WEBVTT - Twitter's 'Impersonators' and Apple's Production Hit 0:00:02.160 --> 0:00:05.520 From the heart of where innovation, money and power Collie 0:00:06.280 --> 0:00:10.799 in Silicon Valley and beyond. This is Bloomberg Technology with 0:00:10.880 --> 0:00:29.920 Emily Jay I'm Emily changing San Francisco and this is 0:00:29.920 --> 0:00:32.800 Bloomberg Technology. Coming up in the next hour. Twitter starts 0:00:32.840 --> 0:00:37.880 to ban people who impersonate others, musque saying to vote Republican, 0:00:38.159 --> 0:00:40.720 and some of the employees laid off last week, while 0:00:41.040 --> 0:00:43.519 some are being asked to come back to the office. Plus, 0:00:43.920 --> 0:00:48.200 China's COVID policies are undermining Apple's plans, are bloomberg scoop 0:00:48.200 --> 0:00:51.920 on the plan to cut iPhone production by millions of units? 0:00:52.280 --> 0:00:55.880 And SEC Commissioner Brendan Carr thinks the US government should 0:00:55.880 --> 0:00:58.840 ban TikTok? Why and how far will he go to 0:00:58.880 --> 0:01:02.360 make it happen. He'll join us to explain Twitter asking 0:01:02.520 --> 0:01:05.000 some laid off employees to come back and beginning to 0:01:05.040 --> 0:01:09.480 permanently banned users who impersonate real people. Meantime, as had said, 0:01:09.560 --> 0:01:13.119 Meta reportedly cutting thousands of jobs as soon as this week. 0:01:13.240 --> 0:01:16.160 Bloomberg's Kurt Wagner joins us to talk about this more. 0:01:16.200 --> 0:01:18.360 And Kurt, of course, you've been very busy covering both 0:01:18.400 --> 0:01:21.039 Meta and Twitter let's start with Meta and get that 0:01:21.080 --> 0:01:23.360 out of the way. Is Meta planning to lay off 0:01:23.400 --> 0:01:25.520 thousands of people this week? What do we know? Yeah, 0:01:25.600 --> 0:01:28.280 I mean, the company is obviously not confirming anything, but 0:01:28.400 --> 0:01:31.160 you know, pointing people to what Mark Zuckerberg has said 0:01:31.160 --> 0:01:34.240 previously on earnience calls, which is that they are planning 0:01:34.280 --> 0:01:36.720 for cuts, right, and that this is something that he's 0:01:36.720 --> 0:01:39.720 also told employees that in all hands meeting just a 0:01:39.760 --> 0:01:41.920 few months ago, is that the company is going to 0:01:42.000 --> 0:01:44.840 look a lot smaller at the end of three than 0:01:44.880 --> 0:01:47.840 it is, you know right now in two right, So 0:01:48.120 --> 0:01:50.560 all of those things seem to suggest that that something 0:01:50.640 --> 0:01:53.600 like this is coming. Obviously, I think they could probably 0:01:54.000 --> 0:01:56.520 learn a thing or two from what happened at Twitter 0:01:56.840 --> 0:01:58.800 over the past week in terms of how not to 0:01:58.880 --> 0:02:01.600 handle a situation like this with employees and and and 0:02:01.640 --> 0:02:04.600 all the information um that has shared. I imagine Metal 0:02:04.600 --> 0:02:07.240 will probably be a little bit more structured in whatever 0:02:07.240 --> 0:02:10.000 they ultimately end up doing. But it does feel like 0:02:10.040 --> 0:02:13.720 something like this is probably uh coming very soon. So 0:02:13.800 --> 0:02:17.000 let's talk about what is actually happening. Then. At Twitter, 0:02:17.120 --> 0:02:19.440 you of course reported that more than thirty seven hundred 0:02:19.440 --> 0:02:22.760 people would be lay up laid off. Has that happened? 0:02:22.840 --> 0:02:25.600 Have all of those people been told? And is Elon 0:02:25.680 --> 0:02:28.640 Musk really trying to get some of those people back? 0:02:28.680 --> 0:02:31.639 And if so, how many? Yeah, So, the there were 0:02:31.800 --> 0:02:35.399 massive layoffs that started kind of Thursday night of last week. 0:02:35.440 --> 0:02:38.880 Employees started losing access to their internal systems like email 0:02:38.880 --> 0:02:41.520 and Slack and things like that. And on Friday, we 0:02:41.720 --> 0:02:44.840 you know, saw the bulk of the layoffs happen. Um, 0:02:44.880 --> 0:02:47.760 I believe the internal kind of employee. They tracked the 0:02:47.840 --> 0:02:50.280 number of employees at the company internally, and there's a 0:02:50.680 --> 0:02:55.359 it's