WEBVTT - Tesla Sheds Cuts Staff, and a Preview of Apple's WWDC 0:00:02.240 --> 0:00:05.600 From the heart of where innovation, money and power collive 0:00:06.360 --> 0:00:10.879 in Silicon Valley and beyond. This is Bloomberg Technology with 0:00:10.960 --> 0:00:26.640 Emily Jay. I'm Taylor Briggs in New York in for 0:00:26.760 --> 0:00:29.920 Emily Chang, and this is Bloomberg Technology. Coming up in 0:00:29.920 --> 0:00:33.600 the next hour, Tesla CEO Elon Musk planning to shed 0:00:33.800 --> 0:00:37.040 ten percent of staff. Is Corporate America turns up the 0:00:37.159 --> 0:00:41.160 volume on all of these economic warnings. We have the story. Plus, 0:00:41.159 --> 0:00:43.920 while speaking of Elon Musk, he's one step closer to 0:00:43.960 --> 0:00:47.479 buying Twitter, the social media company says that a regulatory 0:00:47.560 --> 0:00:51.879 waiting period has expired. We'll discuss the next steps, and 0:00:51.960 --> 0:00:55.440 of course a big preview of Apple's Worldwide Developer Conference 0:00:55.480 --> 0:00:58.400 and coming up quickly on Monday, developers are going to 0:00:58.520 --> 0:01:01.800 gather in person for the time in years. Why can 0:01:01.880 --> 0:01:04.560 we expect We'll break it all down for you. Let's 0:01:04.600 --> 0:01:07.479 stake with today's jobs market, the market moves. Of course, 0:01:07.680 --> 0:01:10.880 those job numbers really coming. They can fascinate. Thirty am 0:01:10.959 --> 0:01:12.560 this morning, I want to do all of this with 0:01:12.600 --> 0:01:16.200 cross Marks tieth market strategists Victoria Fernandez and talked to 0:01:16.280 --> 0:01:18.320 us sort of about you know, sort of the the 0:01:18.400 --> 0:01:21.120 decent the good jobs numbers and how we're thinking about 0:01:21.160 --> 0:01:24.080 the way that that impacts the federal reserve that certainly 0:01:24.120 --> 0:01:27.240 needs to be on the move. Yeah, Taylor, I think 0:01:27.280 --> 0:01:29.840 we had some conflicting stories this morning coming out of 0:01:29.840 --> 0:01:31.920 the job support. Obviously, it was a little bit bigger 0:01:31.920 --> 0:01:34.840 than expected, and so therefore people were concerned that the 0:01:34.840 --> 0:01:37.680 Fed is going to continue to raise rates, maybe even 0:01:37.800 --> 0:01:41.280 faster than what they've telegraphed so far. They've telegraphed fifty 0:01:41.280 --> 0:01:44.640 basis point moves at the next two meetings September. They're 0:01:44.680 --> 0:01:47.560 saying is open. Perhaps the jobs report today makes a 0:01:47.640 --> 0:01:50.640 fifty basis point move in September more likely. But I 0:01:50.680 --> 0:01:52.960 think we also have to look at the average hourly 0:01:53.040 --> 0:01:56.440 earnings that stay flat versus last month, and this is 0:01:56.440 --> 0:02:00.000 where we're really gonna see, um, you know, the inflation component. 0:02:00.000 --> 0:02:03.240 It dig in, that sticky component of inflation coming from wages, 0:02:03.440 --> 0:02:05.880 and we didn't see the game there that many people thought, 0:02:05.880 --> 0:02:08.960 and we saw the participation rate go higher, which again 0:02:09.360 --> 0:02:12.040 could help bring wage inflation down a little bit. So 0:02:12.360 --> 0:02:14.360 a little bit of a mixed story, but I do 0:02:14.440 --> 0:02:16.400 think that that is going to continue to go full 0:02:16.440 --> 0:02:19.200 force at this point and that's why we saw the 0:02:19.240 --> 0:02:21.520 markets react the way they did today. And is that 0:02:21.600 --> 0:02:25.239 why tech continues to be the big underperformer, just struggling 0:02:25.240 --> 0:02:31.040 to be outperforming and it yields rising kind of environment. Yeah, Obviously, 0:02:31.080 --> 0:02:33.440 when yields go higher, those tech names, those what we 0:02:33.480 --> 0:02:37.040 consider long duration stocks, tend to not do well. But look, 0:02:37.080 --> 0:02:40.560 even when yield went down over the last ten days 0:02:40.639 --> 0:02:42.520 or so, we had yields come back off of that 0:02:42.800 --> 0:02:45.600 terday high at three twenty, and we didn't see Tech 0:02:45.680 --> 0:02:49.160 do tremendously well. We didn't