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Speaker 1: Bloomberg Audio Studios, podcasts, radio news from the heart of

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Speaker 1: where innovation, money and power collide in Silicon Valley and beyond.

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Speaker 1: This is Bloomberg Technology with Caroline Hyde and Ed Ludlow.

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Speaker 2: Live from New York and San Francisco. This is Bloomberg Technology.

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Speaker 2: Terrify anxieties are not going away with President Trump's global

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Speaker 2: levies going into effect today, including those eyewatering one hundred

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Speaker 2: and four percent tarifs on China. This is both China

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Speaker 2: and the EU fight back with counter tariffs on US products.

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Speaker 2: We cling to gains, but we fade this rally hard quickly.

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Speaker 2: We're only up about a tenth of a percent on

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Speaker 2: the nasat one hundred, after we managed to sell off

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Speaker 2: yesterday as well. And it feels as though the magnificence

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Speaker 2: sendmen trying to claw on Ed but no longer what

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Speaker 2: you got on the micro.

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Speaker 3: I want to go to a story that Bloomberg Spencer

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Speaker 3: Soaper broke in the last thirty minutes. That is, Amazon

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Speaker 3: has started canceling orders of inventory on specific products made

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Speaker 3: in China. I'm talking consumer electronics, household goods. It didn't

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Speaker 3: do much to change the fortune of the stock. It's higher,

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Speaker 3: as many Mag seven names are, But that is an interesting,

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Speaker 3: real time, real term story about the impact of tariffs

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Speaker 3: that are now implemented right elsewhere. There's buoyancy in some

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Speaker 3: of the MAG seven names. Apple in particular for now

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Speaker 3: emphasize the for now why because at one point in

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Speaker 3: yesterday's session, Apple was hired by a similar level closed

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Speaker 3: down more than double that five percent. There is a

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Speaker 3: function on the Bloomberg terminal ECTR. It's our trade flow map.

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Speaker 3: The data is backward looking. We care about the relationship

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Speaker 3: between US and China. There is a trade deficit. The

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Speaker 3: US has a trade deficit with the US and China.

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Speaker 3: And later in the program, when it came to tech,

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Speaker 3: it is so important to discuss that number two hundred

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Speaker 3: and sixty billion in twenty twenty three. We know from

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Speaker 3: prelim data it went up in twenty twenty four. And

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Speaker 3: we are talking about a US reliance on Chinese computers,

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Speaker 3: consumer electronics, hair dryers, electric heated blankets, and that ties

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Speaker 3: into that Amazon story that spent so sober broke.

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Speaker 2: And Amazon just turned negative as you were talking about

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Speaker 2: at ED. Let's just get the perspective of the global

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Speaker 2: trade war heating up China the EU both retaliating against

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Speaker 2: US tarifs. This is President Trump aims to bring back

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Speaker 2: manufacturing in America, setting all his eyes on.

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Speaker 4: Apple jobs in advanced technologies. The President is looking at

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Speaker 4: all of those, he wants them to come back home.

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Speaker 5: But iPhones specifically, is that's something that he thinks is

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Speaker 5: the kind of technology that can move to the US.

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Speaker 4: Absolutely, he believes we have the labor, we have the workforce,

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Speaker 4: we have the resources to do it. And as you know,

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Speaker 4: Apple has invested five hundred billion dollars here in the

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Speaker 4: United States. So if Apple didn't think the United States

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Speaker 4: could do it, they probably wouldn't have put up that

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Speaker 4: big chunk of change.

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Speaker 2: Well, as we all wait for more US made products,

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Speaker 2: Amazon meanwhile canceling orders on some China made goods. So,

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Speaker 2: according to sources and those Cadie Nines joins us from Washington,

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Speaker 2: and at the moment, the response is a coming thick

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Speaker 2: and fast, EU and China. What does the White House.

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Speaker 6: Make of it?

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Speaker 5: Well, the White House is sticking to its guns here, Caroline.

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Speaker 5: President Trump, while he has indicated he wants to make

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Speaker 5: a deal with China, wants China to come to him

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Speaker 5: and at this point, it doesn't look like China is

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Speaker 5: willing to have those conversations, as they have retaliated with

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Speaker 5: this eighty four percent tariff against all US imports in

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Speaker 5: exchange for one hundred and four percent levies the US

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Speaker 5: implemented as of twelve oh one am this morning. So

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Speaker 5: obviously an escalation in the trade war between the two

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Speaker 5: largest economies and potentially has the ability to choke off

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Speaker 5: the vast majority of trade that happens between the US

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Speaker 5: and China. Already we're seeing, obviously our reporting on Amazon

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Speaker 5: cutting off orders of things like air conditioning units or

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Speaker 5: beach shares. That is changing company behavior in terms of

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Speaker 5: where they want to source their inventory from. But it

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Speaker 5: also has the potential ramification to affect whether or non

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Speaker 5: American can access supply of things that don't easily have

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Speaker 5: alternative suppliers to China. At the moment, according to data

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Speaker 5: from the US Trade Commission, things like laptop computers for example,

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Speaker 5: PC monitors, gaming consoles, all of that has about a

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Speaker 5: seventy percent or more share of imports that come from

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Speaker 5: China specifically, so that is where you could start to

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Speaker 5: see some gaps emerging as this depending on how long

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Speaker 5: this continues, but the administration argues all of this has

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Speaker 5: an aim, and that aim is to bring back American manufacturing.

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Speaker 5: As we just heard from the White House Press Secretary

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Speaker 5: Caroline Levitt, but we've heard from others and the administration

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Speaker 5: as well. If you recalled, just this past weekend on

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Speaker 5: Sunday Morning television, the Commerce Secretary Howard Lutnik talked about

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Speaker 5: the army of millions and millions of people screwing in

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Speaker 5: tiny little screws and iPhones. He says, that's the kind

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Speaker 5: of thing they're bringing back to America.

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Speaker 3: That aim is so interesting because for the last twenty

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Speaker 3: four hours I listened to everybody on Bloomberg Television, read

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Speaker 3: every story, and I think the market still thinks, what

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Speaker 3: is the aim here? Is it revenue generation for our country?

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Speaker 3: Bring manufact uring back. I usually would like to go

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Speaker 3: to the politics. I think I'm right in saying that

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Speaker 3: away from tariffs, President Trump has not yet spoken to

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Speaker 3: President she at any point since he took office. Am

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Speaker 3: I right?

