0:18:22.800
<v Speaker 11>of her nicknames inside the company was like the mini CEO,

0:18:23.680 --> 0:18:26.600
<v Speaker 11>because there was this leadership that had She was one

0:18:26.640 --> 0:18:28.479
<v Speaker 11>of these leaders that basically ran a lot of these

0:18:28.520 --> 0:18:32.360
<v Speaker 11>operations and management for the founders were sort of famous

0:18:32.400 --> 0:18:35.200
<v Speaker 11>for neglecting that at time, right they were sort of

0:18:35.240 --> 0:18:38.200
<v Speaker 11>the visionaries and Eric Schmidt that that kind of came

0:18:38.240 --> 0:18:41.040
<v Speaker 11>in as the adult, and she was responsible for building

0:18:41.080 --> 0:18:43.840
<v Speaker 11>out a lot of its core advertising business, and that

0:18:44.000 --> 0:18:46.600
<v Speaker 11>was one of the main reasons that she was brought

0:18:46.600 --> 0:18:48.520
<v Speaker 11>over to YouTube in twenty fourteen.

0:18:50.040 --> 0:18:53.520
<v Speaker 1>Mark she announced plans to leave YouTube in February of

0:18:53.520 --> 0:18:57.240
<v Speaker 1>twenty twenty three and talked about other projects focusing on

0:18:57.240 --> 0:18:59.359
<v Speaker 1>her health. But I don't think at that time she

0:18:59.640 --> 0:19:03.360
<v Speaker 1>or the company elaborated on why. The main point being

0:19:03.400 --> 0:19:05.760
<v Speaker 1>that she had a profound impact on YouTube. You've written

0:19:05.800 --> 0:19:07.639
<v Speaker 1>about it in your book. What are kind of the

0:19:07.720 --> 0:19:11.040
<v Speaker 1>key action she took during her time as CEO and

0:19:11.040 --> 0:19:11.720
<v Speaker 1>Alida there.

0:19:13.200 --> 0:19:16.360
<v Speaker 11>Yeah, one of her key priorities was to really spotlight

0:19:16.480 --> 0:19:18.480
<v Speaker 11>the creators. And I think even though this is eight

0:19:18.560 --> 0:19:20.919
<v Speaker 11>years ago now to our ten years ago now and

0:19:21.240 --> 0:19:24.600
<v Speaker 11>this idea just beak, this nascent idea of influencers of

0:19:24.640 --> 0:19:27.560
<v Speaker 11>online creators, it still wasn't really proven as a business.

0:19:28.080 --> 0:19:29.520
<v Speaker 1>And I think we can.

0:19:29.480 --> 0:19:32.920
<v Speaker 11>Certainly say that's that's changed dramatically. Like one of their

0:19:33.040 --> 0:19:35.840
<v Speaker 11>initial campaigns was actually kind of spotlight a lot of

0:19:35.880 --> 0:19:38.320
<v Speaker 11>these home run creators. For a long time, YouTube tried

0:19:38.320 --> 0:19:40.880
<v Speaker 11>to get celebrities to come onto the platform. I think

0:19:40.960 --> 0:19:43.000
<v Speaker 11>the shift when we just keep took over was, hey,

0:19:43.080 --> 0:19:46.200
<v Speaker 11>we have our own kind of a list style celebrities

0:19:46.720 --> 0:19:49.520
<v Speaker 11>right here at these homegrown YouTube stars. Of course, as

0:19:49.520 --> 0:19:52.359
<v Speaker 11>we've covered a lot, you know, that has its share problems,

0:19:52.440 --> 0:19:55.040
<v Speaker 11>right the brand safety issues that she dealt with over

0:19:55.080 --> 0:19:59.400
<v Speaker 11>the tenure. I think that the focus on advertising sort

0:19:59.400 --> 0:20:03.000
<v Speaker 11>of her course strength has paid off in the extent

0:20:03.040 --> 0:20:06.720
<v Speaker 11>of that YouTube is becoming this dominant advertising platform, you know,

0:20:06.720 --> 0:20:09.400
<v Speaker 11>the the other areas that it's no longer to drop

0:20:09.440 --> 0:20:13.439
<v Speaker 11>its plans to compete with Netflix in Amazon Prime. It's

0:20:13.480 --> 0:20:15.960
<v Speaker 11>still kind of a YouTube music is a service, but

0:20:16.000 --> 0:20:18.440
<v Speaker 11>it's nowhere close to Spotify, you know, I think her

0:20:18.520 --> 0:20:21.639
<v Speaker 11>legacy is primarily going to be building out that what

0:20:21.800 --> 0:20:25.480
<v Speaker 11>is still remains Google's core business. And at the time

0:20:25.520 --> 0:20:28.040
<v Speaker 11>she took over there was there were still questions about.

0:20:27.760 --> 0:20:29.280
<v Speaker 1>You know, could YouTube turn a profit?

0:20:29.840 --> 0:20:31.639
<v Speaker 11>And now it's obviously one of the key pillars of

0:20:32.160 --> 0:20:33.399
<v Speaker 11>Google and Alphabet's growth.

0:20:34.320 --> 0:20:34.600
<v Speaker 7>Mark.

0:20:34.760 --> 0:20:39.159
<v Speaker 4>While making a profound impact at Google, she made a

0:20:39.240 --> 0:20:42.480
<v Speaker 4>profound impact for many women in technology, and I know

0:20:42.560 --> 0:20:44.520
<v Speaker 4>that many have spoken about it the way she tried

0:20:44.560 --> 0:20:47.000
<v Speaker 4>to show up as someone who had some sort of

0:20:47.000 --> 0:20:50.360
<v Speaker 4>work life balance, dropping her kids at soccer in a minivan,

0:20:50.600 --> 0:20:53.800
<v Speaker 4>taking that maternity leave, speaking out about it, Mark, But

0:20:53.880 --> 0:20:58.560
<v Speaker 4>how else have colleagues have former people who've worked alongside her,

0:20:58.640 --> 0:21:03.280
<v Speaker 4>sat on boards with her, thought about her and her loss, not.

0:21:03.320 --> 0:21:04.240
<v Speaker 1>Just taking in maternally.