see them take leadership. You 0:02:49.200 --> 0:02:52.799 still have Energy taking leadership right now. So that has 0:02:52.840 --> 0:02:54.600 to make us think that there's not gonna be a 0:02:54.639 --> 0:02:57.280 big shift um and we're gonna be in a big 0:02:57.360 --> 0:02:59.720 upturn for the markets. That makes us think we are 0:02:59.800 --> 0:03:02.240 just having a little bit of a bear market rally 0:03:02.400 --> 0:03:04.920 right now with Energy still leading. So I think you 0:03:04.960 --> 0:03:07.480 have to be careful with tech. There's a lot of 0:03:07.560 --> 0:03:11.200 volatility around those names with yields constantly moving, but I 0:03:11.240 --> 0:03:13.560 don't think you want to remove them all from your portfolio. 0:03:13.639 --> 0:03:16.000 You still need some exposure there. It was interesting, though 0:03:16.040 --> 0:03:18.520 the strategy is over at Bank of America said that 0:03:18.720 --> 0:03:22.200 tech is a huge laggard in sort of this stagflationary 0:03:22.280 --> 0:03:25.360 environment and that growth is the lagger. That this sort 0:03:25.360 --> 0:03:27.639 of outperformance that we've had as of late is such 0:03:27.639 --> 0:03:31.239 an anomaly that really the trend is towards value. Are 0:03:31.280 --> 0:03:34.920 you viewing value out performance and if we get a 0:03:34.920 --> 0:03:40.360 stagflationary environment, yeah, we actually like value better. Here when 0:03:40.360 --> 0:03:42.720 you look at our tim predictions that we put out 0:03:42.880 --> 0:03:46.000 on December thirty one, we talked about value versus growth, 0:03:46.280 --> 0:03:48.720 and what we've seen since the beginning of the year 0:03:48.840 --> 0:03:52.760 is that about half roughly about half of the outperformance 0:03:53.160 --> 0:03:56.119 from value over growth has kind of dissipated, but yet 0:03:56.120 --> 0:04:00.480 it's still performing better. So we have a balanced portfolio. 0:04:00.560 --> 0:04:02.760 We've trimmed a little bit of our value names, but 0:04:02.840 --> 0:04:06.000 we're still overweight that we still have growth names in 0:04:06.000 --> 0:04:08.960 the portfolio. We think with all the volatility that's coming, 0:04:09.360 --> 0:04:12.000 value may still outperform, but you want to make sure 0:04:12.040 --> 0:04:14.640 that you have a good balanced portfolio, and that's where 0:04:14.640 --> 0:04:18.799 we're having our clients position themselves. Victoria's interesting. We're speaking 0:04:18.800 --> 0:04:21.279 with Rick Reader over at black Rock earlier this morning, 0:04:21.320 --> 0:04:24.080 talking a little bit about the Federal Reserve and dare 0:04:24.120 --> 0:04:27.320 we say sort of a goldilocks ish environment. Take a 0:04:27.360 --> 0:04:30.480 listen to what he had to say. This will do 0:04:30.560 --> 0:04:33.520 nothing to deter the head from where they where they're going. 0:04:34.080 --> 0:04:36.080 But I think I think it's a big report because 0:04:36.120 --> 0:04:37.560 I think we're now going to make the turn. I 0:04:37.600 --> 0:04:40.120 think the next three or four months, you're going to 0:04:40.160 --> 0:04:43.560 see these numbers decline. I could see a negative print 0:04:43.960 --> 0:04:46.320 over the next three or four months, and that's the 0:04:46.320 --> 0:04:48.000 thing that I'm keyed into, and I think that's what 0:04:48.120 --> 0:04:50.600 markets will react to and trying to interpret how deep 0:04:50.640 --> 0:04:55.320 the Fed's gonna go. Is that sort of peak jobs 0:04:55.320 --> 0:04:58.560 what we just got. Yeah, I listened to that interview 0:04:58.600 --> 0:05:01.279 this morning and it was interesting this he's expecting negative 0:05:01.320 --> 0:05:03.640 numbers to come out, and I'm really kind of along 0:05:03.640 --> 0:05:06.920 those lines. I do think that we're going to see 0:05:07.240 --> 0:05:10.039 the labor market really start to come down. And look, 0:05:10.120 --> 0:05:13.480 the Feed has told us they are willing to sacrifice 0:05:13.520 --> 0:05:15.560 some of the strength and the labor market in order 0:05:15.600 --> 0:05:18.000 to bring inflation down. So I think we have to 0:05:18.080 --> 0:05:21.040 