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Speaker 5: He has spoken to President She and he actually invited

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Speaker 5: him to his inauguration, but there hasn't been a conversation

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Speaker 5: really since this escalation of the trade war. The initial

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Speaker 5: tariffs that went into place regarding fentanyl, which first of

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Speaker 5: course was ten percent and twenty percent, then the eighty

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Speaker 5: four percent on top that has gone into effect as

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Speaker 5: of midnight tonight, But there have not been direct high

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Speaker 5: level talks between those two leaders. That there has been

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Speaker 5: communication at some lower rungs of the Chinese and US

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Speaker 5: government when it comes to trade. I guess we'll see

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Speaker 5: if that phone call is scheduled, because again, the President

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Speaker 5: and others in the Administration and White House have made

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Speaker 5: clear he is looking to make a deal with China here,

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Speaker 5: and we understand based off of our reporting and as

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Speaker 5: well as what the White House is saying, that there's

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Speaker 5: some seventy countries that have called into the White House

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Speaker 5: to try to begin negotiations. It's just not clear at

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Speaker 5: this time that China is one of them. In the meantime,

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Speaker 5: the Administration is our arguing that China fundamentally has been

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Speaker 5: messing with the US on trade and has been engaging

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Speaker 5: in unfair trade practices for years, and that is what

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Speaker 5: they are trying to reverse, which is one of the

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Speaker 5: reasons they use to justify tariffs. That it's not just

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Speaker 5: about bringing back American manufacturing. They also think it's about

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Speaker 5: lowering trade deficits with the US making trade fairer across

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Speaker 5: the globe.

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Speaker 7: In addition to the.

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Speaker 5: Revenue raising aspect, they also argue would be a benefit

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Speaker 5: of this. The thing is, if you have tariffs of

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Speaker 5: this level, like one hundred and four percent, that is

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Speaker 5: likely to reduce important volumes according to most economists you

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Speaker 5: would speak with, and that means less imports that you

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Speaker 5: actually can tear iff, which actually could mean that you're

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Speaker 5: not bringing in the kind of revenue levels you would

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Speaker 5: think that you wil Bloomberg Economics estimates that if tariffs

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Speaker 5: are intact as it stands now, they could bring in

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Speaker 5: about three hundred billion dollars a year because of the

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Speaker 5: reduction in imports. That's half of what the White Houses

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Speaker 5: argued could generate.

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Speaker 3: Blimbers K lines, we appreciate it, Thank you very much.

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Speaker 3: Let's get more on the global tech markets perspective amid

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Speaker 3: what is an active trade war? A Sema Shah, Principal

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Speaker 3: Asset Management Chief Global Strategists, joins us, Now, when you

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Speaker 3: think about the mag seven, let's say Apple in particular

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Speaker 3: is an example, right, are you preparing for that Scenariokaylee outlined,

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Speaker 3: which is the onshoring of jobs in this country or

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Speaker 3: is this more about pricing in modeling a fundamental change

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Speaker 3: in how the world does trade effectively.

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Speaker 6: I think everything is on the table at the moment.

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Speaker 6: I mean, one of the things that Cody was talking

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Speaker 6: about with regards to having a lot of those other

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Speaker 6: jobs that go into making the parts something to move

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Speaker 6: to the US, I mean one of the clear impacts

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Speaker 6: of that is the US has got much much higher

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Speaker 6: wage wages than parts of Asia, So you would be

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Speaker 6: looking at significant increase in cost brushes for these companies

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Speaker 6: for the mag seven impact on their margins and therefore

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Speaker 6: on their earnings growth potential. So there are so many

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Speaker 6: offsets of this, so it makes it quite difficult to

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Speaker 6: even fathom that you could see this complete alteration and

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Speaker 6: change in the way that I think the world has

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Speaker 6: got accustom to thinking about trade and a product. But

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Speaker 6: this is all encompassing. Of course, It's not just technology.

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Speaker 6: This is about every single product that you think through.

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Speaker 6: Because of global trade, every single part will have elements

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Speaker 6: of different countries about them, and shifting it back to

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Speaker 6: the US is simply very inflationary.

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Speaker 3: I want to show the earnings calendar for the mag

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Speaker 3: seven and those names that have asteriskness to them are

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Speaker 3: still tensative right. They haven't confirmed the date. But there

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Speaker 3: is a split in the market I see this morning.

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Speaker 3: Many believe that we won't see a bottom in equity

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Speaker 3: markets until we have earnings calls and a revision to

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Speaker 3: guidance that's been given, or a complete removal of guidance.

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Speaker 3: Others say that earnings and guidance is not important. All

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Speaker 3: we need is a strong positive piece of political news.

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Speaker 3: Where do you stand, Seema, I think we need one

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Speaker 3: or the other.

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Speaker 6: Either one would be important. I think probably the most

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Speaker 6: important would be if the administration walks back from tariffs

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Speaker 6: very significantly. Then you would see the market centerment improving.

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Speaker 6: And I think you see markets start to write, and

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Speaker 6: not a very very sharp rally, because I think some

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Speaker 6: fundamental damage has been done here, but certainly a rally

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Speaker 6: in terms of earnings guidance. I think one of the

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Speaker 6: things that we're waiting to see is that, look, if

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Speaker 6: recession really is on the cards, we need to see

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Speaker 6: a more realistic earnings outlook for companies across all sectors,

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Speaker 6: including technology, and it's only once you have that realistic forecast,

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Speaker 6: when you have got that forward guidance talking through what

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Speaker 6: the impact of tarists and this new global environment is,

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Speaker 6: only then can you start to think about where the

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Speaker 6: floor is. And then once you know where the flora is,

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Speaker 6: then you can start thinking forward.

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Speaker 2: Why there are people buying if we're not sure where

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Speaker 2: the floor is in the moment, why is Apple in

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Speaker 2: the green for example?

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Speaker 6: Well, I think one of the things that we've been

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Speaker 6: seeing for MAC seven has been really interesting for US

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Speaker 6: is I mean, from an asset allocation portfolio perspective, we

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Speaker 6: have been trying to move away from the tactical. It's

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Speaker 6: very difficult to be tactical when there's such an uncertain environment,

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Speaker 6: so you almost go back to your strategic positioning. From

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Speaker 6: a strategic perspective, we still like big tech if you're

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Speaker 6: looking out over five to ten year horizon. Certainly the

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Speaker 6: outlook has deteriorated even on the long term horizon, but

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Speaker 6: it's still fairly important from a global or a US

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Speaker 6: growth perspective. The other part of this is is that

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Speaker 6: typically in this kind of environment, when there is uncertainty,

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Speaker 6: when there are fears about what's going to happen, to

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Speaker 6: economic growth. You want companies which you've got the big

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Speaker 6: balance sheets, the positive cash flow, the fairly large motes

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Speaker 6: around them, and the Max seven dies still come into play.