0:21:04.280 --> 0:21:06.760
<v Speaker 11>But I think she's widely credited for actually forming it

0:21:06.760 --> 0:21:09.320
<v Speaker 11>at Google. The founders didn't really think about that when

0:21:09.359 --> 0:21:11.800
<v Speaker 11>they created the company, so it was the first one

0:21:11.800 --> 0:21:14.520
<v Speaker 11>they actually write that policy and to take it. I

0:21:14.560 --> 0:21:16.640
<v Speaker 11>think this is certainly that you know, women I've talked

0:21:16.680 --> 0:21:18.919
<v Speaker 11>to there, this is quite clearly a strength of her

0:21:19.000 --> 0:21:21.639
<v Speaker 11>leadership being out there very publicly.

0:21:21.680 --> 0:21:22.480
<v Speaker 1>As a mom.

0:21:22.760 --> 0:21:24.600
<v Speaker 11>You know, I think it's really interesting to contrast her

0:21:24.720 --> 0:21:29.080
<v Speaker 11>with with Cheryl Sandberg and mursa mayor her peers that

0:21:29.240 --> 0:21:33.440
<v Speaker 11>certainly had a much bigger public profile. I think Susan Wojiski,

0:21:34.200 --> 0:21:36.120
<v Speaker 11>even from what I understand personally, didn't want that high,

0:21:36.359 --> 0:21:40.480
<v Speaker 11>high public profile. And maybe for Google strategically it's it's

0:21:40.480 --> 0:21:43.760
<v Speaker 11>actually been been quite important. I would argue like that

0:21:43.760 --> 0:21:46.359
<v Speaker 11>that this is not like you know, Elon Musk and X,

0:21:46.400 --> 0:21:49.000
<v Speaker 11>It's not like Mark Zuckerberg at Facebook. You don't have

0:21:49.080 --> 0:21:52.960
<v Speaker 11>this one executive well known for this platform. I think

0:21:53.000 --> 0:21:55.400
<v Speaker 11>that's maybe one of the reasons why, you know, YouTube

0:21:55.440 --> 0:21:59.360
<v Speaker 11>has in many ways dodge some of the criticisms that

0:21:59.720 --> 0:22:00.600
<v Speaker 11>other social.

0:22:00.320 --> 0:22:01.840
<v Speaker 1>Media sites have dealt with.

0:22:01.880 --> 0:22:03.240
<v Speaker 11>You know, there's some people that come out and argue

0:22:03.280 --> 0:22:07.760
<v Speaker 11>that's because Susan is more sort of a student, mature leadership,

0:22:08.480 --> 0:22:11.080
<v Speaker 11>and perhaps it's also because she just had this this

0:22:11.160 --> 0:22:11.840
<v Speaker 11>background role.

0:22:11.960 --> 0:22:16.960
<v Speaker 1>She was not a public profile. Bloomberg's Mark Bergen, thank you,

0:22:17.440 --> 0:22:32.520
<v Speaker 1>Susan Jiski was fifty six. Welcome back to Bluebery Technology

0:22:32.600 --> 0:22:35.159
<v Speaker 1>Ed Ludlow here in San Francisco and Caroline hid.

0:22:35.040 --> 0:22:37.000
<v Speaker 4>In New York and looking at Intel down by some

0:22:37.040 --> 0:22:40.520
<v Speaker 4>eight tens of percent. Look, they're actually postponing a very

0:22:40.600 --> 0:22:42.879
<v Speaker 4>key event ed that I want to dive into because

0:22:42.920 --> 0:22:45.200
<v Speaker 4>here is a name that got beaten up after its earnings.

0:22:45.200 --> 0:22:46.440
<v Speaker 5>They're having to cut cost.

0:22:46.280 --> 0:22:48.399
<v Speaker 4>Cut head count, and it's proving out and sort of

0:22:48.440 --> 0:22:49.719
<v Speaker 4>culling their marketing spend as well.

0:22:49.760 --> 0:22:50.440
<v Speaker 5>What have you got on it?

0:22:51.119 --> 0:22:54.040
<v Speaker 1>Well, let's bring in Bloomberzi and King, who hopefully has answers.

0:22:54.080 --> 0:22:55.920
<v Speaker 1>I mean, you and I have sort of wandered across

0:22:55.920 --> 0:22:58.440
<v Speaker 1>the news roomto each other's desks and said, well, there's

0:22:58.480 --> 0:22:59.720
<v Speaker 1>not a lot of good news to be had for

0:22:59.720 --> 0:23:04.080
<v Speaker 1>Intel at the moment. This expo is not a major headline,

0:23:04.240 --> 0:23:07.200
<v Speaker 1>but it continues the negativity really around the name.

0:23:07.560 --> 0:23:09.399
<v Speaker 13>Yeah, there are a couple of things we need to

0:23:09.400 --> 0:23:13.040
<v Speaker 13>think about. Intel used to basically set the agenda for

0:23:13.080 --> 0:23:17.240
<v Speaker 13>the whole of the computer industry with its conferences. Right now,

0:23:17.320 --> 0:23:21.760
<v Speaker 13>what investors want is Intel, somebody from Intel to walk

0:23:21.800 --> 0:23:24.200
<v Speaker 13>out on stage and say, hey, look at this new thing,

0:23:24.280 --> 0:23:28.359
<v Speaker 13>to basically change the conversation, to get people excited about

0:23:28.359 --> 0:23:30.919
<v Speaker 13>what they're doing. Again, if they're canceling events, how are

0:23:30.920 --> 0:23:31.399
<v Speaker 13>they going.

0:23:31.280 --> 0:23:31.600
<v Speaker 3>To do that.

0:23:33.400 --> 0:23:35.800
<v Speaker 4>Just talk about the relevance of this event, Ian, it

0:23:35.840 --> 0:23:37.040
<v Speaker 4>was all about developers.

0:23:37.080 --> 0:23:37.679
<v Speaker 5>How are they.

0:23:38.359 --> 0:23:42.520
<v Speaker 4>Trying to stay well, earn back the reputation of leading

0:23:42.760 --> 0:23:45.120
<v Speaker 4>the sector that they're so well known and rather than

0:23:45.480 --> 0:23:47.360
<v Speaker 4>while playing catch up to in the names that are

0:23:47.359 --> 0:23:48.399
<v Speaker 4>doing well, such as n Video.

0:23:49.440 --> 0:23:51.560
<v Speaker 13>Yeah, I mean, I think you already answered your question

0:23:51.680 --> 0:23:56.680
<v Speaker 13>in the question. Unfortunately they're not right now. That's the problem. Yeah,

0:23:57.040 --> 0:24:00.800
<v Speaker 13>you know, the the accelerators, which is the key AI market.

0:24:00.880 --> 0:24:05.359
<v Speaker 13>That's what's leading in that crucial data center market for them.