expect that that is actually going to happen. We talk 0:05:21.120 --> 0:05:24.120 about peak inflation, peak yield, I think we have to 0:05:24.200 --> 0:05:27.960 also speak about peak labor market and how we're going 0:05:28.000 --> 0:05:30.480 to see some of those smaller companies, you know, that's 0:05:30.480 --> 0:05:32.200 where they've been hurting the worst on some of the 0:05:32.279 --> 0:05:35.400 labor cost issues. If they start laying people off in 0:05:35.440 --> 0:05:39.279 those lower paying jobs, that's definitely going to affect UM 0:05:39.360 --> 0:05:42.840 the labor market reports coming in the next few months. Finally, here, 0:05:43.200 --> 0:05:46.400 what's the biggest question you're getting from clients at this moment? 0:05:47.360 --> 0:05:49.640 You know, it's interesting. We just hosted a Q and 0:05:49.720 --> 0:05:52.560 a UM with clients this week where they could just 0:05:52.600 --> 0:05:55.080 call in and ask questions to our CIO, Bob Doll 0:05:55.120 --> 0:05:58.560 and myself. The biggest question we got was about recession 0:05:58.640 --> 0:06:01.200 and inflation UM and so we're you know, we're telling 0:06:01.200 --> 0:06:04.560 people we don't expect a recession these this year. Household 0:06:04.600 --> 0:06:08.760 balance sheets are strong, corporate balance sheets continue to do well. 0:06:08.960 --> 0:06:11.479 Are we going to see growth slow down a little bit, Yes, 0:06:11.720 --> 0:06:14.600 but we're not at the level with the labor market 0:06:14.720 --> 0:06:17.640 with earnings, were not at the level yet that we 0:06:17.720 --> 0:06:20.480 think we're gonna go into recession. We're looking if that 0:06:20.560 --> 0:06:23.479 happens maybe second half of next year, but we still 0:06:23.520 --> 0:06:25.960 think the economy will hold pretty strong. Here for the 0:06:25.960 --> 0:06:30.799 rest of really appreciated cross marks. Chief market Strategists Victoria 0:06:30.880 --> 0:06:34.040 Fernandez Happy Friday, and that sort of leaves us off 0:06:34.080 --> 0:06:36.000 at a really good note when we think about recession, 0:06:36.120 --> 0:06:38.480 is that the biggest question that clients are asking, is 0:06:38.520 --> 0:06:42.320 that the biggest question that corporate CEOs like Tesla CEO 0:06:42.360 --> 0:06:45.520 Elon Musk is asking. He now actually comes out Today's 0:06:45.520 --> 0:06:47.640 saying that he's aiming to cut around ten percent of 0:06:47.640 --> 0:06:50.480 salaried staff from the company, saying that he quote has 0:06:50.520 --> 0:06:53.760 a super bad feeling about the economy. Dan Levy of 0:06:53.760 --> 0:06:57.240 course over credit suites joining us. Now, how are you 0:06:57.279 --> 0:07:00.360 thinking about if this is sort of an idiosyncratic Hassla 0:07:00.480 --> 0:07:02.880 issue or are you a little bit worried this is 0:07:02.920 --> 0:07:07.120 a broader e v broader economic issue? Thank you, Thank 0:07:07.160 --> 0:07:10.480 you for having the tailor. UM. We were surprised by 0:07:10.640 --> 0:07:15.160 the headline simply because Tesla is in uber growth mode. 0:07:15.200 --> 0:07:18.880 We know there's a lot of capacity that's coming online. 0:07:19.320 --> 0:07:23.040 They need UH support staff to to support that growth. 0:07:23.440 --> 0:07:26.360 So the headlines UM came as a bit of a 0:07:26.400 --> 0:07:29.960 surprise us. You know, yes, we're getting more questions from 0:07:30.000 --> 0:07:33.120 investors on the risk of recession. But the main thing 0:07:33.120 --> 0:07:35.320 that I would just point out is that Tesla and 0:07:35.360 --> 0:07:39.280 the auto industry broadly right now. The primary issue is 0:07:39.280 --> 0:07:42.240 actually not demand at the moment, but it's really supply. 0:07:42.400 --> 0:07:46.680 This is a supply constrained industry. Anything that's produced will 0:07:46.720 --> 0:07:49.880 be sold. UM. When you look at US auto sales, 0:07:49.960 --> 0:07:53.880 twelve point eight millions are in May, much lower than 0:07:53.920 --> 0:07:57.000 the typical seventeen million star that you would get. UH 0:07:57.000 --> 0:07:59.600 that that's because you have inventory at all time low. 0:07:59.760 --> 0:08:04.320 So the largest problem right now is supply, and in 0:08:04.320 --> 0:08:07.640 the case of Tesla, they need staff to support supply. 