1 00:00:03,880 --> 00:00:07,200 Speaker 1: From the heart of where innovation, money and power collive 2 00:00:08,000 --> 00:00:12,520 Speaker 1: in Silicon Valley and beyond. This is Bloomberg Technology with 3 00:00:12,560 --> 00:00:28,920 Speaker 1: Emily Jay. I'm Emily Check in San Francisco, and this 4 00:00:28,920 --> 00:00:31,800 Speaker 1: is Bloomberg Technology. Coming up in the next hour, Saudi 5 00:00:31,920 --> 00:00:36,560 Speaker 1: Aroundco overtakes Apple as the world's most valuable company. How 6 00:00:36,600 --> 00:00:39,159 Speaker 1: the tech and crypto selloff, coupled with a surge in 7 00:00:39,280 --> 00:00:42,599 Speaker 1: oil prices is up ending the order of the biggest 8 00:00:42,640 --> 00:00:47,199 Speaker 1: forces in the global economy. Plus two top executives are 9 00:00:47,280 --> 00:00:49,920 Speaker 1: out at Twitter as the company looks to cut costs 10 00:00:50,120 --> 00:00:53,720 Speaker 1: and freeze hires ahead of Elon Musk's takeover. This as 11 00:00:53,880 --> 00:00:56,600 Speaker 1: Musk is looking for new funding as he cuts his 12 00:00:56,760 --> 00:01:00,360 Speaker 1: Tesla margin loan. And we will be here from some 13 00:01:00,440 --> 00:01:03,080 Speaker 1: top CEOs today. Ryan Chesky joins us to talk about 14 00:01:03,080 --> 00:01:05,640 Speaker 1: Airbnb is quote the biggest change in a decade, and 15 00:01:05,840 --> 00:01:08,679 Speaker 1: how we thinks travelers will be hit by inflation. And 16 00:01:08,720 --> 00:01:11,640 Speaker 1: we'll hear from Arms CEO as the chip company gets 17 00:01:11,680 --> 00:01:14,080 Speaker 1: ready for an I p O. All of that in 18 00:01:14,120 --> 00:01:16,320 Speaker 1: a moment, But first I want to continue this conversation 19 00:01:16,319 --> 00:01:19,199 Speaker 1: now talk about Apple in particular falling again behind Saudi 20 00:01:19,240 --> 00:01:22,920 Speaker 1: Aramco as the world's most valuable company. Pierre Farragou joining 21 00:01:23,000 --> 00:01:25,760 Speaker 1: us now who heads up the Global Tech Infrastructure team 22 00:01:26,080 --> 00:01:28,840 Speaker 1: at New Street Research. So, Pierre, is this a changing 23 00:01:28,840 --> 00:01:31,440 Speaker 1: of the guard here or is this a momentary blip? 24 00:01:32,680 --> 00:01:34,920 Speaker 1: Not much is happening if you if you take a 25 00:01:34,920 --> 00:01:37,640 Speaker 1: step back and look at Apple in the perspective of 26 00:01:37,680 --> 00:01:40,200 Speaker 1: the world. You know, I look at on the daily 27 00:01:40,240 --> 00:01:44,360 Speaker 1: basis there as as Ed mentioned, it down like that 28 00:01:44,560 --> 00:01:48,480 Speaker 1: twenty percent from the high, seventeen percent from there average 29 00:01:48,880 --> 00:01:52,559 Speaker 1: value of the last eighteen months. Look at Tesla down 30 00:01:52,760 --> 00:01:58,040 Speaker 1: fifty nine percent, Amazon down thirty Google down thirty percent. 31 00:01:58,160 --> 00:02:02,760 Speaker 1: So Apple, on the alative is exactually doing doing quite 32 00:02:02,800 --> 00:02:07,400 Speaker 1: all right? Um uh. And there are a lot of 33 00:02:07,400 --> 00:02:09,600 Speaker 1: reasons for that. You know, they've done very well. They've 34 00:02:09,600 --> 00:02:16,120 Speaker 1: grown through the last five years earnings twenty more than uh. 35 00:02:16,120 --> 00:02:18,760 Speaker 1: And they've done very well in them uh in the 36 00:02:18,840 --> 00:02:23,560 Speaker 1: recent context, through the pandemic, through like inflationary pressure, they've 37 00:02:23,560 --> 00:02:26,920 Speaker 1: had actually a very strong demand. UM. And then when 38 00:02:27,320 --> 00:02:30,960 Speaker 1: UM investors look at Apple today in this massive set 39 00:02:30,960 --> 00:02:34,359 Speaker 1: of that that's actually more you know, of a quality name, 40 00:02:35,240 --> 00:02:38,600 Speaker 1: like a safe heaven for them, UM, because they tend 41 00:02:38,639 --> 00:02:41,120 Speaker 1: to to consider that Apple still has like a pretty 42 00:02:41,200 --> 00:02:45,880 Speaker 1: nice outlook that revenue growth could continue. You have new products, 43 00:02:45,919 --> 00:02:51,280 Speaker 1: opportunities in are in UM in autos. So so like 44 00:02:51,440 --> 00:02:53,520 Speaker 1: the longer term I would look for Apples still looks 45 00:02:53,560 --> 00:02:55,720 Speaker 1: really attractive to investors, and that's the reason why I 46 00:02:55,760 --> 00:02:59,720 Speaker 1: think they stuff didn't do that bad. So there's a 47 00:02:59,800 --> 00:03:02,200 Speaker 1: kind put in an Apple's fundamentals. What about the broader 48 00:03:02,320 --> 00:03:05,639 Speaker 1: tech sector. I mean, Saudi Aramco has lived above all 49 00:03:05,680 --> 00:03:07,240 Speaker 1: of them, and if you look at the top six 50 00:03:07,560 --> 00:03:13,520 Speaker 1: companies by market cap, Apple, Microsoft, Alphabet, Amazon, all behind 51 00:03:13,560 --> 00:03:18,040 Speaker 1: an oil company. Yeah. So yeah, it's a good question. 52 00:03:18,160 --> 00:03:20,800 Speaker 1: That's what I've been working on interest studays. You know, what, 53 00:03:21,120 --> 00:03:24,440 Speaker 1: what are the opportunities like names to buy in this 54 00:03:24,600 --> 00:03:28,200 Speaker 1: in this like broad tech tex set of UM And 55 00:03:28,280 --> 00:03:30,760 Speaker 1: the way I'd like to think about it is what 56 00:03:30,880 --> 00:03:35,960 Speaker 1: prey triggers the set of initially is inflation and the 57 00:03:36,040 --> 00:03:39,760 Speaker 1: concern of interest rates going up, because when, of course, 58 00:03:39,760 --> 00:03:41,400 Speaker 1: when you look at the very high growth company, if 59 00:03:41,440 --> 00:03:45,360 Speaker 1: interests go up, it is a very negative effect on 60 00:03:45,000 --> 00:03:49,160 Speaker 1: the evaluation. Now here's the way I'm thinking about about it. 61 00:03:49,240 --> 00:03:52,920 Speaker 1: The million a lot of these companies are actually fairly 62 00:03:53,040 --> 00:03:59,119 Speaker 1: inflation proof. So if you get an Apple, Microsoft, an Amazon. 63 00:03:59,440 --> 00:04:02,600 Speaker 1: There you to pass on costs is actually not too bad. 64 00:04:02,680 --> 00:04:06,320 Speaker 1: So in an fashionary environment, they should actually grow faster 65 00:04:07,160 --> 00:04:10,920 Speaker 1: because they'll be able to increase their prices with with inflation. 66 00:04:11,440 --> 00:04:16,760 Speaker 1: And so what I like doing are overreacting then yes, 67 00:04:16,880 --> 00:04:21,120 Speaker 1: I I think that the investors reaction is creating opportunities. 68 00:04:21,200 --> 00:04:23,599 Speaker 1: And you need to look at these companies who have 69 00:04:23,680 --> 00:04:27,400 Speaker 1: good pricing power, who have very strong market position, and 70 00:04:27,440 --> 00:04:30,679 Speaker 1: who have been battered down in recent weeks and likely 71 00:04:30,720 --> 00:04:34,240 Speaker 1: even recent months, in the last six months, and you 72 00:04:34,279 --> 00:04:38,040 Speaker 1: can find very I think, very interesting opportunities like the 73 00:04:39,040 --> 00:04:41,919 Speaker 1: three or all that UM popped to my eyes to 74 00:04:42,000 --> 00:04:44,960 Speaker 1: the Artesla of course, the stocky string and forty five 75 00:04:45,000 --> 00:04:47,400 Speaker 1: times earnings. It's down from a hundred and forty times 76 00:04:47,400 --> 00:04:51,360 Speaker 1: six months ago, and um it's still up to grow 77 00:04:51,440 --> 00:04:54,880 Speaker 1: like earnings forty two fifty a year. Another one is 78 00:04:54,920 --> 00:04:58,800 Speaker 1: c SMC is the ship manufacturer, down thirty straight on 79 00:04:58,880 --> 00:05:02,040 Speaker 1: fifteen times earning, and it's it has a better gross 80 00:05:02,040 --> 00:05:06,520 Speaker 1: potential in my view, uh than Apple. And then the 81 00:05:06,560 --> 00:05:10,200 Speaker 1: other one interesting worth mentioning is actually Nvidia, down almost 82 00:05:10,240 --> 00:05:15,359 Speaker 1: sev from the peak. And and here again a company 83 00:05:15,400 --> 00:05:18,520 Speaker 1: that has a lot of pricing power, very strong leadership 84 00:05:18,520 --> 00:05:22,680 Speaker 1: in their market. Everybody needs their cheap and they steket 85 00:05:22,720 --> 00:05:25,280 Speaker 1: you do very well in in the next few years. 