1 00:00:02,240 --> 00:00:05,600 Speaker 1: From the heart of where innovation, money and power collive 2 00:00:06,360 --> 00:00:10,879 Speaker 1: in Silicon Valley and beyond. This is Bloomberg Technology with 3 00:00:10,960 --> 00:00:26,640 Speaker 1: Emily Jay. I'm Taylor Briggs in New York in for 4 00:00:26,760 --> 00:00:29,920 Speaker 1: Emily Chang, and this is Bloomberg Technology. Coming up in 5 00:00:29,920 --> 00:00:33,600 Speaker 1: the next hour, Tesla CEO Elon Musk planning to shed 6 00:00:33,800 --> 00:00:37,040 Speaker 1: ten percent of staff. Is Corporate America turns up the 7 00:00:37,159 --> 00:00:41,160 Speaker 1: volume on all of these economic warnings. We have the story. Plus, 8 00:00:41,159 --> 00:00:43,920 Speaker 1: while speaking of Elon Musk, he's one step closer to 9 00:00:43,960 --> 00:00:47,479 Speaker 1: buying Twitter, the social media company says that a regulatory 10 00:00:47,560 --> 00:00:51,879 Speaker 1: waiting period has expired. We'll discuss the next steps, and 11 00:00:51,960 --> 00:00:55,440 Speaker 1: of course a big preview of Apple's Worldwide Developer Conference 12 00:00:55,480 --> 00:00:58,400 Speaker 1: and coming up quickly on Monday, developers are going to 13 00:00:58,520 --> 00:01:01,800 Speaker 1: gather in person for the time in years. Why can 14 00:01:01,880 --> 00:01:04,560 Speaker 1: we expect We'll break it all down for you. Let's 15 00:01:04,600 --> 00:01:07,479 Speaker 1: stake with today's jobs market, the market moves. Of course, 16 00:01:07,680 --> 00:01:10,880 Speaker 1: those job numbers really coming. They can fascinate. Thirty am 17 00:01:10,959 --> 00:01:12,560 Speaker 1: this morning, I want to do all of this with 18 00:01:12,600 --> 00:01:16,200 Speaker 1: cross Marks tieth market strategists Victoria Fernandez and talked to 19 00:01:16,280 --> 00:01:18,320 Speaker 1: us sort of about you know, sort of the the 20 00:01:18,400 --> 00:01:21,120 Speaker 1: decent the good jobs numbers and how we're thinking about 21 00:01:21,160 --> 00:01:24,080 Speaker 1: the way that that impacts the federal reserve that certainly 22 00:01:24,120 --> 00:01:27,240 Speaker 1: needs to be on the move. Yeah, Taylor, I think 23 00:01:27,280 --> 00:01:29,840 Speaker 1: we had some conflicting stories this morning coming out of 24 00:01:29,840 --> 00:01:31,920 Speaker 1: the job support. Obviously, it was a little bit bigger 25 00:01:31,920 --> 00:01:34,840 Speaker 1: than expected, and so therefore people were concerned that the 26 00:01:34,840 --> 00:01:37,680 Speaker 1: Fed is going to continue to raise rates, maybe even 27 00:01:37,800 --> 00:01:41,280 Speaker 1: faster than what they've telegraphed so far. They've telegraphed fifty 28 00:01:41,280 --> 00:01:44,640 Speaker 1: basis point moves at the next two meetings September. They're 29 00:01:44,680 --> 00:01:47,560 Speaker 1: saying is open. Perhaps the jobs report today makes a 30 00:01:47,640 --> 00:01:50,640 Speaker 1: fifty basis point move in September more likely. But I 31 00:01:50,680 --> 00:01:52,960 Speaker 1: think we also have to look at the average hourly 32 00:01:53,040 --> 00:01:56,440 Speaker 1: earnings that stay flat versus last month, and this is 33 00:01:56,440 --> 00:02:00,000 Speaker 1: where we're really gonna see, um, you know, the inflation component. 34 00:02:00,000 --> 00:02:03,240 Speaker 1: It dig in, that sticky component of inflation coming from wages, 35 00:02:03,440 --> 00:02:05,880 Speaker 1: and we didn't see the game there that many people thought, 36 00:02:05,880 --> 00:02:08,960 Speaker 1: and we saw the participation rate go higher, which again 37 00:02:09,360 --> 00:02:12,040 Speaker 1: could help bring wage inflation down a little bit. So 38 00:02:12,360 --> 00:02:14,360 Speaker 1: a little bit of a mixed story, but I do 39 00:02:14,440 --> 00:02:16,400 Speaker 1: think that that is going to continue to go full 40 00:02:16,440 --> 00:02:19,200 Speaker 1: force at this point and that's why we saw the 41 00:02:19,240 --> 00:02:21,520 Speaker 1: markets react the way they did today. And is that 42 00:02:21,600 --> 00:02:25,239 Speaker 1: why tech continues to be the big underperformer, just struggling 43 00:02:25,240 --> 00:02:31,040 Speaker 1: to be outperforming and it yields rising kind of environment. Yeah, Obviously, 44 00:02:31,080 --> 00:02:33,440 Speaker 1: when yields go higher, those tech names, those what we 45 00:02:33,480 --> 00:02:37,040 Speaker 1: consider long duration stocks, tend to not do well. But look, 46 00:02:37,080 --> 00:02:40,560 Speaker 1: even when yield went down over the last ten days 47 00:02:40,639 --> 00:02:42,520 Speaker 1: or so, we had yields come back off of that 48 00:02:42,800 --> 00:02:45,600 Speaker 1: terday high at three twenty, and we didn't see Tech 49 00:02:45,680 --> 00:02:49,160 Speaker 1: do tremendously well. We didn't see them take leadership. You 50 00:02:49,200 --> 00:02:52,799 Speaker 1: still have Energy taking leadership right now. So that has 51 00:02:52,840 --> 00:02:54,600 Speaker 1: to make us think that there's not gonna be a 52 00:02:54,639 --> 00:02:57,280 Speaker 1: big shift um and we're gonna be in a big 53 00:02:57,360 --> 00:02:59,720 Speaker 1: upturn for the markets. That makes us think we are 54 00:02:59,800 --> 00:03:02,240 Speaker 1: just having a little bit of a bear market rally 55 00:03:02,400 --> 00:03:04,920 Speaker 1: right now with Energy still leading. So I think you 56 00:03:04,960 --> 00:03:07,480 Speaker 1: have to be careful with tech. There's a lot of 57 00:03:07,560 --> 00:03:11,200 Speaker 1: volatility around those names with yields constantly moving, but I 58 00:03:11,240 --> 00:03:13,560 Speaker 1: don't think you want to remove them all from your portfolio. 59 00:03:13,639 --> 00:03:16,000 Speaker 1: You still need some exposure there. It was interesting, though 60 00:03:16,040 --> 00:03:18,520 Speaker 1: the strategy is over at Bank of America said that 61 00:03:18,720 --> 00:03:22,200 Speaker 1: tech is a huge laggard in sort of this stagflationary 62 00:03:22,280 --> 00:03:25,360 Speaker 1: environment and that growth is the lagger. That this sort 63 00:03:25,360 --> 00:03:27,639 Speaker 1: of outperformance that we've had as of late is such 64 00:03:27,639 --> 00:03:31,239 Speaker 1: an anomaly that really the trend is towards value. Are 65 00:03:31,280 --> 00:03:34,920 Speaker 1: you viewing value out performance and if we get a 66 00:03:34,920 --> 00:03:40,360 Speaker 1: stagflationary environment, yeah, we actually like value better. Here when 67 00:03:40,360 --> 00:03:42,720 Speaker 1: you look at our tim predictions that we put out 68 00:03:42,880 --> 00:03:46,000 Speaker 1: on December thirty one, we talked about value versus growth, 69 00:03:46,280 --> 00:03:48,720 Speaker 1: and what we've seen since the beginning of the year 70 00:03:48,840 --> 00:03:52,760 Speaker 1: is that about half roughly about half of the outperformance 71 00:03:53,160 --> 00:03:56,119 Speaker 1: from value over growth has kind of dissipated, but yet 72 00:03:56,120 --> 00:04:00,480 Speaker 1: it's still performing better. So we have a balanced portfolio. 73 00:04:00,560 --> 00:04:02,760 Speaker 1: We've trimmed a little bit of our value names, but 74 00:04:02,840 --> 00:04:06,000 Speaker 1: we're still overweight that we still have growth names in 75 00:04:06,000 --> 00:04:08,960 Speaker 1: the portfolio. We think with all the volatility that's coming, 76 00:04:09,360 --> 00:04:12,000 Speaker 1: value may still outperform, but you want to make sure 77 00:04:12,040 --> 00:04:14,640 Speaker 1: that you have a good balanced portfolio, and that's where 78 00:04:14,640 --> 00:04:18,799 Speaker 1: we're having our clients position themselves. Victoria's interesting. We're speaking 79 00:04:18,800 --> 00:04:21,279 Speaker 1: with Rick Reader over at black Rock earlier this morning, 80 00:04:21,320 --> 00:04:24,080 Speaker 1: talking a little bit about the Federal Reserve and dare 81 00:04:24,120 --> 00:04:27,320 Speaker 1: we say sort of a goldilocks ish environment. Take a 82 00:04:27,360 --> 00:04:30,480 Speaker 1: listen to what he had to say. This will do 83 00:04:30,560 --> 00:04:33,520 Speaker 1: nothing to deter the head from where they where they're going. 