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Speaker 6: And you've already seen a very significant valuation rerating in

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Speaker 6: the past couple of months, which means that at least

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Speaker 6: the Max seven the big tech companies are a little

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Speaker 6: bit head of the game in terms of having a

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Speaker 6: slightly more realistic pictures attached to them.

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Speaker 2: It has to be said Apple having its worst four

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Speaker 2: day sell off since the year two thousand, many saying

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Speaker 2: from an RSI perspective relative strength index, it was over sold.

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Speaker 2: This must be the point at which you pick up

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Speaker 2: some of these shares. But seem who are the investor

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Speaker 2: base right now who are willing to buy into big tech?

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Speaker 2: You yourself sat in London. Are international buyers still coming in?

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Speaker 2: Are we seeing it more from not only funds in

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Speaker 2: the United States? For example?

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Speaker 6: I think we have seen some retail invest is studying

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Speaker 6: to do their feed in them. They really believe in

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Speaker 6: the brand's perspective. So I think that's where you're seeing

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Speaker 6: a bit of a dip bike. But as I said,

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Speaker 6: you know, I mean the other thing to consider is

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Speaker 6: that whilst you do start to see if we see

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Speaker 6: some positive headlines coming through which can be sustained. Again,

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Speaker 6: these are the companies which have got that long term

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Speaker 6: earnings potential. So I think people have got an eye

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Speaker 6: on the idea that there could be a walk back

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Speaker 6: at any time. May not come, but certainly could happen

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Speaker 6: at any moment. So people do still want to have

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Speaker 6: exposure to these companies that can potentially ride out what

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Speaker 6: would you most likely be still a challenging economic environment

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Speaker 6: for the coming months.

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Speaker 3: There's this note from Bank of America out this morning

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Speaker 3: that says a US bill typhoon could cost ninety nine

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Speaker 3: zero percent more than it currently does. But that is

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Speaker 3: a goal of this administration right bring jobs, manufacturing, jobs

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Speaker 3: in tech back to the United States or to the

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Speaker 3: United States for the first time. Is there any upside

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Speaker 3: or sort of silver lining or bright outcome that you

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Speaker 3: see with this tariff's process.

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Speaker 8: I'm not sure if there's.

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Speaker 6: Well, look I think over a long term perspective, you know,

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Speaker 6: a four or five year period, then maybe yes, there

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Speaker 6: could be some positive. You would have maybe a US

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Speaker 6: economy which is a bit stronger, you have a manufacturing

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Speaker 6: base which is more formidable, you have less reliance on

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Speaker 6: external partners, so that would be the positive, but it

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Speaker 6: really comes through in the longside. It's really in the

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Speaker 6: short term that you start to see this additional pain

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Speaker 6: coming through. So I think it's challenging to see some

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Speaker 6: really good positive news coming through. I guess the one

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Speaker 6: thing is though, is that you know to that point

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Speaker 6: where an iPhone could be significantly more expensive, that inflation

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Speaker 6: pressure just puts upper pressure on the long end of

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Speaker 6: the yeelk CUB. We're already being seen that playing out

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Speaker 6: in the last couple of days, and from our perspective,

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Speaker 6: that may be the pressure point from the Trump administration.

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Speaker 6: They have repeatedly talked about their focus on treasury yields,

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Speaker 6: so maybe this is what necessarily pushes them back from

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Speaker 6: the edge and you could see some negotiations coming through

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Speaker 6: in the next.

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Speaker 2: Couple of days, or of a bio straight on the

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Speaker 2: bond market. At least, yealds up about nine basis points

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Speaker 2: in the ten ure. Simashah and Principal Asset Management, thanks

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Speaker 2: so much for joining us.

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Speaker 7: Coming up.

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Speaker 2: Look as companies they race to adjust plans amid the

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Speaker 2: trade tensions. Neither the US or China appears to be

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Speaker 2: backing down. We'll have more on the impact for the

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Speaker 2: tech sector. This has been their technology.

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Speaker 9: China's paid almost seven hundred billion dollars in tariffs under me,

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Speaker 9: and then they say Donald Trump hasn't been tough on China.

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Speaker 2: Meanwhile, Apple's lost about seven hundred billion dollars worth of

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Speaker 2: its market cap since the tariffs were imposed. Let's get

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Speaker 2: more on what the one hundred and four percent tariffs

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Speaker 2: on Chinese goods could mean for the tech world, and

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Speaker 2: of course the eight percent counter tariff on US exports

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Speaker 2: to China. Riva Gujano's with US director for Roodium Group Riva.

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Speaker 2: It's really interesting to understand how supply chains are going

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Speaker 2: to be impacted by all of this, because we know

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Speaker 2: that in many ways China is the assembly point for apples.

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Speaker 2: Some of the products in an Apple phone are actually

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Speaker 2: made in Kentucky and ship to China and then ship

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Speaker 2: back to US. But ultimately, are we in a game

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Speaker 2: of chicken when it comes to US China tip for

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Speaker 2: tat right now?

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Speaker 10: Well, yeah, at one hundred and four percent tariffs, I'd

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Speaker 10: say so. And so yeah, there are loaded assumptions on

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Speaker 10: both the US and the Chinese sides over this trade war.

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Speaker 10: Each side believes the others, in the weaker economic position

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Speaker 10: that the other one will fold, and Beijing at this

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Speaker 10: point is basically saying bring it right. They're counting on

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Speaker 10: US inventories to get shaved down. People checking their Amazon

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Speaker 10: orders and seeing that they're not coming through, going to Walmart,

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Speaker 10: seeing their shelves empty out, and so at that point,

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Speaker 10: this is obviously going to force a conversation, but to

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Speaker 10: what end. Right, there's not much fodder for real negotiation here.

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Speaker 10: You could have some sort of a reset, maybe getting

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Speaker 10: back to let's say fifty four percent tariffs, but that's

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Speaker 10: not much of a win here right after this scale

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Speaker 10: of disruption, and already supply chains as you as you mentioned,

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Speaker 10: are going to be greatly disrupted.