86 00:05:25,279 --> 00:05:28,760 Speaker 1: So so I see opportunities um in that set of 87 00:05:30,240 --> 00:05:32,240 Speaker 1: even in the midst of pare even in the midst 88 00:05:32,279 --> 00:05:35,040 Speaker 1: of a supply chain shortage and a lockdown in China, 89 00:05:35,160 --> 00:05:37,560 Speaker 1: I mean in video, I mean obviously Apple and Video 90 00:05:37,600 --> 00:05:42,080 Speaker 1: is also exposed to that. Yeah, So yeah, it's a 91 00:05:42,120 --> 00:05:45,960 Speaker 1: good point. Like the next few the next few months 92 00:05:46,040 --> 00:05:47,960 Speaker 1: or even you know, the next couple of quarters could 93 00:05:48,000 --> 00:05:52,559 Speaker 1: be slightly challenging for for these players. But I don't 94 00:05:52,600 --> 00:05:56,479 Speaker 1: think you you have any like you know, incremental negative 95 00:05:57,480 --> 00:06:02,800 Speaker 1: negative news flow coming through on that front. So we 96 00:06:02,880 --> 00:06:05,760 Speaker 1: are really in the deep of the supply constraints and 97 00:06:05,880 --> 00:06:09,360 Speaker 1: supply is now coming back to take time to get 98 00:06:09,400 --> 00:06:13,159 Speaker 1: supply back, but it is it is already on the 99 00:06:13,200 --> 00:06:15,800 Speaker 1: way up. And I think the situation in China, as 100 00:06:15,880 --> 00:06:19,320 Speaker 1: much as it is like a dramatic disruption for a 101 00:06:19,320 --> 00:06:22,839 Speaker 1: lot of these businesses, it's actually were understood learning Like 102 00:06:22,880 --> 00:06:24,919 Speaker 1: Apple talked about it from the Earning School not so 103 00:06:24,920 --> 00:06:28,599 Speaker 1: long ago, and investors are kind of putting their heads 104 00:06:28,600 --> 00:06:32,520 Speaker 1: around around that situation. So I tend to overlook that 105 00:06:32,680 --> 00:06:35,280 Speaker 1: and think about, you know, what are like the great 106 00:06:35,320 --> 00:06:38,800 Speaker 1: compounding stories, like names that have this very high creaty 107 00:06:38,839 --> 00:06:44,240 Speaker 1: growth outlook that has been like taken let us suffered 108 00:06:44,320 --> 00:06:47,000 Speaker 1: so much in this pullback, and that's where I see 109 00:06:47,040 --> 00:06:49,280 Speaker 1: the opportunities. But of course you have to look through 110 00:06:49,640 --> 00:06:53,000 Speaker 1: the next couple of quarters. Maybe. Well, thanks for helping 111 00:06:53,120 --> 00:06:55,440 Speaker 1: us try to make sense of it all here, fair, 112 00:06:55,720 --> 00:06:58,240 Speaker 1: I was going to have your new Street research. Thank you. 113 00:06:59,320 --> 00:07:01,920 Speaker 1: I mean time to is making some changes at it 114 00:07:02,080 --> 00:07:05,040 Speaker 1: as it awaits Elon Musk's forty four billion dollar takeover, 115 00:07:05,120 --> 00:07:08,839 Speaker 1: including cutting some big costs. Bloom Berk's Kurt Wagner covers 116 00:07:08,880 --> 00:07:12,120 Speaker 1: Twitter for US and joins US now, so Kurt, two 117 00:07:12,120 --> 00:07:16,239 Speaker 1: big executives leaving. Is this all because of Elon Musk? 118 00:07:16,320 --> 00:07:20,280 Speaker 1: Or is this because of Twitter's own business problems. That's 119 00:07:20,320 --> 00:07:22,920 Speaker 1: sort of the question that I'm trying to get to 120 00:07:22,960 --> 00:07:25,440 Speaker 1: the answer to. As well. We have a new CEO, 121 00:07:25,520 --> 00:07:29,280 Speaker 1: of course, Paraguagor Wall, who took over last November, and 122 00:07:29,320 --> 00:07:31,360 Speaker 1: it's always natural for a new CEO to sort of 123 00:07:31,400 --> 00:07:34,400 Speaker 1: want to leave their imprints on the new company, makes 124 00:07:34,400 --> 00:07:37,200 Speaker 1: some big changes, get their own kind of executive team 125 00:07:37,240 --> 00:07:39,800 Speaker 1: in there. Of course, we're in this unique situation right 126 00:07:39,800 --> 00:07:42,240 Speaker 1: now with Twitter where everyone's kind of in a limbo 127 00:07:42,320 --> 00:07:44,520 Speaker 1: right there, waiting for Elon Musk to take over, So 128 00:07:44,560 --> 00:07:46,400 Speaker 1: it was sort of interesting timing for him to make 129 00:07:46,400 --> 00:07:50,440 Speaker 1: two big moves right now. Although I'm told that this 130 00:07:50,480 --> 00:07:51,920 Speaker 1: has sort of been in the works for a couple 131 00:07:51,920 --> 00:07:54,840 Speaker 1: of weeks, so it's unclear exactly whether this was, you know, 132 00:07:55,160 --> 00:07:58,120 Speaker 1: a plan of Elon Musk's, or something that Parragu wanted 133 00:07:58,160 --> 00:08:00,280 Speaker 1: to do, sort of with Elon's blessing. I to get 134 00:08:00,280 --> 00:08:04,000 Speaker 1: the sense it's maybe the latter, So let's talk about 135 00:08:04,040 --> 00:08:07,400 Speaker 1: who is leaving. In the reaction, there were some not 136 00:08:07,520 --> 00:08:10,760 Speaker 1: happy tweets, as one might expect when people get fired 137 00:08:10,920 --> 00:08:15,640 Speaker 1: from Twitter. Well, these are two long time product executives, 138 00:08:15,720 --> 00:08:18,440 Speaker 1: Cavon Baked Poor, who has been running product at Twitter 139 00:08:18,520 --> 00:08:21,440 Speaker 1: for years now, and Bruce Falk, who has been running 140 00:08:21,560 --> 00:08:24,560 Speaker 1: revenue product at the company. So two people who have 141 00:08:24,680 --> 00:08:26,200 Speaker 1: been there for a long time and who a lot 142 00:08:26,240 --> 00:08:28,880 Speaker 1: of people did really like. And when you are in 143 00:08:28,920 --> 00:08:31,600 Speaker 1: a situation like this right where employees are already wondering 144 00:08:31,680 --> 00:08:34,200 Speaker 1: like what comes next? What is my job going to 145 00:08:34,240 --> 00:08:36,360 Speaker 1: be secure? When Ellen takes over. Is the team I'm 146 00:08:36,360 --> 00:08:38,880 Speaker 1: working on going to be around when Ellen takes over. 147 00:08:39,120 --> 00:08:40,480 Speaker 1: And then you see two people who a lot of 148 00:08:40,520 --> 00:08:42,160 Speaker 1: people like and who have been there such a long 149 00:08:42,200 --> 00:08:46,520 Speaker 1: time kind of get booted unexpectedly. I think that creates 150 00:08:46,559 --> 00:08:50,640 Speaker 1: a lot of, you know, concern from employees. And so 151 00:08:50,679 --> 00:08:52,000 Speaker 1: that's sort of what I've been hearing today, a lot 152 00:08:52,040 --> 00:08:55,160 Speaker 1: of people scratching their head wondering what does this mean exactly, 153 00:08:55,200 --> 00:08:58,679 Speaker 1: and then what happens next for the rest of us. Meantime, 154 00:08:58,800 --> 00:09:02,920 Speaker 1: Mosk is still trying to get financing, scrapping part of 155 00:09:03,080 --> 00:09:07,599 Speaker 1: his Tesla margin loan. Are these two things related. I 156 00:09:08,080 --> 00:09:10,760 Speaker 1: think they're related in the sense that everything that Ellen 157 00:09:10,920 --> 00:09:13,360 Speaker 1: does kind of either makes the deal seem more or 158 00:09:13,480 --> 00:09:16,319 Speaker 1: less likely. And I think the fact that he's perhaps 159 00:09:16,720 --> 00:09:18,640 Speaker 1: you know, going to get rid of this margin loan 160 00:09:18,760 --> 00:09:21,800 Speaker 1: because he's able to secure a little bit more equity financing, 161 00:09:21,880 --> 00:09:23,840 Speaker 1: I think that just makes the deal more likely to 162 00:09:23,880 --> 00:09:26,440 Speaker 1: go through. Right. And so if you're sitting there as 163 00:09:26,480 --> 00:09:29,800 Speaker 1: the CEO of Twitter, you kind of have to prepare 164 00:09:29,840 --> 00:09:32,400 Speaker 1: for two scenarios, the one in which maybe the deal 165 00:09:32,440 --> 00:09:34,960 Speaker 1: doesn't happen and suddenly you're still in charge what have 166 00:09:35,040 --> 00:09:37,079 Speaker 1: you been doing over these last six months to to 167 00:09:37,320 --> 00:09:40,040 Speaker 1: make that happen? And then the other where Ellen comes in, 168 00:09:40,200 --> 00:09:42,160 Speaker 1: and then you're wondering, you know, if you're progu am, 169 00:09:42,160 --> 00:09:44,280 Speaker 1: I still going to have a job under this new guy. 170 00:09:44,400 --> 00:09:47,040 Speaker 1: So I think he's probably trying to navigate that. And 171 00:09:47,040 --> 00:09:50,040 Speaker 1: I think Ellen getting closer and closer to getting the 172 00:09:50,080 --> 00:09:53,680 Speaker 1: deal funded um probably dictates, you know, the timing of 173 00:09:53,720 --> 00:09:57,480 Speaker 1: some of these things. Interesting. Alright, Well, more twists and 174 00:09:57,480 --> 00:10:00,440 Speaker 1: turns to come. I'm sure bloom works. Kurt Wagner. Thanks, 175 00:10:08,679 --> 00:10:11,160 Speaker 1: I'm not gonna give your timing, Emily, you know that. 176 00:10:12,080 --> 00:10:14,240 Speaker 1: Do I want the company to become a public company 177 00:10:14,240 --> 00:10:16,480 Speaker 1: at some point, of course, but I really want to 178 00:10:16,480 --> 00:10:18,680 Speaker 1: make sure that the company that we do take public 179 00:10:18,840 --> 00:10:22,559 Speaker 1: is a company that's reflective of this uh new Bold 180 00:10:22,559 --> 00:10:28,120 Speaker 1: Elevision Instagart CEO Fiji Cima their last month when I 181 00:10:28,160 --> 00:10:30,120 Speaker 1: asked her on studio at one point, oh, when the 182 00:10:30,120 --> 00:10:33,120 Speaker 1: company might go public? Well, Piers, now is the time 183 00:10:33,160 --> 00:10:36,520 Speaker 1: Bloomberg has learned. The company has filed confidentially paperwork to 184 00:10:36,559 --> 00:10:39,400 Speaker 1: start the process with the sec The ten year old 185 00:10:39,480 --> 00:10:41,640 Speaker 1: grocery delivery up Start was once one of the most 186 00:10:41,720 --> 00:10:45,640 Speaker 1: highly valued of the gig economy companies and grew exponentially 187 00:10:46,000 --> 00:10:49,440 Speaker 1: through the pandemic, but now we'll navigate a very volatile market. 