WEBVTT - Virgin Galactic's Space Flight and Micron's Earnings 0:00:01.440 --> 0:00:05.760 From Mahard. We're Innovation, Money and Power Collie in Silicon 0:00:05.880 --> 0:00:10.280 Vallet NBN. This is Bloomberg Technology with Caroline Hyde and 0:00:10.520 --> 0:00:11.120 Ed Ludlow. 0:00:25.280 --> 0:00:28.360 Ed Ludlow here in San Francisco, Caroline hides off today. 0:00:28.560 --> 0:00:31.680 This is Bloomberg Technology coming up on the program. Full 0:00:31.720 --> 0:00:35.440 coverage of the tech companies making headlines, from Virgin Galactics 0:00:35.720 --> 0:00:39.479 spaceflight to Micron's earnings, and even Coinbase calling for a 0:00:39.520 --> 0:00:41.520 dismissal of its sec suit. 0:00:41.560 --> 0:00:42.320 We got you covered. 0:00:42.680 --> 0:00:46.320 Plus AI video startup Runway raising an additional one hundred 0:00:46.320 --> 0:00:50.199 and forty million from Google, Nvidia and other investors. We 0:00:50.240 --> 0:00:53.720 had the exclusive interview with the CEO and you may 0:00:53.800 --> 0:00:57.080 know him from Man Versus Wild, but now Bear Grills 0:00:57.440 --> 0:01:02.360 is tackling disinformation and pushing for digital literacy using AI. 0:01:02.680 --> 0:01:06.440 He joins us later this hour to discuss his new initiative. 0:01:06.480 --> 0:01:08.479 Let's get a check in on the Micron. Micron giving 0:01:08.480 --> 0:01:11.319 a bullish outlook suggesting that we're coming out of the 0:01:11.360 --> 0:01:14.440 trough when it comes from memory chips, but the market's 0:01:14.480 --> 0:01:17.120 not buying it. There is debate on the street about 0:01:17.160 --> 0:01:21.000 whether this recovery the micro has outlined is going to 0:01:21.080 --> 0:01:23.600 happen as they suggest, Let's get the reaction in the 0:01:23.640 --> 0:01:27.600 analysis and bring in Bloomberg's Mandeep saying of Bloomberg Intelligence 0:01:27.640 --> 0:01:29.800 man deep the recovery the trough. 0:01:30.240 --> 0:01:33.160 Are you buying it well? So they had some mixed 0:01:33.240 --> 0:01:33.760 data points. 0:01:33.800 --> 0:01:37.760 If you look at the guidance, clearly that was above consensus. 0:01:37.800 --> 0:01:41.119 But when you look at the inventory days going up 0:01:41.120 --> 0:01:44.959 to one sixty five from one fifty, we thought, you know, 0:01:45.000 --> 0:01:47.400 their fiscal two Q the last quarter was going to 0:01:47.400 --> 0:01:51.000 be the peak. So clearly they're writing down less inventory. 0:01:51.080 --> 0:01:54.200 Last quarter they wrote about one point four billion. This quarter, 0:01:54.240 --> 0:01:57.680 they only wrote four hundred million dollar off inventory. And 0:01:57.760 --> 0:02:00.640 they didn't give us enough data points around their Generative 0:02:00.640 --> 0:02:04.920 AI exposure. They talked about how bandwidth high bandwidth memory, 0:02:05.360 --> 0:02:08.239 but they didn't give us like quantification of how much 0:02:08.280 --> 0:02:11.320 exposure it is, how it's gonna ram. So that's why 0:02:11.560 --> 0:02:14.320 I would say it was a mixed quarter. But look, 0:02:14.400 --> 0:02:15.800 I mean, at the end of the day, there are 0:02:15.800 --> 0:02:19.160 three players in memory, and if generative AI is a 0:02:19.200 --> 0:02:22.720 secular Tilwyn and we are in the early innings, I 0:02:23.120 --> 0:02:26.440 think you could extrapolate that there will be memory demand 0:02:26.680 --> 0:02:29.760 just because it goes hand in hand with the chip 0:02:30.000 --> 0:02:31.359 and the computer capacity. 0:02:32.080 --> 0:02:34.960 I love nerding out on d RAM and nand I 0:02:34.960 --> 0:02:37.639 always love nerding out in DRAM and Nand the thing is, 0:02:37.680 --> 0:02:41.200 it's such a commoditized chip. And the story that Micron 0:02:41.360 --> 0:02:44.320 was trying to paint was that all of the laptop makers, 0:02:44.400 --> 0:02:48.400 PC makers, smartphone makers, they built up the inventory, and 0:02:48.440 --> 0:02:51.079 they'd work through the inventory and they were going to 0:02:51.160 --> 0:02:55.080 start ordering again. But actually that kind of contrasted with 0:02:55.160 --> 0:02:58.359 the outlook for the markets. How many PCs we think 0:02:58.360 --> 0:03:01.280 will ship this year, how many smartphones we think will 0:03:01.280 --> 0:03:04.639 ship this year? What did you learn, Mandy through Micron's 0:03:04.639 --> 0:03:05.720 commentary in that respect. 