around thirty seven hundred, thirty eight hundred employees right now, um, 0:02:55.480 --> 0:02:58.639 which was down from about seventy hundred at the beginning 0:02:58.639 --> 0:03:01.000 of the year. Right, So, so thousands of people have 0:03:01.120 --> 0:03:03.880 been cut in just the last couple of days. And 0:03:03.919 --> 0:03:06.440 as you mentioned, Emily, yes, you know, when you do 0:03:06.520 --> 0:03:10.120 something so drastic so quickly, Uh, there were mistakes that 0:03:10.120 --> 0:03:11.960 were made. There were some employees who were laid off 0:03:12.000 --> 0:03:13.920 who were done so accidentally. There were some who are 0:03:13.960 --> 0:03:16.600 laid off that the company then realized, oh boy, we 0:03:16.639 --> 0:03:19.040 actually need them, we need their expertise in the building. 0:03:19.320 --> 0:03:22.200 And so we're told that you know, dozens of employees 0:03:22.600 --> 0:03:25.560 were approached over the weekend and even heading into today 0:03:25.600 --> 0:03:28.959 about returning. I don't know of anyone who's actually accepted 0:03:29.000 --> 0:03:30.920 that offer. I think it's going to be a tough sell, 0:03:31.360 --> 0:03:34.120 um to convince someone who you know, was just fired 0:03:34.160 --> 0:03:36.960 to essentially go back to the company that just fired them, 0:03:36.960 --> 0:03:39.440 even if it was a mistake. Meantime, Musk has said 0:03:39.440 --> 0:03:43.760 there'll be an independent board focused on content moderation, but 0:03:43.800 --> 0:03:47.040 it looks like some users are already being banned um 0:03:47.120 --> 0:03:50.480 for impersonating real people. Party accounts, as you know, have 0:03:50.600 --> 0:03:54.120 been quite popular on Twitter for many many years. Talk 0:03:54.200 --> 0:03:56.760 to us about what's happening here. Yeah, not just impersonating 0:03:56.800 --> 0:03:59.720 real people, but impersonating Elon Musk, Right, That seems to 0:03:59.760 --> 0:04:03.080 be the line that a lot of people are crossing. 0:04:03.240 --> 0:04:06.320 But what's interesting here is, you know, Ellen, when he 0:04:06.440 --> 0:04:08.880 was talking about buying this company, he said he didn't 0:04:08.880 --> 0:04:11.320 believe in lifetime bands, right, that was sort of part 0:04:11.360 --> 0:04:13.240 of his thing. He was like, when I get in, 0:04:13.280 --> 0:04:15.840 I'm gonna I'm gonna remove these things. He's taken a 0:04:15.880 --> 0:04:19.200 softer stance stance since since then and said that he's 0:04:19.200 --> 0:04:21.600 going to review these with sort of an outside council. 0:04:21.640 --> 0:04:23.160 We don't know who's on that council. We don't know 0:04:23.200 --> 0:04:25.919 if they've actually had any conversations yet, but it is 0:04:25.960 --> 0:04:28.760 interesting that, you know, he's sort of kind of crossing 0:04:28.760 --> 0:04:31.560 this line here and saying, hey, if you're impersonating someone, 0:04:31.600 --> 0:04:34.400 we're gonna boot. You have to imagine, you know, this 0:04:34.480 --> 0:04:36.320 is coming from a lot of the pushpack he's getting 0:04:36.360 --> 0:04:39.839 on this blue check verification process we've been talking about Emily, 0:04:40.040 --> 0:04:41.760 which is where if you pay eight dollars a month, 0:04:41.800 --> 0:04:43.279 you're soon going to be able to have kind of 0:04:43.279 --> 0:04:45.839 that blue checkmark next to your name. Historically that's been 0:04:45.880 --> 0:04:48.919 to verify that you are the actual person who you 0:04:48.960 --> 0:04:50.880 claim to be on the account. But now it seems 0:04:50.880 --> 0:04:52.280 like you're just going to be able to buy that 0:04:52.360 --> 0:04:56.080 check for the eight dollars without any actual verification of 0:04:56.080 --> 0:04:58.360 your identity. So that's probably why he's now trying to 0:04:58.360 --> 0:05:00.880 get ahead of people who are in person, both himself 0:05:00.920 --> 0:05:04.480 but presumably other you know, famous or well known users. 0:05:04.600 --> 0:05:07.520 Last quick question, because I just have to ask, he 0:05:07.680 --> 0:05:12.440 is now encouraging voters to vote Republican and also went 0:05:12.520 --> 0:05:15.680 to great lengths to say he is a registered independent. 