188 00:10:49,679 --> 00:10:53,600 Speaker 1: Instacart slashed its private market valuation by almost in March, 189 00:10:53,640 --> 00:10:59,200 Speaker 1: as orders have slipped in a post pandemic world. Well 190 00:10:59,360 --> 00:11:02,840 Speaker 1: it was built as Airbnb's biggest change in a decade, 191 00:11:02,840 --> 00:11:05,400 Speaker 1: the company rolling out a number of new features, including 192 00:11:05,440 --> 00:11:09,079 Speaker 1: categories like Castles and Amazing Pools and homes that make 193 00:11:09,120 --> 00:11:13,319 Speaker 1: you go OMG, as well as split stays and air cover, 194 00:11:13,520 --> 00:11:17,800 Speaker 1: which addresses one of the company's biggest issues, consumer protections. 195 00:11:18,080 --> 00:11:20,400 Speaker 1: I spoke to Airbnb CEO and co founder Brian chess 196 00:11:20,400 --> 00:11:23,280 Speaker 1: Ca about all the changes, along with concerns about rising prices, 197 00:11:23,360 --> 00:11:28,120 Speaker 1: inflation and how that will affect their customers. Take a listen. Well, 198 00:11:28,360 --> 00:11:30,679 Speaker 1: first of all, the reason that the price per night 199 00:11:30,760 --> 00:11:34,120 Speaker 1: went up was mostly because people are booking more expensive airbnbs. 200 00:11:34,320 --> 00:11:36,600 Speaker 1: So before the pandemic, a lot of people are traveling 201 00:11:36,600 --> 00:11:38,880 Speaker 1: by themselves or one person. They were booking one, two 202 00:11:38,880 --> 00:11:42,200 Speaker 1: bedroom homes. Now they're booking much bigger homes to travel 203 00:11:42,240 --> 00:11:44,800 Speaker 1: with families and groups. And there's been a mixed shift 204 00:11:44,880 --> 00:11:47,720 Speaker 1: from Asia to North American Europe, and these are higher 205 00:11:47,720 --> 00:11:51,720 Speaker 1: price per knights. That's the primary contribution for the increase 206 00:11:51,760 --> 00:11:53,839 Speaker 1: of price. You are correct, though, a lot of people 207 00:11:53,880 --> 00:11:55,400 Speaker 1: aren't going to be able to travel and be able 208 00:11:55,400 --> 00:11:58,680 Speaker 1: to afford to travel. But another thing. Airbnb was started 209 00:11:58,760 --> 00:12:01,520 Speaker 1: during the Great Recession in two thousand eight, and people 210 00:12:01,640 --> 00:12:04,520 Speaker 1: used Airbnb because it wasn't a more affordable way to travel. 211 00:12:04,760 --> 00:12:06,679 Speaker 1: After two years of people not being able to leave 212 00:12:06,720 --> 00:12:08,679 Speaker 1: their home, many people, I think they want to get 213 00:12:08,679 --> 00:12:10,360 Speaker 1: out and this is going to be a travel rebound 214 00:12:10,400 --> 00:12:13,800 Speaker 1: unlike anything we've ever seen before. Still, even though you're 215 00:12:13,800 --> 00:12:17,520 Speaker 1: projecting this travel rebound, you've got Airbnb shares down to 216 00:12:18,120 --> 00:12:20,959 Speaker 1: new lows. And I'm so curious how you're watching this 217 00:12:21,240 --> 00:12:24,160 Speaker 1: broader market turmoil. What's your take on this? I'm not 218 00:12:24,200 --> 00:12:27,760 Speaker 1: watching the broader market turmoil, and I would hope shareholders 219 00:12:27,800 --> 00:12:30,200 Speaker 1: know that I'm obsessed over every single day. Are the 220 00:12:30,280 --> 00:12:32,679 Speaker 1: inputs to the stock price? Not the stock price. I 221 00:12:32,720 --> 00:12:34,920 Speaker 1: think that's the very best thing for shareholders. So my 222 00:12:35,040 --> 00:12:36,920 Speaker 1: job is to make sure we have the best service, 223 00:12:36,960 --> 00:12:39,800 Speaker 1: we have enough host they're prepared for the great travel season. 224 00:12:39,960 --> 00:12:41,680 Speaker 1: That's how I'm gonna worry about. We're gonna play a 225 00:12:41,679 --> 00:12:44,320 Speaker 1: long game, and I think the long term shareholders will 226 00:12:44,320 --> 00:12:47,440 Speaker 1: really benefit from that. I wonder how this impacts retention 227 00:12:47,480 --> 00:12:50,680 Speaker 1: and recruiting though. Are actually seeing a lot of companies 228 00:12:50,679 --> 00:12:54,559 Speaker 1: that really uh, you know, Sword in the pandemic, struggling 229 00:12:54,640 --> 00:12:57,960 Speaker 1: coin Base, robin Hood as well. Do you think this 230 00:12:58,040 --> 00:13:01,920 Speaker 1: could impact hiring at all or the mood in Silicon Valley. 231 00:13:01,960 --> 00:13:06,080 Speaker 1: I mean, we're actually completely overwhelmed with hiring. We're completely overwhelmed. 232 00:13:06,559 --> 00:13:10,319 Speaker 1: Two weeks ago we announced that Airbing employees can live 233 00:13:10,360 --> 00:13:12,199 Speaker 1: and work anywhere in the world, and if you move 234 00:13:12,200 --> 00:13:13,880 Speaker 1: wherever you want in the country, we're not gonna lower 235 00:13:13,880 --> 00:13:16,880 Speaker 1: your pay. Since we made that announcement, more than one 236 00:13:17,080 --> 00:13:20,280 Speaker 1: million people visit our jobs and careers page. We only 237 00:13:20,320 --> 00:13:23,560 Speaker 1: have six thousand people at the company, so um, I 238 00:13:23,600 --> 00:13:26,360 Speaker 1: do think that there might be some broader kind of considerations, 239 00:13:26,360 --> 00:13:28,520 Speaker 1: But Airbnb, we have quite a lot of interest, and 240 00:13:28,640 --> 00:13:31,760 Speaker 1: I don't think that will change. So Twitter just announced 241 00:13:31,760 --> 00:13:35,640 Speaker 1: a hiring freeze and cutting costs, potentially rescinding some offers 242 00:13:35,640 --> 00:13:37,480 Speaker 1: for a different reason. And I wonder, with this, on 243 00:13:37,600 --> 00:13:41,400 Speaker 1: top of other companies pausing hiring, if this could be 244 00:13:41,440 --> 00:13:44,280 Speaker 1: a moment of opportunity for you. Do you see this 245 00:13:44,640 --> 00:13:47,720 Speaker 1: as a chance to attract be a magnet for new talent. 246 00:13:47,960 --> 00:13:49,240 Speaker 1: I mean a lot of people are reaching out to 247 00:13:49,320 --> 00:13:51,320 Speaker 1: us from other big tech companies, maybe because a lot 248 00:13:51,360 --> 00:13:52,920 Speaker 1: of tech companies are asking people to go back to 249 00:13:52,920 --> 00:13:54,920 Speaker 1: the office three days a week, or maybe because they're 250 00:13:54,920 --> 00:13:57,840 Speaker 1: not hiring as many. But make no mistake, Airbnb is 251 00:13:57,880 --> 00:14:01,040 Speaker 1: stepping on the gas this summer. How are you stepping 252 00:14:01,080 --> 00:14:04,720 Speaker 1: on the gas in China? We're seeing ongoing COVID lockdowns there. 253 00:14:04,760 --> 00:14:08,000 Speaker 1: I know it's been a priority for you in years past. 254 00:14:08,240 --> 00:14:10,600 Speaker 1: What trends are you seeing in a pack and when 255 00:14:10,600 --> 00:14:13,640 Speaker 1: do you expect them to recover? You know, our China 256 00:14:13,720 --> 00:14:19,000 Speaker 1: business has primarily been people in China leaving China obviously 257 00:14:19,040 --> 00:14:21,720 Speaker 1: crossing a border, so it's cross border travel going to 258 00:14:21,760 --> 00:14:25,320 Speaker 1: other countries. Japan was a really popular corridor, South Korea, 259 00:14:25,560 --> 00:14:28,120 Speaker 1: They're going to like Europe, They're going to other places. 