84 00:04:34,080 --> 00:04:36,080 Speaker 1: But I think I think it's a big report because 85 00:04:36,120 --> 00:04:37,560 Speaker 1: I think we're now going to make the turn. I 86 00:04:37,600 --> 00:04:40,120 Speaker 1: think the next three or four months, you're going to 87 00:04:40,160 --> 00:04:43,560 Speaker 1: see these numbers decline. I could see a negative print 88 00:04:43,960 --> 00:04:46,320 Speaker 1: over the next three or four months, and that's the 89 00:04:46,320 --> 00:04:48,000 Speaker 1: thing that I'm keyed into, and I think that's what 90 00:04:48,120 --> 00:04:50,600 Speaker 1: markets will react to and trying to interpret how deep 91 00:04:50,640 --> 00:04:55,320 Speaker 1: the Fed's gonna go. Is that sort of peak jobs 92 00:04:55,320 --> 00:04:58,560 Speaker 1: what we just got. Yeah, I listened to that interview 93 00:04:58,600 --> 00:05:01,279 Speaker 1: this morning and it was interesting this he's expecting negative 94 00:05:01,320 --> 00:05:03,640 Speaker 1: numbers to come out, and I'm really kind of along 95 00:05:03,640 --> 00:05:06,920 Speaker 1: those lines. I do think that we're going to see 96 00:05:07,240 --> 00:05:10,039 Speaker 1: the labor market really start to come down. And look, 97 00:05:10,120 --> 00:05:13,480 Speaker 1: the Feed has told us they are willing to sacrifice 98 00:05:13,520 --> 00:05:15,560 Speaker 1: some of the strength and the labor market in order 99 00:05:15,600 --> 00:05:18,000 Speaker 1: to bring inflation down. So I think we have to 100 00:05:18,080 --> 00:05:21,040 Speaker 1: expect that that is actually going to happen. We talk 101 00:05:21,120 --> 00:05:24,120 Speaker 1: about peak inflation, peak yield, I think we have to 102 00:05:24,200 --> 00:05:27,960 Speaker 1: also speak about peak labor market and how we're going 103 00:05:28,000 --> 00:05:30,480 Speaker 1: to see some of those smaller companies, you know, that's 104 00:05:30,480 --> 00:05:32,200 Speaker 1: where they've been hurting the worst on some of the 105 00:05:32,279 --> 00:05:35,400 Speaker 1: labor cost issues. If they start laying people off in 106 00:05:35,440 --> 00:05:39,279 Speaker 1: those lower paying jobs, that's definitely going to affect UM 107 00:05:39,360 --> 00:05:42,840 Speaker 1: the labor market reports coming in the next few months. Finally, here, 108 00:05:43,200 --> 00:05:46,400 Speaker 1: what's the biggest question you're getting from clients at this moment? 109 00:05:47,360 --> 00:05:49,640 Speaker 1: You know, it's interesting. We just hosted a Q and 110 00:05:49,720 --> 00:05:52,560 Speaker 1: a UM with clients this week where they could just 111 00:05:52,600 --> 00:05:55,080 Speaker 1: call in and ask questions to our CIO, Bob Doll 112 00:05:55,120 --> 00:05:58,560 Speaker 1: and myself. The biggest question we got was about recession 113 00:05:58,640 --> 00:06:01,200 Speaker 1: and inflation UM and so we're you know, we're telling 114 00:06:01,200 --> 00:06:04,560 Speaker 1: people we don't expect a recession these this year. Household 115 00:06:04,600 --> 00:06:08,760 Speaker 1: balance sheets are strong, corporate balance sheets continue to do well. 116 00:06:08,960 --> 00:06:11,479 Speaker 1: Are we going to see growth slow down a little bit, Yes, 117 00:06:11,720 --> 00:06:14,600 Speaker 1: but we're not at the level with the labor market 118 00:06:14,720 --> 00:06:17,640 Speaker 1: with earnings, were not at the level yet that we 119 00:06:17,720 --> 00:06:20,480 Speaker 1: think we're gonna go into recession. We're looking if that 120 00:06:20,560 --> 00:06:23,479 Speaker 1: happens maybe second half of next year, but we still 121 00:06:23,520 --> 00:06:25,960 Speaker 1: think the economy will hold pretty strong. Here for the 122 00:06:25,960 --> 00:06:30,799 Speaker 1: rest of really appreciated cross marks. Chief market Strategists Victoria 123 00:06:30,880 --> 00:06:34,040 Speaker 1: Fernandez Happy Friday, and that sort of leaves us off 124 00:06:34,080 --> 00:06:36,000 Speaker 1: at a really good note when we think about recession, 125 00:06:36,120 --> 00:06:38,480 Speaker 1: is that the biggest question that clients are asking, is 126 00:06:38,520 --> 00:06:42,320 Speaker 1: that the biggest question that corporate CEOs like Tesla CEO 127 00:06:42,360 --> 00:06:45,520 Speaker 1: Elon Musk is asking. He now actually comes out Today's 128 00:06:45,520 --> 00:06:47,640 Speaker 1: saying that he's aiming to cut around ten percent of 129 00:06:47,640 --> 00:06:50,480 Speaker 1: salaried staff from the company, saying that he quote has 130 00:06:50,520 --> 00:06:53,760 Speaker 1: a super bad feeling about the economy. Dan Levy of 131 00:06:53,760 --> 00:06:57,240 Speaker 1: course over credit suites joining us. Now, how are you 132 00:06:57,279 --> 00:07:00,360 Speaker 1: thinking about if this is sort of an idiosyncratic Hassla 133 00:07:00,480 --> 00:07:02,880 Speaker 1: issue or are you a little bit worried this is 134 00:07:02,920 --> 00:07:07,120 Speaker 1: a broader e v broader economic issue? Thank you, Thank 135 00:07:07,160 --> 00:07:10,480 Speaker 1: you for having the tailor. UM. We were surprised by 136 00:07:10,640 --> 00:07:15,160 Speaker 1: the headline simply because Tesla is in uber growth mode. 137 00:07:15,200 --> 00:07:18,880 Speaker 1: We know there's a lot of capacity that's coming online. 138 00:07:19,320 --> 00:07:23,040 Speaker 1: They need UH support staff to to support that growth. 139 00:07:23,440 --> 00:07:26,360 Speaker 1: So the headlines UM came as a bit of a 140 00:07:26,400 --> 00:07:29,960 Speaker 1: surprise us. You know, yes, we're getting more questions from 141 00:07:30,000 --> 00:07:33,120 Speaker 1: investors on the risk of recession. But the main thing 142 00:07:33,120 --> 00:07:35,320 Speaker 1: that I would just point out is that Tesla and 143 00:07:35,360 --> 00:07:39,280 Speaker 1: the auto industry broadly right now. The primary issue is 144 00:07:39,280 --> 00:07:42,240 Speaker 1: actually not demand at the moment, but it's really supply. 145 00:07:42,400 --> 00:07:46,680 Speaker 1: This is a supply constrained industry. Anything that's produced will 146 00:07:46,720 --> 00:07:49,880 Speaker 1: be sold. UM. When you look at US auto sales, 147 00:07:49,960 --> 00:07:53,880 Speaker 1: twelve point eight millions are in May, much lower than 148 00:07:53,920 --> 00:07:57,000 Speaker 1: the typical seventeen million star that you would get. UH 149 00:07:57,000 --> 00:07:59,600 Speaker 1: that that's because you have inventory at all time low. 150 00:07:59,760 --> 00:08:04,320 Speaker 1: So the largest problem right now is supply, and in 151 00:08:04,320 --> 00:08:07,640 Speaker 1: the case of Tesla, they need staff to support supply. 152 00:08:07,880 --> 00:08:11,880 Speaker 1: Increasing that supply, uh and and unlocking that volume. Is 153 00:08:11,920 --> 00:08:14,760 Speaker 1: this why maybe you well, I don't want to say 154 00:08:14,800 --> 00:08:17,520 Speaker 1: you sound confused, but some of your counterparts Morgan Stanley's 155 00:08:17,560 --> 00:08:20,400 Speaker 1: Adam Jonas, the cfr A analyst, saying that this sort 156 00:08:20,440 --> 00:08:22,400 Speaker 1: of goes against what they were thinking when you talk 157 00:08:22,440 --> 00:08:25,680 Speaker 1: about ramping up production, of increasing that supply, needing the 158 00:08:25,720 --> 00:08:28,440 Speaker 1: staff that you can in the factories because the demand 159 00:08:28,560 --> 00:08:32,040 Speaker 1: is there, are you could I say that maybe there's 160 00:08:32,080 --> 00:08:36,080 Speaker 1: some confusion there as well. I think confusion is the 161 00:08:36,160 --> 00:08:37,600 Speaker 1: right way to look at it. It is a little 162 00:08:37,640 --> 00:08:41,400 Speaker 1: bit of a surprise for a company that is in 163 00:08:41,600 --> 00:08:44,679 Speaker 1: uber growth mode and that I think it probably has 164 00:08:44,720 --> 00:08:48,280 Speaker 1: a very long term view they have UH you know, 165 00:08:48,440 --> 00:08:51,160 Speaker 1: something like eighteen or nineteen billion dollars of cash on 166 00:08:51,200 --> 00:08:54,360 Speaker 1: the balance sheet, so they're well insulated. It is a 167 00:08:54,360 --> 00:08:56,720 Speaker 1: little bit of a surprise. Now, I think to give 168 00:08:56,800 --> 00:09:00,280 Speaker 1: credit to Tesla maybe to understand partially what's happening. This 169 00:09:00,360 --> 00:09:03,240 Speaker 1: is a company that, even with all of the padding 170 00:09:03,280 --> 00:09:05,520 Speaker 1: that they have on the balance sheet, they are very 171 00:09:05,760 --> 00:09:08,800 Speaker 1: cost focused. We actually just had a field trip to 172 00:09:08,800 --> 00:09:11,240 Speaker 1: the Fremont factory last week. You can still see this 173 00:09:11,320 --> 00:09:14,680 Speaker 1: is a very cost focused company, even with all of 174 00:09:14,720 --> 00:09:17,120 Speaker 1: the improvements in margins. So I don't know if it's 175 00:09:17,120 --> 00:09:20,120 Speaker 1: something along those lines, but but yes, for a company 176 00:09:20,160 --> 00:09:22,000 Speaker 1: that has a lot of growth, a head that needs 177 00:09:22,040 --> 00:09:24,320 Speaker 1: to increase the volume, that needs to increase the support 178 00:09:24,400 --> 00:09:27,160 Speaker 1: staff to support that volume, it's it was a slightly 179 00:09:27,760 --> 00:09:32,640 Speaker 1: surprising headline. Really appreciate it your time and the fundamental analysis, 180 00:09:32,720 --> 00:09:35,319 Speaker 1: Dan Levy, of course over a credit swas, really really 181 00:09:35,400 --> 00:09:46,480 Speaker 1: appreciate your perspective there. Let's talk about that stock split, 182 00:09:46,520 --> 00:09:50,079 Speaker 1: Amazon's one with the first split adjusted trading. It all 183 00:09:50,120 --> 00:09:53,400 Speaker 1: begins on Monday. Now, remember the split was announced back 184 00:09:53,440 --> 00:09:55,720 Speaker 1: in March. Shares initially got a boost, but then of 185 00:09:55,720 --> 00:09:58,680 Speaker 1: course April and May came really falling here with a 186 00:09:58,679 --> 00:10:01,160 Speaker 1: lot of the tech volatility. What does the split mean 187 00:10:01,240 --> 00:10:04,720 Speaker 1: for investors joining us now? Michael Pactor, Managing director of 188 00:10:04,720 --> 00:10:07,960 Speaker 1: Equity Research over a web Bush Securities, And we know 189 00:10:08,040 --> 00:10:10,880 