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Speaker 2: We've heard time and time again that the US thinks

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Speaker 2: China wants to make a deal. Do you think that

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Speaker 2: ultimately it does that we ever get to a better

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Speaker 2: outcome in this scenario, because there are companies currently locked

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Speaker 2: not knowing what to do in this scenario as to

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Speaker 2: whether the tariff's a short term a long term.

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Speaker 10: Look, China would of course love a real negotiation with

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Speaker 10: the US that spans into other domains as well, to say,

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Speaker 10: for example, okay, if the US wants to reduce its

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Speaker 10: trade deficit with China, then fine, let's talk about large

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Speaker 10: scale purchases. Let's talk about importing more in video semiconductors,

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Speaker 10: for example, which would in part then blow apart the

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Speaker 10: export control regime. You can see how Beijing would be

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Speaker 10: angling for that now with that happen, I think that's

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Speaker 10: very low likelihood because remember we're just talking about a

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Speaker 10: conflict spiral in the trade domain right now. There is

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Speaker 10: a whole other layer here when it comes to the

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Speaker 10: tech controls trajectory escalation on that front also, so how

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Speaker 10: China is getting more creative with its own retaliatory toolkit,

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Speaker 10: which is going to put multinationals in China, particularly tech companies,

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Speaker 10: in a very difficult position in the months ahead.

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Speaker 3: So I want to stay on this point because for

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Speaker 3: the technology industry, tariffs are one tool or policy point,

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Speaker 3: and the export of technology and the controls and those exports,

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Speaker 3: as you point out, were the most significant prior to

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Speaker 3: last week. Do you expect both to increase? In other words,

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Speaker 3: where we see further specific controls by the United States

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Speaker 3: on cutting edge GPUs and other technology.

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Speaker 10: So attention span is a question right for the current

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Speaker 10: US administration, We'll have to see you as BIS under

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Speaker 10: commerce is starting to ramp up, is it going to

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Speaker 10: have the latitude to patch up export controls? For example,

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Speaker 10: there have been pending controls to expand chip controls to

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Speaker 10: cover for example, in VIDEAH twenty chips in the wake

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Speaker 10: of deep Seek's big breakthrough. But there's more than that, right,

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Speaker 10: there's a bigger conversation around how do you evolve economic

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Speaker 10: security standards that effectively exclude China from AI infrastructure build

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Speaker 10: outs globally. So there's a lot more that's coming on

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Speaker 10: the tech front. And meanwhile, China's looking at a number

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Speaker 10: of retaliatory tools where it's singling out US big tech

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Speaker 10: companies as well.

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Speaker 3: It's REVA. How do you interpret China's responses China's actions.

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Speaker 10: In this, Yeah, so a few things, right, So when

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Speaker 10: you look beyond the tip for tat on the tariffs, right,

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Speaker 10: China's doing some interesting things where, for example, in it's

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Speaker 10: implementing provisions for the Anti Foreign Sanctions Law, it's talking

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Speaker 10: about countermeasures that include suspending IP rights for US companies

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Speaker 10: in China. That's explosive. Right, if China goes down that path,

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Speaker 10: that's a very slippery slope. That's something that's going to

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Speaker 10: spread alarm, not just to US companies, right, but Japanese,

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Speaker 10: European everyone, once you start to break apart those norms. Moreover,

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Speaker 10: you know, China has its anti monopoly arm sammer that

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Speaker 10: has veto power over a number of strategic m and

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Speaker 10: a around the world. There are a lot of strategic

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Speaker 10: deals that are supposed to be struck as a result

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Speaker 10: of these trade wars. At least that's the intent of

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Speaker 10: the administration. We still don't know, for example, what's going

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Speaker 10: to happen with Intel and TSMC. Right as Intel has

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Speaker 10: been struggling, do you really think that the US is

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Speaker 10: going to recognize the Chinese veto over a major merger

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Speaker 10: that is based on national security arguments? So we're already

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Speaker 10: vearying toward this conflict of law conundrum on that front,

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Speaker 10: as well as on the IP front, which again is

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Speaker 10: a very slippery slope for tech companies.

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Speaker 3: With Gujon, director at Roodium Group, really great having the show.

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Speaker 8: Thank you.

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Speaker 2: President Trump's AI promises. They started strong with the announcement

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Speaker 2: of a five hundred billion dollar style Gate infrastructure project

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Speaker 2: back in January. Remember, but his new Liberation Day agenda

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Speaker 2: looks set to undermine those earlier AI ambitions. Bluemberg Opinion

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Speaker 2: columnists Daily writing, the Trump taroff agenda risks a cascading

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Speaker 2: effect that will drag down the America AI effort. The

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Speaker 2: new economic order could force the American AI industry to

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Speaker 2: compete on China's terms rather than harness its own strengths.

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Speaker 2: Davely is with us now. And when you say compete

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Speaker 2: on China terms, ultimately it's about forcing them not to

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Speaker 2: have access to the most sophistic GPUs and therefore having

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Speaker 2: to do more with less. We become more Deep.

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Speaker 11: Seek absolutely exactly like Deep Sea. I mean, you remember

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Speaker 11: when there was the market sell off when deep Seek

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Speaker 11: made its arrival because everyone thought, wow, China knows how

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Speaker 11: to do this more cheaply and with less computing power

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Speaker 11: and so on. But the American response, and the response

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Speaker 11: that we got from the likes of Saturn Adella at

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Speaker 11: Microsoft was don't worry, because our differentiate is we can

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Speaker 11: do this on a bigger scale with more computing power.

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Speaker 11: We can serve more people, we can do more inferencing.

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Speaker 11: You know, the powering of AI once you've you've trained it.

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Speaker 11: Now if all of that gets more expensive, which these

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Speaker 11: towers seems set to do, then all of a sudden

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Speaker 11: that advantage doesn't go away completely, but I think it

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Speaker 11: becomes just harder to deploy, and it could take longer

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Speaker 11: to deploy it as well. So I've had, you know,

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Speaker 11: I've talking to a number of people who have said,

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Speaker 11: maybe if you're a small startup in the space, you

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Speaker 11: might be thinking maybe we could try and become more

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Speaker 11: of a deep seek than you know, an open AI

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Speaker 11: for example.

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Speaker 3: Well, your core point is that the ability of a

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Speaker 3: Meta or an Amazon or a Microsoft to invest was

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Speaker 3: built on its core businesses and that is where the

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Speaker 3: uncertainty impact comes. I think at least.