260 00:14:28,640 --> 00:14:32,080 Speaker 1: Because of the situation of China in COVID, there's not 261 00:14:32,160 --> 00:14:34,400 Speaker 1: a huge amount of outbound business right now, and so 262 00:14:34,480 --> 00:14:37,120 Speaker 1: our business in China is not super robust and it's 263 00:14:37,120 --> 00:14:39,280 Speaker 1: going to be probably a while. It's really gonna track 264 00:14:39,360 --> 00:14:44,640 Speaker 1: with the health crisis. Brian Chesky, Airbnb CEO and co founder. 265 00:14:44,680 --> 00:14:47,560 Speaker 1: You can catch our full interview at Bloomberg dot com. 266 00:14:47,600 --> 00:14:50,600 Speaker 1: Coming up, SO no CEO Patrick Spence joins us fresh 267 00:14:50,680 --> 00:14:53,320 Speaker 1: off the company's latest earnings results. Will also talk about 268 00:14:53,320 --> 00:14:57,040 Speaker 1: why so Nos is being compared to Amazon and Apple. 269 00:14:57,560 --> 00:15:14,920 Speaker 1: He's next, This is Bloomberg. The same day that Sons 270 00:15:15,000 --> 00:15:17,440 Speaker 1: released its second quarter result of the company also announced 271 00:15:17,440 --> 00:15:20,800 Speaker 1: a number of new products, including a voice activated assistant 272 00:15:20,840 --> 00:15:24,440 Speaker 1: called Sons Voice Control. This is the company's first step 273 00:15:24,560 --> 00:15:27,640 Speaker 1: into the world of digital assistance, which is largely dominated 274 00:15:27,680 --> 00:15:31,080 Speaker 1: by Amazon's Alexa and Apple's Series. Joining me now, so 275 00:15:31,200 --> 00:15:35,880 Speaker 1: no CEO Patrick spent So, Patrick, how is yours different? 276 00:15:37,360 --> 00:15:40,240 Speaker 1: Ours is very different in the fact that all the 277 00:15:40,280 --> 00:15:43,680 Speaker 1: processing for it is done locally. Um and it's very 278 00:15:43,760 --> 00:15:46,200 Speaker 1: so it's very private, very privacy focus, something we know 279 00:15:46,240 --> 00:15:48,360 Speaker 1: a lot of our customers have been looking for. And 280 00:15:48,400 --> 00:15:50,440 Speaker 1: the other thing is we've really focused it on the 281 00:15:50,560 --> 00:15:54,080 Speaker 1: Sons user experience. So think about music. All your audio 282 00:15:54,160 --> 00:15:56,280 Speaker 1: needs being able to move music from one room to 283 00:15:56,320 --> 00:15:59,280 Speaker 1: another for instance. So ours, I like to say, is 284 00:15:59,720 --> 00:16:01,960 Speaker 1: you know an inch wide and a mile deep. Whereas 285 00:16:02,320 --> 00:16:05,120 Speaker 1: you know our partners at Amazon and Google, they offer 286 00:16:05,200 --> 00:16:08,360 Speaker 1: you one which is a mile wide and an inch deep, 287 00:16:08,400 --> 00:16:11,040 Speaker 1: and of course, um, we want to provide customers choice, 288 00:16:11,040 --> 00:16:14,640 Speaker 1: so you can actually use alexas simultaneously with the Sono's 289 00:16:14,680 --> 00:16:18,600 Speaker 1: voice control. So what's the long term goal with voice control? 290 00:16:18,720 --> 00:16:21,040 Speaker 1: I mean tell us a little bit more, what you 291 00:16:21,120 --> 00:16:25,200 Speaker 1: mean using that mile wide into apart metaphor? Yeah, so 292 00:16:25,280 --> 00:16:27,640 Speaker 1: really making sure Yeah, I think I think we've seen 293 00:16:27,720 --> 00:16:30,240 Speaker 1: kind of a first wave, right, and UM, we usually 294 00:16:30,240 --> 00:16:32,440 Speaker 1: see this with I think Gartner's hype cycle in terms 295 00:16:32,440 --> 00:16:36,720 Speaker 1: of the excitement that comes from that initial wave of um, 296 00:16:36,800 --> 00:16:39,000 Speaker 1: kind of the first part of a technology curve, and 297 00:16:39,200 --> 00:16:42,880 Speaker 1: we saw that with Alexa and Google Assistant, and now 298 00:16:42,920 --> 00:16:45,480 Speaker 1: I think what you'll see is more purpose built assistance, 299 00:16:45,480 --> 00:16:48,040 Speaker 1: which really focus on the actual user experience for a 300 00:16:48,080 --> 00:16:50,760 Speaker 1: particular product or a particular brand. And so you know, 301 00:16:50,800 --> 00:16:52,360 Speaker 1: we've done a lot of work to make sure that 302 00:16:52,400 --> 00:16:54,840 Speaker 1: you can get the music faster. It's recalling what music 303 00:16:55,200 --> 00:16:57,800 Speaker 1: you've been listening to. It's very specific to the Sonos 304 00:16:57,880 --> 00:17:00,440 Speaker 1: use cases. And again, like I said, private and runs 305 00:17:00,440 --> 00:17:03,200 Speaker 1: locally because we heard from customers that that's important. And 306 00:17:03,240 --> 00:17:06,240 Speaker 1: so what we're really trying to do is drive engagement 307 00:17:06,320 --> 00:17:09,680 Speaker 1: because we know the more customers engage, the higher their 308 00:17:09,720 --> 00:17:12,080 Speaker 1: lifetime value will be, the more chance they have to 309 00:17:12,119 --> 00:17:14,800 Speaker 1: come back and add another Sonos product to their system. Now, 310 00:17:15,040 --> 00:17:17,960 Speaker 1: we saw strong demand for your products in the last quarter, 311 00:17:18,080 --> 00:17:23,040 Speaker 1: but obviously inflation going up. So NOS products are discretionary products. 312 00:17:23,600 --> 00:17:25,359 Speaker 1: You know, how do you think inflation is going to 313 00:17:25,440 --> 00:17:27,640 Speaker 1: impact sales this quarter and the rest of the year. 314 00:17:28,359 --> 00:17:31,320 Speaker 1: You know, we continue to see very strong consumer demand. UM. 315 00:17:31,359 --> 00:17:33,680 Speaker 1: You know, last year we had a huge year UH 316 00:17:33,760 --> 00:17:37,520 Speaker 1: driving top line sales growth UM and this year we 317 00:17:37,640 --> 00:17:41,560 Speaker 1: planned for fift UM. We've reaffirmed that in yesterday's news 318 00:17:41,800 --> 00:17:44,120 Speaker 1: UM SO so we'd obviously taken into account the fact 319 00:17:44,119 --> 00:17:46,000 Speaker 1: that we know we felt we got some tail wind 320 00:17:46,000 --> 00:17:49,400 Speaker 1: obviously from people being at home UM. And we feel 321 00:17:49,480 --> 00:17:51,359 Speaker 1: very good about our business model. And you know this 322 00:17:51,359 --> 00:17:54,720 Speaker 1: supply wheel we have of existing customers telling their friends 323 00:17:54,720 --> 00:17:57,000 Speaker 1: and family they should get so Nos. The number one 324 00:17:57,080 --> 00:17:59,439 Speaker 1: reason people come into so Nos is still from family 325 00:17:59,440 --> 00:18:01,520 Speaker 1: and friends to telling them, and then we have existing 326 00:18:01,520 --> 00:18:03,600 Speaker 1: customers come back and buy the new products. And so 327 00:18:03,880 --> 00:18:05,960 Speaker 1: with a whole set of new products we announced yesterday 328 00:18:06,200 --> 00:18:09,080 Speaker 1: the great portfolio we have and we have a backlog emily, 329 00:18:09,200 --> 00:18:10,920 Speaker 1: So I mean, we feel really good about where we 330 00:18:10,960 --> 00:18:13,600 Speaker 1: are today. Despite I know some of the macro challenges 331 00:18:13,640 --> 00:18:17,160 Speaker 1: that are out there. You raise concerns about supply chain 332 00:18:17,240 --> 00:18:22,360 Speaker 1: issues and rising component prices, just how you know, difficult 333 00:18:22,400 --> 00:18:24,720 Speaker 1: are those going to be to navigate over the next 334 00:18:24,760 --> 00:18:27,800 Speaker 1: several months. Yeah, you know, it's been something that we've 335 00:18:27,800 --> 00:18:30,000 Speaker 1: been dealing with really for eight quarters at this point, 336 00:18:30,000 --> 00:18:31,800 Speaker 1: and we had hoped, and I think the industry had 337 00:18:31,800 --> 00:18:35,320 Speaker 1: hoped that by the second half of two UM most 338 00:18:35,400 --> 00:18:37,400 Speaker 1: of those would have dissipated. That is not the case. 339 00:18:37,440 --> 00:18:40,840 Speaker 1: And obviously nobody anticipated China going back into a COVID 340 00:18:40,920 --> 00:18:44,200 Speaker 1: zero situation in Shanghai, and so that's really impacted things 341 00:18:44,240 --> 00:18:46,399 Speaker 1: as well. And so now we're expecting, and we've been 342 00:18:46,440 --> 00:18:49,639 Speaker 1: planning for the rest of twenty two to really be 343 00:18:49,800 --> 00:18:54,080 Speaker 1: challenged in terms of logistics and shipping and component costs, 344 00:18:54,080 --> 00:18:56,640 Speaker 1: and so we've built that into our model UM as 345 00:18:56,640 --> 00:18:58,480 Speaker 1: we think about delivering the year. But I would say, Emily, 346 00:18:58,520 --> 00:19:00,800 Speaker 1: at this point, from everything I can see, expect the 347 00:19:00,880 --> 00:19:03,639 Speaker 1: supply chain challenges to continue for the industry for the 348 00:19:03,680 --> 00:19:07,720 Speaker 1: rest of twenty two. All Right, Patrick Spence, CEO of Sonas, 349 00:19:07,760 --> 00:19:18,880 Speaker 1: thank you. Welcome back to boone. We're technology Emily changing 350 00:19:18,880 --> 00:19:21,359 Speaker 1: in San Francisco. Let's get back to the markets, and 351 00:19:21,520 --> 00:19:26,200 Speaker 1: robin Hood is shoring in late trading after filings showed 352 00:19:26,320 --> 00:19:29,480 Speaker 1: a new stakeholder. Bloomberg's Ed Ludlow here with who it 353 00:19:29,600 --> 00:19:32,399 Speaker 1: is and take it away. Yeah, it's Sam Bankman Freed 354 00:19:32,480 --> 00:19:35,920 Speaker 1: of course, co founder and CEO of f t X. 355 00:19:36,440 --> 00:19:38,720 Speaker 1: He's got a seven point six percent stake according to 356 00:19:38,760 --> 00:19:42,320 Speaker 1: a regulatory filing based on today on Thursday's closing price 357 00:19:42,320 --> 00:19:44,400 Speaker 1: of eight dollars fifty six cents a share, that would 358 00:19:44,480 --> 00:19:48,480 Speaker 1: value his stake at five sixty seven million U S dollars. 