Speaker 1: the math intrinsic value hasn't changed for the company, but 190 00:10:10,960 --> 00:10:14,640 Speaker 1: does the psychology, the consumer sentiment around the stock change 191 00:10:14,640 --> 00:10:18,480 Speaker 1: it all for you? Yes? I mean, Taylor, I think 192 00:10:18,520 --> 00:10:22,440 Speaker 1: that the idea of a split is to make the 193 00:10:22,520 --> 00:10:26,760 Speaker 1: shares appear more affordable. And obviously institution just don't care, 194 00:10:26,880 --> 00:10:31,040 Speaker 1: but individual investors do and employees do. Um, So it 195 00:10:31,400 --> 00:10:35,079 Speaker 1: allows the company to be more appealing to individual investors, 196 00:10:35,440 --> 00:10:38,360 Speaker 1: you know. And if you have ten thousand dollars to invest, 197 00:10:39,240 --> 00:10:41,720 Speaker 1: are you going to buy four shares of Amazon? You know, 198 00:10:42,040 --> 00:10:44,640 Speaker 1: maybe not, but you might buy a hundred shares at 199 00:10:45,120 --> 00:10:47,320 Speaker 1: twenty it's been twelve thousand. I think that's how they're 200 00:10:47,320 --> 00:10:50,880 Speaker 1: thinking about it. Same with employee compensation. You know, I 201 00:10:50,920 --> 00:10:52,640 Speaker 1: have a friend who went to work there, and I 202 00:10:52,679 --> 00:10:56,840 Speaker 1: remember the game two three shares of stock investing over 203 00:10:56,920 --> 00:11:00,000 Speaker 1: four years, and it was just really complicated. They could 204 00:11:00,120 --> 00:11:03,840 Speaker 1: push Camp down now stock based Camp down to even 205 00:11:03,880 --> 00:11:06,600 Speaker 1: fulfillment center workers and truck drivers if they choose to 206 00:11:07,760 --> 00:11:11,160 Speaker 1: because now they can give out stock an increments, you know, 207 00:11:11,200 --> 00:11:15,559 Speaker 1: say a hundred twenty dollars instead, So it really provides 208 00:11:15,600 --> 00:11:19,440 Speaker 1: a lot more flexibility for investors who are individuals want 209 00:11:19,440 --> 00:11:22,400 Speaker 1: to buy one share, and for employees who they want 210 00:11:22,400 --> 00:11:25,120 Speaker 1: to compensate and keep motivated so they can give them 211 00:11:25,120 --> 00:11:27,520 Speaker 1: one share. So I think the stock will probably go 212 00:11:27,640 --> 00:11:31,480 Speaker 1: up on this. More importantly though, this shows that management 213 00:11:31,520 --> 00:11:35,720 Speaker 1: actually cares, and I think they have a reputation, very 214 00:11:35,760 --> 00:11:39,679 Speaker 1: well earned reputation for not caring about Wall Street, and 215 00:11:39,800 --> 00:11:42,920 Speaker 1: this is a very investor friendly thing to do. So 216 00:11:42,960 --> 00:11:45,280 Speaker 1: I think it's a signal from Andy Jassey, who has 217 00:11:45,320 --> 00:11:49,360 Speaker 1: been absent as far as investors are concerned, that maybe 218 00:11:49,360 --> 00:11:51,160 Speaker 1: he does care about the share price, and we're going 219 00:11:51,200 --> 00:11:53,640 Speaker 1: to see a start to go up. Very interesting. I 220 00:11:53,679 --> 00:11:57,800 Speaker 1: am curious when you're thinking about management exit today Michael 221 00:11:57,840 --> 00:12:01,559 Speaker 1: the Amazon CEO of the Worldwide Consumer Dave Clark resigns, 222 00:12:02,040 --> 00:12:06,600 Speaker 1: are you thinking about Andy Josse coming in shaking up 223 00:12:06,880 --> 00:12:09,840 Speaker 1: there sort of c suite areas the impact that that 224 00:12:09,920 --> 00:12:13,160 Speaker 1: may have. You know, if if you had to pick 225 00:12:13,280 --> 00:12:16,160 Speaker 1: one area of Amazon that was not doing poorly, it 226 00:12:16,320 --> 00:12:19,240 Speaker 1: was that one. So I would say that, you know, 227 00:12:19,960 --> 00:12:24,680 Speaker 1: consumer has been great. Actually, they they're great on everything 228 00:12:24,720 --> 00:12:27,480 Speaker 1: they do on the revenue side, where they're out of 229 00:12:27,480 --> 00:12:31,440 Speaker 1: controls the expanse side. And to be perfectly honest, I 230 00:12:31,480 --> 00:12:34,760 Speaker 1: don't think it is Dave Clark's fault or anybody else's fault. 231 00:12:34,800 --> 00:12:37,720 Speaker 1: I think it's Jeff Bezos and Andy Jesse's fault because 232 00:12:37,720 --> 00:12:39,840 Speaker 1: they have a bunch of scut work projects that they're 233 00:12:39,840 --> 00:12:42,440 Speaker 1: not going to tell us about, and they're investing a 234 00:12:42,480 --> 00:12:45,000 Speaker 1: ton of money in things that may not pay off 235 00:12:45,040 --> 00:12:48,080 Speaker 1: for ten or twenty years um. Like. As an example, 236 00:12:48,120 --> 00:12:51,880 Speaker 1: I think Amazon Fresh self service stores is just a 237 00:12:52,040 --> 00:12:56,200 Speaker 1: ridiculously stupid idea. Uh, you know, we don't shop at Amazon, 238 00:12:56,280 --> 00:12:58,080 Speaker 1: so we can get in our car and drive to 239 00:12:58,200 --> 00:13:00,480 Speaker 1: a store and you know, not have to deal with 240 00:13:00,520 --> 00:13:03,120 Speaker 1: the clerk and checkout. Isn't the reason that I shot 241 00:13:03,120 --> 00:13:06,240 Speaker 1: at the Amazon. So I think these guys have a 242 00:13:06,280 --> 00:13:09,000 Speaker 1: lot of spending cuts to make. I don't think Dave 243 00:13:09,080 --> 00:13:12,760 Speaker 1: Clark was the guide to make those guts. It's Andy Jassey, 244 00:13:13,080 --> 00:13:16,600 Speaker 1: So he should be much more self introspective and be 245 00:13:16,679 --> 00:13:19,120 Speaker 1: more self aware and start worrying about what he's doing 246 00:13:19,160 --> 00:13:22,720 Speaker 1: the CEO. The bigger problem is that they're losing employees 247 00:13:22,800 --> 00:13:25,280 Speaker 1: up and down the ranks because they don't pay enough 248 00:13:25,559 --> 00:13:28,160 Speaker 1: and they're being poached by competitors. So they if they're 249 00:13:28,200 --> 00:13:29,800 Speaker 1: going to get rid of somebody to CE suite, get 250 00:13:29,840 --> 00:13:31,840 Speaker 1: rid of the head of HR because that person has 251 00:13:31,880 --> 00:13:35,480 Speaker 1: not done a good job. Interesting. Okay, so we're getting 252 00:13:35,520 --> 00:13:38,720 Speaker 1: into some of the idiosyncratic issues with an Amazon. But Michael, 253 00:13:38,760 --> 00:13:40,720 Speaker 1: I thought it was really interesting. One of your counterparts, 254 00:13:40,720 --> 00:13:43,160 Speaker 1: Sprint thill over at Jeffreys. I think I spoke with 255 00:13:43,240 --> 00:13:45,439 Speaker 1: him last week and he said that sentiment on broader 256 00:13:45,480 --> 00:13:48,920 Speaker 1: tech has never been worse. That they're doing backflips at 257 00:13:48,960 --> 00:13:51,640 Speaker 1: the Exxon shareholders meeting, and you go to these tech 258 00:13:51,679 --> 00:13:55,360 Speaker 1: conferences and sentiment is horrible. Is a lot of this 259 00:13:55,480 --> 00:13:59,720 Speaker 1: maybe sort of the broad sentiment around technology in general. Yeah, 260 00:13:59,760 --> 00:14:02,760 Speaker 1: My My largest personal holding is ex On Mobiles, so 261 00:14:02,880 --> 00:14:05,960 Speaker 1: I've been doing back clips as well. Um, you know, 262 00:14:06,600 --> 00:14:09,480 Speaker 1: there's two types of tech. You know, there's tech that's 263 00:14:09,520 --> 00:14:13,480 Speaker 1: not profitable, and so when you're paying a revenue multiple 264 00:14:13,640 --> 00:14:16,800 Speaker 1: for for companies like Unity and I love Unity, you 265 00:14:16,920 --> 00:14:20,320 Speaker 1: know it's a genuinely great company, but they don't have profits. Um, 266 00:14:20,360 --> 00:14:22,160 Speaker 1: there is no bottom. I mean, who knows how to 267 00:14:22,240 --> 00:14:26,960 Speaker 1: value that thing. Then there are tech companies like Microsoft, Apple, Amazon, 268 00:14:27,160 --> 00:14:31,760 Speaker 1: Google that are immensely profitable, and so it's really easy 269 00:14:31,840 --> 00:14:34,400 Speaker 1: to kind of step in when you think they've gone 270 00:14:34,400 --> 00:14:37,680 Speaker 1: down enough. And I think that where Jazz has control 271 00:14:38,240 --> 00:14:40,760 Speaker 1: is he can say I'm gonna take earnings for share 272 00:14:40,800 --> 00:14:43,520 Speaker 1: up ten bucks by slowing our spending on some of 273 00:14:43,560 --> 00:14:45,880 Speaker 1: these projects that are going to pay off for ten years. 274 00:14:46,120 --> 00:14:48,120 Speaker 1: If he does that, I think the stock has a 275 00:14:48,200 --> 00:14:50,800 Speaker 1: potenci to go right back to where it was. So 276 00:14:51,000 --> 00:14:53,760 Speaker 1: let's see what these tech leaders do. But the profitable 277 00:14:53,800 --> 00:14:57,680 Speaker 1: companies should lead the rebound, and the big guys tend 278 00:14:57,720 --> 00:15:01,480 Speaker 1: to be pretty profitable. Really appreciate all of your smart analysis. 279 00:15:01,560 --> 00:15:05,000 Speaker 1: My goal packed or Knaging, director of Equity Research over 280 00:15:05,080 --> 00:15:07,160 Speaker 1: Wedbush Securities. And just a note, I know that we're 281 00:15:07,160 --> 00:15:09,840 Speaker 1: talking about the CEO Andy Jassy there. Stay tuned on 282 00:15:09,920 --> 00:15:12,920 Speaker 1: Wednesday to thirty pm Eastern at the B Tech Summit. 