0:03:06.000 --> 0:03:09.000 Yeah, so they lured their PC shipment forecast for this 0:03:09.160 --> 0:03:13.880 year smartphone shipment as well. They lured it by a 0:03:13.880 --> 0:03:17.720 couple of percentage points. So, look, I think near term, 0:03:17.960 --> 0:03:21.679 given their high exposure to PCs and smartphones that makes 0:03:21.760 --> 0:03:25.120 up almost seventy percent of you know, their DRAM sales. 0:03:25.240 --> 0:03:29.680 So you could argue that given the high exposure they 0:03:29.720 --> 0:03:32.920 have to these two pockets, which are unlikely to recover 0:03:33.000 --> 0:03:35.640 in the second half, it makes sense, you know that 0:03:36.320 --> 0:03:38.600 they still have work to do in terms of working 0:03:38.640 --> 0:03:41.480 through the inventory and the orders aren't going to come 0:03:41.560 --> 0:03:44.360 back so soon, and they're cutting back supply, which I 0:03:44.400 --> 0:03:47.040 think is a positive. When you think about the dynamics 0:03:47.120 --> 0:03:51.360 of a commoditized space, the supply demand balance is key. 0:03:51.440 --> 0:03:55.320 So they are reducing their supply. They would hope Samsung 0:03:55.360 --> 0:03:57.360 and s k Heinis are doing the same. And what 0:03:57.400 --> 0:03:59.560 it could do down the line, you know, second half 0:03:59.600 --> 0:04:02.320 to twenty twenty four or twenty twenty five, is you 0:04:02.360 --> 0:04:05.120 could see a big pop in pricing because right now 0:04:05.240 --> 0:04:09.280 pricing declines are moderating, but no one is expecting prices 0:04:09.320 --> 0:04:12.360 to go up for memory. If the supply demand balance 0:04:12.440 --> 0:04:15.240 is restored, you could see that pricing pop up given 0:04:15.280 --> 0:04:17.600 the tail Vince we're talking about from generator to AI. 0:04:18.360 --> 0:04:21.000 Here on Bloomberg Technology, we follow the d ram man 0:04:21.040 --> 0:04:22.479 neat seeing of Bloomberg Intelligence. 0:04:22.520 --> 0:04:24.760 Thank you very much. So let's get out to New Mexico. 0:04:24.920 --> 0:04:29.039 Virgin Galactic officially launching and landing in the last few 0:04:29.040 --> 0:04:31.720 minutes its first ever commercial spaceflight. 0:04:31.760 --> 0:04:33.720 Bloomberg's Lauren Grush. 0:04:33.720 --> 0:04:36.680 Space reporter in chief, out there in New Mexico. Lauren, 0:04:36.760 --> 0:04:37.440 what just happened? 0:04:38.360 --> 0:04:40.960 Well, actually you just missed it. The crew just arrived 0:04:41.000 --> 0:04:45.279 back from their spaceflight here at the Spaceport America, everyone celebrating. 0:04:45.320 --> 0:04:47.039 You might be able to hear some cheers next to me. 0:04:47.080 --> 0:04:49.960 At the moment. It's all smiles as a picture perfect 0:04:49.960 --> 0:04:52.640 flight today. Unfortunately you might see the clouds behind me. 0:04:53.120 --> 0:04:55.839 They did obscure our view here from the ground, but 0:04:55.960 --> 0:04:58.040 everything went smooth during the actual flight. 0:04:58.880 --> 0:05:00.920 Okay, So the context of this mission is it's the 0:05:00.920 --> 0:05:04.719 first commercial mission, the sixth in total that they've breached 0:05:04.720 --> 0:05:08.880 the fifty mile mark above Earth's atmosphere. It seems strange 0:05:08.920 --> 0:05:11.400 to kind of look so far ahead, but what's next? 0:05:11.520 --> 0:05:13.520 I mean, what is Virgin Galactic going to do? Because 0:05:13.520 --> 0:05:16.599 this is a company that has struggled for years, had 0:05:16.600 --> 0:05:20.080 some real tragedy, and is way behind its original schedule. 