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Speaker 11: Yeah, absolutely, And last earning season, all of these companies

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Speaker 11: came out and said and shared their capex plans for

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Speaker 11: the year, and they were huge. I think I tossed

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Speaker 11: up at one point more than three hundred and fifty

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Speaker 11: billion dollars that is going to be spent on data

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Speaker 11: centers and you know, getting more energy and so forth.

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Speaker 11: That money, even if they keep at those levels, which

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Speaker 11: I think is in question, it's not going to go

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Speaker 11: as far because building these data centers just got considerably

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Speaker 11: more expensive, even though the sort of core component of

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Speaker 11: the semiconductor right now is the subject to a tariff,

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Speaker 11: although some are speculating that it might be in the

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Speaker 11: not to some future. So yes, and all of that

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Speaker 11: spending was concocted and agreed to it, you know, backed

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Speaker 11: by investors on the basis that companies like Apple have

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Speaker 11: the iPhone and it was a rowing business, or companies

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Speaker 11: like Meta have this great advertising business that just prints money.

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Speaker 11: That may not be the case anymore.

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Speaker 3: Daily a Bloomberg opinion, it's a must read today. Liberation day,

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Speaker 3: Thank you very much.

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Speaker 11: This is like uncharted territory we are talking about here.

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Speaker 12: It's really tough to be a technology You have to

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Speaker 12: wear a company right now.

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Speaker 13: I think the more significant area that is a factor

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Speaker 13: is the Asian nations to have deeply and better supply Chaine.

439
00:21:58,160 --> 00:22:01,240
Speaker 9: Obviously, Apple is more of a because of the tariffs

440
00:22:01,240 --> 00:22:05,159
Speaker 9: and what they manufacture in China. Right the rest of

441
00:22:05,160 --> 00:22:07,919
Speaker 9: the MAC seven, more of the communication names. They're a

442
00:22:07,920 --> 00:22:10,400
Speaker 9: little bit better space, but it's not as if anyone's

443
00:22:10,400 --> 00:22:11,040
Speaker 9: in great space.

444
00:22:11,080 --> 00:22:13,320
Speaker 12: From a valuation perspective, I think the good news is

445
00:22:13,320 --> 00:22:16,000
Speaker 12: we don't have a valuation problem in tech.

446
00:22:16,080 --> 00:22:18,560
Speaker 14: Mega SIN seven is something like fifty five percent of

447
00:22:18,600 --> 00:22:21,080
Speaker 14: profits coming from overseas, So while they have a lot

448
00:22:21,119 --> 00:22:24,080
Speaker 14: of secular AI driven growth, they also tend to have

449
00:22:24,160 --> 00:22:26,640
Speaker 14: a lot of international driven growth. So we don't really

450
00:22:26,680 --> 00:22:29,880
Speaker 14: see MAG seven coming back to the fore. If these

451
00:22:29,880 --> 00:22:30,639
Speaker 14: tariffs stick.

452
00:22:30,600 --> 00:22:34,040
Speaker 12: Big tech has massive recash flow generation, even if we

453
00:22:34,320 --> 00:22:38,560
Speaker 12: kind of discount some of the tariff issues at hand.

454
00:22:38,640 --> 00:22:43,680
Speaker 3: Right now, that's what some of Bloomberg Television's recent guests

455
00:22:43,680 --> 00:22:45,639
Speaker 3: had to say about the impact of tariffs on the

456
00:22:45,680 --> 00:22:48,000
Speaker 3: tech sector. And this is what markets look like right now.

457
00:22:48,160 --> 00:22:50,560
Speaker 3: Way off session highs on the Nasdaq one hundred, you know,

458
00:22:50,800 --> 00:22:53,440
Speaker 3: I go to the NAZDAK one hundred cause concentration of tech.

459
00:22:53,680 --> 00:22:56,560
Speaker 3: But then as that Golden Dragon China index really interested US,

460
00:22:56,640 --> 00:23:00,639
Speaker 3: listed ADRs of many Chinese technology companies been higher two

461
00:23:00,680 --> 00:23:02,920
Speaker 3: and a half percent now lowering the session, and we're

462
00:23:02,920 --> 00:23:06,800
Speaker 3: trying to digest China's retaliative measures single names. This is

463
00:23:06,840 --> 00:23:09,200
Speaker 3: what we're looking like in the green. Apple continues to

464
00:23:09,240 --> 00:23:12,080
Speaker 3: push hiring. Caroline made a really important point earlier prior

465
00:23:12,119 --> 00:23:15,359
Speaker 3: to this session, four straight days of declines where Apple

466
00:23:15,440 --> 00:23:19,440
Speaker 3: experienced its biggest drop since the year two thousand. That's important.

467
00:23:19,480 --> 00:23:20,520
Speaker 3: We should keep saying.

468
00:23:20,320 --> 00:23:20,720
Speaker 1: That, KARC.

469
00:23:21,160 --> 00:23:24,000
Speaker 2: We should. But also what's interesting in another data point

470
00:23:24,000 --> 00:23:27,120
Speaker 2: that you and I saw today, the PC shipment data,

471
00:23:27,200 --> 00:23:30,879
Speaker 2: it actually grew the fastest quarterly pace in four years.

472
00:23:31,080 --> 00:23:35,159
Speaker 2: Has has companies stocked up inventory ahead of tariffs? Look desktops, workstations,

473
00:23:35,200 --> 00:23:38,359
Speaker 2: portable computers. They rose more than nine percent, according to

474
00:23:38,359 --> 00:23:41,560
Speaker 2: market tracker Canalis. For more on how these tarifts are

475
00:23:41,560 --> 00:23:44,440
Speaker 2: impacting tech supply chains, We've got the perfect guest, David Warwick,

476
00:23:44,480 --> 00:23:47,880
Speaker 2: executive vice president over an overhaul a supply chain visibility

477
00:23:47,880 --> 00:23:50,400
Speaker 2: and risk management company, who work for Microsoft for years

478
00:23:50,480 --> 00:23:54,359
Speaker 2: overseeing their global supply chain. Have companies how long have

479
00:23:54,440 --> 00:23:57,800
Speaker 2: they bought in terms of inventory because they seem to

480
00:23:57,840 --> 00:23:59,760
Speaker 2: see the risk while investors didn't.

481
00:24:01,000 --> 00:24:03,399
Speaker 15: I mean, and I think everybody has known this is

482
00:24:03,440 --> 00:24:05,680
Speaker 15: coming at some level, and so what they've been trying

483
00:24:05,720 --> 00:24:06,840
Speaker 15: to do is they've been trying.