0:24:05.560 --> 0:24:08.320
<v Speaker 13>That's an Invidia story, it's not an Intel story. Intel

0:24:08.400 --> 0:24:12.400
<v Speaker 13>has hundreds of millions of dollars of sales in that market.

0:24:12.840 --> 0:24:16.000
<v Speaker 13>In Vidia has close to one hundred billion dollars of

0:24:16.040 --> 0:24:18.560
<v Speaker 13>sales in that market. So right now they're nowhere, and

0:24:18.600 --> 0:24:21.320
<v Speaker 13>we need to see something from them that changes that

0:24:21.440 --> 0:24:22.959
<v Speaker 13>narrative and changes it quickly.

0:24:23.600 --> 0:24:26.040
<v Speaker 1>I went back and checked the statement from Intel, because,

0:24:26.080 --> 0:24:27.920
<v Speaker 1>believe it or not, Ian I was invited. I got

0:24:27.920 --> 0:24:30.960
<v Speaker 1>to save the date for innovation. But the last line

0:24:31.000 --> 0:24:34.520
<v Speaker 1>is please stay tuned for several exciting products and technology

0:24:34.560 --> 0:24:37.919
<v Speaker 1>announcements coming this full So they're working on something in

0:24:37.960 --> 0:24:39.119
<v Speaker 1>the meantime.

0:24:39.320 --> 0:24:41.360
<v Speaker 13>Yeah, I mean what they're going to do is concentrate

0:24:41.359 --> 0:24:45.160
<v Speaker 13>on some smaller events, other people's events, smaller events of themselves,

0:24:45.240 --> 0:24:48.760
<v Speaker 13>to try to again draw attention back into what's going.

0:24:48.800 --> 0:24:51.960
<v Speaker 13>But right now there's a real sense of like, come on,

0:24:52.080 --> 0:24:55.240
<v Speaker 13>show us something anything, right, that's what people.

0:24:54.960 --> 0:24:58.320
<v Speaker 4>Want in King always still on the money, We thank

0:24:58.359 --> 0:24:58.920
<v Speaker 4>you so much.

0:24:58.960 --> 0:24:59.920
<v Speaker 5>Meanwhile, let's turn.

0:24:59.840 --> 0:25:02.320
<v Speaker 4>To Apple now, because just a month out from the

0:25:02.359 --> 0:25:05.960
<v Speaker 4>release of its iPhone sixteen, which is expected to keep sales.

0:25:05.720 --> 0:25:08.760
<v Speaker 5>Stable, but is it bringing major innovation.

0:25:09.520 --> 0:25:11.480
<v Speaker 4>Let's talk to Mark Gumman all about it, because he

0:25:11.520 --> 0:25:14.840
<v Speaker 4>covered it in his weekly power On column. And ultimately,

0:25:14.880 --> 0:25:18.280
<v Speaker 4>your argument is that we're not getting that much rich

0:25:18.440 --> 0:25:20.879
<v Speaker 4>innovation coming from Apple at the moment, even though they

0:25:20.880 --> 0:25:22.800
<v Speaker 4>can really talk up the AI side of things.

0:25:24.040 --> 0:25:26.560
<v Speaker 12>The iPhone certainly will sell well this fall, right, They're

0:25:26.600 --> 0:25:29.639
<v Speaker 12>probably going to produce between eighty and ninety million units,

0:25:29.640 --> 0:25:32.200
<v Speaker 12>we've reported, but there's not going to be major growth

0:25:32.359 --> 0:25:34.879
<v Speaker 12>over the prior year, or the year before that, or

0:25:34.920 --> 0:25:37.399
<v Speaker 12>even the year before that. This is a company that

0:25:37.520 --> 0:25:41.199
<v Speaker 12>is making essentially minor changes on an annual basis to

0:25:41.280 --> 0:25:44.080
<v Speaker 12>their phones at this point, right, and that's going to

0:25:44.119 --> 0:25:46.679
<v Speaker 12>continue with the sixteen line, you're going to see a

0:25:46.680 --> 0:25:49.199
<v Speaker 12>new button, at least on the profhones that turns the

0:25:49.200 --> 0:25:52.639
<v Speaker 12>phone more into a DSLR. You'll be able to lightly

0:25:52.680 --> 0:25:55.159
<v Speaker 12>press it to auto focus and hard press it to

0:25:55.200 --> 0:25:57.520
<v Speaker 12>take a picture, so that will be cool. But bigger

0:25:57.600 --> 0:26:01.160
<v Speaker 12>changes will come next year, including a new slimmer iPhone

0:26:01.160 --> 0:26:05.480
<v Speaker 12>seventeen model to replace the iPhone sixteen plus, as well

0:26:05.480 --> 0:26:08.360
<v Speaker 12>as a new lower end iPhone se which could really

0:26:08.440 --> 0:26:09.960
<v Speaker 12>boost sales in emerging markets.

0:26:11.080 --> 0:26:14.960
<v Speaker 1>Mark Bloombay Technology Senior producer Jackie Lopez doesn't allow props,

0:26:15.240 --> 0:26:17.600
<v Speaker 1>so I'm just going to I'm gonna demo like this.

0:26:18.000 --> 0:26:21.760
<v Speaker 1>It's a DSLR camera that I'm pretending to hold. That's it.

0:26:22.359 --> 0:26:26.320
<v Speaker 1>That's the innovation they've come up with the iPhone sixteen generation.

0:26:26.440 --> 0:26:27.600
<v Speaker 1>A button for the camera.

0:26:30.240 --> 0:26:32.639
<v Speaker 12>Well, it's going to be a cool button, and I

0:26:32.680 --> 0:26:36.400
<v Speaker 12>think a lot of the cool homemakers Samsung, Huawei, etc.

0:26:36.680 --> 0:26:38.560
<v Speaker 12>You can expect them probably they're going to copy it

0:26:38.600 --> 0:26:40.639
<v Speaker 12>down the road. It'll be a little bit of a

0:26:40.680 --> 0:26:43.280
<v Speaker 12>gesture area, so you can swipe left to right, right

0:26:43.320 --> 0:26:46.480
<v Speaker 12>to left to move between media modes and zoom.

0:26:46.240 --> 0:26:46.760
<v Speaker 9>In and out.

0:26:47.359 --> 0:26:50.000
<v Speaker 12>There's also going to be larger screens on the Pro models,

0:26:50.040 --> 0:26:53.040
<v Speaker 12>faster processors, and of course the big push is going

0:26:53.080 --> 0:26:55.680
<v Speaker 12>to be around Apple Intelligence. Right now, only the Pro

0:26:55.880 --> 0:27:00.720
<v Speaker 12>fifteen models support Apple Intelligence. Now all four iPhone models

0:27:00.800 --> 0:27:04.320
<v Speaker 12>was for Apple Intelligence because they're adding additional memory and horsepower.