0:08:07.880 --> 0:08:11.880 Increasing that supply, uh and and unlocking that volume. Is 0:08:11.920 --> 0:08:14.760 this why maybe you well, I don't want to say 0:08:14.800 --> 0:08:17.520 you sound confused, but some of your counterparts Morgan Stanley's 0:08:17.560 --> 0:08:20.400 Adam Jonas, the cfr A analyst, saying that this sort 0:08:20.440 --> 0:08:22.400 of goes against what they were thinking when you talk 0:08:22.440 --> 0:08:25.680 about ramping up production, of increasing that supply, needing the 0:08:25.720 --> 0:08:28.440 staff that you can in the factories because the demand 0:08:28.560 --> 0:08:32.040 is there, are you could I say that maybe there's 0:08:32.080 --> 0:08:36.080 some confusion there as well. I think confusion is the 0:08:36.160 --> 0:08:37.600 right way to look at it. It is a little 0:08:37.640 --> 0:08:41.400 bit of a surprise for a company that is in 0:08:41.600 --> 0:08:44.679 uber growth mode and that I think it probably has 0:08:44.720 --> 0:08:48.280 a very long term view they have UH you know, 0:08:48.440 --> 0:08:51.160 something like eighteen or nineteen billion dollars of cash on 0:08:51.200 --> 0:08:54.360 the balance sheet, so they're well insulated. It is a 0:08:54.360 --> 0:08:56.720 little bit of a surprise. Now, I think to give 0:08:56.800 --> 0:09:00.280 credit to Tesla maybe to understand partially what's happening. This 0:09:00.360 --> 0:09:03.240 is a company that, even with all of the padding 0:09:03.280 --> 0:09:05.520 that they have on the balance sheet, they are very 0:09:05.760 --> 0:09:08.800 cost focused. We actually just had a field trip to 0:09:08.800 --> 0:09:11.240 the Fremont factory last week. You can still see this 0:09:11.320 --> 0:09:14.680 is a very cost focused company, even with all of 0:09:14.720 --> 0:09:17.120 the improvements in margins. So I don't know if it's 0:09:17.120 --> 0:09:20.120 something along those lines, but but yes, for a company 0:09:20.160 --> 0:09:22.000 that has a lot of growth, a head that needs 0:09:22.040 --> 0:09:24.320 to increase the volume, that needs to increase the support 0:09:24.400 --> 0:09:27.160 staff to support that volume, it's it was a slightly 0:09:27.760 --> 0:09:32.640 surprising headline. Really appreciate it your time and the fundamental analysis, 0:09:32.720 --> 0:09:35.319 Dan Levy, of course over a credit swas, really really 0:09:35.400 --> 0:09:46.480 appreciate your perspective there. Let's talk about that stock split, 0:09:46.520 --> 0:09:50.079 Amazon's one with the first split adjusted trading. It all 0:09:50.120 --> 0:09:53.400 begins on Monday. Now, remember the split was announced back 0:09:53.440 --> 0:09:55.720 in March. Shares initially got a boost, but then of 0:09:55.720 --> 0:09:58.680 course April and May came really falling here with a 0:09:58.679 --> 0:10:01.160 lot of the tech volatility. What does the split mean 0:10:01.240 --> 0:10:04.720 for investors joining us now? Michael Pactor, Managing director of 0:10:04.720 --> 0:10:07.960 Equity Research over a web Bush Securities, And we know 0:10:08.040 --> 0:10:10.880 the math intrinsic value hasn't changed for the company, but 0:10:10.960 --> 0:10:14.640 does the psychology, the consumer sentiment around the stock change 0:10:14.640 --> 0:10:18.480 it all for you? Yes? I mean, Taylor, I think 0:10:18.520 --> 0:10:22.440 that the idea of a split is to make the 0:10:22.520 --> 0:10:26.760 shares appear more affordable. And obviously institution just don't care, 0:10:26.880 --> 0:10:31.040 but individual investors do and employees do. Um, So it 0:10:31.400 --> 0:10:35.079 allows the company to be more appealing to individual investors, 0:10:35.440 --> 0:10:38.360 you know. And if you have ten thousand dollars to invest, 0:10:39.240 --> 0:10:41.720 are you going to buy four shares of Amazon? You know, 0:10:42.040 --> 0:10:44.640 maybe not, but you might buy a hundred shares at 0:10:45.120 --> 0:10:47.320 twenty it's been twelve thousand. I think that's how they're 0:10:47.320 --> 