0:05:15.720 --> 0:05:20.239 He's voted entirely Democrat until now. Why why is he 0:05:20.560 --> 0:05:22.960 why is he going this far? Well, he he claims 0:05:22.960 --> 0:05:25.800 in his tweet that you know, the White House is 0:05:26.240 --> 0:05:30.200 you know, run by Democrat president, and so to counterbalance 0:05:30.279 --> 0:05:33.800 that power, we should have Republicans who are um, you know, 0:05:34.040 --> 0:05:38.160 running or controlling Congress. But this is something that's been 0:05:38.200 --> 0:05:40.520 sort of a a change for him over the last 0:05:40.560 --> 0:05:44.240 couple of months. He told employees and in all hands 0:05:44.279 --> 0:05:46.520 in June that he voted Republican for the first time. 0:05:46.839 --> 0:05:49.400 It feels like he is sort of swinging that way. 0:05:49.560 --> 0:05:51.360 It's just very interesting, Emily that he would come out 0:05:51.360 --> 0:05:53.920 and say it so bluntly like this. Could you imagine, 0:05:54.040 --> 0:05:56.640 for example, if Mark Zuckerberg came out and took a 0:05:56.720 --> 0:05:59.000 very strong political stance like this, right, I feel like 0:05:59.040 --> 0:06:01.680 people would be absolute up in arms, losing their mind 0:06:01.760 --> 0:06:04.279 over that. But you know, the fact that it's Elon 0:06:04.360 --> 0:06:07.320 Musk and the fact that he's saying vote Republican, and 0:06:07.320 --> 0:06:09.920 those are typically conservatives seem to be the ones who 0:06:09.920 --> 0:06:12.839 typically have the biggest issue with you know, these social 0:06:12.880 --> 0:06:15.080 networks and and the speech on them, I feel like 0:06:15.120 --> 0:06:17.960 maybe people are okay with that given the stance that 0:06:18.000 --> 0:06:21.279 he's taken here, right, It's it's wild indeed when you 0:06:21.279 --> 0:06:23.479 put it that way. Okay, Bloomberg's krt Wagner, thank you, 0:06:23.480 --> 0:06:26.440 will continue to follow you're reporting. I do want to 0:06:26.480 --> 0:06:29.799 dig into another bloomberg scoop from this weekend, Apple expecting 0:06:29.839 --> 0:06:32.919 to make at least three million fewer iPhone fourteens that 0:06:32.960 --> 0:06:36.000 originally planned for the year. Are Mark German broke that story, 0:06:36.279 --> 0:06:39.800 joins me. Now, Mark, why is Apple making these production cuts? 0:06:40.040 --> 0:06:42.000 So two things going on here, right, you have the 0:06:42.000 --> 0:06:44.800 iPhone fourteen and iPhone fourteen plus, which are the lower 0:06:44.920 --> 0:06:46.880 end phones, and then you have the iPhone fourteen Pro 0:06:47.240 --> 0:06:49.200 and the iPhone fourteen Pro mats, which are the higher 0:06:49.279 --> 0:06:52.000 end phones. Now, in terms of the three million units 0:06:52.040 --> 0:06:54.320 for that production cut that we wrote about, going from 0:06:54.400 --> 0:06:57.240 ninety million through the year to eight seven million, that's 0:06:57.279 --> 0:07:00.160 because of softer demand that has plagued those two or 0:07:00.200 --> 0:07:03.720 an iPhone fourteens really from the beginning of their release, right, 0:07:03.920 --> 0:07:07.520 the iPhone fourteen prone promax. That's a supply issue, and 0:07:07.560 --> 0:07:09.640 as you mentioned at the top of the show, Apple 0:07:09.640 --> 0:07:12.679 put out a warning discussing how their outlook for iPhone 0:07:12.720 --> 0:07:15.920 units sold is going to be lower than anticipated because 0:07:15.960 --> 0:07:18.720 of the output at their fox Con facility for those two, 0:07:18.720 --> 0:07:22.280 particularly particular models in China going mostly offline due to 0:07:22.320 --> 0:07:25.680 COVID protocols. So clearly there's both a supply and demand 0:07:25.680 --> 0:07:28.560 issue depending on which models of the iPhone fourteen you're 0:07:28.600 --> 0:07:32.200 looking at. How this impact the company's outlook, you know, 0:07:32.240 --> 0:07:34.760 how does this fit into Apple's bigger picture? Right now, 0:07:35.120 --> 0:07:37.880 it seems pretty clear that revenue for the holiday quarter, 0:07:37.880 --> 0:07:39.960 which they'll announce at the end of January. This quarter 0:07:40.040 --> 0:07:43.280 runs through December thirty