0:27:04.960 --> 0:27:07.320
<v Speaker 12>So certainly that's going to be a significant deal there.

0:27:07.680 --> 0:27:10.679
<v Speaker 12>But I personally don't think Apple Intelligence right now is

0:27:10.720 --> 0:27:13.960
<v Speaker 12>something that you're going to see really boost sales. I

0:27:14.040 --> 0:27:16.280
<v Speaker 12>think that's going to happen next year or the year

0:27:16.320 --> 0:27:19.960
<v Speaker 12>after as people are making more upgrade decisions from older models.

0:27:20.000 --> 0:27:20.840
<v Speaker 3>They don't support it.

0:27:22.520 --> 0:27:25.200
<v Speaker 1>My team are not happy with the demonstration that I gave,

0:27:25.320 --> 0:27:28.200
<v Speaker 1>but we appreciate the reporting. A camera button on the

0:27:28.240 --> 0:27:31.560
<v Speaker 1>next generation iPhone A cool button. Bloomos, Mark German, thank

0:27:31.600 --> 0:27:33.520
<v Speaker 1>you very much. Like coming up on the show, we're

0:27:33.520 --> 0:27:35.920
<v Speaker 1>going to take a look at IPO, trends, AI investing

0:27:35.960 --> 0:27:38.800
<v Speaker 1>and much more with Mitchell Green from lead Edge Capital.

0:27:39.160 --> 0:27:52.919
<v Speaker 1>That conversation coming up next. This is Bloomberg Technology.

0:27:55.560 --> 0:27:58.399
<v Speaker 4>So last week's market volatility has not yet deterred the

0:27:58.520 --> 0:27:59.840
<v Speaker 4>handful of issue is working.

0:27:59.720 --> 0:28:01.399
<v Speaker 5>On tender listings over in Europe.

0:28:01.480 --> 0:28:05.440
<v Speaker 4>I'm just say though top en pricing may prove Elusive

0:28:05.640 --> 0:28:08.080
<v Speaker 4>Partners Group Holding is still weighing a launch of the

0:28:08.119 --> 0:28:12.119
<v Speaker 4>IPO of German metering company Techem as soon as September.

0:28:12.200 --> 0:28:15.199
<v Speaker 4>Joining others would be issuers eyeing this September window, like

0:28:15.240 --> 0:28:19.840
<v Speaker 4>Polish retailers Upcurr and academic publishers Bring in Nature also all.

0:28:19.840 --> 0:28:22.840
<v Speaker 5>Looking at second half listings. That's over in Europe.

0:28:22.840 --> 0:28:26.080
<v Speaker 4>But let's talk about US IPO the window if it's

0:28:26.119 --> 0:28:28.480
<v Speaker 4>open or not, and really what's on track in terms

0:28:28.520 --> 0:28:30.960
<v Speaker 4>of exits for the VC community. Mitchell Green, founder and

0:28:31.040 --> 0:28:33.439
<v Speaker 4>managing partner of lead Edge Capital, joined us now for

0:28:33.520 --> 0:28:36.360
<v Speaker 4>our VC spotlight And how you, Philly, you got any

0:28:36.400 --> 0:28:40.320
<v Speaker 4>optimism around this window amid of political agenda that keeps

0:28:40.320 --> 0:28:41.120
<v Speaker 4>things volatile to.

0:28:42.480 --> 0:28:45.360
<v Speaker 14>Political agenda, there's no you know, policy things like that

0:28:45.400 --> 0:28:46.080
<v Speaker 14>going crazy.

0:28:46.320 --> 0:28:47.560
<v Speaker 9>But no, it's funny.

0:28:47.640 --> 0:28:51.520
<v Speaker 14>Jeffery's put out a report about ten days ago saying

0:28:51.560 --> 0:28:53.800
<v Speaker 14>that the IPO market was, you know, open and ready

0:28:53.800 --> 0:28:56.880
<v Speaker 14>for business. And then the markets we joked internally maybe

0:28:56.920 --> 0:28:57.920
<v Speaker 14>it was a week too early.

0:28:58.240 --> 0:28:59.040
<v Speaker 9>They're being said.

0:28:59.360 --> 0:29:01.640
<v Speaker 14>If you look at how the IPO market is open,

0:29:01.880 --> 0:29:04.840
<v Speaker 14>and if you look how the companies that have gone

0:29:04.880 --> 0:29:07.160
<v Speaker 14>public Rubric and some Instacart and some of these other

0:29:07.200 --> 0:29:10.960
<v Speaker 14>ones have traded, they've actually done remarkably well. But yet

0:29:10.960 --> 0:29:13.240
<v Speaker 14>you wouldn't know that based on the volume, which is

0:29:13.280 --> 0:29:16.400
<v Speaker 14>like almost dried up to next to nil. However, I

0:29:16.400 --> 0:29:18.560
<v Speaker 14>think you need to step back in two thousand and

0:29:18.600 --> 0:29:21.360
<v Speaker 14>six to two thousand and nine, when companies went public,

0:29:21.520 --> 0:29:23.920
<v Speaker 14>they would raise, you know, one hundred to three hundred

0:29:23.920 --> 0:29:26.520
<v Speaker 14>million dollars. Now, Microsoft in nineteen eighty eight or eighty

0:29:26.520 --> 0:29:29.400
<v Speaker 14>seven prior raised forty million dollars. When those companies went public,

0:29:29.400 --> 0:29:32.280
<v Speaker 14>they never raised money again. Now fast forward to twenty

0:29:32.280 --> 0:29:36.120
<v Speaker 14>and twenty one, companies were private and raised one hundred

0:29:36.200 --> 0:29:37.360
<v Speaker 14>to three hundred million dollars.

0:29:37.600 --> 0:29:38.920
<v Speaker 9>So now fast forward.

0:29:38.680 --> 0:29:40.440
<v Speaker 14>A couple of years, and you basically have two types

0:29:40.480 --> 0:29:44.160
<v Speaker 14>of companies. You have those you have great companies in

0:29:44.240 --> 0:29:47.240
<v Speaker 14>those companies have hundreds of millions of dollars of cash,

0:29:47.040 --> 0:29:50.320
<v Speaker 14>have hit their numbers, and they could go public tomorrow,

0:29:50.400 --> 0:29:51.480
<v Speaker 14>and they would go public.