484
00:24:06,640 --> 00:24:08,480
Speaker 8: To prepare as best they can.

485
00:24:08,960 --> 00:24:11,119
Speaker 15: And you know, even this week, you know, in the

486
00:24:11,160 --> 00:24:13,639
Speaker 15: last seven or ten days, what we've seen is an

487
00:24:13,720 --> 00:24:17,399
Speaker 15: increase in rates for air cargo coming out of China,

488
00:24:17,680 --> 00:24:19,920
Speaker 15: which means that you know, supply is drying up a

489
00:24:19,920 --> 00:24:21,800
Speaker 15: little bit, and people are still trying to move as

490
00:24:21,880 --> 00:24:25,920
Speaker 15: much product as they can before they were impacted by tariffs.

491
00:24:26,080 --> 00:24:28,040
Speaker 8: So I think that companies have tried to be smart,

492
00:24:28,080 --> 00:24:28,720
Speaker 8: They've tried.

493
00:24:28,560 --> 00:24:31,399
Speaker 15: To position themselves as best they can, but I'm not

494
00:24:31,440 --> 00:24:34,800
Speaker 15: sure that anybody actually saw the sheer extent of these

495
00:24:34,840 --> 00:24:35,960
Speaker 15: tariffs and what it would mean.

496
00:24:36,920 --> 00:24:40,280
Speaker 2: You are currently still advising the Microsoft's the dicens. I

497
00:24:40,320 --> 00:24:43,680
Speaker 2: go to the data that shows that China is basically

498
00:24:43,760 --> 00:24:47,359
Speaker 2: ninety percent of all consoles coming from China to the

499
00:24:47,440 --> 00:24:51,520
Speaker 2: United States, and I'm interested as what on earth Xbox

500
00:24:51,520 --> 00:24:55,000
Speaker 2: executives do at this moment. Are they thinking, Okay, longer term,

501
00:24:55,040 --> 00:24:57,399
Speaker 2: we shift our supply chain even further away from China,

502
00:24:57,480 --> 00:24:59,520
Speaker 2: or do they just ride this out in the short term.

503
00:25:00,359 --> 00:25:03,199
Speaker 8: I think that it's a very challenging situation to be in.

504
00:25:03,280 --> 00:25:05,400
Speaker 15: I think that, you know, the advice that I'm giving

505
00:25:05,440 --> 00:25:08,160
Speaker 15: a lot of companies right now is basically to hurry

506
00:25:08,240 --> 00:25:12,120
Speaker 15: up and wait and making a strategic decision today could

507
00:25:12,119 --> 00:25:15,400
Speaker 15: fall apart very quickly within the next week, as we've

508
00:25:15,480 --> 00:25:18,040
Speaker 15: kind of seen over the last month, Caroline, you know,

509
00:25:18,080 --> 00:25:21,640
Speaker 15: we saw the Mexico, Canada dispute. We saw a lot

510
00:25:21,640 --> 00:25:24,159
Speaker 15: of things happening there very quickly. If you'd made a

511
00:25:24,200 --> 00:25:28,360
Speaker 15: strategic decision to move everything overnight, you could have been

512
00:25:28,359 --> 00:25:29,679
Speaker 15: caught on the wrong side of that.

513
00:25:30,160 --> 00:25:32,440
Speaker 8: So right now, I think that you know, it's not

514
00:25:32,560 --> 00:25:33,920
Speaker 8: just the consoles.

515
00:25:33,400 --> 00:25:36,000
Speaker 15: It's not just PCs, it's across the board, And I

516
00:25:36,040 --> 00:25:39,159
Speaker 15: think that companies have to be really, really thoughtful in

517
00:25:39,240 --> 00:25:42,920
Speaker 15: terms of their immediate next steps versus their longer term strategies.

518
00:25:43,200 --> 00:25:45,440
Speaker 15: If the tireff stick and if we have to ride

519
00:25:45,480 --> 00:25:48,560
Speaker 15: out this entire storm, it's a different set of decisions

520
00:25:48,560 --> 00:25:50,840
Speaker 15: that you would make if you knew that this was

521
00:25:50,880 --> 00:25:52,960
Speaker 15: going to happen for you know, maybe three months and

522
00:25:52,960 --> 00:25:54,520
Speaker 15: then start to taper off.

523
00:25:54,800 --> 00:25:56,720
Speaker 8: So it's a very challenging time for.

524
00:25:56,720 --> 00:25:59,240
Speaker 15: Supply chains and trying to figure out the short term

525
00:25:59,320 --> 00:26:01,600
Speaker 15: versus the media term versus the long term.

526
00:26:02,280 --> 00:26:06,960
Speaker 3: David, explain to our audience how an iPhone would be

527
00:26:07,119 --> 00:26:10,720
Speaker 3: built or assembled in the United States and what the

528
00:26:10,840 --> 00:26:14,040
Speaker 3: price impact would be based on your experience.

529
00:26:15,240 --> 00:26:17,320
Speaker 15: That's a challenging question, Ed, I'm not sure you know,

530
00:26:17,600 --> 00:26:19,639
Speaker 15: I'm not sure that I understand the full extent of

531
00:26:19,680 --> 00:26:22,520
Speaker 15: the Apple supply chain. But look, you've got to understand

532
00:26:22,520 --> 00:26:25,840
Speaker 15: that this is not about just moving a manufacturing plant.

533
00:26:26,480 --> 00:26:29,359
Speaker 15: This is an ecosystem. The tier two suppliers, the Tier

534
00:26:29,400 --> 00:26:32,640
Speaker 15: three suppliers have all built up over time around those

535
00:26:32,680 --> 00:26:35,200
Speaker 15: specific factories in China.

536
00:26:34,720 --> 00:26:36,840
Speaker 8: Or in Vietnam or in India, and.

537
00:26:36,840 --> 00:26:39,840
Speaker 15: It takes time to develop that ecosystem. So what would

538
00:26:39,880 --> 00:26:41,679
Speaker 15: it take. Well, you have to build a factory. Then

539
00:26:41,720 --> 00:26:44,119
Speaker 15: you have to develop that ecosystem to be able to

540
00:26:44,160 --> 00:26:47,440
Speaker 15: supply that factory. You have to source your raw materials,

541
00:26:47,480 --> 00:26:51,280
Speaker 15: you have to source your semi finished goods, your sub assemblies.