0:05:22.080 --> 0:05:24.599 I mean, it really was leading all to this point, right, 0:05:24.640 --> 0:05:27.080 And so what happens next is they need to start 0:05:27.160 --> 0:05:29.880 launching regularly, and then they need to up the frequency 0:05:29.920 --> 0:05:32.279 of their launches. So the plan at the moment is 0:05:32.320 --> 0:05:34.720 to do monthly launches here on out. The next one 0:05:34.760 --> 0:05:37.880 is scheduled for August. This today's flight was a research 0:05:37.960 --> 0:05:40.520 mission with the Italian Air Force, but soon they're going 0:05:40.520 --> 0:05:43.680 to be opening up to that eight hundred list of 0:05:43.760 --> 0:05:46.719 private astronauts that they signed up many years ago. So 0:05:46.720 --> 0:05:51.120 soon we might be seeing some high earning flyers fly, 0:05:51.720 --> 0:05:53.040 potentially as soon as August. 0:05:54.120 --> 0:05:58.640 Okay, so the dual fusilage aeroplane takes the craft to 0:05:58.720 --> 0:06:03.680 fifty thousand feet, they separate ignition seventy second, burn fifty miles. 0:06:03.920 --> 0:06:06.680 What was that experience like on the ground? Is their 0:06:06.720 --> 0:06:10.240 nervousness there at Spaceport America? How is your heart racing, Lauren? 0:06:11.520 --> 0:06:13.960 Oh, definitely, there's a thing that I like to call 0:06:14.040 --> 0:06:16.800 launch nerves that happens with every single flight, whether it's 0:06:16.839 --> 0:06:19.520 say rocket that launches from the ground or one like 0:06:19.600 --> 0:06:22.480 Virgin Galactics that takes off from the air. Definitely, in 0:06:22.520 --> 0:06:25.159 the seconds beforehand, you can feel the energy kind of 0:06:25.279 --> 0:06:28.760 started to tighten on the ground. We were hoping to 0:06:28.800 --> 0:06:31.760 see the ignition ourselves, but we didn't see it. 0:06:31.800 --> 0:06:33.120 However, we were able to watch. 0:06:33.000 --> 0:06:35.160 It from the live stream. They had big cameras out here, 0:06:35.400 --> 0:06:37.360 and once that happened, you know, everyone just kind of 0:06:37.440 --> 0:06:40.839 let out that relief and cheers and claps and applause 0:06:40.880 --> 0:06:43.279 were happening. So it was a really special moment to 0:06:43.360 --> 0:06:46.160 be here among all of the employees who've worked really 0:06:46.200 --> 0:06:48.120 hard to get to this point because it has been 0:06:48.160 --> 0:06:49.719 a very long time in the making for them. 0:06:50.320 --> 0:06:52.640 All Right, Bluemos Lauren Grush on the ground in New Mexico. 0:06:52.720 --> 0:06:55.320 She messaged me in the moment and said, sonic boom 0:06:55.440 --> 0:06:57.600 as it was coming back down. Thank you for your 0:06:57.680 --> 0:07:00.479 live reporting. We'll stick with you throughout the day, I'm sure. 0:07:00.520 --> 0:07:05.240 Now next up Coinbase looking to get their sec lawsuit dismissed, 0:07:05.320 --> 0:07:08.599 saying it lacks merit. Earlier we spoke to the company's 0:07:08.640 --> 0:07:10.480 chief legal off Sir Paul greul. 0:07:11.320 --> 0:07:16.440 Or an exchange a commission to now claim two years later, 0:07:16.600 --> 0:07:19.400 more than two years later, somehow we were running an 0:07:19.480 --> 0:07:23.600 unlawful enterprise when their mandate requires to consider the protection 0:07:23.760 --> 0:07:29.120 investors and their very namely requires them to apply the 0:07:29.200 --> 0:07:32.160 expertise and securities and exchanges. 0:07:31.880 --> 0:07:33.800 It doesn't, It doesn't make any sense. 0:07:34.720 --> 0:07:37.640 Let's bring in Broomberg, Shnali Bassack, who conducted that interview. 0:07:37.640 --> 0:07:38.720 Shnali, what else did you then? 0:07:38.920 --> 0:07:39.600 Yeah, a few things. 