0:29:51.240 --> 0:29:52.680
<v Speaker 9>At probably a reasonable valuation.

0:29:52.800 --> 0:29:55.000
<v Speaker 14>Some would go higher than the twenty and twenty run round,

0:29:55.320 --> 0:29:57.400
<v Speaker 14>some would be flat. But again, and then there's a

0:29:57.400 --> 0:29:59.960
<v Speaker 14>whole class of companies that couldn't go public because they

0:30:00.160 --> 0:30:01.080
<v Speaker 14>didn't have him performed.

0:30:01.240 --> 0:30:04.280
<v Speaker 9>But those that have could go public. They just why

0:30:04.320 --> 0:30:06.000
<v Speaker 9>go public when you have three hundred million of cash?

0:30:06.040 --> 0:30:08.360
<v Speaker 4>I mean, but that was the same thing as Microsoft

0:30:08.360 --> 0:30:10.560
<v Speaker 4>and Microsoft when public didn't need to raise money, but

0:30:10.640 --> 0:30:12.640
<v Speaker 4>they needed a liquidity moment for the people that work

0:30:12.720 --> 0:30:14.880
<v Speaker 4>there and to ultimately have the rigor of being a

0:30:14.920 --> 0:30:17.400
<v Speaker 4>publicly traded company. So is that the same for the

0:30:17.400 --> 0:30:18.160
<v Speaker 4>business models now?

0:30:18.320 --> 0:30:21.600
<v Speaker 14>I think what you're seeing is is it It will

0:30:21.600 --> 0:30:26.320
<v Speaker 14>definitely make a more rigor. The whole process and you

0:30:26.360 --> 0:30:30.880
<v Speaker 14>know of being public today is way more expensive and

0:30:30.920 --> 0:30:33.320
<v Speaker 14>way more time consuming than it was twenty five thirty

0:30:33.360 --> 0:30:36.200
<v Speaker 14>years plus years ago. So you're just seeing companies wait

0:30:36.320 --> 0:30:38.640
<v Speaker 14>to be even bigger. The markets are totally changed. It

0:30:38.680 --> 0:30:41.960
<v Speaker 14>was a world of active invest in, you know, individual stockpickers,

0:30:42.040 --> 0:30:44.280
<v Speaker 14>more and more of the markets becoming passive ETFs.

0:30:44.440 --> 0:30:45.680
<v Speaker 9>If you're a sub five.

0:30:45.480 --> 0:30:49.000
<v Speaker 14>Billion dollar market public company, it is not fun. You know,

0:30:49.080 --> 0:30:52.480
<v Speaker 14>ask small cap guys who come in here. At some point,

0:30:52.920 --> 0:30:56.800
<v Speaker 14>the sequoias, the light speeds, the benchmarks of the world

0:30:56.920 --> 0:30:59.600
<v Speaker 14>will be telling these companies. Now, now they're three hundred million,

0:30:59.600 --> 0:31:01.800
<v Speaker 14>don't go public. But at some point five six hundred

0:31:01.800 --> 0:31:04.400
<v Speaker 14>and seven million revenue, they are going to say, listen,

0:31:04.440 --> 0:31:06.720
<v Speaker 14>you need to go public. You need the liquidity for

0:31:06.760 --> 0:31:08.640
<v Speaker 14>the best companies. We're just not seeing that right now

0:31:08.680 --> 0:31:08.960
<v Speaker 14>at all.

0:31:09.240 --> 0:31:13.000
<v Speaker 1>Well, Mitchell, something that's different now probably is is more

0:31:13.040 --> 0:31:16.360
<v Speaker 1>liquid secondaries markets. But it does seem to be a

0:31:16.360 --> 0:31:19.880
<v Speaker 1>willingness of the private market to have a longest role

0:31:20.400 --> 0:31:24.120
<v Speaker 1>support companies later into life. How would that impact the

0:31:24.200 --> 0:31:25.719
<v Speaker 1>here and now of an IPO window.

0:31:25.960 --> 0:31:28.280
<v Speaker 14>Well, and I think that's a great thing you said,

0:31:28.360 --> 0:31:31.320
<v Speaker 14>it's one hundred percent spot on. Without going into the details.

0:31:31.600 --> 0:31:34.240
<v Speaker 14>We have a company in our portfolio. It's three hundred

0:31:34.280 --> 0:31:37.600
<v Speaker 14>million of recurrent revenue, it's growing sixty plus percent a year,

0:31:37.960 --> 0:31:39.520
<v Speaker 14>it has you know, two hundred and fifty to three

0:31:39.560 --> 0:31:43.200
<v Speaker 14>hundred million dollars of cash. They have just completed a

0:31:43.320 --> 0:31:46.280
<v Speaker 14>you know, several hundred million dollars secondary and.

0:31:47.840 --> 0:31:49.000
<v Speaker 9>From private investors.

0:31:49.000 --> 0:31:51.360
<v Speaker 14>That are you know, a flat to slightly up round

0:31:51.600 --> 0:31:56.120
<v Speaker 14>from twenty twenty one. And they historically would have gone public,

0:31:56.400 --> 0:31:59.280
<v Speaker 14>but instead the CEO and the board manager team, if

0:31:59.320 --> 0:32:01.360
<v Speaker 14>we agree with is why go public and operates at

0:32:01.360 --> 0:32:04.480
<v Speaker 14>three undred million Our public company a million dollar revenue company.

0:32:05.120 --> 0:32:07.600
<v Speaker 9>Just continue building your business. You're in a giant space.

0:32:07.880 --> 0:32:09.760
<v Speaker 14>Go public in a few years now when you're ready

0:32:09.760 --> 0:32:12.640
<v Speaker 14>and the company is even larger, but so's by the

0:32:12.640 --> 0:32:15.480
<v Speaker 14>way that is facilitated by large secondaries one hundred percent.

0:32:16.520 --> 0:32:19.240
<v Speaker 1>We reflected earlier in the program about the volatility in

0:32:19.280 --> 0:32:24.600
<v Speaker 1>public markets looking ahead with the outcome of November's election,

0:32:25.400 --> 0:32:28.440
<v Speaker 1>cause a pause or an acceleration for an IPO window

0:32:28.520 --> 0:32:32.560
<v Speaker 1>to your mind, Mitchell.

0:32:30.840 --> 0:32:32.800
<v Speaker 14>It depends if you get more days like you know,

0:32:32.840 --> 0:32:35.080
<v Speaker 14>the end current, you know, the end trade unwinding, the

0:32:35.120 --> 0:32:37.440
<v Speaker 14>end carry trade, and things like you know last Monday.