one, it's gonna come in a 0:07:43.320 --> 0:07:46.160 little bit lower than expected. Right when Apple held their 0:07:46.160 --> 0:07:48.560 earnings about a week ago, they didn't know this was 0:07:48.600 --> 0:07:51.640 the case. The COVID nineteen related lockdowns that was just 0:07:51.720 --> 0:07:54.040 emerging in the days after that. That's why they had 0:07:54.080 --> 0:07:56.600 to put this statement out over the weekend to indicate 0:07:56.600 --> 0:07:59.040 that there is some sort of change here from what 0:07:59.080 --> 0:08:01.320 they spoke about previous sleep. Now, the good news for 0:08:01.360 --> 0:08:04.720 Apple from a financial regulation standpoint, they didn't give any 0:08:04.760 --> 0:08:06.800 formal guidance. They didn't say our revenue is going to 0:08:06.880 --> 0:08:09.440 come in between x amount and X amount. They said 0:08:09.560 --> 0:08:12.080 that growth is going to come in slower than the 0:08:12.080 --> 0:08:14.520 eight percent we saw in the fourth quarter, right, and 0:08:14.560 --> 0:08:17.280 then Luca my Street, the Apple CFO, was asked, does 0:08:17.320 --> 0:08:19.600 that mean you're going to see an annual decline from 0:08:19.640 --> 0:08:21.560 the holiday quarter. He said, it's just going to be 0:08:21.640 --> 0:08:23.720 less than eight percent, So that could mean seven percent 0:08:23.800 --> 0:08:26.400 or that could mean negative two. All right, We're gonna 0:08:26.400 --> 0:08:28.760 continue to follow your reporting on this, Mark, Thank you 0:08:29.360 --> 0:08:32.440 so much for all of those updates. Bloomberg's Mark German 0:08:32.640 --> 0:08:43.120 lots to digest. How to secure and protect online identity 0:08:43.120 --> 0:08:46.720 has only become more important as more businesses go all 0:08:46.840 --> 0:08:49.199 in on a digital world. This week, the cloud identity 0:08:49.200 --> 0:08:52.319 software provider Octa is holding an investor day to talk 0:08:52.360 --> 0:08:56.199 about the future of our digital and digital identities, along 0:08:56.200 --> 0:08:58.840 with its biggest customer event of the year. Joining me 0:08:58.920 --> 0:09:01.720 now oct to CEO and co founder Todd mckinn and Todd, 0:09:01.880 --> 0:09:03.960 great to have you back here as always. So, look, 0:09:04.240 --> 0:09:06.840 everyone is talking about the outlook right now. It seems 0:09:06.880 --> 0:09:10.599 like every company is laying off. Folks were expecting potentially 0:09:10.640 --> 0:09:13.880 thousands of layoffs at Meta alone. What are we seeing 0:09:13.880 --> 0:09:16.600 in the sales environment in terms of the appetite to 0:09:16.679 --> 0:09:20.240 buy your software and enterprise software right now? Well, the 0:09:20.280 --> 0:09:22.680 first thing we're really excited about is the appetite for 0:09:22.720 --> 0:09:24.720 folks to come to this conference. It's the first time 0:09:24.960 --> 0:09:27.480 we've had our Octane event in person in three years, 0:09:27.920 --> 0:09:30.840 and the whole thing is sold out. We're oversubscribed. That's 0:09:30.880 --> 0:09:34.000 both from our customer event our investor event. So people 0:09:34.040 --> 0:09:36.440 are incredibly interested in this topic and what do you know, 0:09:36.520 --> 0:09:39.240 they like to be together in in person, which is 0:09:39.600 --> 0:09:42.000 a powerful platform for us to start telling the story. 0:09:42.360 --> 0:09:44.760 And as you did, as you mentioned Emily, everyone this 0:09:44.840 --> 0:09:46.520 is a different world than we were in a year ago. 0:09:47.120 --> 0:09:50.320 Everyone is worried about the economic uncertainty. Everyone is really 0:09:50.360 --> 0:09:53.559 scrutinizing their investments to make sure that they spend their 0:09:53.600 --> 0:09:55.440 dollars on the things that are going to move their 0:09:55.480 --> 0:09:58.080 businesses forward. And the good thing for us as they 0:09:58.120 --> 0:10:00.959 make those decisions, identity is coming up as a very 0:10:00.960 --> 0:10:03.920 strategic initiative they should invest in. What is your outlook 0:10:04.040 --> 0:10:07.360 given the macro environment? Taught and how are you thinking 0:10:07.800 --> 0:10:11.240 about jobs and spending? Are you planning