0:07:39.600 --> 0:07:42.080 First of all, remember our coinbasis stock has been flying 0:07:42.120 --> 0:07:44.160 in the face of a lot of these crackdowns this year. 0:07:44.200 --> 0:07:47.360 It's more than one hundred percent ed this year, and 0:07:47.520 --> 0:07:49.880 at the same time you have it up today as well. 0:07:49.880 --> 0:07:51.400 This is more than one hundred page. 0:07:51.240 --> 0:07:55.360 Response that coinbas has filed against the SEC saying that 0:07:55.440 --> 0:07:58.320 it intends to ask to dismiss this case, saying that 0:07:58.320 --> 0:08:01.280 it goes beyond existing law. Now listen, One interesting part 0:08:01.320 --> 0:08:03.600 of this is the argument that they make about the 0:08:03.640 --> 0:08:06.120 SEC allowing for the IPO in the first place and 0:08:06.200 --> 0:08:08.080 going through the disclosure forms already. 0:08:08.400 --> 0:08:11.520 Our own Bloomberg reporter Oli Vspiel makes this great point. 0:08:11.320 --> 0:08:14.240 That a lot of securities experts wonder whether you know, 0:08:14.320 --> 0:08:18.200 really this is about the SEC requiring disclosure more than 0:08:18.800 --> 0:08:22.720 identifying the legalities inside of a coinbase's business, which lists 0:08:22.760 --> 0:08:25.240 more tokens now than it did at that time. It's 0:08:25.240 --> 0:08:28.200 certainly a very interesting case and a bell weather for 0:08:28.280 --> 0:08:31.600 so much of this industry. And it also comes at 0:08:31.640 --> 0:08:35.800 the same time as coinbase being listed as the custodian 0:08:35.920 --> 0:08:38.680 for black rocks ETF tied. 0:08:38.480 --> 0:08:39.480 To spot Bitcoin. 0:08:39.600 --> 0:08:42.800 So really, on two fronts here, one is a very 0:08:42.840 --> 0:08:45.679 tense story, another one is one of hope that that 0:08:45.760 --> 0:08:48.080 will be approved that bitcoining TF sometimes soon. 0:08:48.800 --> 0:08:49.679 So I'm looking at shares. 0:08:49.679 --> 0:08:52.120 We're up two point four percent in the session, right, 0:08:52.160 --> 0:08:54.960 they want the suit thrown out. So is this a 0:08:55.000 --> 0:08:58.600 real legal move or is this posturing in a bigger process. 0:08:58.720 --> 0:09:00.800 Well, listen, not only do you have Paul Growell, who's 0:09:00.800 --> 0:09:04.880 the chief legal officer formerly worked at Facebook, seriously in 0:09:05.000 --> 0:09:08.520 tune with the innovative landscape out there, not his first rodeo. 0:09:08.640 --> 0:09:11.080 You also have them working with Sullivan and Cromwell, which 0:09:11.120 --> 0:09:13.160 is one of the biggest financial law firms in the world. 0:09:13.240 --> 0:09:15.360 Walk tell more than Hudre and pay lawsuit. 0:09:15.440 --> 0:09:17.679 We've had them tell us a few times now that 0:09:17.800 --> 0:09:20.160 they would take this to the Supreme Court if need be. 0:09:20.640 --> 0:09:23.199 So they're very serious about fighting this to the end, 0:09:23.600 --> 0:09:28.360 no matter how much uncertainty that creates an interim. 0:09:28.480 --> 0:09:31.160 All right, Bloomberg Shinali Bassak bringing us that reporting and 0:09:31.240 --> 0:09:32.280 exclusive conversation. 0:09:32.760 --> 0:09:35.000 Thank you. We will track that story now. 0:09:35.000 --> 0:09:38.720 Coming up on Bloomberg Technology Chat GPT's open AI is 0:09:38.760 --> 0:09:43.320 being accused of stealing vast amounts of personal information for 0:09:43.440 --> 0:09:46.080 its artificial intelligence models. Will bring you the latest on 0:09:46.120 --> 0:09:49.200 that next. I'm seeing some breaking news across the Bloomberg terminal. 0:09:49.559 --> 0:09:55.200 Pokemon Go maker Neantic is closing the studio and canceling 0:09:55.520 --> 0:09:58.480 the game Neantic CEO announcing that. 0:09:58.400 --> 0:10:00.360 Move in a blog post. We will track that stories. 0:10:00.400 --> 0:10:04.199 So many of you are tracking Pokemon Go some other 0:10:04.240 --> 0:10:07.560 breaking news. We are getting Savers Value Village opening price 0:10:07.640 --> 0:10:11.800 twenty four dollars seventy seven cents. It's IPO was eighteen 0:10:11.880 --> 0:10:14.880 dollars a share, So Savers Value Village opening a twenty 0:10:14.880 --> 0:10:18.000 four dollars seventy cents a share. This discount store that's 0:10:18.200 --> 0:10:21.720 listing and pricing in this morning session. We will continue 0:10:21.720 --> 0:10:23.560 to track how that performs. We've had some energy a 0:10:23.600 --> 0:10:26.200 little bit in the IPO market in recent weeks. Wow 0:10:26.400 --> 0:10:39.160 fast hearts of the show. This is Bloomberg Technology. Let's 0:10:39.160 --> 0:10:42.120 go back to that breaking market's news. Savers Value Village 0:10:42.480 --> 0:10:45.560 opened at twenty four dollars seventy seven cents a share, 0:10:45.600 --> 0:10:48.920 having priced its IPO at eighteen dollars. That currently gives 0:10:48.960 --> 0:10:52.160 it a market cap of about three point nine billion dollars. 