0:10:50.880 thinking about it. Same with employee compensation. You know, I 0:10:50.920 --> 0:10:52.640 have a friend who went to work there, and I 0:10:52.679 --> 0:10:56.840 remember the game two three shares of stock investing over 0:10:56.920 --> 0:11:00.000 four years, and it was just really complicated. They could 0:11:00.120 --> 0:11:03.840 push Camp down now stock based Camp down to even 0:11:03.880 --> 0:11:06.600 fulfillment center workers and truck drivers if they choose to 0:11:07.760 --> 0:11:11.160 because now they can give out stock an increments, you know, 0:11:11.200 --> 0:11:15.559 say a hundred twenty dollars instead, So it really provides 0:11:15.600 --> 0:11:19.440 a lot more flexibility for investors who are individuals want 0:11:19.440 --> 0:11:22.400 to buy one share, and for employees who they want 0:11:22.400 --> 0:11:25.120 to compensate and keep motivated so they can give them 0:11:25.120 --> 0:11:27.520 one share. So I think the stock will probably go 0:11:27.640 --> 0:11:31.480 up on this. More importantly though, this shows that management 0:11:31.520 --> 0:11:35.720 actually cares, and I think they have a reputation, very 0:11:35.760 --> 0:11:39.679 well earned reputation for not caring about Wall Street, and 0:11:39.800 --> 0:11:42.920 this is a very investor friendly thing to do. So 0:11:42.960 --> 0:11:45.280 I think it's a signal from Andy Jassey, who has 0:11:45.320 --> 0:11:49.360 been absent as far as investors are concerned, that maybe 0:11:49.360 --> 0:11:51.160 he does care about the share price, and we're going 0:11:51.200 --> 0:11:53.640 to see a start to go up. Very interesting. I 0:11:53.679 --> 0:11:57.800 am curious when you're thinking about management exit today Michael 0:11:57.840 --> 0:12:01.559 the Amazon CEO of the Worldwide Consumer Dave Clark resigns, 0:12:02.040 --> 0:12:06.600 are you thinking about Andy Josse coming in shaking up 0:12:06.880 --> 0:12:09.840 there sort of c suite areas the impact that that 0:12:09.920 --> 0:12:13.160 may have. You know, if if you had to pick 0:12:13.280 --> 0:12:16.160 one area of Amazon that was not doing poorly, it 0:12:16.320 --> 0:12:19.240 was that one. So I would say that, you know, 0:12:19.960 --> 0:12:24.680 consumer has been great. Actually, they they're great on everything 0:12:24.720 --> 0:12:27.480 they do on the revenue side, where they're out of 0:12:27.480 --> 0:12:31.440 controls the expanse side. And to be perfectly honest, I 0:12:31.480 --> 0:12:34.760 don't think it is Dave Clark's fault or anybody else's fault. 0:12:34.800 --> 0:12:37.720 I think it's Jeff Bezos and Andy Jesse's fault because 0:12:37.720 --> 0:12:39.840 they have a bunch of scut work projects that they're 0:12:39.840 --> 0:12:42.440 not going to tell us about, and they're investing a 0:12:42.480 --> 0:12:45.000 ton of money in things that may not pay off 0:12:45.040 --> 0:12:48.080 for ten or twenty years um. Like. As an example, 0:12:48.120 --> 0:12:51.880 I think Amazon Fresh self service stores is just a 0:12:52.040 --> 0:12:56.200 ridiculously stupid idea. Uh, you know, we don't shop at Amazon, 0:12:56.280 --> 0:12:58.080 so we can get in our car and drive to 0:12:58.200 --> 0:13:00.480 a store and you know, not have to deal with 0:13:00.520 --> 0:13:03.120 the clerk and checkout. Isn't the reason that I shot 0:13:03.120 --> 0:13:06.240 at the Amazon. So I think these guys have a 0:13:06.280 --> 0:13:09.000 lot of spending cuts to make. I don't think Dave 0:13:09.080 --> 0:13:12.760 Clark was the guide to make those guts. It's Andy Jassey, 0:13:13.080 --> 0:13:16.600 So he should be much more self introspective and be 0:13:16.679 --> 0:13:19.120 more self aware and start worrying about what he's doing 0:13:19.160 --> 0:13:22.720 the CEO. The bigger problem is that they're losing employees 0:13:22.800 --> 0:13:25.280 up and down the ranks because they don't pay enough 0:13:25.559 --> 0:13:28.160 and they're being poached by competitors. So they if they're 0:13:28.200 --> 0:13:29.800 going to get rid of somebody to CE suite, get 0:13:29.840 --> 0:13:31.840 rid of the head of HR because that person has 0:13:31.880 --> 0:13:35.480 