any layoffs? Are 0:10:11.280 --> 0:10:14.560 you planning to cut back anywhere? We are not planning layoffs, 0:10:14.840 --> 0:10:18.319 but like every other company, we're really scrutinizing where we're investing, 0:10:18.320 --> 0:10:20.680 and we think our team is a great investment. They're 0:10:20.679 --> 0:10:22.200 the best in the industry and they're going to help 0:10:22.240 --> 0:10:25.240 our customers be successful. But across the board, everyone is 0:10:25.240 --> 0:10:27.520 trying to do more with less. Make sure that every 0:10:27.559 --> 0:10:30.120 dollar we spend is in the highest r o I area, 0:10:30.480 --> 0:10:32.560 And what you see from our customers is that they're 0:10:32.559 --> 0:10:36.319 getting a huge return on their investments and identity. It's 0:10:36.360 --> 0:10:38.920 not just for security, and it's not just for I 0:10:39.040 --> 0:10:42.120 T productivity. It's also for customers. They can build better 0:10:42.160 --> 0:10:45.640 customer relationships, they can drive new revenue channels, and that's 0:10:45.640 --> 0:10:47.000 what you want to do. And there's a time of 0:10:47.040 --> 0:10:49.880 economic uncertainty. You want to make sure you cut costs 0:10:49.880 --> 0:10:51.800 and have good investment in terms of what you're spending 0:10:51.800 --> 0:10:53.480 your money on, but you also have to drive growth 0:10:53.480 --> 0:10:55.320 because a lot of times that's when you can get 0:10:55.320 --> 0:10:57.800 ahead of your competitors when they're cutting back. You can 0:10:57.840 --> 0:11:00.880 invest in the right areas and move forward time. Digital 0:11:00.920 --> 0:11:04.600 authentication services are still a huge prize for hackers. Of course, 0:11:04.720 --> 0:11:07.920 we've talked about the the the hack that Octa had 0:11:07.960 --> 0:11:11.319 to deal with earlier this year. Twilio also dealing with 0:11:11.360 --> 0:11:14.960 one as well. How would you say, the threat level 0:11:15.000 --> 0:11:17.400 has changed, and what are you doing to stay on 0:11:17.440 --> 0:11:19.960 top of it. Well, one thing that doesn't change is 0:11:20.000 --> 0:11:23.520 that whether there's economic uncertainty and how people are thinking 0:11:23.520 --> 0:11:28.000 about investments, the risk from security breaches and the regulatory 0:11:28.040 --> 0:11:30.360 overview that comes when there's a security breach, and the 0:11:30.400 --> 0:11:33.920 cost that puts on companies, that is consistent. That's always there. 0:11:34.280 --> 0:11:37.320 So companies have to invest in their cyber posture and 0:11:37.320 --> 0:11:39.840 they have to make sure they have a great foundation 0:11:39.880 --> 0:11:42.600 foundation to keep everything secure. They of course have to 0:11:42.600 --> 0:11:44.840 make sure they're spending the right investments and getting the 0:11:44.880 --> 0:11:49.120 best innovation for that money. But cybersecurity is something that's 0:11:49.120 --> 0:11:52.080 it's it's recession resistant. I'm curious what you think of 0:11:52.080 --> 0:11:56.199 Elon Musk's approach to verification, this idea of knowing your 0:11:56.240 --> 0:12:00.560 customer proving identity when others are saying this is just 0:12:00.600 --> 0:12:03.040 a way to pay to play. Well, I think that 0:12:03.200 --> 0:12:06.160 Twitter is a is a great technology company. It's changed 0:12:06.200 --> 0:12:09.160 the world, and even a company like Twitter has to 0:12:09.200 --> 0:12:12.560 do a better job connecting with their customers, whether that's 0:12:12.640 --> 0:12:15.680 figuring out who gets the blue check mark, whether that's 0:12:15.760 --> 0:12:18.319 figuring out what's about and what's not about these things 0:12:18.640 --> 0:12:20.920 in the in the takeover of Twitter and as as 0:12:20.960 --> 0:12:23.160 Ellen comes in to run the company, these things have 0:12:23.240 --> 0:12:24.800 come up over and over again. So it just goes 0:12:24.800 --> 0:12:26.720 to show you if Twitter has these challenges and these 0:12:26.760 --> 0:12:29.880 opportunities by they could brief the benefits of getting another 0:12:29.960 --> 0:12:33.199 customers better. Think about every other company, every other organization 0:12:33.200 --> 