542
00:26:50,960 --> 00:26:53,359
Speaker 8: And bring all of those in. So this isn't just

543
00:26:53,640 --> 00:26:54,840
Speaker 8: flicking a switch.

544
00:26:54,520 --> 00:26:57,680
Speaker 15: And you build a new factory and everything starts up again.

545
00:26:58,000 --> 00:27:00,719
Speaker 15: It takes time to build that ecosystem them and to

546
00:27:00,720 --> 00:27:03,200
Speaker 15: make sure that your supply chain meains intact from a

547
00:27:03,320 --> 00:27:05,000
Speaker 15: quality perspective and everything else.

548
00:27:05,640 --> 00:27:07,560
Speaker 3: That was a pretty good answer, David. To be fair,

549
00:27:07,800 --> 00:27:10,159
Speaker 3: I think that sums up well. And I know Tesla

550
00:27:10,240 --> 00:27:13,760
Speaker 3: in its local supply chain in Shanghai has a similar situation.

551
00:27:14,720 --> 00:27:17,400
Speaker 3: What happens in four years time if there's a completely

552
00:27:17,400 --> 00:27:19,679
Speaker 3: different administration in the White House and all of the

553
00:27:19,720 --> 00:27:22,600
Speaker 3: tariffs get undone and the executives at the companies you

554
00:27:22,680 --> 00:27:27,200
Speaker 3: advise decided to do something extreme in adjusting their supply

555
00:27:27,320 --> 00:27:28,480
Speaker 3: chain here and now.

556
00:27:29,680 --> 00:27:32,080
Speaker 15: I think in the first case, I'll be a little

557
00:27:32,080 --> 00:27:34,320
Speaker 15: bit bored. If at all reverses, then you know, I'm

558
00:27:34,359 --> 00:27:36,520
Speaker 15: not sure what I'll be doing every day. But you know,

559
00:27:36,800 --> 00:27:40,840
Speaker 15: I think that this short term versus medium term versus

560
00:27:40,880 --> 00:27:43,320
Speaker 15: long term, I think that that is where we're caught

561
00:27:43,320 --> 00:27:46,320
Speaker 15: in a trap right now, whereby it's very difficult to

562
00:27:46,320 --> 00:27:48,960
Speaker 15: make that long term decision because to your point, a

563
00:27:49,080 --> 00:27:52,119
Speaker 15: new administration could decide to go in a very different

564
00:27:52,119 --> 00:27:55,159
Speaker 15: direction from a trade perspective, and so supply chains have

565
00:27:55,200 --> 00:27:58,520
Speaker 15: to be cautiously. We were taught some lessons over the

566
00:27:58,600 --> 00:28:01,919
Speaker 15: last five years through COVID. We realized that our supply

567
00:28:02,000 --> 00:28:04,760
Speaker 15: chains were ultimately fragile, and we had to find a

568
00:28:04,800 --> 00:28:08,080
Speaker 15: better way to build some resilience into those supply chains.

569
00:28:08,400 --> 00:28:10,720
Speaker 15: So we diversified a little bit. We started to move

570
00:28:10,760 --> 00:28:14,439
Speaker 15: manufacturing to other countries. We started to do very sensible things.

571
00:28:14,920 --> 00:28:17,000
Speaker 15: Did we do that to the level that we should

572
00:28:17,040 --> 00:28:19,720
Speaker 15: have done it? Maybe not, Maybe there was more room

573
00:28:19,960 --> 00:28:22,919
Speaker 15: to actually move things aby, But I think supply chains

574
00:28:23,000 --> 00:28:25,840
Speaker 15: now you know, we are problem solver. Supply chain practitioners

575
00:28:25,880 --> 00:28:29,640
Speaker 15: are designed to solve problems. This is another major problem.

576
00:28:29,720 --> 00:28:32,080
Speaker 15: Call it a gray swan or a black swan. It's

577
00:28:32,080 --> 00:28:34,600
Speaker 15: another major problem that we have to deal with. It

578
00:28:34,640 --> 00:28:37,080
Speaker 15: will force a change in terms of high supply chains.

579
00:28:37,119 --> 00:28:40,240
Speaker 15: Think high supply chains are engineered over the coming years.

580
00:28:40,760 --> 00:28:43,360
Speaker 2: And ultimately you might have tried to front run by

581
00:28:43,400 --> 00:28:45,880
Speaker 2: moving out of China as many have take it Apple

582
00:28:46,040 --> 00:28:50,280
Speaker 2: more into India and Vietnam, and ultimately they've been tariff too.

583
00:28:50,920 --> 00:28:52,720
Speaker 2: I mean, of course to a less extent when it

584
00:28:52,760 --> 00:28:56,120
Speaker 2: comes to India. But longer term, then are we seeing

585
00:28:56,320 --> 00:28:59,520
Speaker 2: companies willing to hit the margin when you've got a

586
00:28:59,600 --> 00:29:02,000
Speaker 2: record gross margin of forty six point nine percent for

587
00:29:02,040 --> 00:29:05,520
Speaker 2: Apple recently. In the short term they swallow it, David,

588
00:29:05,640 --> 00:29:08,240
Speaker 2: Is that what Dyson's and Microsoft do? They take the

589
00:29:08,320 --> 00:29:10,200
Speaker 2: hit until they get long term charity.

590
00:29:11,600 --> 00:29:14,520
Speaker 15: I think in the short term, any supply chain will

591
00:29:14,520 --> 00:29:18,000
Speaker 15: look at what can be done. So if you've already

592
00:29:18,000 --> 00:29:21,400
Speaker 15: diversified to some level, and you've moved production to more

593
00:29:21,480 --> 00:29:25,000
Speaker 15: friendlier tariff countries, you would look now to say, is

594
00:29:25,000 --> 00:29:28,360
Speaker 15: there any excess capacity available? Can I move maybe from

595
00:29:28,400 --> 00:29:31,640
Speaker 15: a China to a Philippines or to Malaysia to reduce

596
00:29:31,680 --> 00:29:32,920
Speaker 15: some of that tariff burden.

597
00:29:33,360 --> 00:29:35,800
Speaker 8: However, you know, the longer term.

598
00:29:35,640 --> 00:29:38,680
Speaker 15: Is going to be Okay, what does a tar friendly

599
00:29:38,720 --> 00:29:39,960
Speaker 15: country actually look like?