359 00:19:48,480 --> 00:19:51,679 Speaker 1: And you can see the reaction in after hours. We 360 00:19:51,680 --> 00:19:53,720 Speaker 1: were up even higher just a few moments ago. We'll 361 00:19:53,720 --> 00:19:55,600 Speaker 1: have to spend the next twenty four hours and I'm 362 00:19:55,600 --> 00:19:57,480 Speaker 1: trying to work out what this means for the future 363 00:19:57,520 --> 00:20:00,080 Speaker 1: of robin Hood. Of course, such a big year for 364 00:20:00,119 --> 00:20:04,280 Speaker 1: the platform, build up a huge user base of retail traders, 365 00:20:04,280 --> 00:20:08,160 Speaker 1: but then transactions started drop off, volatility, volumes not what 366 00:20:08,240 --> 00:20:10,680 Speaker 1: investors thought. It would be one to watch going to 367 00:20:10,760 --> 00:20:14,479 Speaker 1: Friday as well. Another interesting name in the world of markets. 368 00:20:14,480 --> 00:20:19,000 Speaker 1: We're looking at soft Bank reporting a record and your loss, 369 00:20:19,119 --> 00:20:22,040 Speaker 1: and this is Massaoshi son with a lot of problems. 370 00:20:22,080 --> 00:20:23,879 Speaker 1: And you see these are the US listed shares of 371 00:20:23,960 --> 00:20:26,560 Speaker 1: soft Bank. This is its Vision Fund unit that we're 372 00:20:26,560 --> 00:20:29,359 Speaker 1: talking about. You're so familiar with it. But annual loss 373 00:20:29,800 --> 00:20:32,840 Speaker 1: having just closed out the fiscal year of twenty point 374 00:20:32,920 --> 00:20:37,520 Speaker 1: five billion dollars to zero point five billion US dollars. 375 00:20:37,560 --> 00:20:39,760 Speaker 1: And you know, this is a company of knows that 376 00:20:40,200 --> 00:20:43,119 Speaker 1: the invest principally in private sector right startups, but it 377 00:20:43,160 --> 00:20:45,439 Speaker 1: was its public bets that really suffer. Let's bring up 378 00:20:45,480 --> 00:20:47,600 Speaker 1: the board and look at some of the biggest names. 379 00:20:47,640 --> 00:20:49,880 Speaker 1: This is how they performed over a twelve month basis, 380 00:20:50,119 --> 00:20:52,600 Speaker 1: names like uber, Kupu and d D. That is a 381 00:20:52,600 --> 00:20:55,080 Speaker 1: lot of red and you can see how that kind 382 00:20:55,080 --> 00:20:58,879 Speaker 1: of failing in the investment approach kind of failed ultimately 383 00:20:59,080 --> 00:21:01,320 Speaker 1: for Vision Fund. I think the other big takeaway very quickly, 384 00:21:01,400 --> 00:21:04,040 Speaker 1: m is that they've really cut back the funds that 385 00:21:04,480 --> 00:21:06,960 Speaker 1: the Vision Fund is deploying. You look at recent quarters, 386 00:21:07,440 --> 00:21:10,880 Speaker 1: the period January March, they only authorized two point five 387 00:21:10,920 --> 00:21:14,160 Speaker 1: billion dollars to put into their portfolio for new startups. 388 00:21:14,200 --> 00:21:17,119 Speaker 1: That's a real departure from what we've seen in recent quarters. 389 00:21:17,119 --> 00:21:18,880 Speaker 1: Think about two thousand and eighteen. You remember that one 390 00:21:19,000 --> 00:21:21,320 Speaker 1: M thirty three billion dollars in a single quarter for 391 00:21:21,359 --> 00:21:24,120 Speaker 1: the Vision Fund. Times to change for Massaci son how 392 00:21:24,160 --> 00:21:27,840 Speaker 1: could I forget Ludlow? Thank you well. One area where 393 00:21:27,840 --> 00:21:30,800 Speaker 1: soft Bank was more bullish was ARM, It's chip design 394 00:21:30,920 --> 00:21:33,240 Speaker 1: unit that is preparing for an I p O. Massa 395 00:21:33,359 --> 00:21:36,320 Speaker 1: son As detailed how fast ARMS growing and how it 396 00:21:36,359 --> 00:21:40,840 Speaker 1: could ultimately become the most valuable asset in SoftBank's portfolio. 397 00:21:40,960 --> 00:21:43,160 Speaker 1: Joining us to talk about how ARM gets there. It's 398 00:21:43,280 --> 00:21:46,320 Speaker 1: CEO Renee has Renee great to have you back with us. 399 00:21:46,359 --> 00:21:49,080 Speaker 1: So we're gonna get to the SoftBank stuff. But let's 400 00:21:49,080 --> 00:21:51,800 Speaker 1: talk about how ARM is moving into more markets and 401 00:21:51,840 --> 00:21:55,560 Speaker 1: also more valuable markets. What opportunities is that unlocking for you. 402 00:21:55,920 --> 00:21:58,080 Speaker 1: We've got a great year. We just announced our results 403 00:21:58,840 --> 00:22:03,160 Speaker 1: earlier yesterday or wherever you pan time. Was record revenue, 404 00:22:03,800 --> 00:22:08,439 Speaker 1: record profits, record royalties, record licensing. We're seeing demand for 405 00:22:08,520 --> 00:22:11,720 Speaker 1: armed technology emily across all the sectors, particularly though in 406 00:22:11,760 --> 00:22:15,160 Speaker 1: the new markets such as automotive hyper scale or slush, 407 00:22:15,160 --> 00:22:19,000 Speaker 1: infrastructure and IoT. We've had huge growth in all those 408 00:22:19,040 --> 00:22:21,840 Speaker 1: areas that the demand for armed technology has never been better. 409 00:22:22,480 --> 00:22:25,560 Speaker 1: Where do you see specific opportunities for growth? Is it, 410 00:22:25,720 --> 00:22:27,800 Speaker 1: is it computing, is it automotive? You know, what are 411 00:22:27,800 --> 00:22:29,879 Speaker 1: going to be the biggest parts of ARMS future In 412 00:22:29,920 --> 00:22:32,600 Speaker 1: the future. One of the areas that we've been known 413 00:22:32,600 --> 00:22:36,199 Speaker 1: for historically is around power and power efficiency. And if 414 00:22:36,240 --> 00:22:39,040 Speaker 1: you think about smartphone, where ARM has historically been known 415 00:22:39,080 --> 00:22:42,159 Speaker 1: for we've had great success. That is the ultimate device 416 00:22:42,520 --> 00:22:46,359 Speaker 1: that's all about power and power efficiency. Now think about 417 00:22:46,359 --> 00:22:50,200 Speaker 1: the data center or think about electronic vehicle. UH, both 418 00:22:50,200 --> 00:22:52,520 Speaker 1: of those have the same type of requirements. They need 419 00:22:52,560 --> 00:22:55,679 Speaker 1: to be very power efficient, they be very mindful of performance, 420 00:22:56,040 --> 00:22:58,080 Speaker 1: and they have to be able to scale. UH. Those 421 00:22:58,080 --> 00:23:00,479 Speaker 1: are two areas where you've seen huge growth in the 422 00:23:00,760 --> 00:23:03,560 Speaker 1: in the last year, and to your point, it's an 423 00:23:03,600 --> 00:23:05,200 Speaker 1: area that it needs to be a huge growth theory 424 00:23:05,240 --> 00:23:09,040 Speaker 1: form going forward. Still, investors are bailing out of chip stocks. 425 00:23:09,040 --> 00:23:11,400 Speaker 1: You look at the semi conductor index down further than 426 00:23:11,720 --> 00:23:14,680 Speaker 1: most of the major UH in the cry so far 427 00:23:14,800 --> 00:23:18,840 Speaker 1: this year. What aren't investors getting? You know, demand is high, 428 00:23:18,920 --> 00:23:22,360 Speaker 1: but still concerns about supply. You know, I can't really 429 00:23:22,359 --> 00:23:24,280 Speaker 1: comment on the on the valuations and what's going on 430 00:23:24,320 --> 00:23:26,719 Speaker 1: the stock market is if I knew more about that, 431 00:23:26,760 --> 00:23:30,480 Speaker 1: I wouldn't be in this chair. But the supply issues 432 00:23:30,600 --> 00:23:32,679 Speaker 1: I do think are going to stay with us for 433 00:23:32,720 --> 00:23:36,800 Speaker 1: a while. The everything involved with semi conductors is complex. 