0:10:52.200 --> 0:10:54.760 We're trading in this moment at twenty four dollars forty 0:10:54.800 --> 0:10:58.000 cents a share, bouncing around, but it's interesting some energy 0:10:58.000 --> 0:11:00.240 in the IPO market. This is the fifth biggest side 0:11:00.720 --> 0:11:03.040 of the year based on money raise. We talked about 0:11:03.080 --> 0:11:06.959 Carver the fast casual restaurant chain with a Mediterranean slant 0:11:07.360 --> 0:11:09.640 just a week ago, wasn't it. So we're seeing some 0:11:09.640 --> 0:11:12.400 some back, not so much the technology sector, but get 0:11:12.400 --> 0:11:15.200 on your Bloomberg terminal, and that is what Savers Value 0:11:15.280 --> 0:11:17.480 Village looks like right now. Open in twenty four dollars 0:11:17.520 --> 0:11:20.800 seventy seven cents, trading twenty four to forty one after 0:11:20.880 --> 0:11:22.320 pricing at eighteen. 0:11:22.440 --> 0:11:24.920 All right, let's move on. It's time for talking tech. 0:11:24.720 --> 0:11:28.640 And first up chat GPT creator open ais being accused 0:11:28.840 --> 0:11:32.640 of stealing vast amounts of personal information to train its 0:11:32.720 --> 0:11:36.280 artificial intelligence models a one hundred and fifty seven page lawsuit. 0:11:36.640 --> 0:11:41.000 Plaintiffs are alleging open ai violated privacy laws by secretly 0:11:41.120 --> 0:11:47.240 scraping three hundred billion words from the Internet, tapping books, articles, websites, 0:11:47.559 --> 0:11:52.200 and posts, including personal information that was obtained without consent. 0:11:52.240 --> 0:11:55.120 We will continue to track that and seek OpenAI's comment. 0:11:55.679 --> 0:11:59.839 And Microsoft CEO guaranteed that Activision, Blizzard's top selling Call 0:11:59.880 --> 0:12:04.280 of Duty title will stay on rival Sony's PlayStation. This 0:12:04.360 --> 0:12:07.880 comes after Microsoft called its own CEO and Activision CEO 0:12:08.240 --> 0:12:11.520 to testify in San Francisco Federal court that the company 0:12:11.679 --> 0:12:15.080 sixty nine billion dollar tie up won't hurt competition in 0:12:15.120 --> 0:12:19.360 the markets for console and subscription based games, plus sticking 0:12:19.360 --> 0:12:23.600 with gaming. Sega dismissed speculation it may be the target. 0:12:23.280 --> 0:12:24.959 Of acquirers like Microsoft. 0:12:25.160 --> 0:12:28.320 The studio behind Sonic the Hedgehog stressed it intends to 0:12:28.360 --> 0:12:33.199 remain part of a bigger Japanese entertainment conglomerate. Co COO 0:12:33.360 --> 0:12:37.040 Suji Utsumi told Bloomberg News. While the game publisher maintains 0:12:37.040 --> 0:12:40.800 a close relationship with Microsoft, it is not open to 0:12:40.840 --> 0:12:41.800 acquisition talks. 0:12:42.640 --> 0:12:44.760 While we if you honor, I mean they are the 0:12:45.400 --> 0:12:49.040 value us a lot. So you know, we we still 0:12:49.080 --> 0:12:52.800 work force louse of Microsoft. They always show you know, 0:12:53.160 --> 0:12:57.160 you know, our respect. So we've being you know, really 0:12:58.360 --> 0:13:03.000 having you know, I meanship with them, and we really 0:13:03.120 --> 0:13:06.559 appreciate that they, you know, somehow value us. 0:13:07.800 --> 0:13:11.319 Does Sega have any intention to be acquired? 0:13:11.880 --> 0:13:15.720 No, very simple not. 0:13:15.840 --> 0:13:15.880 No. 0:13:18.080 --> 0:13:20.200 Let's get to another top technology story. 0:13:20.280 --> 0:13:24.240 Lena Khan's Federal Trade Commission has already filed three cases 0:13:24.480 --> 0:13:25.439 against Amazon. 