283 00:15:12,960 --> 00:15:15,840 Speaker 1: We will have a live interview of course with him there, 284 00:15:15,880 --> 00:15:18,040 Speaker 1: so make sure to tune in for that. Lots of 285 00:15:18,080 --> 00:15:20,480 Speaker 1: great interviews coming up at that B Tech summit. In 286 00:15:20,480 --> 00:15:23,200 Speaker 1: the meantime, lots of great interviews coming up right here 287 00:15:23,280 --> 00:15:25,360 Speaker 1: right now. We are one step closer, of course, for 288 00:15:25,680 --> 00:15:29,840 Speaker 1: Elon Musk. Overcoming those hurdles for a Twitter takeover that 289 00:15:29,920 --> 00:15:48,320 Speaker 1: conversation is next. This is Blimberg. Twitter passed in US 290 00:15:48,400 --> 00:15:51,680 Speaker 1: anti trust review, clearing another step in its hurdle for 291 00:15:51,720 --> 00:15:54,880 Speaker 1: the acquisition by Elon Musk in that proposed forty four 292 00:15:54,920 --> 00:15:58,360 Speaker 1: billion dollar deal. However, the transaction it is still subject 293 00:15:58,400 --> 00:16:01,720 Speaker 1: to acceptance by Twitter sharehold. There is another regulatory reviews 294 00:16:02,040 --> 00:16:04,840 Speaker 1: joining this now Bloomberg's Edla Lowe sticking around late for 295 00:16:04,920 --> 00:16:07,480 Speaker 1: US on a Friday, and how much of this sort 296 00:16:07,480 --> 00:16:11,400 Speaker 1: of hurdle today was expected, Yeah, it was expected into 297 00:16:11,440 --> 00:16:14,320 Speaker 1: a large extent. It's rubber stamping, you know. Essentially, the 298 00:16:14,320 --> 00:16:16,920 Speaker 1: provision means that when a piece of M and A 299 00:16:17,000 --> 00:16:20,920 Speaker 1: happens like this, both parties have to give the Federal 300 00:16:20,920 --> 00:16:23,560 Speaker 1: Trade Commission and the Antitrust Division of the d o 301 00:16:23,680 --> 00:16:26,080 Speaker 1: J thirty days to review the deal. And all this 302 00:16:26,200 --> 00:16:29,320 Speaker 1: regulatory filing showed US is that that thirty day period 303 00:16:29,320 --> 00:16:32,320 Speaker 1: has elapsed or the regulators went back to the parties 304 00:16:32,360 --> 00:16:34,480 Speaker 1: and said, you pass the checks, you can proceed. But 305 00:16:34,520 --> 00:16:37,160 Speaker 1: as we know, you know, regulators are looking at other 306 00:16:37,200 --> 00:16:40,040 Speaker 1: elements at this, for example, the timing of when Elon 307 00:16:40,160 --> 00:16:42,440 Speaker 1: must try to build up his stake in Twitter ahead 308 00:16:42,440 --> 00:16:46,440 Speaker 1: of that offered to buy the company interesting and the 309 00:16:46,520 --> 00:16:50,320 Speaker 1: sheer process at forty Yes, that is a far cry 310 00:16:50,360 --> 00:16:53,360 Speaker 1: from the fifty four twenty. Are there real concerns that 311 00:16:53,440 --> 00:16:57,880 Speaker 1: this may not get done? Yeah? You know, certainly the 312 00:16:57,960 --> 00:17:01,120 Speaker 1: rubber stamping news of Friday moves us towards a place 313 00:17:01,120 --> 00:17:03,360 Speaker 1: where we think it's more likely to get done. You know, 314 00:17:03,400 --> 00:17:06,200 Speaker 1: we're talking about the spread here, right, the difference between 315 00:17:06,200 --> 00:17:08,720 Speaker 1: the current share price forty dollars a share and the 316 00:17:08,800 --> 00:17:11,080 Speaker 1: fifty four dollars twenty cents per share offer that Elon 317 00:17:11,200 --> 00:17:14,639 Speaker 1: must made. The basic rule being the whyd that gets 318 00:17:14,920 --> 00:17:18,119 Speaker 1: It's a soft indication of skepticism on Wall Street is 319 00:17:18,160 --> 00:17:21,000 Speaker 1: going to happen that if that gap closes, we're moving 320 00:17:21,040 --> 00:17:23,720 Speaker 1: towards a place where it's more likely to happen. It's 321 00:17:23,760 --> 00:17:26,720 Speaker 1: just a soft indication. You also have, like merger arbitrars 322 00:17:26,720 --> 00:17:29,439 Speaker 1: specialists that put odds on the deal, and at some 323 00:17:29,520 --> 00:17:31,560 Speaker 1: point that you know, the odds on this deal happening 324 00:17:31,600 --> 00:17:35,080 Speaker 1: have been below for they've now improved. The question is 325 00:17:35,119 --> 00:17:37,080 Speaker 1: does he't come back in with a lower offer, And 326 00:17:37,119 --> 00:17:39,760 Speaker 1: it seems like given today's news, that's unlikely to be 327 00:17:39,800 --> 00:17:43,040 Speaker 1: the case. Interesting. So the hurdle then, that's now on 328 00:17:43,080 --> 00:17:47,000 Speaker 1: Twitter shareholders. What would be anything for them to not 329 00:17:47,160 --> 00:17:50,720 Speaker 1: vote for it? Yeah, this is a psychological question more 330 00:17:50,720 --> 00:17:54,280 Speaker 1: than anything. You know, at twenty cents a share, you 331 00:17:54,320 --> 00:17:56,520 Speaker 1: would lick your lips at that offer. That's a great 332 00:17:56,560 --> 00:17:59,439 Speaker 1: offer if you're an existing shareholder of Twitter, because the 333 00:17:59,520 --> 00:18:02,639 Speaker 1: trading Twitter hasn't really mirrored what we've seen in broader markets, right, 334 00:18:02,680 --> 00:18:05,080 Speaker 1: because it's been subject to m and A and to 335 00:18:05,160 --> 00:18:08,640 Speaker 1: take private bid. It hasn't traded with the wild swings 336 00:18:08,640 --> 00:18:12,040 Speaker 1: and big drops like we've seen in other social media stocks. 337 00:18:12,040 --> 00:18:15,520 Speaker 1: So yeah, wait and see, really appreciate it. Our very 338 00:18:15,520 --> 00:18:19,439 Speaker 1: own at Ludlow coming up stick with us equality and 339 00:18:19,520 --> 00:18:22,800 Speaker 1: inclusion in the workplace. We're going to speak with Brutal 340 00:18:22,880 --> 00:18:27,200 Speaker 1: Gurus CEO Bobby Risette about her mission to represent under 341 00:18:27,359 --> 00:18:31,280 Speaker 1: represented groups at her company, and that really important conversation 342 00:18:31,400 --> 00:18:45,200 Speaker 1: is next. This is Bloomberg. Love's happening on Wall Street. 343 00:18:45,280 --> 00:18:49,679 Speaker 1: It's the basic law of economics. It validated bottle market 344 00:18:49,760 --> 00:18:51,840 Speaker 1: was already pricing. We need to catch up. This is 345 00:18:51,840 --> 00:18:54,879 Speaker 1: Bloomberg Wall Street Week. I'm David Weston. We've got the 346 00:18:54,920 --> 00:18:58,000 Speaker 1: information and insights. David. You just hit the mail right 347 00:18:58,040 --> 00:19:01,480 Speaker 1: on the head from businesses most in fluential and instrumental, 348 00:19:01,560 --> 00:19:03,120 Speaker 1: and that's the way you run good risk manage. It's 349 00:19:03,160 --> 00:19:05,879 Speaker 1: a challenging dynamic. We could continue to see that college 350 00:19:05,920 --> 00:19:09,719 Speaker 1: from Bloomberg Wall Street Week premieres Friday, with replays all 351 00:19:09,760 --> 00:19:48,359 Speaker 1: weekend on Bloomberg Television and Radio. This is Bloomberg Technology. 352 00:19:48,400 --> 00:19:50,760 Speaker 1: I'm Taylor Riggs in New York in for Emily Chang 353 00:19:50,920 --> 00:19:54,679 Speaker 1: and this week started the Pride Month of course Bloomberg Television, 354 00:19:54,960 --> 00:19:58,119 Speaker 1: focusing on a wide range of topics highlighting what equality 355 00:19:58,160 --> 00:20:02,159 Speaker 1: means for the economy. Company these and well investors. Virgil 356 00:20:02,200 --> 00:20:05,359 Speaker 1: Gurus it is a talent as a service solution platform 357 00:20:05,600 --> 00:20:08,840 Speaker 1: that matches its users with the perfect North American remote 358 00:20:08,840 --> 00:20:14,119 Speaker 1: assistance and freelancers by using match making algorithms. CEO Bobby 359 00:20:14,200 --> 00:20:17,439 Speaker 1: Rossett is on a mission to create employment opportunities for 360 00:20:17,560 --> 00:20:21,160 Speaker 1: underrepresented individuals. She has, of course amanded within her own 361 00:20:21,200 --> 00:20:26,320 Speaker 1: company that of the workers identify as female, of course 362 00:20:26,760 --> 00:20:29,800 Speaker 1: by the bipop community, and forty as part of the 363 00:20:29,920 --> 00:20:34,639 Speaker 1: lgbt Q plus community. Bobby so pleased to say, joins 364 00:20:34,720 --> 00:20:36,720 Speaker 1: us now and talk to us sort of as we 365 00:20:36,840 --> 00:20:39,200 Speaker 1: kick off Pride Month and sort of a renewed focus 366 00:20:39,200 --> 00:20:41,840 Speaker 1: on equality. And it's not lost on us that today 367 00:20:41,920 --> 00:20:44,639 Speaker 1: is also job stay as well and continuing to see 368 00:20:45,000 --> 00:20:49,520 Speaker 1: underrepresented individuals maybe not quite have the same opportunities as others. 