0:12:35.480 in the world. If they can know their customers, if 0:12:35.480 --> 0:12:38.079 they can build great products and service for them that 0:12:38.160 --> 0:12:41.000 validate the right users, get them into the right capabilities, 0:12:41.240 --> 0:12:44.400 that's gonna be really a groundswell for every organization in 0:12:44.440 --> 0:12:46.360 the world. And that's what everyone's trying to do. And 0:12:46.400 --> 0:12:48.280 that's why it all comes back to identity, because you 0:12:48.360 --> 0:12:50.480 have to know who that customer is. You have to 0:12:50.520 --> 0:12:52.560 have high confidence in it so you can deliver that 0:12:52.600 --> 0:12:56.480 customer a great personalized experience that changes their day, makes 0:12:56.520 --> 0:12:59.640 them perceive a ton of value from your product or service, 0:13:00.080 --> 0:13:03.320 moves your company forward. He's also telling users to vote 0:13:03.320 --> 0:13:07.559 republic Republican and I know federal government sales are important 0:13:07.559 --> 0:13:11.000 to Octa. How do things change for you if you 0:13:11.040 --> 0:13:14.480 know Congress Republicans win Congress. Does that make a difference 0:13:14.520 --> 0:13:16.560 for Octa? Well, one thing I want to say is 0:13:16.600 --> 0:13:19.040 I did. I voted today so you can see my 0:13:19.720 --> 0:13:24.280 good for you very conference. We have this big conference, 0:13:24.280 --> 0:13:26.719 so I had to do it early absentee. But all 0:13:26.760 --> 0:13:29.199 I'll say on this is that everyone needs to vote. 0:13:30.000 --> 0:13:33.240 Democracy works when everyone has heard, So everyone should vote. 0:13:33.240 --> 0:13:35.200 It's an important part of what we do. It's an 0:13:35.200 --> 0:13:37.400 important part of our country, it's important part of the world. 0:13:37.440 --> 0:13:41.040 So get out there and vote. All right. I can 0:13:41.200 --> 0:13:43.480 can only support that. Look, you've got a huge customer 0:13:43.480 --> 0:13:46.200 event coming up and invest your day. You've been talking 0:13:46.280 --> 0:13:49.480 about this passwordless future for a really long time. What 0:13:49.520 --> 0:13:52.360 are you telling them about how far away that really is? 0:13:52.480 --> 0:13:54.160 When are we all going to be done with passwords? 0:13:54.400 --> 0:13:56.400 This is one of the most exciting things that's happening 0:13:56.400 --> 0:13:59.760 in the industry. We are on the cusps, especially at 0:13:59.800 --> 0:14:02.480 work of being able to get rid of passwords. ACTA 0:14:02.600 --> 0:14:06.600 has the technology today to remove the password from every 0:14:06.640 --> 0:14:10.560 employee in the world. And that's because two things. One 0:14:10.640 --> 0:14:14.320 is that we can utilize the strong authentication from their 0:14:14.520 --> 0:14:16.880 iPhone or their Android phone, or from their Mac or 0:14:16.920 --> 0:14:19.960 their PC and integrate that. And this is an important point, 0:14:20.000 --> 0:14:23.120 has to be integrated to every application service you need 0:14:23.160 --> 0:14:25.920 to go in your entire work day, and that's what's challenging. 0:14:25.920 --> 0:14:28.840 It's not that we didn't have the right biometric sensors, 0:14:29.160 --> 0:14:31.400 is that it was hard to get these biometric sensors 0:14:31.400 --> 0:14:34.040 connected to everything in your environment. And that's the problem 0:14:34.120 --> 0:14:36.840 we solve. And so this is an exciting development. I 0:14:36.840 --> 0:14:39.640 think we can make employees much more productive and more importantly, 0:14:40.200 --> 0:14:42.840 if it's a biometric sensor, it's much more secure, and 0:14:42.960 --> 0:14:45.400 that's why we're excited to tell our story to the 0:14:45.440 --> 0:14:47.840 world this week. All right, well, good luck at Octane 0:14:47.880 --> 0:14:50.000 This week, oct to CEO and co founder Todd McKinnon 0:14:50.080 --> 0:14:53.160 joining us for an exclusive interview. Todd, thanks so much 0:14:53.240 --> 0:14:55.600 for stopping by. All Right, coming up, we're gonna hear 0:14:55.600 --> 0:14:59.320 from Microsoft President Brad Smith from top in Egypt. We're 0:14:59.320 --> 0:15:03.000 gonna talk about microsoft new climate initiatives and how the 0:15:03.080 --> 0:15:07.280 company is also navigating the downturn. That's next. This is Bloomberg. 