0:13:26.000 --> 0:13:28.600 Now she's gearing up for the big one in the 0:13:28.600 --> 0:13:29.160 coming weeks. 0:13:29.200 --> 0:13:32.800 The FTC plans to file an antitrust lawsuit focused on 0:13:32.880 --> 0:13:36.840 Amazon's core online marketplace. Joining us to talk more about 0:13:36.840 --> 0:13:39.440 this reporting is Bloomberg News is Leah and Eiland. 0:13:39.760 --> 0:13:42.199 Leah, We've learned a lot what a source is telling us. 0:13:43.640 --> 0:13:47.319 Yeah, so we're expecting the big one sometime later this summer, 0:13:47.679 --> 0:13:50.240 possibly as soon as next month. This is a long 0:13:50.320 --> 0:13:54.240 running FTC investigation that actually started four years ago this month. 0:13:55.000 --> 0:13:57.200 Our story this morning actually got a look at the 0:13:57.240 --> 0:13:59.640 first information request the FTC sent to them, and it 0:13:59.679 --> 0:14:02.440 was very broad. I asked a lot of questions about 0:14:02.440 --> 0:14:05.760 their online marketplace, how they deal with third party sellers, 0:14:06.160 --> 0:14:10.160 and the relationship they have with Apple over selling Apple 0:14:10.200 --> 0:14:11.439 products on the marketplace. 0:14:12.320 --> 0:14:13.800 Over the past two. 0:14:13.640 --> 0:14:17.520 Years, since Lena Khan took over the FTC, they've really 0:14:18.320 --> 0:14:21.800 focused a lot on Amazon. As you mentioned, they've now 0:14:21.880 --> 0:14:24.160 sued the company three times in the past month over 0:14:24.280 --> 0:14:28.000 consumer protection violations. But this one is sort of expected 0:14:28.040 --> 0:14:30.400 to be the really big one that takes aim at 0:14:30.600 --> 0:14:31.920 Amazon's big moneymaker. 0:14:32.640 --> 0:14:35.080 We're looking at shares of Amazon down nine ten percent 0:14:35.080 --> 0:14:37.600 in the session, but clearly a concern. 0:14:37.680 --> 0:14:39.000 When I read the story. 0:14:38.680 --> 0:14:41.840 On Bloomberg dot com, I thought a lot about Lena Khan, 0:14:42.840 --> 0:14:45.440 the individual, what this means for her in her role 0:14:45.480 --> 0:14:48.160 at the FTC. What have you learned about how active 0:14:48.200 --> 0:14:50.080 and how involved she is in this process. 0:14:51.360 --> 0:14:54.440 She's been very, very involved since taking over two years ago. 0:14:55.200 --> 0:14:58.240 When she took over in June of twenty twenty one, 0:14:58.320 --> 0:15:02.160 so two years ago. This month, she sort of reorganized 0:15:02.200 --> 0:15:05.440 the entire way that the FTC has been looking at Amazon, 0:15:06.280 --> 0:15:10.560 including giving the investigators some specific lines of questioning to 0:15:10.680 --> 0:15:13.400 sort of look into. She put a new person in 0:15:13.520 --> 0:15:16.120 charge of the case, a fellow academic by the name 0:15:16.160 --> 0:15:19.280 of John Newman, and they really bulked up the number 0:15:19.320 --> 0:15:21.720 of people who are involved in this case. The Trump 0:15:21.760 --> 0:15:24.080 administration had opened it, but they had really focused a 0:15:24.120 --> 0:15:26.520 lot of their resources in the case that the FTC 0:15:26.640 --> 0:15:31.840 brought against Meta, and con has really moved to focus 0:15:31.880 --> 0:15:35.560 the agency more on Amazon because she sort of believes 0:15:35.560 --> 0:15:39.520 that the Trump administration really didn't give it the attention 0:15:39.640 --> 0:15:40.360 that it deserved. 0:15:41.000 --> 0:15:43.720 All Right, bloombos Lea and Iland with that exclusive reporting 0:15:43.760 --> 0:15:46.320 alongside our own an edge and check it out on 0:15:46.360 --> 0:15:57.360 Bloomberg dot com. All Right, the world's dealmakers are down 0:15:57.480 --> 0:16:00.120 roughly a trillion dollars in one of the worst years 0:16:00.120 --> 0:16:03.240 for takeovers and stock market listings in a decade. 