0:32:37.680 --> 0:32:39.000
<v Speaker 9>Don't do you know good things for it?

0:32:39.000 --> 0:32:40.800
<v Speaker 14>You wouldn't have been one to price an IPO on

0:32:40.840 --> 0:32:44.280
<v Speaker 14>Tuesday or Wednesday. I think things have settled down a

0:32:44.360 --> 0:32:47.120
<v Speaker 14>little bit, but you never know, you know. I think

0:32:47.280 --> 0:32:50.000
<v Speaker 14>things will get more volatible as you get into the

0:32:50.040 --> 0:32:53.120
<v Speaker 14>election cycle. But I've learned not to try to pontificate

0:32:53.200 --> 0:32:55.880
<v Speaker 14>on what politics are going to do to financial markets.

0:32:56.200 --> 0:32:59.440
<v Speaker 4>But politics affects certain portfolio companies. You wrote a check

0:32:59.480 --> 0:33:01.880
<v Speaker 4>to bite down't for example, how much do you worry

0:33:01.920 --> 0:33:04.680
<v Speaker 4>about Chinese companies tapping US money.

0:33:04.480 --> 0:33:05.480
<v Speaker 9>And knew you were going there.

0:33:07.560 --> 0:33:10.160
<v Speaker 14>The great thing, the White Dance, will at some point

0:33:10.320 --> 0:33:10.880
<v Speaker 14>go public.

0:33:11.120 --> 0:33:13.360
<v Speaker 9>No idea when it will be in Asia.

0:33:13.440 --> 0:33:16.040
<v Speaker 14>It's not going to go in the US, people ask me,

0:33:16.200 --> 0:33:18.560
<v Speaker 14>you know, you've made an investment. Don't you worry about

0:33:18.560 --> 0:33:21.160
<v Speaker 14>their US business? Their US business is a very small

0:33:21.200 --> 0:33:24.479
<v Speaker 14>part of the overall business. Frankly, I would love you know.

0:33:24.600 --> 0:33:27.720
<v Speaker 14>It sounds crazy to hear me say like, but actually them,

0:33:28.120 --> 0:33:29.960
<v Speaker 14>for some reason, if they got the US business got

0:33:30.040 --> 0:33:32.120
<v Speaker 14>rid of, then they would be probably more likely to

0:33:32.120 --> 0:33:34.400
<v Speaker 14>go public sooner. That being said, I think they should

0:33:34.440 --> 0:33:34.840
<v Speaker 14>fight for it.

0:33:34.880 --> 0:33:35.440
<v Speaker 9>I don't think the.

0:33:35.440 --> 0:33:38.239
<v Speaker 14>US really has the right to just tell us, you know,

0:33:38.320 --> 0:33:40.760
<v Speaker 14>tell companies you must shutter this business.

0:33:40.920 --> 0:33:41.959
<v Speaker 9>You know, I can tell you this.

0:33:42.320 --> 0:33:44.360
<v Speaker 14>You know what, two companies in America would love to

0:33:44.360 --> 0:33:47.400
<v Speaker 14>see TikTok on Facebook and Snapchat. You can assure the

0:33:47.520 --> 0:33:50.120
<v Speaker 14>lobbyists are all over that in Washington. And I think

0:33:50.160 --> 0:33:54.200
<v Speaker 14>what's important to realize is that the Chinese have always

0:33:54.280 --> 0:33:55.120
<v Speaker 14>wanted to build.

0:33:54.920 --> 0:33:56.400
<v Speaker 9>A truly global business.

0:33:56.520 --> 0:33:58.640
<v Speaker 14>They've wanted the Nike of the world, Nikey's and all

0:33:58.680 --> 0:34:01.200
<v Speaker 14>these markets around the world. The Chinese have never built

0:34:01.200 --> 0:34:03.600
<v Speaker 14>this kind of company. They finally have done it with TikTok,

0:34:03.640 --> 0:34:05.320
<v Speaker 14>and I expect them to try.

0:34:05.160 --> 0:34:07.920
<v Speaker 9>To push that around the around the world. And I

0:34:07.960 --> 0:34:09.280
<v Speaker 9>think the whole idea that they're.

0:34:09.160 --> 0:34:12.160
<v Speaker 14>Spying on us and trying to influence things, and I'm sorry,

0:34:12.239 --> 0:34:14.880
<v Speaker 14>like Facebook doesn't try to influence things at all, you know,

0:34:15.120 --> 0:34:16.799
<v Speaker 14>through the social media and things like that.

0:34:16.880 --> 0:34:21.600
<v Speaker 1>So Mitchell Green, founder managing partner of lead Edge Capital,

0:34:21.719 --> 0:34:24.680
<v Speaker 1>thank you very much. And crypto startups, by the way,

0:34:24.719 --> 0:34:27.600
<v Speaker 1>also raise more money in the second quarter of this year,

0:34:27.640 --> 0:34:31.600
<v Speaker 1>totally two point seven billion dollars, but they closed twelve

0:34:31.640 --> 0:34:35.240
<v Speaker 1>point five percent fewer deals compared to the first quarter,

0:34:35.320 --> 0:34:39.439
<v Speaker 1>mirroring a broader slow down seen in the digital asset world. Indeed,

0:34:39.480 --> 0:34:42.719
<v Speaker 1>crypto market Bellwether the bitcoin fell thirteen percent in the

0:34:42.800 --> 0:34:46.920
<v Speaker 1>second quarter and it's been little change so far this quarter.

0:34:48.560 --> 0:34:52.440
<v Speaker 4>Expedia, it posted better than expected second quarter results. However,

0:34:52.640 --> 0:34:55.200
<v Speaker 4>the company did warn of like a softening and travel

0:34:55.239 --> 0:34:58.160
<v Speaker 4>demand and the current quarter, and therefore it adjusted its

0:34:58.200 --> 0:35:01.640
<v Speaker 4>expectations for the rest of the year. Dig into the details,

0:35:01.880 --> 0:35:05.680
<v Speaker 4>expedia CEO is with us Ariane Goren and Arian you

0:35:05.719 --> 0:35:06.160
<v Speaker 4>managed to.

0:35:06.160 --> 0:35:07.959
<v Speaker 5>Get the nuance because shares.