0:15:18.520 --> 0:15:22.200 The Summit is underway in Egypt, with this year's event 0:15:22.200 --> 0:15:26.239 providing a chance to reinject momentum into the energy transition. 0:15:26.520 --> 0:15:28.840 Heads of states and governments all in attendance, as well 0:15:28.840 --> 0:15:33.120 as major companies like Microsoft, which plans to be carbon negative. 0:15:34.240 --> 0:15:37.080 I caught up with Microsoft President Brad Smith. Take a listen. 0:15:37.280 --> 0:15:39.320 I think it's really important to think a little bit 0:15:39.320 --> 0:15:41.440 about the problem that we and others are trying to 0:15:41.480 --> 0:15:44.880 help solve. So much of the work that is needed, 0:15:44.960 --> 0:15:49.040 especially to adapt the climate change, really involves better use 0:15:49.080 --> 0:15:53.640 of a more data, better predictive modeling. You look at 0:15:53.680 --> 0:15:57.360 predicting wildfires, whether you're in the United States or India 0:15:57.440 --> 0:16:00.600 or in Africa. If you look at things like responding 0:16:00.640 --> 0:16:03.200 to floods, you need to be able to predict these 0:16:03.240 --> 0:16:07.440 things and then give people early warning systems. Yet, if 0:16:07.480 --> 0:16:11.440 you look at Africa today, for every four team data 0:16:11.520 --> 0:16:15.400 scientists that there are in developed countries, there's only one 0:16:15.560 --> 0:16:19.640 in Africa. So we've opened up. We're announcing today two 0:16:19.680 --> 0:16:23.040 new data labs, one in Egypt, one in Kenya. We're 0:16:23.080 --> 0:16:26.760 parkering with Planet Planet Labs in San Francisco, which is 0:16:26.800 --> 0:16:30.400 doing I just think this extraordinary work with new satellites 0:16:30.800 --> 0:16:34.720 to bring satellite based imagery and data, including for Africa. 0:16:35.080 --> 0:16:40.320 You put our AI capabilities are data scientists, planets imagery together, 0:16:41.000 --> 0:16:43.880 now we can be a bit of an equalizer. We 0:16:43.960 --> 0:16:49.720 can help climate scientists on a continent like Africa. Now meantime, 0:16:49.760 --> 0:16:53.240 bread the economy continues to go south. We're seeing layoffs 0:16:53.240 --> 0:16:56.160 in the tech industry across the board. We're expecting thousands 0:16:56.160 --> 0:16:58.920 of people to get laid off at Meta just this week. 0:16:59.200 --> 0:17:02.240 I know Microsoft has done some layoffs but hasn't had 0:17:02.280 --> 0:17:05.639 a major round of cuts yet. Are you planning to 0:17:05.680 --> 0:17:09.960 do more layoffs and how are you thinking about spending, etcetera. 0:17:10.240 --> 0:17:12.800 I think the most important thing for a company like 0:17:12.840 --> 0:17:16.520 Microsoft is first to recognize the role that we play. 0:17:16.600 --> 0:17:19.439 We're not in the advertising business to the degree that 0:17:19.560 --> 0:17:22.320 some of the other companies are, or more focused on 0:17:22.640 --> 0:17:30.920 really providing the digital infrastructure that companies, businesses, nonprofits, governments need. 0:17:31.400 --> 0:17:35.320 So in a world with increasing economic headwinds and there 0:17:35.320 --> 0:17:38.159 are many, you know, the kind of technology that we 0:17:38.320 --> 0:17:41.320 create is one of the better tail winds on which 0:17:41.320 --> 0:17:44.639 people can rely and we're seeing that. So to answer 0:17:44.680 --> 0:17:48.640 your question, Emily, we will continue, I think, to manage 0:17:48.640 --> 0:17:51.440 through this recession the same way we have managed through 0:17:51.440 --> 0:17:56.520 every recession since Microsoft was founded. In We identify the 0:17:56.560 --> 0:17:59.280 technologies that will not only be important to the quarter 0:17:59.359 --> 0:18:03.200 in the year, but fundamentally the decade ahead, and we'll 0:18:03.240 --> 0:18:06.480 make sure that we invest and we may even invest 0:18:06.560 --> 0:18:09.600 more in the technologies of the future, say things like 0:18:09.720 --> 0:18:13.880 artificial intelligence. Now, we may have to trim some other 0:18:14.119 --> 0:18:17.640 cost areas because it is a recession. But I think 0:18:17.640 --> 0:18:19.919 what you'll do is see us trim if we need to, 0:18:20.520 --> 0:18:23.720 and then use that to free up resources to invest 0:18:23.960 --> 0:18:27.199 in what we regard as the long term creation of value, 0:18:27.359 --> 0:18:38.479 not only for ourselves but for our customers. Welcome back 0:18:38.480 --> 0:18:40.600 to bloom Er Technology, em Emily Chang in San Francisco. 