369 00:20:49,720 --> 00:20:51,640 Speaker 1: What do you really see is sort of the way 370 00:20:51,640 --> 00:20:56,920 Speaker 1: to help move that forward. I thank you so much, UM, 371 00:20:57,000 --> 00:21:00,959 Speaker 1: you know I I think all companies are are starting 372 00:21:00,960 --> 00:21:04,679 Speaker 1: to gear towards UH inclusion intiversity in the workplace. At 373 00:21:04,720 --> 00:21:07,920 Speaker 1: least we're seeing it a lot more now here in Canada. UM. 374 00:21:07,960 --> 00:21:10,719 Speaker 1: We obviously have a lot more work to do, and 375 00:21:11,080 --> 00:21:14,320 Speaker 1: I think it's important to that employers such as UH 376 00:21:14,480 --> 00:21:17,879 Speaker 1: tech companies mostly need to really focus on putting that 377 00:21:18,000 --> 00:21:21,439 Speaker 1: diversity out there right up front for everybody on their 378 00:21:21,480 --> 00:21:23,320 Speaker 1: team to see and what they're working on, put their 379 00:21:23,400 --> 00:21:26,040 Speaker 1: numbers on their site. I think all of this is 380 00:21:26,080 --> 00:21:28,439 Speaker 1: extremely important so that we can show everybody that they 381 00:21:28,440 --> 00:21:32,040 Speaker 1: are welcome no matter what. This is a technology show 382 00:21:32,080 --> 00:21:34,440 Speaker 1: as well, so we're focused on equality across the board. 383 00:21:34,440 --> 00:21:37,359 Speaker 1: We're really looking at highlighting it within the TEX sector 384 00:21:37,440 --> 00:21:40,400 Speaker 1: as well. Do you see that the tech sector has 385 00:21:40,800 --> 00:21:43,879 Speaker 1: maybe lagged or or struggled and and how do you 386 00:21:43,960 --> 00:21:46,720 Speaker 1: sort of see this sector as being able to match 387 00:21:46,760 --> 00:21:52,080 Speaker 1: other areas. I absolutely have, um you know, down here 388 00:21:52,080 --> 00:21:55,399 Speaker 1: in Canada, it took me more than a hundred and 389 00:21:55,440 --> 00:21:59,000 Speaker 1: seventy knows just to raise my seed round, which is 390 00:21:59,320 --> 00:22:01,840 Speaker 1: obviously or the series they finding around that we just closed. 391 00:22:01,920 --> 00:22:05,480 Speaker 1: But um I I want to say that all of 392 00:22:05,520 --> 00:22:07,960 Speaker 1: that wasn't because of who I am as a person. 393 00:22:08,080 --> 00:22:12,760 Speaker 1: I'm an Indigenous LGBT woman and you know, having being 394 00:22:12,800 --> 00:22:15,520 Speaker 1: an Indigenous lgbtwo woman in tech, but let alone a 395 00:22:15,600 --> 00:22:18,800 Speaker 1: CEO of a very large scale of I've seen a 396 00:22:18,800 --> 00:22:20,600 Speaker 1: lot of the barriers. I've had to push through a 397 00:22:20,640 --> 00:22:23,560 Speaker 1: lot of them. I've I've seen, you know, so much 398 00:22:23,720 --> 00:22:26,399 Speaker 1: that it's been difficult for me to be able to 399 00:22:26,440 --> 00:22:29,560 Speaker 1: scale the company knowing that people aren't believing in me 400 00:22:29,600 --> 00:22:33,000 Speaker 1: because who I is who I am. So that's one 401 00:22:33,040 --> 00:22:35,719 Speaker 1: of the reasons why Virtual Grows focuses so much on 402 00:22:35,760 --> 00:22:38,840 Speaker 1: diversity and inclusion and the workplace. So we hire people 403 00:22:38,880 --> 00:22:41,960 Speaker 1: from all walks of life, and all of our talent 404 00:22:42,200 --> 00:22:44,280 Speaker 1: are people that have a story. Every single one of 405 00:22:44,320 --> 00:22:46,960 Speaker 1: them has a story, whether they're a line and immigrant 406 00:22:47,000 --> 00:22:49,880 Speaker 1: to somebody who might be transitioning genders who can't find 407 00:22:49,920 --> 00:22:52,840 Speaker 1: work because of it, to UM, you know, to people 408 00:22:52,840 --> 00:22:56,600 Speaker 1: who are veterans and might have social anxiety because of PTSD, 409 00:22:57,440 --> 00:23:00,240 Speaker 1: and two people with mental health issues as well, and 410 00:23:00,280 --> 00:23:02,320 Speaker 1: this is important that you're giving them a safe space 411 00:23:02,359 --> 00:23:05,480 Speaker 1: to work. And UM, I felt that using our platform 412 00:23:05,520 --> 00:23:07,880 Speaker 1: for that was the best thing to do. Has anything 413 00:23:08,000 --> 00:23:11,920 Speaker 1: gotten better, particularly since COVID in a sort of renewed 414 00:23:11,960 --> 00:23:18,040 Speaker 1: focus that we've all had on more equality, you know, 415 00:23:18,320 --> 00:23:21,439 Speaker 1: I think so, especially because of the remote work. You know, 416 00:23:21,520 --> 00:23:24,200 Speaker 1: remote work is here to stay, and everybody's obviously UH 417 00:23:24,400 --> 00:23:27,680 Speaker 1: figured that out with COVID and and you know, everybody 418 00:23:27,520 --> 00:23:29,239 Speaker 1: is not afraid to hit it head on as they 419 00:23:29,240 --> 00:23:32,400 Speaker 1: were before. UM. But I still think there's a lot 420 00:23:32,480 --> 00:23:34,359 Speaker 1: going on. I still think that there's a lot of 421 00:23:34,400 --> 00:23:37,600 Speaker 1: people being told no because of who they are. And 422 00:23:37,960 --> 00:23:39,600 Speaker 1: I think, you know, like I said earlier, that if 423 00:23:39,720 --> 00:23:41,840 Speaker 1: it starts with one business just making that change and 424 00:23:41,880 --> 00:23:43,800 Speaker 1: not being afraid to make that change and standing out 425 00:23:43,800 --> 00:23:46,080 Speaker 1: and shouting those numbers out, UM, just like how we 426 00:23:46,119 --> 00:23:49,840 Speaker 1: shout out our identify as women UH in six or 427 00:23:50,359 --> 00:23:52,919 Speaker 1: identify as part of the l g B t Q community. 428 00:23:53,240 --> 00:23:55,040 Speaker 1: It's important to put that out so that people are 429 00:23:55,080 --> 00:23:57,760 Speaker 1: seeing that. And so I've noticed a lot more tech 430 00:23:57,840 --> 00:24:01,080 Speaker 1: companies that are hiring remote We are hiring a lot 431 00:24:01,160 --> 00:24:04,520 Speaker 1: more diverse populations. But I think there's obviously so a 432 00:24:04,520 --> 00:24:06,680 Speaker 1: lot of work today and you talk about remote work, 433 00:24:07,000 --> 00:24:08,919 Speaker 1: and I am curious, is that sort of opened up 434 00:24:08,960 --> 00:24:11,840 Speaker 1: the labor pool that instead of access to the individual city, 435 00:24:11,880 --> 00:24:14,600 Speaker 1: the remote work now is access to a talent pool 436 00:24:14,720 --> 00:24:17,640 Speaker 1: across the whole country, maybe across the whole world. How 437 00:24:17,680 --> 00:24:20,080 Speaker 1: have you seen within your company sort of the ability 438 00:24:20,119 --> 00:24:24,760 Speaker 1: to use remote work to your advantage. So Virtual Grous 439 00:24:25,000 --> 00:24:27,920 Speaker 1: is talents as a service platform. So what we use 440 00:24:28,000 --> 00:24:31,959 Speaker 1: we provide marginalized and underrepresented folks through the platform and 441 00:24:32,000 --> 00:24:35,560 Speaker 1: we match them with a business or an entrepreneur um. 442 00:24:35,640 --> 00:24:38,280 Speaker 1: Some of our largest lines come from the US and 443 00:24:38,720 --> 00:24:40,680 Speaker 1: we will provide anywhere from a hundred to two to 444 00:24:40,760 --> 00:24:43,320 Speaker 1: three D virtual assistance for them. And a lot of 445 00:24:43,320 --> 00:24:46,359 Speaker 1: them are actually coming to us because of our equality 446 00:24:46,480 --> 00:24:49,400 Speaker 1: and our diversity, and they're actually saying, hey, you know what, 447 00:24:49,520 --> 00:24:52,960 Speaker 1: we want two hundred people of diverse backgrounds um and 448 00:24:53,040 --> 00:24:55,200 Speaker 1: so we're noticing a lot more of that is coming out. 449 00:24:55,840 --> 00:24:58,919 Speaker 1: The difference with us, though, is that a lot of 450 00:24:58,960 --> 00:25:01,760 Speaker 1: companies like us off short and it's not necessarily a 451 00:25:01,800 --> 00:25:04,280 Speaker 1: bad thing, you know, um, But for us, we promise 452 00:25:04,320 --> 00:25:06,840 Speaker 1: to keep it on short in North America, So while 453 00:25:06,840 --> 00:25:09,720 Speaker 1: we're going global, all of our workers will always remain 454 00:25:09,720 --> 00:25:11,679 Speaker 1: in US R Canada, so we can keep it on 455 00:25:11,680 --> 00:25:14,240 Speaker 1: our North American economy and I keep it down here. 456 00:25:14,840 --> 00:25:17,600 Speaker 1: You mentioned sort of your own struggles. I am curious 457 00:25:17,640 --> 00:25:22,040 Speaker 1: with the VC funding world. There's been a lot from 458 00:25:22,040 --> 00:25:26,800 Speaker 1: a broad acre an eco economic environment. We've been hearing 459 00:25:26,840 --> 00:25:31,000 Speaker 1: that investors are saying to their portfolio companies, conserve cash, 460 00:25:31,080 --> 00:25:33,720 Speaker 1: slow down, be prepared to not be able to fundraise 461 00:25:33,800 --> 00:25:35,960 Speaker 1: for a while, be prepared to hold on to just 462 00:25:36,200 --> 00:25:38,639 Speaker 1: that whatever cash that you have on hand. Have you 463 00:25:38,680 --> 00:25:42,960 Speaker 1: found the fundraising environment generally a little bit better, particularly 464 00:25:43,040 --> 00:25:46,359 Speaker 1: for minority owned businesses, you know, such as yours. How 465 00:25:46,400 --> 00:25:50,399 Speaker 1: have you experienced sort of that VC funding and maybe 466 00:25:50,640 --> 00:25:55,600 Speaker 1: a post COVID environment now, Oh, honestly, for us, it's 467 00:25:55,600 --> 00:25:58,800 Speaker 1: been good. I just closed my Series A funding round 468 00:25:59,280 --> 00:26:01,400 Speaker 1: less than a month and about a month ago, and 469 00:26:01,480 --> 00:26:03,600 Speaker 1: it only took me six months to open and close 470 00:26:03,680 --> 00:26:07,040 Speaker 1: it directly full, so I actually had no problem. And 471 00:26:07,119 --> 00:26:09,840 Speaker 1: now the difference is is I did gear away from 472 00:26:09,920 --> 00:26:13,400 Speaker 1: vcs and kind of went