0:35:07.920 --> 0:35:10.759
<v Speaker 4>Absolutely popped on the fact that you'd managed to do

0:35:10.800 --> 0:35:13.080
<v Speaker 4>what you needed to do and delivered for the quarter

0:35:13.160 --> 0:35:15.840
<v Speaker 4>that we were posting on, but then you downgraded for

0:35:15.880 --> 0:35:16.600
<v Speaker 4>a second time.

0:35:17.200 --> 0:35:18.959
<v Speaker 5>What is the consumer telling you right now.

0:35:19.400 --> 0:35:22.399
<v Speaker 15>Well, first, thank you for having me. We were very

0:35:22.400 --> 0:35:25.160
<v Speaker 15>happy with our second quarter results. We saw an acceleration

0:35:25.280 --> 0:35:27.600
<v Speaker 15>in our consumer business, which is what we were looking for,

0:35:27.920 --> 0:35:30.440
<v Speaker 15>and then continued strength in our B to B segment

0:35:30.520 --> 0:35:33.400
<v Speaker 15>and in advertising. But it's true as we look at

0:35:33.400 --> 0:35:36.520
<v Speaker 15>the third quarter, we have seen some softness. It's been

0:35:36.560 --> 0:35:38.720
<v Speaker 15>a few quarters in a row that air ticket prices

0:35:38.760 --> 0:35:41.200
<v Speaker 15>have been coming down, that the price of car rental

0:35:41.280 --> 0:35:44.360
<v Speaker 15>days have been coming down, and we just started seeing

0:35:44.360 --> 0:35:46.279
<v Speaker 15>a bit of that also in the third quarter, So

0:35:46.440 --> 0:35:47.480
<v Speaker 15>we're keeping an eye on it.

0:35:48.600 --> 0:35:51.600
<v Speaker 1>Arian, good morning. It's ed in San Francisco. Away from

0:35:51.640 --> 0:35:54.640
<v Speaker 1>the United States. It's been an incredible summer in Europe,

0:35:55.000 --> 0:35:59.200
<v Speaker 1>the Euros football or soccer tournament, the Olympics. Why is

0:35:59.239 --> 0:36:03.239
<v Speaker 1>that sort of a driven process not more of a

0:36:03.280 --> 0:36:05.640
<v Speaker 1>confidence giver for you in your outlook?

0:36:05.760 --> 0:36:08.080
<v Speaker 15>Yeah, well, first of all, I would say events driven

0:36:08.160 --> 0:36:12.360
<v Speaker 15>travel is a true trend, whether it's sports, whether it's concerts.

0:36:12.680 --> 0:36:14.880
<v Speaker 9>You know, with Taylor Swift's concert tour in the.

0:36:14.920 --> 0:36:19.080
<v Speaker 15>Last year, you see that that really drives travel into destinations.

0:36:19.400 --> 0:36:23.239
<v Speaker 15>So that certainly plays into our optimism. But again, you know,

0:36:23.239 --> 0:36:25.359
<v Speaker 15>when we look at our forecast, we're looking at what's

0:36:25.360 --> 0:36:28.840
<v Speaker 15>happening on pricing, what's happening in demand, and again in

0:36:28.880 --> 0:36:32.480
<v Speaker 15>the long term, people certainly want to travel, which is

0:36:32.480 --> 0:36:34.560
<v Speaker 15>what makes us sort of optimistic in the long.

0:36:34.480 --> 0:36:39.480
<v Speaker 1>Term, arian what's the technology story for you? If you're

0:36:39.480 --> 0:36:42.080
<v Speaker 1>going to drive that outlook a little higher than you've

0:36:42.120 --> 0:36:45.000
<v Speaker 1>already given. Is there a way you can more closely

0:36:45.080 --> 0:36:48.120
<v Speaker 1>match what people are searching for maybe the budget conscious

0:36:48.160 --> 0:36:50.919
<v Speaker 1>consumer as well, if the consumer is in real time

0:36:50.960 --> 0:36:51.600
<v Speaker 1>pulling back.

0:36:52.560 --> 0:36:52.920
<v Speaker 9>Well, you know.

0:36:53.000 --> 0:36:55.239
<v Speaker 15>The great news is that because of the work that

0:36:55.280 --> 0:36:57.960
<v Speaker 15>we've done on our platform in the last few years,

0:36:58.000 --> 0:37:01.400
<v Speaker 15>in particular around having a customer identity across all of

0:37:01.440 --> 0:37:05.080
<v Speaker 15>our brands, we have a better understanding of the traveler

0:37:05.320 --> 0:37:07.879
<v Speaker 15>across all of our brands, looking at what are they

0:37:07.880 --> 0:37:10.640
<v Speaker 15>searching for, what are they interested in, which allows us

0:37:10.640 --> 0:37:13.560
<v Speaker 15>to make more personalized recommendations that are more relevant for

0:37:13.640 --> 0:37:14.360
<v Speaker 15>each traveler.

0:37:14.880 --> 0:37:17.080
<v Speaker 5>Let's talk about the brands and brand loyalty.

0:37:17.120 --> 0:37:18.439
<v Speaker 4>Before we do that, we just want to a minor

0:37:18.560 --> 0:37:19.680
<v Speaker 4>audience of TV and radio.

0:37:19.760 --> 0:37:21.320
<v Speaker 5>We have sat down with the Expedia.

0:37:20.960 --> 0:37:24.600
<v Speaker 4>CEO, Arianne Goren, and what's really interesting is you have

0:37:24.719 --> 0:37:28.279
<v Speaker 4>this rollout of sort of a brand loyalty program one

0:37:28.360 --> 0:37:31.400
<v Speaker 4>Key beyond the US and UK. But you're slowing it slightly,

0:37:31.800 --> 0:37:34.080
<v Speaker 4>and there was an impact perhaps to Hotels dot Com

0:37:34.160 --> 0:37:36.799
<v Speaker 4>users in the loyalty programs they had.

0:37:37.080 --> 0:37:38.879
<v Speaker 5>Can you tell us about what the ultimate.

0:37:38.520 --> 0:37:41.239
<v Speaker 4>Goal is there and why you've slowed it a little bit?

0:37:41.360 --> 0:37:41.600
<v Speaker 9>Sure?

0:37:41.719 --> 0:37:43.799
<v Speaker 15>So, we actually just came up on the one year

0:37:43.840 --> 0:37:47.320
<v Speaker 15>anniversary of our one Key loyalty program. We launched it

0:37:47.400 --> 0:37:49.600
<v Speaker 15>last summer in the US and it's a program that

0:37:49.680 --> 0:37:53.600
<v Speaker 15>ties together Expedia, Hotels dot Com, and Verbo, which are

0:37:53.600 --> 0:37:56.839
<v Speaker 15>our three biggest brands. It allows travelers to earn and

0:37:56.840 --> 0:37:59.520
<v Speaker 15>burn one key cash across all of the brands and

0:37:59.640 --> 0:38:04.439
<v Speaker 15>also benefit from higher discounts, especially in hotels.