434 00:23:36,800 --> 00:23:40,600 Speaker 1: Building new fabs is complex, Advanced technolog is complex. You 435 00:23:40,640 --> 00:23:43,680 Speaker 1: have more and more complex packages, which means you have substrates, 436 00:23:43,760 --> 00:23:46,680 Speaker 1: you have different packaging techniques, and the layer on top 437 00:23:46,760 --> 00:23:49,800 Speaker 1: of it. You know, these automobiles, for example, that require 438 00:23:49,840 --> 00:23:52,640 Speaker 1: not only a significant semig it or content, but other 439 00:23:52,680 --> 00:23:54,879 Speaker 1: areas that need to be shipped into the car. The 440 00:23:54,920 --> 00:23:56,800 Speaker 1: supply change has been stretched in a way that we've 441 00:23:56,840 --> 00:23:59,600 Speaker 1: not seen before with the pandemic, and I think that's 442 00:23:59,600 --> 00:24:01,879 Speaker 1: going to make the world really complex at least for 443 00:24:01,920 --> 00:24:03,520 Speaker 1: the next year or so as far as I can see. 444 00:24:04,080 --> 00:24:05,639 Speaker 1: And when are we going to see the end of 445 00:24:05,680 --> 00:24:07,960 Speaker 1: these shortages? Like how long does this go on for? 446 00:24:09,760 --> 00:24:11,720 Speaker 1: If I had a crystal ball again, I would probably 447 00:24:11,720 --> 00:24:13,760 Speaker 1: be in in a different industry. But I think it's 448 00:24:13,760 --> 00:24:16,240 Speaker 1: gonna be with for a while, Emily, because again, when 449 00:24:16,280 --> 00:24:19,119 Speaker 1: you think about the investments required for semiconductors to build 450 00:24:19,119 --> 00:24:22,200 Speaker 1: a five dentimeter or three dynimeter fab, there is a huge, 451 00:24:22,240 --> 00:24:25,240 Speaker 1: huge lead time associated with that. The chips take longer 452 00:24:25,240 --> 00:24:27,880 Speaker 1: and longer to build their longer and longer to manufacture, 453 00:24:28,119 --> 00:24:32,000 Speaker 1: which means predictability gets harder. And then increasingly in some 454 00:24:32,040 --> 00:24:34,239 Speaker 1: of these products you have more and more content and 455 00:24:34,280 --> 00:24:37,040 Speaker 1: it's not just one chip that's not available. If you 456 00:24:37,119 --> 00:24:41,040 Speaker 1: have an entire product that's all manufactured and you don't 457 00:24:41,040 --> 00:24:43,679 Speaker 1: have a diode, let's say a power diode that can 458 00:24:43,680 --> 00:24:47,119 Speaker 1: go into the car, the car can't ship. So again, 459 00:24:47,200 --> 00:24:49,879 Speaker 1: I think going forward, UM, we've got to get our 460 00:24:49,960 --> 00:24:52,360 Speaker 1: arms around when this new world is teaching us relative 461 00:24:52,359 --> 00:24:54,040 Speaker 1: to supply, and I think it's going to take a 462 00:24:54,040 --> 00:24:57,320 Speaker 1: little while. There's a report that soft Bank plans to 463 00:24:57,359 --> 00:25:00,680 Speaker 1: keep a majority steak in ARM after you spin it off. 464 00:25:00,800 --> 00:25:02,680 Speaker 1: How big a steak are we talking about here? And 465 00:25:02,760 --> 00:25:06,600 Speaker 1: what what conversations have you had about this? I can't 466 00:25:06,640 --> 00:25:09,520 Speaker 1: say too much about specifically we Massa son has said 467 00:25:09,520 --> 00:25:11,960 Speaker 1: that ARM is preparing for an IPO, and they have 468 00:25:12,040 --> 00:25:14,919 Speaker 1: said publicly that they intend to have a controlling interest 469 00:25:14,960 --> 00:25:17,840 Speaker 1: going forward. I think what that says is Massa thinks 470 00:25:17,880 --> 00:25:20,560 Speaker 1: that the long term prospects for holding ARM is really good. 471 00:25:20,920 --> 00:25:23,200 Speaker 1: So I think that says a lot about his confidence 472 00:25:23,200 --> 00:25:28,920 Speaker 1: in our future going forward. How soon could an IPO happen? Yeah? 473 00:25:29,119 --> 00:25:31,000 Speaker 1: I can't really say, hard for me to kind of 474 00:25:31,000 --> 00:25:32,960 Speaker 1: go forward on that area, but as we've said before, 475 00:25:33,000 --> 00:25:35,679 Speaker 1: we're preparing to make that happen. Okay, but how are 476 00:25:35,720 --> 00:25:40,239 Speaker 1: you evaluating this market turmoil and could that delay or 477 00:25:40,320 --> 00:25:44,800 Speaker 1: influence your plans? Obviously, market timing is going to dictate 478 00:25:44,800 --> 00:25:46,000 Speaker 1: a lot of things. You know, who can say what 479 00:25:46,040 --> 00:25:47,639 Speaker 1: the market's going to look like. We're just doing the 480 00:25:47,680 --> 00:25:49,600 Speaker 1: kind of things that we need to prepare for an IPO. 481 00:25:49,920 --> 00:25:53,719 Speaker 1: All right, Renehan, CEO of ARM Thank you. Coming up. 482 00:25:53,840 --> 00:25:57,040 Speaker 1: Crypto goes down and down some more. How the Tera 483 00:25:57,200 --> 00:26:00,720 Speaker 1: meltdown is giving fodder to crypto skeptics and how low 484 00:26:00,760 --> 00:26:04,760 Speaker 1: can markets go? That is next? This is Bloomberg. I 485 00:26:04,840 --> 00:26:09,679 Speaker 1: wouldn't characterize it at this scale as a real threat 486 00:26:09,760 --> 00:26:14,920 Speaker 1: to financial stability, but they're growing very rapidly and they 487 00:26:15,040 --> 00:26:19,119 Speaker 1: present the same kind of risks that we have known 488 00:26:19,480 --> 00:26:38,600 Speaker 1: for centuries in connection with bank runs. Dominoes are falling 489 00:26:38,680 --> 00:26:42,240 Speaker 1: in crypto. First it was the collapse of algorithmic stable 490 00:26:42,280 --> 00:26:46,760 Speaker 1: coin terra USD. Now it's grown up cousin tether, wavering 491 00:26:46,880 --> 00:26:50,000 Speaker 1: from the peg and fueling concern over its status as 492 00:26:50,040 --> 00:26:52,600 Speaker 1: a place to hide in times of turbulence. Let's talk 493 00:26:52,640 --> 00:26:55,560 Speaker 1: about what it all means with Bloomberg's own Olga. Careif 494 00:26:55,600 --> 00:26:58,800 Speaker 1: who covers the cryptocurrency market for us so Olga, I 495 00:26:58,840 --> 00:27:01,080 Speaker 1: guess it's fair to say we're in at winter. How 496 00:27:01,160 --> 00:27:04,720 Speaker 1: is this winter different from the ones that have come before? Absolutely, 497 00:27:04,840 --> 00:27:08,439 Speaker 1: I think it's pretty clear we're in a crypto winter. 498 00:27:08,640 --> 00:27:13,040 Speaker 1: We had one in eighteen, but of course today what 499 00:27:13,160 --> 00:27:15,720 Speaker 1: we have that's different is that we have a lot 500 00:27:15,800 --> 00:27:19,560 Speaker 1: more institutional investors and that's why crypto is behaving more 501 00:27:19,640 --> 00:27:24,240 Speaker 1: like a risk acid that's kind of moving in line 502 00:27:24,280 --> 00:27:29,560 Speaker 1: with the rest of the of the the market. So 503 00:27:29,640 --> 00:27:32,200 Speaker 1: remind us how the last crypto winter played out and 504 00:27:32,400 --> 00:27:35,520 Speaker 1: how you expect this one to play out, given that 505 00:27:35,560 --> 00:27:39,600 Speaker 1: there are more people with skin in the game. Absolutely, 506 00:27:40,520 --> 00:27:44,600 Speaker 1: definitely more people. So so what happened was in twenty eighteen, 507 00:27:45,200 --> 00:27:49,920 Speaker 1: thousands of coins basically died, and lots of projects went under, 508 00:27:50,359 --> 00:27:53,520 Speaker 1: and lots of new projects got hatched. And I expect 509 00:27:53,640 --> 00:27:56,680 Speaker 1: we'll see the same thing happened now. You know, if 510 00:27:56,720 --> 00:28:00,560 Speaker 1: this crypto winter is prolonged, a lot of this projects 511 00:28:00,560 --> 00:28:03,080 Speaker 1: and coins will die and we'll see sort of a 512 00:28:03,119 --> 00:28:06,440 Speaker 1: clearing of the plate and we'll see what the strong 513 00:28:06,520 --> 00:28:10,480 Speaker 1: players are who are the survivors. Now, let's talk a 514 00:28:10,480 --> 00:28:15,280 Speaker 1: little bit about coin Base. Their valuation dropped precipitously and 515 00:28:16,160 --> 00:28:18,199 Speaker 1: just over the last few days. I'm curious when you 516 00:28:18,240 --> 00:28:20,919 Speaker 1: think this means, because coin Base has been, you know, 517 00:28:20,960 --> 00:28:23,439 Speaker 1: in some ways a measure of what's happening in the 518 00:28:23,480 --> 00:28:29,240 Speaker 1: broader crypto space. Absolutely so, there obviously the biggest exchange 519 00:28:29,280 --> 00:28:33,240 Speaker 1: in the crypto exchange in the US, and their value 520 00:28:33,359 --> 00:28:39,000 Speaker 1: dropped by more than you know in the last week. 521 00:28:39,560 --> 00:28:44,320 Speaker 1: And uh, basically it's a very sort of strange situation 522 00:28:44,480 --> 00:28:49,880 Speaker 1: because just several months ago, much smaller competitors Blockchain, dot 523 00:28:49,880 --> 00:28:54,440 Speaker 1: Com and Gemini raised money at very high evaluations. But 524 00:28:54,520 --> 00:28:59,640 Speaker 1: obviously now all vcs that are looking to fund crypto 525 00:28:59,680 --> 00:29:03,560 Speaker 1: company you start looking at coin basis valuations and are saying, 526 00:29:03,600 --> 00:29:07,120 Speaker 1: you know, maybe the companies in our portfolios and the 527 00:29:07,160 --> 00:29:10,200 Speaker 1: companies coming to us are overvalued, and so this could 528 00:29:10,280 --> 00:29:14,360 Speaker 1: have a ripple effect on venture capital activity in crypto. 