not done a good job. Interesting. Okay, so we're getting 0:13:35.520 --> 0:13:38.720 into some of the idiosyncratic issues with an Amazon. But Michael, 0:13:38.760 --> 0:13:40.720 I thought it was really interesting. One of your counterparts, 0:13:40.720 --> 0:13:43.160 Sprint thill over at Jeffreys. I think I spoke with 0:13:43.240 --> 0:13:45.439 him last week and he said that sentiment on broader 0:13:45.480 --> 0:13:48.920 tech has never been worse. That they're doing backflips at 0:13:48.960 --> 0:13:51.640 the Exxon shareholders meeting, and you go to these tech 0:13:51.679 --> 0:13:55.360 conferences and sentiment is horrible. Is a lot of this 0:13:55.480 --> 0:13:59.720 maybe sort of the broad sentiment around technology in general. Yeah, 0:13:59.760 --> 0:14:02.760 My My largest personal holding is ex On Mobiles, so 0:14:02.880 --> 0:14:05.960 I've been doing back clips as well. Um, you know, 0:14:06.600 --> 0:14:09.480 there's two types of tech. You know, there's tech that's 0:14:09.520 --> 0:14:13.480 not profitable, and so when you're paying a revenue multiple 0:14:13.640 --> 0:14:16.800 for for companies like Unity and I love Unity, you 0:14:16.920 --> 0:14:20.320 know it's a genuinely great company, but they don't have profits. Um, 0:14:20.360 --> 0:14:22.160 there is no bottom. I mean, who knows how to 0:14:22.240 --> 0:14:26.960 value that thing. Then there are tech companies like Microsoft, Apple, Amazon, 0:14:27.160 --> 0:14:31.760 Google that are immensely profitable, and so it's really easy 0:14:31.840 --> 0:14:34.400 to kind of step in when you think they've gone 0:14:34.400 --> 0:14:37.680 down enough. And I think that where Jazz has control 0:14:38.240 --> 0:14:40.760 is he can say I'm gonna take earnings for share 0:14:40.800 --> 0:14:43.520 up ten bucks by slowing our spending on some of 0:14:43.560 --> 0:14:45.880 these projects that are going to pay off for ten years. 0:14:46.120 --> 0:14:48.120 If he does that, I think the stock has a 0:14:48.200 --> 0:14:50.800 potenci to go right back to where it was. So 0:14:51.000 --> 0:14:53.760 let's see what these tech leaders do. But the profitable 0:14:53.800 --> 0:14:57.680 companies should lead the rebound, and the big guys tend 0:14:57.720 --> 0:15:01.480 to be pretty profitable. Really appreciate all of your smart analysis. 0:15:01.560 --> 0:15:05.000 My goal packed or Knaging, director of Equity Research over 0:15:05.080 --> 0:15:07.160 Wedbush Securities. And just a note, I know that we're 0:15:07.160 --> 0:15:09.840 talking about the CEO Andy Jassy there. Stay tuned on 0:15:09.920 --> 0:15:12.920 Wednesday to thirty pm Eastern at the B Tech Summit. 0:15:12.960 --> 0:15:15.840 We will have a live interview of course with him there, 0:15:15.880 --> 0:15:18.040 so make sure to tune in for that. Lots of 0:15:18.080 --> 0:15:20.480 great interviews coming up at that B Tech summit. In 0:15:20.480 --> 0:15:23.200 the meantime, lots of great interviews coming up right here 0:15:23.280 --> 0:15:25.360 right now. We are one step closer, of course, for 0:15:25.680 --> 0:15:29.840 Elon Musk. Overcoming those hurdles for a Twitter takeover that 0:15:29.920 --> 0:15:48.320 conversation is next. This is Blimberg. Twitter passed in US 0:15:48.400 --> 0:15:51.680 anti trust review, clearing another step in its hurdle for 0:15:51.720 --> 0:15:54.880 the acquisition by Elon Musk in that proposed forty four 0:15:54.920 --> 0:15:58.360 billion dollar deal. However, the transaction it is still subject 0:15:58.400 --> 0:16:01.720 to acceptance by Twitter sharehold. There is another regulatory reviews 0:16:02.040 --> 0:16:04.840 joining this now Bloomberg's Edla Lowe sticking around late for 0:16:04.920 --> 0:16:07.480 US on a Friday, and how much of this sort 0:16:07.480 --> 0:16:11.400 of hurdle today was expected, Yeah, it was expected into 0:16:11.440 --> 0:16:14.320 a large extent. It's rubber stamping, you know. Essentially, the 0:16:14.320 --> 0:16:16.920 provision means that when a piece of M and A 0:16:17.000 --> 0:16:20.920 happens like this, both parties have to give the Federal 0:16:20.920 --> 0:16:23.560 Trade Commission and the Antitrust Division