more into impact feces because 473 00:26:13,600 --> 00:26:16,960 Speaker 1: what we're creating is impact. Um you know, we we are, 474 00:26:17,400 --> 00:26:19,879 Speaker 1: like I said, providing work to marginalized communities that a 475 00:26:19,920 --> 00:26:22,480 Speaker 1: lot of people are not doing. So we were able 476 00:26:22,480 --> 00:26:24,840 Speaker 1: to target the impact investors, which really made it a 477 00:26:24,880 --> 00:26:27,800 Speaker 1: lot easier on us. UM that said, one of my 478 00:26:27,840 --> 00:26:30,159 Speaker 1: investors just geared us up and said, you know, we're 479 00:26:30,160 --> 00:26:33,280 Speaker 1: almost heading in towards a recession, and uh, you know, 480 00:26:33,400 --> 00:26:35,840 Speaker 1: the the the economy is changing and is changing fast, 481 00:26:35,920 --> 00:26:37,879 Speaker 1: and the cost of living is is changing and we 482 00:26:37,920 --> 00:26:40,800 Speaker 1: all know that. Um. So as as far as going 483 00:26:40,800 --> 00:26:42,840 Speaker 1: into our Series B, we're probably going to get in 484 00:26:42,880 --> 00:26:45,560 Speaker 1: there a little bit faster than later because you obviously 485 00:26:45,560 --> 00:26:47,520 Speaker 1: got to make sure you protect your run rates. So 486 00:26:48,160 --> 00:26:50,440 Speaker 1: we're working hard on on that and we're probably looking 487 00:26:50,440 --> 00:26:52,439 Speaker 1: to jump into it within the next eight months as 488 00:26:52,480 --> 00:26:56,080 Speaker 1: opposed to twelve fourteen months like we were planning on. Well, 489 00:26:56,119 --> 00:26:58,360 Speaker 1: we wish you the best of luck in that funding 490 00:26:58,440 --> 00:27:00,719 Speaker 1: round and really sort of important comments when we think 491 00:27:00,720 --> 00:27:02,720 Speaker 1: about a quality and of course sort of the fundraising 492 00:27:02,800 --> 00:27:05,439 Speaker 1: environment in the midst of sort of a slowing macro 493 00:27:05,640 --> 00:27:09,159 Speaker 1: economic environment as well. Really appreciated. Thank you, Bobby Rosette 494 00:27:09,640 --> 00:27:24,399 Speaker 1: of Virtual Groups, really appreciated time for our crypto report. 495 00:27:24,440 --> 00:27:26,399 Speaker 1: I want to start with Bitcoin dropping back below the 496 00:27:26,440 --> 00:27:29,080 Speaker 1: thirty thou mark. This is after a sort of regained 497 00:27:29,080 --> 00:27:31,960 Speaker 1: that closely watched levels just a day ago. Our crypto 498 00:27:32,080 --> 00:27:34,879 Speaker 1: contributortionally Boss take here with more and Sully. Is this 499 00:27:34,960 --> 00:27:38,280 Speaker 1: sort of a classic risk off sort of sentiment Again, Yeah, 500 00:27:38,320 --> 00:27:40,280 Speaker 1: you're looking at the SMP that was down in another week. 501 00:27:40,320 --> 00:27:42,400 Speaker 1: But if you look at it, Taylor, something interesting. Even 502 00:27:42,440 --> 00:27:45,240 Speaker 1: with the two day decline or twenty four hour decline 503 00:27:45,240 --> 00:27:48,320 Speaker 1: and bitcoin of about two percent, you actually have over 504 00:27:48,359 --> 00:27:51,960 Speaker 1: a seven day period a three percent rise in Bitcoin. 505 00:27:52,040 --> 00:27:54,520 Speaker 1: We should look at what this downturn really looks like 506 00:27:54,560 --> 00:27:57,640 Speaker 1: in the context of other stocks as well, because, as 507 00:27:57,640 --> 00:27:59,800 Speaker 1: we know, this route and bitcoin is really hurting other 508 00:28:00,000 --> 00:28:03,000 Speaker 1: companies that are exposed to bitcoin. One company that many 509 00:28:03,000 --> 00:28:07,320 Speaker 1: investors and crypto employees are talking about is coin base, 510 00:28:07,600 --> 00:28:09,879 Speaker 1: where there was a very steep sell off today and 511 00:28:09,960 --> 00:28:12,040 Speaker 1: they are trading below where they were a week ago 512 00:28:12,400 --> 00:28:15,200 Speaker 1: and getting much closer to that fifty drop over a 513 00:28:15,280 --> 00:28:18,159 Speaker 1: one month period. Remember, coin Base had said that they 514 00:28:18,160 --> 00:28:21,399 Speaker 1: would be resending some offers as well as instituting a 515 00:28:21,480 --> 00:28:24,520 Speaker 1: hiring freeze. There are other stocks out there that are 516 00:28:24,560 --> 00:28:27,040 Speaker 1: still also trading lower on the week. They have not 517 00:28:27,119 --> 00:28:29,560 Speaker 1: said anything necessarily about hiring, but you look at a 518 00:28:29,720 --> 00:28:33,040 Speaker 1: riot blockchain or a block and you wonder how the 519 00:28:33,119 --> 00:28:36,200 Speaker 1: stock pressure will impact their plans moving forward. Taylor really 520 00:28:36,240 --> 00:28:38,480 Speaker 1: appreciation only stick with me here because I'm gonna bring 521 00:28:38,480 --> 00:28:41,320 Speaker 1: in our guests next guests for more insight on this. 522 00:28:41,440 --> 00:28:43,840 Speaker 1: Tak Inclined, of course, the co founder of Edgin Node, 523 00:28:44,000 --> 00:28:46,360 Speaker 1: the company behind the graph protocol. You think of them 524 00:28:46,520 --> 00:28:49,200 Speaker 1: is the Google of block chains. And before we got 525 00:28:49,200 --> 00:28:51,600 Speaker 1: to get into the nitty gritty, I'm curious how you 526 00:28:51,640 --> 00:28:54,280 Speaker 1: think about the volatility surrounding the price action and the 527 00:28:54,280 --> 00:28:56,320 Speaker 1: calls that it's going to go to four hundred thousand 528 00:28:56,360 --> 00:28:59,360 Speaker 1: and then calls that well, maybe actually bitcoin's only worth 529 00:28:59,400 --> 00:29:03,360 Speaker 1: eight thousand. How does all of that volatility impact you? Yeah, 530 00:29:03,520 --> 00:29:06,560 Speaker 1: it doesn't really. We've been I've been I've learned about 531 00:29:06,560 --> 00:29:10,640 Speaker 1: bitcoin in so I've been used to this volatility um 532 00:29:10,680 --> 00:29:12,960 Speaker 1: and we kind of prepare for it and embrace ourselves 533 00:29:12,960 --> 00:29:16,600 Speaker 1: in the crypto space for that volatility um, and we're 534 00:29:16,600 --> 00:29:20,080 Speaker 1: just focused on building. Speaking of building to again How 535 00:29:20,080 --> 00:29:21,560 Speaker 1: do you think about this in terms of all the 536 00:29:21,560 --> 00:29:25,320 Speaker 1: companies out there that had these really tremendous hiring plans 537 00:29:25,400 --> 00:29:28,520 Speaker 1: like coin base, and now saying that they may resen 538 00:29:28,600 --> 00:29:31,720 Speaker 1: some offers. How does that impact the inclination of certain 539 00:29:31,720 --> 00:29:34,600 Speaker 1: people who maybe we're not in crypto before, but we're 540 00:29:34,640 --> 00:29:37,160 Speaker 1: thinking about crypto and now might be more spooked by 541 00:29:37,160 --> 00:29:42,120 Speaker 1: some of these jerks need to knee jerk reactions ahead. No, 542 00:29:42,280 --> 00:29:44,640 Speaker 1: I think that that's a fair response. But I do 543 00:29:44,800 --> 00:29:47,080 Speaker 1: notice that there are still many projects hiring within the 544 00:29:47,120 --> 00:29:50,520 Speaker 1: space coin basis of a multi thousand person company, and 545 00:29:50,560 --> 00:29:55,160 Speaker 1: so with volumes down, exchanges are impacted, and so it 546 00:29:55,160 --> 00:29:57,160 Speaker 1: sounds like they just want to hunger down for a bit. 547 00:29:57,320 --> 00:29:59,560 Speaker 1: But there are many projects that are building within the space. 548 00:30:00,040 --> 00:30:02,760 Speaker 1: One thing that's really interesting about the crypto ecosystem is 549 00:30:02,800 --> 00:30:05,840 Speaker 1: that you don't need companies that are thousands of people wide, 550 00:30:05,920 --> 00:30:09,120 Speaker 1: unless it's a bridge to the space like coin base. UM. 551 00:30:09,200 --> 00:30:11,920 Speaker 1: You can have companies that are much smaller, so a 552 00:30:12,000 --> 00:30:16,120 Speaker 1: few dozen to a few hundred UM, and then it's 553 00:30:16,600 --> 00:30:19,840 Speaker 1: it's less impactful when there are times like this. UM, 554 00:30:19,960 --> 00:30:22,480 Speaker 1: So I wouldn't lose steam. I think that it's still 555 00:30:22,560 --> 00:30:25,560 Speaker 1: quite optimistic within the space and just with the potential 556 00:30:25,640 --> 00:30:27,880 Speaker 1: that that crypto and web three have. Well, what are 557 00:30:27,920 --> 00:30:30,040 Speaker 1: the kinds of companies you think will be able to 558 00:30:30,240 --> 00:30:33,440 Speaker 1: hire most tea in Where can a person who wants 559 00:30:33,520 --> 00:30:36,240 Speaker 1: to get a lot of crypto skill gain that crypto 560 00:30:36,880 --> 00:30:40,440 Speaker 1: expertise in a crypto winter. Yeah, I mean we're still 561 00:30:40,520 --> 00:30:43,920 Speaker 1: hiring Edgin note and we work on the graph protocol. 