0:16:03.320 --> 0:16:04.760 That's the year on year. 0:16:04.640 --> 0:16:07.440 Drop in the value of M and A and IPOs 0:16:07.440 --> 0:16:10.080 in the first half, a period in which inflationary pressures, 0:16:10.200 --> 0:16:14.240 financing constraints, geo political tensions. The list goes on mixed 0:16:14.360 --> 0:16:18.120 activity across regions and sectors that according to Bloomberg data 0:16:18.120 --> 0:16:21.400 excluding COVID impacted twenty twenty, it's the smallest first half 0:16:21.440 --> 0:16:25.160 total in a decade and blow the average for the period. 0:16:25.600 --> 0:16:28.320 All right, let's stay global and bring in Sekinder sne 0:16:28.400 --> 0:16:31.920 Cassidy CEO of Zero, the cloud based small business platform 0:16:32.080 --> 0:16:35.520 is based in New Zealand and bringing into accounting, payroll 0:16:35.560 --> 0:16:39.680 and workforce management solutions to customers globally, which's also via 0:16:39.720 --> 0:16:42.000 some of the largest tech companies in the worldlike Google 0:16:42.320 --> 0:16:46.080 and Amazon. Good morning, warning it welcome to bin the technology. 0:16:46.120 --> 0:16:47.880 When you heard that about the first half of this year, 0:16:48.000 --> 0:16:51.000 I go straight to thinking about what you've seen. Broadly, 0:16:51.040 --> 0:16:53.360 think about all of your customers and the platforms you offer. 0:16:53.520 --> 0:16:55.360 You must get a pretty good lens into the health 0:16:55.360 --> 0:16:56.240 of the tech sector. 0:16:56.640 --> 0:16:59.040 We certainly do. Actually, I think we get a look 0:16:59.040 --> 0:17:01.480 into the health of this small business economy globally. Because 0:17:01.480 --> 0:17:04.119 of course Zero has over three point seven million subscribers 0:17:04.160 --> 0:17:07.679 that are predominantly small businesses call it five to fifty employees. 0:17:07.920 --> 0:17:10.320 And I think what we see is a pretty mixed picture. 0:17:10.760 --> 0:17:12.600 On the one hand, and I'm sure this is no 0:17:12.680 --> 0:17:15.000 surprise to you. On the one hand, you have rising inflation, 0:17:15.560 --> 0:17:18.640 you know, supply chain getting more expensive with that high 0:17:18.640 --> 0:17:22.119 interest rates, but on the other hand, still low unemployment rates, 0:17:22.400 --> 0:17:25.080 new business formation is still happening, and of course you 0:17:25.160 --> 0:17:26.879 have talent shortages. 0:17:27.000 --> 0:17:28.520 So what we hear from. 0:17:28.359 --> 0:17:30.800 Our small businesses is this is a time of uncertainty 0:17:30.800 --> 0:17:33.440 and mixed signals, but it's also time where they really 0:17:33.480 --> 0:17:35.399 need to manage their cash pretty carefully. 0:17:35.440 --> 0:17:40.359 I'm really interested in the company global customer base, global footprint, 0:17:41.200 --> 0:17:43.240 Australasian origins. 0:17:43.400 --> 0:17:45.720 Yes, you're here with me in San Francisco. What's that like? 0:17:46.040 --> 0:17:48.280 Well, I think this is about the company turning its 0:17:48.280 --> 0:17:51.159 attention globally. I mean, if you look at zero, you know, 0:17:51.240 --> 0:17:54.840 the original disruptor really in cloud based accounting started out 0:17:54.840 --> 0:17:58.679 of New Zealand from Rodgery, an X accountant himself, but 0:17:58.720 --> 0:18:01.200 really has grown the UK our second biggest market, North 0:18:01.240 --> 0:18:05.040 America obviously a big home for small businesses worldwide, and 0:18:05.119 --> 0:18:07.520 I'll sell important for zero. 0:18:08.080 --> 0:18:09.920 We have to talk about the landscape. 0:18:10.080 --> 0:18:12.119 I think about quick Books as an example here in 0:18:12.119 --> 0:18:14.120 the US doing some battle with them. 0:18:15.200 --> 0:18:15.400 Yeah. 0:18:15.560 --> 0:18:18.200 Yes, Look I think around the world, Zero and QuickBooks 0:18:18.359 --> 0:18:19.120 run into each other. 0:18:19.160 --> 0:18:21.560 I'm not suggesting this is an Elon musk Mark zucker 0:18:21.560 --> 0:18:22.159 Bog situation. 