of the d o 0:16:23.680 --> 0:16:26.080 J thirty days to review the deal. And all this 0:16:26.200 --> 0:16:29.320 regulatory filing showed US is that that thirty day period 0:16:29.320 --> 0:16:32.320 has elapsed or the regulators went back to the parties 0:16:32.360 --> 0:16:34.480 and said, you pass the checks, you can proceed. But 0:16:34.520 --> 0:16:37.160 as we know, you know, regulators are looking at other 0:16:37.200 --> 0:16:40.040 elements at this, for example, the timing of when Elon 0:16:40.160 --> 0:16:42.440 must try to build up his stake in Twitter ahead 0:16:42.440 --> 0:16:46.440 of that offered to buy the company interesting and the 0:16:46.520 --> 0:16:50.320 sheer process at forty Yes, that is a far cry 0:16:50.360 --> 0:16:53.360 from the fifty four twenty. Are there real concerns that 0:16:53.440 --> 0:16:57.880 this may not get done? Yeah? You know, certainly the 0:16:57.960 --> 0:17:01.120 rubber stamping news of Friday moves us towards a place 0:17:01.120 --> 0:17:03.360 where we think it's more likely to get done. You know, 0:17:03.400 --> 0:17:06.200 we're talking about the spread here, right, the difference between 0:17:06.200 --> 0:17:08.720 the current share price forty dollars a share and the 0:17:08.800 --> 0:17:11.080 fifty four dollars twenty cents per share offer that Elon 0:17:11.200 --> 0:17:14.639 must made. The basic rule being the whyd that gets 0:17:14.920 --> 0:17:18.119 It's a soft indication of skepticism on Wall Street is 0:17:18.160 --> 0:17:21.000 going to happen that if that gap closes, we're moving 0:17:21.040 --> 0:17:23.720 towards a place where it's more likely to happen. It's 0:17:23.760 --> 0:17:26.720 just a soft indication. You also have, like merger arbitrars 0:17:26.720 --> 0:17:29.439 specialists that put odds on the deal, and at some 0:17:29.520 --> 0:17:31.560 point that you know, the odds on this deal happening 0:17:31.600 --> 0:17:35.080 have been below for they've now improved. The question is 0:17:35.119 --> 0:17:37.080 does he't come back in with a lower offer, And 0:17:37.119 --> 0:17:39.760 it seems like given today's news, that's unlikely to be 0:17:39.800 --> 0:17:43.040 the case. Interesting. So the hurdle then, that's now on 0:17:43.080 --> 0:17:47.000 Twitter shareholders. What would be anything for them to not 0:17:47.160 --> 0:17:50.720 vote for it? Yeah, this is a psychological question more 0:17:50.720 --> 0:17:54.280 than anything. You know, at twenty cents a share, you 0:17:54.320 --> 0:17:56.520 would lick your lips at that offer. That's a great 0:17:56.560 --> 0:17:59.439 offer if you're an existing shareholder of Twitter, because the 0:17:59.520 --> 0:18:02.639 trading Twitter hasn't really mirrored what we've seen in broader markets, right, 0:18:02.680 --> 0:18:05.080 because it's been subject to m and A and to 0:18:05.160 --> 0:18:08.640 take private bid. It hasn't traded with the wild swings 0:18:08.640 --> 0:18:12.040 and big drops like we've seen in other social media stocks. 0:18:12.040 --> 0:18:15.520 So yeah, wait and see, really appreciate it. Our very 0:18:15.520 --> 0:18:19.439 own at Ludlow coming up stick with us equality and 0:18:19.520 --> 0:18:22.800 inclusion in the workplace. We're going to speak with Brutal 0:18:22.880 --> 0:18:27.200 Gurus CEO Bobby Risette about her mission to represent under 0:18:27.359 --> 0:18:31.280 represented groups at her company, and that really important conversation 0:18:31.400 --> 0:18:45.200 is next. This is Bloomberg. Love's happening on Wall Street. 0:18:45.280 --> 0:18:49.679 It's the basic law of economics. It validated bottle market 0:18:49.760 --> 0:18:51.840 was already pricing. We need to catch up. This is 0:18:51.840 --> 0:18:54.879 Bloomberg Wall Street Week. I'm David Weston. We've got the 0:18:54.920 --> 0:18:58.000 information and insights. David. You just hit the mail right 0:18:58.040 --> 0:19:01.480 on the head from businesses most in fluential and instrumental, 0:19:01.560 --> 0:19:03.120 and that's the way you run good risk manage. It's 0:19:03.160 --> 0:19:05.879 a challenging dynamic. We could continue to see that college 0:19:05.920 --> 0:19:09.719 from Bloomberg Wall Street Week premieres Friday, with replays all 0:19:09.760 --> 0:19:48.359 weekend on Bloomberg Television and Radio. This is Bloomberg Technology. 