562 00:30:44,000 --> 00:30:47,840 Speaker 1: Many coord developers within the graph ecosystem are also hiring 563 00:30:48,320 --> 00:30:50,040 Speaker 1: UM and I think there are many protocols like look 564 00:30:50,040 --> 00:30:52,960 Speaker 1: at our, we look at connects. UM. We still need 565 00:30:53,040 --> 00:30:56,680 Speaker 1: talent and it's actually in a in a market like this, 566 00:30:56,880 --> 00:30:59,640 Speaker 1: it's easier to get talent. There were the price tags 567 00:30:59,720 --> 00:31:02,320 Speaker 1: for lan. We're really rising up during the bowl market, 568 00:31:02,720 --> 00:31:06,080 Speaker 1: and so it is a good opportunity for projects and 569 00:31:06,120 --> 00:31:09,960 Speaker 1: companies to be very decisive about who they want to 570 00:31:10,040 --> 00:31:12,000 Speaker 1: hire and the and the roles that they really need 571 00:31:12,040 --> 00:31:14,480 Speaker 1: to hire for in a time of uncertainty within the 572 00:31:14,480 --> 00:31:18,360 Speaker 1: broader macro environment. UM. But yeah, many projects are still hiring. 573 00:31:18,720 --> 00:31:23,120 Speaker 1: How do you think about the inherent conflict of decentralization 574 00:31:23,560 --> 00:31:26,040 Speaker 1: on companies that are getting bigger and bigger who might 575 00:31:26,080 --> 00:31:30,600 Speaker 1: need authority and centralization over a product. Yeah, it's a 576 00:31:30,600 --> 00:31:32,920 Speaker 1: great question. So I think in Web three, you really 577 00:31:32,920 --> 00:31:34,640 Speaker 1: want to give that power away. You want to give 578 00:31:34,680 --> 00:31:36,640 Speaker 1: up power back to user, and that's really what this 579 00:31:36,800 --> 00:31:39,720 Speaker 1: is about. But that doesn't mean that centralized companies won't 580 00:31:39,760 --> 00:31:42,120 Speaker 1: go away. They'll just exist in the concept and the 581 00:31:42,160 --> 00:31:45,280 Speaker 1: concept of decentralization, and the Graphic Protocol is a great 582 00:31:45,280 --> 00:31:47,640 Speaker 1: example of this. There are over five companies, one of 583 00:31:47,680 --> 00:31:50,440 Speaker 1: which is Edge and Node that exists within the context 584 00:31:50,520 --> 00:31:52,160 Speaker 1: of that protocol. And now that we have these new 585 00:31:52,200 --> 00:31:56,120 Speaker 1: monetization structures, were able to get rid of the kind 586 00:31:56,160 --> 00:32:00,720 Speaker 1: of wompy monetization models like ads and kind making users 587 00:32:00,720 --> 00:32:02,360 Speaker 1: the product like what we see a lot in web 588 00:32:02,400 --> 00:32:05,080 Speaker 1: to um within the Web three space, and so that's exciting. 589 00:32:05,280 --> 00:32:07,600 Speaker 1: The graph has been referred to of the Google of 590 00:32:07,680 --> 00:32:11,040 Speaker 1: block chains, and you've announced a Web three browser. So 591 00:32:11,120 --> 00:32:14,320 Speaker 1: how is that kind of browser going to be different 592 00:32:14,520 --> 00:32:18,920 Speaker 1: than Google itself? Yeah, so great question. So u Geo 593 00:32:19,160 --> 00:32:21,960 Speaker 1: is the browser that was announced yesterday, and it is 594 00:32:22,040 --> 00:32:25,480 Speaker 1: a decentralized browser. It's the first browser of Web three, 595 00:32:25,560 --> 00:32:28,400 Speaker 1: so very different than any browser that we're used to 596 00:32:28,600 --> 00:32:30,640 Speaker 1: in the web to space. And Web three is really 597 00:32:30,680 --> 00:32:33,160 Speaker 1: a new web it's a verifiable web and so you 598 00:32:33,200 --> 00:32:35,200 Speaker 1: can think of like a Google Docs form where you 599 00:32:35,240 --> 00:32:38,560 Speaker 1: can see all the change history. That's how GEO works, 600 00:32:38,680 --> 00:32:43,560 Speaker 1: and so anyone can contribute to changes. However, there's reputation 601 00:32:43,720 --> 00:32:47,440 Speaker 1: within GEO and so you the more you vote, the more, 602 00:32:47,520 --> 00:32:50,480 Speaker 1: and you can earn more reputation over time, um and 603 00:32:50,560 --> 00:32:52,760 Speaker 1: you have more say so, it's really about giving the power, 604 00:32:52,840 --> 00:32:55,360 Speaker 1: the control, the ownership, the decision making all back to 605 00:32:55,400 --> 00:32:58,040 Speaker 1: the user. And everyone's been asking where's Web three? I 606 00:32:58,080 --> 00:33:00,840 Speaker 1: can't find it? Well, now you know you kind So 607 00:33:01,000 --> 00:33:03,320 Speaker 1: what about the Web two companies that are getting more 608 00:33:03,440 --> 00:33:06,160 Speaker 1: into Web three and it's starting to dip their toe 609 00:33:06,240 --> 00:33:08,959 Speaker 1: into blockchain in a bigger way. Do you think that 610 00:33:09,040 --> 00:33:12,080 Speaker 1: the traditional Web two companies met at Google even? Do 611 00:33:12,120 --> 00:33:15,040 Speaker 1: you think that they can create a lot of competition 612 00:33:15,080 --> 00:33:18,400 Speaker 1: in this space? I don't. I think that Google is 613 00:33:18,440 --> 00:33:21,520 Speaker 1: doing very well selling ads they I think that they 614 00:33:21,920 --> 00:33:24,800 Speaker 1: are doing a great job in that current space. I 615 00:33:24,800 --> 00:33:28,960 Speaker 1: think once you as a founder, once you take equity 616 00:33:29,200 --> 00:33:32,280 Speaker 1: or once you start monitoring monetizing in one way, it's 617 00:33:32,280 --> 00:33:35,360 Speaker 1: really difficult to reshape that monetization and you have a 618 00:33:35,400 --> 00:33:38,080 Speaker 1: lot of stakeholders. UM and so I think they would 619 00:33:38,120 --> 00:33:41,040 Speaker 1: need to kind of like spin out or enable this 620 00:33:41,160 --> 00:33:44,000 Speaker 1: space in in some way. And even with banks, right 621 00:33:44,000 --> 00:33:46,080 Speaker 1: like banks aren't going away. You still want someone to 622 00:33:46,120 --> 00:33:49,200 Speaker 1: call you when you're if you have a margin trade 623 00:33:49,200 --> 00:33:51,200 Speaker 1: out and you're about to get liquidated. And so there's 624 00:33:51,200 --> 00:33:53,760 Speaker 1: still a lot of room for the traditional companies to 625 00:33:53,840 --> 00:33:56,400 Speaker 1: exist within the space. It'll just be in a different context. 626 00:33:56,480 --> 00:33:58,960 Speaker 1: You know, we talked about Crypto Winter in the Vein 627 00:33:59,200 --> 00:34:01,960 Speaker 1: of Hire, but what about Crypto Winter in terms of 628 00:34:01,960 --> 00:34:04,040 Speaker 1: the types of projects that will be built. Do you 629 00:34:04,040 --> 00:34:06,640 Speaker 1: think this is the opportunity for Crypto to pivot? Are 630 00:34:06,680 --> 00:34:08,480 Speaker 1: there going to be different types of projects than we 631 00:34:08,520 --> 00:34:12,080 Speaker 1: saw in the last couple of years. Yeah, I mean, 632 00:34:12,320 --> 00:34:14,279 Speaker 1: so all the pieces of the tech stack are there. 633 00:34:14,360 --> 00:34:17,279 Speaker 1: We're still building. And I'm actually really excited about this 634 00:34:17,440 --> 00:34:20,040 Speaker 1: cool off because so many founders and projects were being 635 00:34:20,040 --> 00:34:23,200 Speaker 1: pulled in ninety different directions in the Bowl market, and 636 00:34:23,239 --> 00:34:25,480 Speaker 1: now you see the projects that are really being used 637 00:34:25,480 --> 00:34:27,760 Speaker 1: and it kind of comes back to fundamentals as opposed 638 00:34:27,800 --> 00:34:30,640 Speaker 1: to the marketing that went in during that Bowl market, 639 00:34:30,800 --> 00:34:33,640 Speaker 1: and so you're pulled in less directions and you're able 640 00:34:33,680 --> 00:34:36,080 Speaker 1: to just build. And I think the biggest piece, the 641 00:34:36,080 --> 00:34:38,919 Speaker 1: biggest piece to the puzzle is really time and now 642 00:34:39,120 --> 00:34:42,399 Speaker 1: like this market, we have that time. Really appreciated taking 643 00:34:42,400 --> 00:34:45,000 Speaker 1: Incline co founder a Vegan note of course in our 644 00:34:45,080 --> 00:34:48,879 Speaker 1: very Bloomberg Sennalis Bossic, really appreciate both of you joining 645 00:34:48,960 --> 00:34:52,319 Speaker 1: me here today. Coming up after two years of being 646 00:34:52,480 --> 00:34:56,239 Speaker 1: virtual Apples w w DC event, it is that it 647 00:34:56,360 --> 00:34:58,719 Speaker 1: kicks off Monday. We are going to be live in 648 00:34:58,840 --> 00:35:01,279 Speaker 1: Apple Park and we have sort of the latest on 649 00:35:01,360 --> 00:35:18,320 Speaker 1: what to expect that's next. This is Bloomberg the Apple 650 00:35:18,440 --> 00:35:21,920 Speaker 1: Worldwide Developer Conference. It kicks off Monday in person for 651 00:35:21,960 --> 00:35:24,759 Speaker 1: the first time since the beginning of the pandemic. The 652 00:35:24,840 --> 00:35:27,000 Speaker 1: tech giant holds it each year to show off new 653 00:35:27,080 --> 00:35:31,360 Speaker 1: features and device enhancements that developers can harness with their apps. 654 00:35:31,480 --> 00:35:35,160 Speaker 1: Joining this now Ben Bajarin, principal analysts and CEO at 655 00:35:35,160 --> 00:35:39,640 Speaker 1: Creative Strategies consumer tech research Companies. So, okay, hit it 656 00:35:39,719 --> 00:35:42,319 Speaker 1: with me first. What is sort of the key thing 657 00:35:42,360 --> 00:35:46,520 Speaker 1: that you're really looking forward to on Monday. Yeah. Apple's 658 00:35:46,680 --> 00:35:49,520 Speaker 1: WWDC is always an interesting event because it's the one 659 00:35:49,800 --> 00:35:52,279 Speaker 1: sort of place where where they do give a little 660 00:35:52,320 --> 00:35:54,200 Speaker 1: bit more of a roadmap to the future. Not the 661 00:35:54,320 --> 00:35:56,920 Speaker 1: long off future, but stuff that's coming this