0:18:41.080 --> 0:18:44.399 Twitter may now be a private company, but Elon Musk's 0:18:44.440 --> 0:18:47.439 purchase of the social media platform is still being felt 0:18:47.800 --> 0:18:50.480 by the public markets. Bloomberg's ad Ludlow here with a 0:18:50.560 --> 0:18:54.959 look at Tesla and obviously you know I can't ignore 0:18:55.000 --> 0:18:57.120 this if you're a Tesla investor at yeah, you can. 0:18:57.280 --> 0:18:59.600 I mean, the stalk is down on this on a 0:18:59.640 --> 0:19:02.920 twelve month basis, It's at the seventeenth month and new 0:19:03.000 --> 0:19:06.720 fifty two week low, down five percent during Monday's session, 0:19:06.840 --> 0:19:09.280 worst performer on a points basis on the NASA one. 0:19:09.720 --> 0:19:12.880 And clearly there's a Twitter overhang, right. I think one 0:19:12.920 --> 0:19:15.359 of the numbers that jumps out at me is that 0:19:15.520 --> 0:19:18.480 Tesla shares are down more than twelve percent since October 0:19:18.480 --> 0:19:21.719 twenty seven, when must close the deal to buy Twitter. 0:19:22.240 --> 0:19:24.840 In that time, the SMP five, the main gage of 0:19:24.960 --> 0:19:27.879 US equities is basically flat, and there's a lot of 0:19:28.000 --> 0:19:31.160 discussion in the market about what is going on here. 0:19:31.200 --> 0:19:32.560 A big part of it, if you come to me, 0:19:32.600 --> 0:19:35.000 it's my Bloombow terminal m. It seems to be key 0:19:35.000 --> 0:19:38.200 man risk that as we know from Twitter. For anyone 0:19:38.240 --> 0:19:40.400 that's paid any attention to the platform in the last 0:19:40.400 --> 0:19:43.080 twenty four hours or the last few months. Elon Musk 0:19:43.200 --> 0:19:45.960 is tweeting very regularly. He's kind of very focused based 0:19:46.000 --> 0:19:48.280 on the reporting that Kurt Wagoner and I have done 0:19:48.280 --> 0:19:51.120 on this platform and its future. And there's concern out 0:19:51.119 --> 0:19:53.800 there from Tesla shareholders who have voiced this concern on 0:19:53.840 --> 0:19:57.800 the platform that he's distracted being away from Tesla. There's 0:19:57.880 --> 0:20:01.440 less of a conversation now about the concern of him 0:20:01.480 --> 0:20:04.080 selling down more of his own tests the shares in 0:20:04.160 --> 0:20:06.760 order to finance the Twitter deal because of what we 0:20:06.800 --> 0:20:09.199 know what he did both on the debt and on 0:20:09.240 --> 0:20:12.600 the equity co investors side. But clearly there's an overhang 0:20:12.640 --> 0:20:16.080 here and it's just strange to see such poor performance 0:20:16.119 --> 0:20:19.240 in Tesla stock both in the short, medium, and long terms. 0:20:19.640 --> 0:20:21.639 And this is sort of a perennial question, but I 0:20:21.680 --> 0:20:25.400 wonder if the answer to it is changing. Is Tesla 0:20:25.800 --> 0:20:29.320 a tech stock or is it a car stock? And 0:20:29.359 --> 0:20:32.120 how our investors thinking about it? And I will take 0:20:32.119 --> 0:20:34.200 a perennial question from you any day of the week. 0:20:34.320 --> 0:20:37.240 I mean, it is the question. You know. The cell 0:20:37.320 --> 0:20:40.080 side analysts that cover Tesla do so from a sort 0:20:40.080 --> 0:20:43.440 of classic automotive perspective. Many treat it as a higher 0:20:43.520 --> 0:20:46.719 multiple tech or software play, right, because much of its 0:20:46.760 --> 0:20:50.159 valuation in recent years has been based on the future 0:20:50.160 --> 0:20:53.320 promise of full self driving. Ultimately, I look at the fundamentals, right, 0:20:53.359 --> 0:20:55.840 this is a stock that trades at forty seven times 0:20:56.080 --> 0:20:59.160 forward earnings. If you compare with General Motives for example, 0:20:59.200 --> 0:21:01.920