0:38:03.840 --> 0:38:05.080
<v Speaker 9>Sort of the more loyal they are.

0:38:05.760 --> 0:38:08.000
<v Speaker 15>We've been pleased with the results in the US and

0:38:08.040 --> 0:38:10.760
<v Speaker 15>we've just launched in the UK. But as we step

0:38:10.840 --> 0:38:14.440
<v Speaker 15>back and looked at other countries, know what we realized

0:38:14.560 --> 0:38:17.000
<v Speaker 15>is this is a program that works the best when

0:38:17.040 --> 0:38:20.040
<v Speaker 15>we have all three of our big brands operating at scale,

0:38:20.640 --> 0:38:23.279
<v Speaker 15>and in many countries outside of the US and UK,

0:38:23.719 --> 0:38:26.799
<v Speaker 15>we have one leading brand. So what we're doing now

0:38:26.880 --> 0:38:28.680
<v Speaker 15>is we're looking at how do we make sure that

0:38:28.680 --> 0:38:31.960
<v Speaker 15>we have the strongest loyalty value proposition in each country

0:38:32.040 --> 0:38:34.800
<v Speaker 15>for the brands that are there. And the good news

0:38:34.920 --> 0:38:38.400
<v Speaker 15>is even before making any changes, all of the loyalty

0:38:38.400 --> 0:38:42.040
<v Speaker 15>members outside of the US and UK are already benefiting

0:38:42.080 --> 0:38:43.960
<v Speaker 15>from the higher member discounts.

0:38:44.360 --> 0:38:47.279
<v Speaker 4>You are relatively new in the seat May twenty twenty four,

0:38:47.320 --> 0:38:49.440
<v Speaker 4>as CEO, you were on the board a bit before that.

0:38:49.840 --> 0:38:53.080
<v Speaker 4>But Ariane, you came from the B to B offering.

0:38:53.080 --> 0:38:55.640
<v Speaker 4>The advertising offering which you've just articulated.

0:38:55.160 --> 0:38:56.360
<v Speaker 5>Is going really well.

0:38:57.200 --> 0:38:59.440
<v Speaker 4>How therefore, can you bring your learnings from that to

0:38:59.480 --> 0:39:04.319
<v Speaker 4>the how you focused on driving better margins growth from

0:39:04.360 --> 0:39:06.240
<v Speaker 4>a consumer that, as you say at the moment, is nervous.

0:39:06.960 --> 0:39:09.839
<v Speaker 15>So I would start by saying, our consumer business has

0:39:09.960 --> 0:39:14.400
<v Speaker 15>three very strong and well loved brands in Expedia, Hotels,

0:39:14.400 --> 0:39:18.200
<v Speaker 15>dot Com and Verbo, and they all have great value propositions.

0:39:18.600 --> 0:39:21.360
<v Speaker 15>My experience, and I think anybody's experience in business, is

0:39:21.400 --> 0:39:24.040
<v Speaker 15>always that you want to make sure you understand what

0:39:24.200 --> 0:39:26.440
<v Speaker 15>is your customer need and then how do you have

0:39:26.480 --> 0:39:29.200
<v Speaker 15>a value proposition that matches it? And so what I'm

0:39:29.200 --> 0:39:32.399
<v Speaker 15>focused on with the team is making sure that from

0:39:32.480 --> 0:39:35.360
<v Speaker 15>our technology to our supply to the way we market,

0:39:35.680 --> 0:39:38.279
<v Speaker 15>each of our brands is very strong in addressing a

0:39:38.320 --> 0:39:40.560
<v Speaker 15>particular customer need all.

0:39:40.640 --> 0:39:43.880
<v Speaker 1>An what's the one single biggest headwind or risk to

0:39:44.000 --> 0:39:47.160
<v Speaker 1>you and to a consumer's choice to travel for the

0:39:47.200 --> 0:39:48.160
<v Speaker 1>remainder of this year.

0:39:49.600 --> 0:39:51.440
<v Speaker 15>I would go back to what I talked about earlier,

0:39:51.480 --> 0:39:54.919
<v Speaker 15>which is prices coming down somewhat. You could say that's

0:39:54.920 --> 0:39:57.400
<v Speaker 15>sort of a headwind in the sense that as you

0:39:57.480 --> 0:40:01.120
<v Speaker 15>report earnings, obviously prices have an impact. But I like

0:40:01.200 --> 0:40:03.880
<v Speaker 15>to see the glass half full rather than half empty.

0:40:04.200 --> 0:40:06.560
<v Speaker 15>And when you consider it that way, you think, well,

0:40:06.600 --> 0:40:08.239
<v Speaker 15>travels may be becoming more affordable.

0:40:09.360 --> 0:40:11.960
<v Speaker 4>It's great to have some time in you Arianne Goren,

0:40:11.960 --> 0:40:13.960
<v Speaker 4>Expedia CEO here in New York.

0:40:14.000 --> 0:40:15.600
<v Speaker 5>We thank you, thank you for having me.

0:40:16.239 --> 0:40:19.000
<v Speaker 4>Now that does it for this edition of Bloomberg Technology Ed.

0:40:19.200 --> 0:40:21.920
<v Speaker 4>What a fig and fast conversation from public to private.

0:40:21.960 --> 0:40:23.279
<v Speaker 5>We got so much more for the rest of the

0:40:23.280 --> 0:40:23.839
<v Speaker 5>week as well.

0:40:24.640 --> 0:40:27.040
<v Speaker 1>Caroline is back in New York City. We got Pile

0:40:27.120 --> 0:40:29.600
<v Speaker 1>and Marguerite with me here in San Francisco, Jackie John

0:40:29.640 --> 0:40:32.000
<v Speaker 1>and Justin in New York. The team and the Control

0:40:32.160 --> 0:40:34.960
<v Speaker 1>Embrace yourselves a big week to come. Don't forget to

0:40:35.000 --> 0:40:36.640
<v Speaker 1>check out the podcast. By the way, you know where

0:40:36.680 --> 0:40:38.399
<v Speaker 1>to find it the terminal, as well a lot as

0:40:38.440 --> 0:40:47.640
<v Speaker 1>online on Apple, Spotify, and iHeart. This is Bloomberg technology.