529 00:29:15,800 --> 00:29:19,080 Speaker 1: All right, lots to continue to watch and digest. Thank 530 00:29:19,160 --> 00:29:22,400 Speaker 1: you for giving us the temperature of this particular brand 531 00:29:22,480 --> 00:29:25,640 Speaker 1: of winter ogo caref appreciate it. I want to continue 532 00:29:25,640 --> 00:29:28,840 Speaker 1: the conversation with Nicola Julia for more on this. He's 533 00:29:28,880 --> 00:29:31,320 Speaker 1: the CEO of Sowhere, an n f T based free 534 00:29:31,320 --> 00:29:34,560 Speaker 1: to play fantasy sports game that just announced a partnership 535 00:29:34,560 --> 00:29:38,200 Speaker 1: with Major League Baseball and the MLB Players Association to 536 00:29:38,320 --> 00:29:41,040 Speaker 1: launch the official n f T based fantasy sports game 537 00:29:41,120 --> 00:29:44,800 Speaker 1: for all MLB teams. Um, we're gonna get to baseball, 538 00:29:44,800 --> 00:29:47,840 Speaker 1: and I'm a huge baseball fan, Nicola, But I want 539 00:29:47,840 --> 00:29:50,320 Speaker 1: to ask you first about the markets and you know 540 00:29:50,360 --> 00:29:52,640 Speaker 1: the fact that we're we're in in the middle of 541 00:29:52,640 --> 00:29:56,360 Speaker 1: a very cold spell. What's your take? Yeah, how many 542 00:29:56,400 --> 00:29:58,440 Speaker 1: thanks thanks for having me. I think us a little 543 00:29:58,520 --> 00:30:01,240 Speaker 1: like for us, like we are using NFT technology to 544 00:30:01,360 --> 00:30:04,040 Speaker 1: the benefits of the funds. We don't have any cryptocurrency 545 00:30:04,160 --> 00:30:07,160 Speaker 1: or token that we developed, um, and so you know, 546 00:30:07,280 --> 00:30:12,040 Speaker 1: we are growing independently of the crypto currency market, which 547 00:30:12,080 --> 00:30:14,320 Speaker 1: is again to the benefits of the time. But does 548 00:30:14,400 --> 00:30:18,040 Speaker 1: this impact at least sentiment about the future of Web three, 549 00:30:18,080 --> 00:30:20,840 Speaker 1: the future of n f T s and sort of 550 00:30:20,840 --> 00:30:24,040 Speaker 1: the growth of this new frontier. I think in general obviously, 551 00:30:24,200 --> 00:30:27,960 Speaker 1: as any regular innovation, you have cycles, right uh and 552 00:30:28,080 --> 00:30:31,120 Speaker 1: uh and so Surreal has been founded in at M 553 00:30:31,240 --> 00:30:35,160 Speaker 1: during one of the biggest crypto winters, and I think, 554 00:30:35,200 --> 00:30:39,479 Speaker 1: you know, building during the cycles helps because you have 555 00:30:39,560 --> 00:30:43,040 Speaker 1: less destructions, you have more focused uh and uh and 556 00:30:43,200 --> 00:30:46,680 Speaker 1: the less opportunistic you know, like people building in the 557 00:30:46,720 --> 00:30:51,280 Speaker 1: space so um so like we love building in winters 558 00:30:51,320 --> 00:30:54,680 Speaker 1: to uh. And yes, the sentiment maybe less good right now, 559 00:30:54,800 --> 00:30:57,680 Speaker 1: but I think the lead once of tomorrow will be 560 00:30:58,280 --> 00:31:01,440 Speaker 1: built right now. Now. There has been some controversy about 561 00:31:01,440 --> 00:31:03,840 Speaker 1: what's actually happening in the n f T market. The 562 00:31:03,920 --> 00:31:06,720 Speaker 1: number of traders is still growing, but n f T 563 00:31:06,920 --> 00:31:11,480 Speaker 1: prices are declining. I'm curious what you're seeing in terms 564 00:31:11,520 --> 00:31:16,240 Speaker 1: of your own sales and the business that you're driving. Yeah, 565 00:31:16,280 --> 00:31:20,600 Speaker 1: I think what sets around upon is the usage value 566 00:31:21,000 --> 00:31:23,600 Speaker 1: of n f T s. So we we've seen, you know, 567 00:31:23,640 --> 00:31:26,880 Speaker 1: a lot of projects growing around the pre collectible value 568 00:31:26,880 --> 00:31:30,360 Speaker 1: of these antist but you know, for us, it's all 569 00:31:30,440 --> 00:31:32,200 Speaker 1: but what you can do with the n XT. So 570 00:31:32,240 --> 00:31:34,840 Speaker 1: we have this fantasy game where you can play with 571 00:31:34,960 --> 00:31:37,600 Speaker 1: officially lessons and extis. And so we have been growing 572 00:31:37,640 --> 00:31:40,480 Speaker 1: consistently the last three hongths and in the last couple 573 00:31:40,520 --> 00:31:44,400 Speaker 1: of weeks as well in terms of sales because five 574 00:31:44,440 --> 00:31:47,000 Speaker 1: million in salons and we will keep them growing we 575 00:31:47,040 --> 00:31:50,080 Speaker 1: expect to do seven hundred million. Uh and I think 576 00:31:50,080 --> 00:31:52,240 Speaker 1: that makes all additions right, like what you can do 577 00:31:52,280 --> 00:31:56,400 Speaker 1: and you can engage and retain defense because of the 578 00:31:56,440 --> 00:31:59,560 Speaker 1: experience you have. Now you just announced this partnership with 579 00:31:59,640 --> 00:32:02,600 Speaker 1: AMU and the players, who as we know, don't always 580 00:32:02,600 --> 00:32:06,440 Speaker 1: necessarily agree, how did you convince them to get on board? 581 00:32:06,520 --> 00:32:10,400 Speaker 1: And white Baseball, I think they ask us free, free, 582 00:32:10,400 --> 00:32:13,680 Speaker 1: big questions. The first one is like, like, are you 583 00:32:13,800 --> 00:32:17,880 Speaker 1: the best bonner to help us grow this huge category 584 00:32:17,920 --> 00:32:21,080 Speaker 1: and Steve fantasy um and uh. And you know we 585 00:32:21,360 --> 00:32:25,160 Speaker 1: have proven with so con that we we created this 586 00:32:25,240 --> 00:32:27,680 Speaker 1: category and we are the best place to develop it 587 00:32:27,920 --> 00:32:30,640 Speaker 1: with top two s pons. So that was question number one. 588 00:32:30,800 --> 00:32:33,000 Speaker 1: The question number two was like, are you the best 589 00:32:33,000 --> 00:32:35,920 Speaker 1: bonner to help us grow the audience? Uh? And we are. 590 00:32:36,040 --> 00:32:38,920 Speaker 1: We are selling in one hundred and eighty countries because 591 00:32:38,920 --> 00:32:41,360 Speaker 1: the glob we have a global audience, and we're gonna 592 00:32:41,440 --> 00:32:44,160 Speaker 1: we're gonna help the mld P and the MLB uh 593 00:32:44,200 --> 00:32:47,280 Speaker 1: to you know, to to grow they reach again overseas. 594 00:32:47,360 --> 00:32:49,800 Speaker 1: And then the third question was like, are you the 595 00:32:49,800 --> 00:32:52,920 Speaker 1: best bonner to provide the best experience to the funds 596 00:32:53,080 --> 00:32:55,560 Speaker 1: And so we are building an amazing team in the 597 00:32:55,640 --> 00:33:00,720 Speaker 1: US with people coming from ESPN and DraftKings in all 598 00:33:00,720 --> 00:33:03,760 Speaker 1: this companies that do amazing products. Uh, and so we 599 00:33:03,760 --> 00:33:08,200 Speaker 1: we are very confident, all right, excited to watch Nicola Juliets, 600 00:33:08,280 --> 00:33:20,960 Speaker 1: CEO of so Rare, Thank you for joining us. Let's 601 00:33:20,960 --> 00:33:24,000 Speaker 1: take a look now at China still battling a wave 602 00:33:24,040 --> 00:33:27,560 Speaker 1: of COVID infections with strict lockdowns that are threatening the economy. 