0:18:22.240 --> 0:18:24.760 I'm just saying, and quite frankly, that is a total 0:18:24.760 --> 0:18:27.400 distraction for us. We care about getting our business done 0:18:27.440 --> 0:18:29.359 for our customers. Yes, of course we see them in 0:18:29.400 --> 0:18:32.000 every market, but I think the most important thing to 0:18:32.119 --> 0:18:34.680 land is that for all of us in this area, 0:18:34.800 --> 0:18:38.360 the real big winner is just moving people from offline 0:18:38.640 --> 0:18:41.800 to online. Cloud adoption of small business accounting is actually 0:18:42.000 --> 0:18:44.840 for the behind things like website building, but it offers 0:18:44.880 --> 0:18:47.480 so much efficiency for small businesses. So we're all just 0:18:47.520 --> 0:18:49.240 trying to bring those small businesses online. 0:18:49.280 --> 0:18:50.959 I think what we learned from the collapse of Silicon 0:18:51.040 --> 0:18:53.920 Valley Bank, which was in the context of payroll and banking, 0:18:54.359 --> 0:18:58.040 but under duress small technology business as well. They have 0:18:58.119 --> 0:19:01.359 to pivot and they change. It is the tough macro 0:19:01.440 --> 0:19:04.880 environment kind of acting as a catalyst among your customers 0:19:04.920 --> 0:19:06.439 to kind of change how they do business. 0:19:06.720 --> 0:19:09.320 Use technology of course, and it's a tale of two cities. 0:19:09.320 --> 0:19:11.640 First of all, if you are not a venture backstartup, 0:19:11.640 --> 0:19:13.960 and the majority of our customers, you're small businesses of 0:19:14.040 --> 0:19:17.840 every dimension who have never had the benefit quite frankly, 0:19:17.960 --> 0:19:20.640 venture funding. They're paranoid about cash and cash management all 0:19:20.640 --> 0:19:21.040 the time. 0:19:21.240 --> 0:19:21.919 I think we can. 0:19:21.760 --> 0:19:24.720 Agree that Silicon Valley Bank and i'd say companies that 0:19:24.760 --> 0:19:27.919 have been funded in tech are particularly nervous about their 0:19:27.960 --> 0:19:28.560 cash management. 0:19:28.640 --> 0:19:32.199 Right now, you've done some headcount trims. The sector is 0:19:32.200 --> 0:19:35.440 looking at headcount reduction. How have you managed that? And 0:19:35.760 --> 0:19:37.520 let me ask you very quickly, is that in response 0:19:37.560 --> 0:19:39.720 to AI and the ability to use AI or is 0:19:39.760 --> 0:19:40.840 it just a macro issue. 0:19:40.880 --> 0:19:43.040 Actually, for us it was very simple. The company is 0:19:43.480 --> 0:19:46.000 tremendously high growth, but we just want to get more 0:19:46.040 --> 0:19:49.320 disciplined and create more operating leverage for our own business, 0:19:49.320 --> 0:19:52.080 and so we're focused on profitable growth, but customer first. 0:19:52.480 --> 0:19:55.520 So kinder syne Cassidy CEO zero giving us the global 0:19:55.600 --> 0:19:58.000 take what it's like to be a global player in technology. 0:19:58.080 --> 0:20:02.840 Now coming up, artificial intelligence company Seeker and acclaimed outdoorsman 0:20:02.960 --> 0:20:07.440 Bear Grills a teaming up to combat misinformation in digital spaces. 0:20:07.480 --> 0:20:09.720 He joins me next to talk about that new collaboration. 0:20:10.320 --> 0:20:14.040 He's looking at AI and the new survival skill, and 0:20:14.119 --> 0:20:16.639 as we had to break, we're watching shares of Netflix 0:20:16.880 --> 0:20:19.640 after City raised its price target on the stock, saying 0:20:19.680 --> 0:20:22.960 the streaming service has performed well since announcing that ad 0:20:23.000 --> 0:20:27.840 supported subscription plan and the introduction of course paid sharing 0:20:27.920 --> 0:20:31.520 the password crackdown. City now expects eighty two million new 0:20:31.600 --> 0:20:36.040 subscribers and ten point six billion dollars of incremental revenue. 0:20:35.680 --> 0:20:37.920 Based on the more bullish ad tier estimates. 0:20:37.920 --> 0:20:40.520 The company increased the price target and opened a quote 0:20:40.600 --> 0:20:44.080 positive catalyst watch ahead of second quarter results. 0:20:44.160 --> 0:20:44.720 Netflix. 0:20:45.040 --> 0:20:48.000