0:19:48.400 --> 0:19:50.760 I'm Taylor Riggs in New York in for Emily Chang 0:19:50.920 --> 0:19:54.679 and this week started the Pride Month of course Bloomberg Television, 0:19:54.960 --> 0:19:58.119 focusing on a wide range of topics highlighting what equality 0:19:58.160 --> 0:20:02.159 means for the economy. Company these and well investors. Virgil 0:20:02.200 --> 0:20:05.359 Gurus it is a talent as a service solution platform 0:20:05.600 --> 0:20:08.840 that matches its users with the perfect North American remote 0:20:08.840 --> 0:20:14.119 assistance and freelancers by using match making algorithms. CEO Bobby 0:20:14.200 --> 0:20:17.439 Rossett is on a mission to create employment opportunities for 0:20:17.560 --> 0:20:21.160 underrepresented individuals. She has, of course amanded within her own 0:20:21.200 --> 0:20:26.320 company that of the workers identify as female, of course 0:20:26.760 --> 0:20:29.800 by the bipop community, and forty as part of the 0:20:29.920 --> 0:20:34.639 lgbt Q plus community. Bobby so pleased to say, joins 0:20:34.720 --> 0:20:36.720 us now and talk to us sort of as we 0:20:36.840 --> 0:20:39.200 kick off Pride Month and sort of a renewed focus 0:20:39.200 --> 0:20:41.840 on equality. And it's not lost on us that today 0:20:41.920 --> 0:20:44.639 is also job stay as well and continuing to see 0:20:45.000 --> 0:20:49.520 underrepresented individuals maybe not quite have the same opportunities as others. 0:20:49.720 --> 0:20:51.640 What do you really see is sort of the way 0:20:51.640 --> 0:20:56.920 to help move that forward. I thank you so much, UM, 0:20:57.000 --> 0:21:00.959 you know I I think all companies are are starting 0:21:00.960 --> 0:21:04.679 to gear towards UH inclusion intiversity in the workplace. At 0:21:04.720 --> 0:21:07.920 least we're seeing it a lot more now here in Canada. UM. 0:21:07.960 --> 0:21:10.719 We obviously have a lot more work to do, and 0:21:11.080 --> 0:21:14.320 I think it's important to that employers such as UH 0:21:14.480 --> 0:21:17.879 tech companies mostly need to really focus on putting that 0:21:18.000 --> 0:21:21.439 diversity out there right up front for everybody on their 0:21:21.480 --> 0:21:23.320 team to see and what they're working on, put their 0:21:23.400 --> 0:21:26.040 numbers on their site. I think all of this is 0:21:26.080 --> 0:21:28.439 extremely important so that we can show everybody that they 0:21:28.440 --> 0:21:32.040 are welcome no matter what. This is a technology show 0:21:32.080 --> 0:21:34.440 as well, so we're focused on equality across the board. 0:21:34.440 --> 0:21:37.359 We're really looking at highlighting it within the TEX sector 0:21:37.440 --> 0:21:40.400 as well. Do you see that the tech sector has 0:21:40.800 --> 0:21:43.879 maybe lagged or or struggled and and how do you 0:21:43.960 --> 0:21:46.720 sort of see this sector as being able to match 0:21:46.760 --> 0:21:52.080 other areas. I absolutely have, um you know, down here 0:21:52.080 --> 0:21:55.399 in Canada, it took me more than a hundred and 0:21:55.440 --> 0:21:59.000 seventy knows just to raise my seed round, which is 0:21:59.320 --> 0:22:01.840 obviously or the series they finding around that we just closed. 0:22:01.920 --> 0:22:05.480 But um I I want to say that all of 0:22:05.520 --> 0:22:07.960 that wasn't because of who I am as a person. 0:22:08.080 --> 0:22:12.760 I'm an Indigenous LGBT woman and you know, having being 0:22:12.800 --> 0:22:15.520 an Indigenous lgbtwo woman in tech, but let alone a 0:22:15.600 --> 0:22:18.800 CEO of a very large scale of I've seen a 0:22:18.800 --> 0:22:20.600 lot of the barriers. I've had to push through a 0:22:20.640 --> 0:22:23.560 lot of them. I've I've seen, you know, so much 0:22:23.720 --> 0:22:26.399 that it's been difficult for me to be able to 0:22:26.440 --> 0:22:29.560 scale the company knowing that people aren't believing in me 0:22:29.600 --> 0:22:33.000 because who I is who I am. So that's one 0:22:33.040 --> 0:22:35.719