603 00:33:27,800 --> 00:33:30,600 Speaker 1: In fact, one of China's top statistics officials says the 604 00:33:30,640 --> 00:33:34,120 Speaker 1: outbreak has caused quote a huge shock to the economy, 605 00:33:34,440 --> 00:33:37,480 Speaker 1: a rare recognition of the cost of the government's COVID 606 00:33:37,600 --> 00:33:40,720 Speaker 1: zero strategy. I want to bring in Bloomberg's Allen one 607 00:33:40,840 --> 00:33:42,920 Speaker 1: now for more on this. Who is joining us live 608 00:33:43,360 --> 00:33:46,200 Speaker 1: from Shanghai, Alan, Thank you so much for joining us. 609 00:33:46,320 --> 00:33:50,400 Speaker 1: We've seen your reporting earlier in the middle of this lockdown, 610 00:33:50,440 --> 00:33:53,000 Speaker 1: we saw your refrigerator getting low. You talked about your 611 00:33:53,000 --> 00:33:55,920 Speaker 1: inability to go out and get more food. Talk to 612 00:33:56,000 --> 00:33:58,720 Speaker 1: us about how you're doing right now and what exactly 613 00:33:58,760 --> 00:34:02,400 Speaker 1: you can and in the midst of this lockdown at 614 00:34:02,400 --> 00:34:05,560 Speaker 1: this date, well, I was Tyde. I'm on date forty 615 00:34:05,640 --> 00:34:10,640 Speaker 1: three of my four day lockdown. And joking aside. Uh yeah, 616 00:34:10,640 --> 00:34:13,279 Speaker 1: it's been. It's been incredibly talk very frustrating, as known 617 00:34:13,320 --> 00:34:16,560 Speaker 1: as the people like me in the situation right now, 618 00:34:16,560 --> 00:34:21,040 Speaker 1: I've actually walked downstairs, walk within my compound and and 619 00:34:21,080 --> 00:34:24,800 Speaker 1: get pick up like a food. Uh that's that's delivered 620 00:34:24,840 --> 00:34:28,520 Speaker 1: to me. Obviously not not many shops are open, so um, 621 00:34:28,560 --> 00:34:30,880 Speaker 1: you know, I'm sort of like sort of stuck to 622 00:34:30,920 --> 00:34:33,160 Speaker 1: whatever is available. Although the other day I think get 623 00:34:33,200 --> 00:34:36,000 Speaker 1: some connective fried chicken. So the food situation has ease 624 00:34:36,000 --> 00:34:38,240 Speaker 1: a little bit, but there's still a lot of concerned 625 00:34:38,360 --> 00:34:43,680 Speaker 1: about these cardin facilities. People are still being um casse 626 00:34:44,280 --> 00:34:47,960 Speaker 1: in a course too into into going into these facilities 627 00:34:48,440 --> 00:34:51,000 Speaker 1: if you test positive, and they've actually tightened some of 628 00:34:51,000 --> 00:34:54,960 Speaker 1: these restrictions before if you live in a building where 629 00:34:55,080 --> 00:34:57,000 Speaker 1: you have some positive cases, as long as they're any 630 00:34:57,040 --> 00:34:58,880 Speaker 1: close contacts, you don't live in the same floor or 631 00:34:58,920 --> 00:35:01,879 Speaker 1: something that and you wouldn't have to go. But now 632 00:35:02,000 --> 00:35:04,279 Speaker 1: even if you test negative and as someone in the 633 00:35:04,280 --> 00:35:07,200 Speaker 1: building that test positive, the likelihood is that you know, 634 00:35:07,239 --> 00:35:10,440 Speaker 1: you could be sent into these uh coin facilities. And 635 00:35:10,440 --> 00:35:12,399 Speaker 1: we've seen some of these images that look pretty uh 636 00:35:12,600 --> 00:35:17,080 Speaker 1: pretty grim. We've seen the frustration in social media post 637 00:35:17,160 --> 00:35:21,120 Speaker 1: people who can't get food? How would you describe the mood? 638 00:35:21,280 --> 00:35:25,000 Speaker 1: How are people in Shanghai taking this well? I think 639 00:35:25,000 --> 00:35:27,319 Speaker 1: there's a lot of people like me. Uh. I hate 640 00:35:27,320 --> 00:35:29,200 Speaker 1: to meet his analogy, but I'm going to There's this 641 00:35:29,239 --> 00:35:32,200 Speaker 1: book by Elizabeth cool or Ross of Deaf and Dying, 642 00:35:32,320 --> 00:35:35,000 Speaker 1: where when you have some really bad news about about 643 00:35:35,080 --> 00:35:36,719 Speaker 1: you know, maybe your help or something, and you know, 644 00:35:36,760 --> 00:35:39,640 Speaker 1: you're go into shock and anger and moved through the 645 00:35:39,680 --> 00:35:42,520 Speaker 1: several stages of despair until you reach the final stage, 646 00:35:42,560 --> 00:35:45,319 Speaker 1: which is uh, acceptance. And I think a lot of 647 00:35:45,400 --> 00:35:47,719 Speaker 1: us are at that stage of acceptance and which right 648 00:35:47,719 --> 00:35:51,360 Speaker 1: now we're just waiting around hoping that you know, this 649 00:35:51,480 --> 00:35:55,399 Speaker 1: lockdown will end sooner or later. Right now, the most 650 00:35:55,400 --> 00:35:59,320 Speaker 1: important metric of all is this one called community spread 651 00:36:00,000 --> 00:36:03,440 Speaker 1: against the number of cases outside of these quarantining facilities. 652 00:36:03,920 --> 00:36:07,200 Speaker 1: And there are three three consecutive days of no community spread. 653 00:36:07,680 --> 00:36:10,880 Speaker 1: Theoretically we should be able to be released from lockdown 654 00:36:11,400 --> 00:36:13,960 Speaker 1: and last month for two days, and then the third 655 00:36:14,000 --> 00:36:15,640 Speaker 1: day there are a couple of kids that popped up 656 00:36:16,000 --> 00:36:18,279 Speaker 1: and we're back to square one. So that's why we're 657 00:36:18,280 --> 00:36:19,919 Speaker 1: looking at it right now. I mean number of cases, 658 00:36:20,000 --> 00:36:24,960 Speaker 1: Shining has been falling, but communist spread has still been persistent. 659 00:36:25,080 --> 00:36:28,360 Speaker 1: So we're hoping that at some point, um, you know, 660 00:36:28,440 --> 00:36:33,600 Speaker 1: we're going to be released. Like it's very frustrating and 661 00:36:33,600 --> 00:36:36,120 Speaker 1: and we just got to wait and see. So there's 662 00:36:36,160 --> 00:36:39,480 Speaker 1: obviously a question about how this impacts not just the 663 00:36:39,520 --> 00:36:42,720 Speaker 1: local economy but the global economy. Now we're also hearing 664 00:36:42,760 --> 00:36:45,359 Speaker 1: rumors about a lockdown in Beijing. The Chinese government, as 665 00:36:45,360 --> 00:36:48,359 Speaker 1: I understand it, has denied those rumors, but we are 666 00:36:48,400 --> 00:36:53,600 Speaker 1: seeing a lockdown light situation. What can you tell us, Well, 667 00:36:53,640 --> 00:36:57,879 Speaker 1: I think two points. First impact on the economy into Paiging. Well, 668 00:36:57,960 --> 00:37:00,840 Speaker 1: you know, yeah, exactly, even though the number kids in Beijing, 669 00:37:01,160 --> 00:37:03,960 Speaker 1: um that there have been that maning you know, roughly 670 00:37:03,960 --> 00:37:07,319 Speaker 1: in the teens um. But the problem is that it's 671 00:37:07,400 --> 00:37:10,759 Speaker 1: it's still there. And the guvernment said that you know, 672 00:37:10,800 --> 00:37:12,960 Speaker 1: there's there's not gonna be locked out in Beijing. That's 673 00:37:12,960 --> 00:37:15,440 Speaker 1: what we were told as well, you know, but it 674 00:37:15,480 --> 00:37:19,360 Speaker 1: seems that you know, they're moving in upper direction obviously 675 00:37:19,360 --> 00:37:21,800 Speaker 1: direction and did be shutting down subways, they would do 676 00:37:21,840 --> 00:37:23,759 Speaker 1: a lot more mass testing. So I would tell us 677 00:37:23,760 --> 00:37:27,799 Speaker 1: some of my Beging friends stock up, especially coke. You know, 678 00:37:27,840 --> 00:37:30,520 Speaker 1: buy lots of coke because that's a valuable commodity during 679 00:37:30,520 --> 00:37:32,800 Speaker 1: its lockdown. And you're right, there's been a big impact 680 00:37:32,800 --> 00:37:36,279 Speaker 1: on the glotal economy, especially on you know recently we 681 00:37:36,320 --> 00:37:37,839 Speaker 1: see all the day to coming out of China. It's 682 00:37:37,880 --> 00:37:42,800 Speaker 1: pretty ugly, manufacturers contracting. We don't of course, consumption is 683 00:37:42,840 --> 00:37:45,319 Speaker 1: weak and inflation is surging, just like in the rest 684 00:37:45,360 --> 00:37:48,359 Speaker 1: of the rest of the world. Um so, and what 685 00:37:48,440 --> 00:37:51,359 Speaker 1: does I mean for China. I mean basically that it's 686 00:37:51,400 --> 00:37:53,440 Speaker 1: not it's not going to meet his ambitious growth targets 687 00:37:53,480 --> 00:37:56,000 Speaker 1: for this year. Why I don't think so anyway. Um now, 688 00:37:56,120 --> 00:37:59,239 Speaker 1: long for us from Shanghai. Thank you so much for 689 00:37:59,320 --> 00:38:00,680 Speaker 1: joining us all. And I know it's early in the 690 00:38:00,719 --> 00:38:02,920 Speaker 1: morning there before. You really appreciate you giving us a 691 00:38:03,040 --> 00:38:06,160 Speaker 1: view from China that doesn't For the sedition of the show, 692 00:38:06,200 --> 00:38:08,240 Speaker 1: we're gonna be back tomorrow, I'll be joined by Greylock 693 00:38:08,320 --> 00:38:12,279 Speaker 1: Partners and LinkedIn co founder Reid Hoffman. Always fun to 694 00:38:12,320 --> 00:38:14,279 Speaker 1: talk to him, and of course check out our new 695 00:38:14,280 --> 00:38:16,960 Speaker 1: podcast anywhere you get your podcasts. I'm Emily Changing in 696 00:38:17,000 --> 00:38:19,160 Speaker 1: San Francisco. This is Bloomberg