fall, so 662 00:35:56,960 --> 00:36:00,920 Speaker 1: they'll preview everything new that's coming to iOS, iPad os, 663 00:36:00,920 --> 00:36:03,680 Speaker 1: mac os, stuff like that, maybe t v O S. 664 00:36:03,719 --> 00:36:07,279 Speaker 1: So it's generally always a software focused event. I know 665 00:36:07,320 --> 00:36:09,400 Speaker 1: we talk a lot about hardware, but I don't know 666 00:36:09,480 --> 00:36:11,640 Speaker 1: how much hardware would really be at this event is 667 00:36:11,680 --> 00:36:14,280 Speaker 1: not typically what what Apple does with with w WDC, 668 00:36:14,640 --> 00:36:17,239 Speaker 1: but really just talking to developers, showing them the vision 669 00:36:17,280 --> 00:36:19,440 Speaker 1: for the platform where they're going, so that they can 670 00:36:19,440 --> 00:36:21,560 Speaker 1: start to take advantage of new s, d ks and 671 00:36:21,560 --> 00:36:24,560 Speaker 1: a p I s create new apps on whatever new 672 00:36:24,680 --> 00:36:26,879 Speaker 1: bells and whistles they're bringing to the platform. So that's 673 00:36:27,200 --> 00:36:29,080 Speaker 1: usually what I'm looking at the most is how are 674 00:36:29,080 --> 00:36:32,080 Speaker 1: they evolving their platforms forward, and then things around If 675 00:36:32,280 --> 00:36:35,040 Speaker 1: a piece of hardware shows of or something else is 676 00:36:35,080 --> 00:36:37,319 Speaker 1: usually kind of icing on the cake. Would that be 677 00:36:37,400 --> 00:36:41,120 Speaker 1: in the form of a new headset. I don't think so. 678 00:36:41,320 --> 00:36:43,840 Speaker 1: I would not expect that. I would caution others do not 679 00:36:43,800 --> 00:36:45,840 Speaker 1: not expect that. I mean, personally, I'm not sure that 680 00:36:45,920 --> 00:36:49,040 Speaker 1: technology is there yet, even from stuff I've seen demo 681 00:36:49,120 --> 00:36:51,200 Speaker 1: and tech wise, it's it's just not there. So I 682 00:36:51,200 --> 00:36:53,920 Speaker 1: would caution away from that. But that being said, Apple 683 00:36:54,000 --> 00:36:56,799 Speaker 1: does have a toolkit called a R Kit that they're 684 00:36:56,800 --> 00:36:59,400 Speaker 1: continuing to try to gain momentum for and get developers 685 00:36:59,400 --> 00:37:01,600 Speaker 1: to start using anymore. So it'll be interesting to see 686 00:37:01,640 --> 00:37:04,000 Speaker 1: if they launched anything new around a R kit that 687 00:37:04,200 --> 00:37:07,239 Speaker 1: might give us some signals about where they're going. Really, again, 688 00:37:07,280 --> 00:37:10,040 Speaker 1: it's about getting developers to take advantage of those tools, 689 00:37:10,040 --> 00:37:12,600 Speaker 1: those technologies and create new apps, and in this case 690 00:37:12,680 --> 00:37:15,440 Speaker 1: maybe more a R apps, but they'll be smartphone based. Well, 691 00:37:15,480 --> 00:37:19,000 Speaker 1: we talk about the apps. Our own internal reporter, Mark 692 00:37:19,040 --> 00:37:20,920 Speaker 1: German has done a lot of research and looking at 693 00:37:21,000 --> 00:37:23,480 Speaker 1: maybe a new iOS six team the way it can 694 00:37:23,560 --> 00:37:26,359 Speaker 1: interact with the user. How do you think about the 695 00:37:26,360 --> 00:37:30,880 Speaker 1: the iOS system the six team. Yeah, I think it 696 00:37:30,880 --> 00:37:32,680 Speaker 1: would be really interesting. I mean that that could be, 697 00:37:32,719 --> 00:37:34,879 Speaker 1: in my opinion, one of the bigger surprises if there's 698 00:37:34,880 --> 00:37:38,040 Speaker 1: a user interface overhaul, something that's flashy and new that 699 00:37:38,080 --> 00:37:40,879 Speaker 1: we can get excited about. You know, iOS is great, 700 00:37:40,880 --> 00:37:42,719 Speaker 1: It's it's evolved quite a bit of time. It's really 701 00:37:42,760 --> 00:37:46,120 Speaker 1: only gone through a couple of serious, i would say 702 00:37:46,160 --> 00:37:51,040 Speaker 1: serious user interface um overhauls. So if people have argued 703 00:37:51,080 --> 00:37:53,040 Speaker 1: that we're due for one to make it more flashy 704 00:37:53,040 --> 00:37:55,279 Speaker 1: and new, because because that's the thing I think it's 705 00:37:55,280 --> 00:37:58,799 Speaker 1: really interesting about this platform in general. Apple's approach to 706 00:37:58,840 --> 00:38:02,279 Speaker 1: it is this event really signals all of the new 707 00:38:02,400 --> 00:38:05,240 Speaker 1: features and functionality that they bring to their customer space, 708 00:38:05,320 --> 00:38:08,440 Speaker 1: right basically making all of their customers devices better with 709 00:38:08,520 --> 00:38:11,319 Speaker 1: a software update. And so what might that look like 710 00:38:11,400 --> 00:38:13,360 Speaker 1: with something that's kind of brand new, I think that 711 00:38:13,360 --> 00:38:16,399 Speaker 1: would be an esting surprise. Again, it's hard to expect that, 712 00:38:16,719 --> 00:38:18,200 Speaker 1: but that's the kind of thing that I think people 713 00:38:18,239 --> 00:38:20,760 Speaker 1: would would get really excited about, is a fresh, fresh 714 00:38:20,800 --> 00:38:23,520 Speaker 1: look for iOS. This is also a company that has 715 00:38:23,600 --> 00:38:26,680 Speaker 1: done a huge amount of work to bring the chip 716 00:38:26,719 --> 00:38:30,480 Speaker 1: design in house. How much of that is control over 717 00:38:30,560 --> 00:38:34,080 Speaker 1: your own destiny versus some comments on the supply chain 718 00:38:34,160 --> 00:38:36,600 Speaker 1: that are still a little bit difficult in this environment. 719 00:38:37,920 --> 00:38:40,799 Speaker 1: I think it's primarily driven by control of destiny. I mean, 720 00:38:40,880 --> 00:38:43,880 Speaker 1: the Apple looks at the entirety of their product roadmap 721 00:38:43,960 --> 00:38:47,160 Speaker 1: from software, services and hardware. They always have a vision 722 00:38:47,239 --> 00:38:49,280 Speaker 1: for that where they want to go, and they take 723 00:38:49,320 --> 00:38:52,120 Speaker 1: that and and and build Silicon with that vision in mine. Right, 724 00:38:52,200 --> 00:38:55,360 Speaker 1: the Silicon team is in lock set with the hardware 725 00:38:55,360 --> 00:38:58,239 Speaker 1: planning team, the software planning team, and services, So it's 726 00:38:58,239 --> 00:39:03,800 Speaker 1: really a comprehensive whole. Note their supply chain images are issues, 727 00:39:03,840 --> 00:39:07,319 Speaker 1: but the reality is, even with Apple's internal design of 728 00:39:07,320 --> 00:39:09,040 Speaker 1: these ships, they're not going to be immune to the 729 00:39:09,040 --> 00:39:11,800 Speaker 1: supply chain issues. Hopefully they can try to manage that better, 730 00:39:12,120 --> 00:39:14,640 Speaker 1: but absolutely, Apple Silicon is a is a critical part 731 00:39:14,640 --> 00:39:17,880 Speaker 1: of moving their hardware device strategy forward in everything, including 732 00:39:17,920 --> 00:39:19,919 Speaker 1: some things that are new in the future, whether that's 733 00:39:19,920 --> 00:39:22,480 Speaker 1: headsets or whatnot. At all the Apple Silicon based do 734 00:39:22,600 --> 00:39:26,200 Speaker 1: you see any sort of macro issues? The supply chain startles, 735 00:39:26,320 --> 00:39:29,520 Speaker 1: the shutdowns of some of the factories in China starting 736 00:39:29,560 --> 00:39:34,799 Speaker 1: to impact this company in a significant way. I don't 737 00:39:34,800 --> 00:39:37,320 Speaker 1: know about a significant way, but we're definitely worried about 738 00:39:37,320 --> 00:39:39,600 Speaker 1: some impact. I mean, there's no doubt that the China 739 00:39:39,640 --> 00:39:42,840 Speaker 1: market has slowed down quite a bit, even just consumers 740 00:39:42,840 --> 00:39:45,720 Speaker 1: buying there, and China is a big part of Apple's business. 741 00:39:45,960 --> 00:39:47,920 Speaker 1: So I do think people are starting to caution a 742 00:39:48,000 --> 00:39:50,400 Speaker 1: little bit about what do you expect in terms of 743 00:39:50,400 --> 00:39:53,959 Speaker 1: a hardware impact. Again, that's not demand going away, that's 744 00:39:54,040 --> 00:39:56,560 Speaker 1: just people either not being able to get outside and 745 00:39:56,600 --> 00:40:00,719 Speaker 1: buy phones. That's supply chain or factory being shut down, 746 00:40:00,719 --> 00:40:03,200 Speaker 1: not being able to make them and so across the board. 747 00:40:03,200 --> 00:40:05,040 Speaker 1: And I think this is true really of all consumer 748 00:40:05,080 --> 00:40:08,840 Speaker 1: electronics category. These aren't necessarily lost sales. These are just 749 00:40:08,960 --> 00:40:12,319 Speaker 1: delayed sales. But but that being said, it's it's going 750 00:40:12,360 --> 00:40:14,360 Speaker 1: to have an impact right in a short term some 751 00:40:14,520 --> 00:40:18,560 Speaker 1: degree really appreciate it. Ben Herron, principal analysts and see 752 00:40:18,600 --> 00:40:22,160 Speaker 1: you over a creative strategies, really appreciate it. That doesn't. 753 00:40:22,239 --> 00:40:25,279 Speaker 1: For this edition of Bloomberg Technology, tune in Monday b 754 00:40:25,480 --> 00:40:28,480 Speaker 1: Tech Live from the w w d C. You don't 755 00:40:28,480 --> 00:40:30,520 Speaker 1: want to miss it. This is Bloomberg