600
00:29:40,040 --> 00:29:42,680
Speaker 8: Have we actually moved the dynamics too far?

601
00:29:43,440 --> 00:29:47,160
Speaker 15: And you know, we're all hoping that this will actually

602
00:29:47,640 --> 00:29:51,160
Speaker 15: roll over. We are all hoping that the president will

603
00:29:51,200 --> 00:29:53,520
Speaker 15: do as he says and he is open to negotiation,

604
00:29:53,880 --> 00:29:56,200
Speaker 15: and the countries are coming to the table. We've heard today,

605
00:29:56,520 --> 00:29:58,959
Speaker 15: South Korea, Japan are already coming to the table.

606
00:29:59,200 --> 00:30:00,160
Speaker 8: From a supply chain.

607
00:30:00,120 --> 00:30:03,440
Speaker 15: Perspective, we're hoping that common sense will prevail and there

608
00:30:03,440 --> 00:30:06,760
Speaker 15: will be a more balanced trading agreements set setup trading

609
00:30:06,800 --> 00:30:09,920
Speaker 15: agreements put in place in the coming weeks and months,

610
00:30:10,080 --> 00:30:12,880
Speaker 15: which will alleviate some of the current pin but it

611
00:30:12,920 --> 00:30:15,920
Speaker 15: still doesn't take away from the longer term strategy nine

612
00:30:16,000 --> 00:30:18,320
Speaker 15: needs to be figured on, and that's what supply chains

613
00:30:18,320 --> 00:30:19,600
Speaker 15: are going to be working hard to do.

614
00:30:19,920 --> 00:30:22,360
Speaker 2: David. I'm going to make a really pointed question on

615
00:30:22,480 --> 00:30:25,040
Speaker 2: many of the executives you're talking to taking it seriously

616
00:30:25,080 --> 00:30:27,760
Speaker 2: that they need to build or assemble in the United

617
00:30:27,800 --> 00:30:31,120
Speaker 2: States more fully, a lot.

618
00:30:30,920 --> 00:30:34,960
Speaker 15: Of executives are certainly having the discussion, they're looking at

619
00:30:35,000 --> 00:30:39,240
Speaker 15: the implications of obviously the capital cost and also the

620
00:30:39,280 --> 00:30:41,920
Speaker 15: timeline is involved. You know, setting up a factory in

621
00:30:41,960 --> 00:30:44,240
Speaker 15: the United States to manufacture in the United States.

622
00:30:44,760 --> 00:30:46,000
Speaker 8: You don't do that overnight.

623
00:30:46,320 --> 00:30:48,840
Speaker 15: And then, as I said earlier, it's the ecosystem which

624
00:30:48,920 --> 00:30:51,400
Speaker 15: is the really important part. How long will it take

625
00:30:51,440 --> 00:30:54,200
Speaker 15: to actually, you know, bring all those things together.

626
00:30:54,560 --> 00:30:56,080
Speaker 8: I answered a question earlier.

627
00:30:55,800 --> 00:30:58,520
Speaker 15: On this week in a different interview where somebody said, hey,

628
00:30:59,000 --> 00:31:02,600
Speaker 15: you know, for a American med products, how are going

629
00:31:02,640 --> 00:31:04,840
Speaker 15: to be impacted by the new China tariffs?

630
00:31:05,120 --> 00:31:07,920
Speaker 8: And my question to that question.

631
00:31:07,760 --> 00:31:09,880
Speaker 15: Was, well, what do you mean by American made products?

632
00:31:09,920 --> 00:31:13,000
Speaker 15: You're talking about chocolate in this instance, you know, where

633
00:31:13,000 --> 00:31:15,200
Speaker 15: does the coca come from to make that chocolate?

634
00:31:15,560 --> 00:31:17,440
Speaker 8: It in itself is subject.

635
00:31:17,040 --> 00:31:19,840
Speaker 15: To a tariff coming into the US to manufacture in

636
00:31:19,880 --> 00:31:20,360
Speaker 15: the US.

637
00:31:20,720 --> 00:31:23,040
Speaker 8: Supply chains are complicated. Supply chains are.

638
00:31:23,840 --> 00:31:28,160
Speaker 15: Very very complex elements, and so figuring these pieces out

639
00:31:28,480 --> 00:31:31,440
Speaker 15: is everything that executives are doing right now to understand

640
00:31:31,600 --> 00:31:34,160
Speaker 15: the impact but also to understand what can be done next.

641
00:31:35,360 --> 00:31:38,640
Speaker 3: Hair dryers, toasters all come from China as well. David

642
00:31:38,640 --> 00:31:41,360
Speaker 3: Warwick from Overhaul, really great conversation. Thank you for joining US.

643
00:31:41,360 --> 00:31:43,640
Speaker 2: Care now coming up. We're going to get the VC

644
00:31:43,800 --> 00:31:46,360
Speaker 2: the private market perspective. Ben Lahra is with US VC

645
00:31:46,480 --> 00:31:49,640
Speaker 2: firm Lara Hippo is actually just closed a mammoth two

646
00:31:49,680 --> 00:31:53,680
Speaker 2: hundred million dollars round for a new fund. Amiddle this uncertainty,

647
00:31:53,800 --> 00:31:55,520
Speaker 2: how they do it? This is a broom, big technology

648
00:32:04,600 --> 00:32:07,840
Speaker 2: VC firm. Lara Hippo is just closed a two hundred

649
00:32:07,920 --> 00:32:11,800
Speaker 2: million dollar fund. It's ninth early stage one. This is

650
00:32:11,880 --> 00:32:15,560
Speaker 2: vcs and startups faced Tarif anxiety, many opting to pause

651
00:32:15,600 --> 00:32:18,800
Speaker 2: plans for IPOs. But yet the conviction is there from LPs.

652
00:32:19,080 --> 00:32:21,640
Speaker 2: Let's talk about why Nara Hippo managing partner Ben Lara

653
00:32:21,760 --> 00:32:23,920
Speaker 2: joins us. Now, Ben, how did you get this over

654
00:32:23,920 --> 00:32:25,280
Speaker 2: the line in this current environment?

655
00:32:27,040 --> 00:32:30,040
Speaker 16: Yeah, I think Look, one of the one of the

656
00:32:30,040 --> 00:32:32,800
Speaker 16: things we're proudest of is that we, over a long

657
00:32:32,840 --> 00:32:36,000
Speaker 16: period of time, have been really consistent and I think

658
00:32:36,000 --> 00:32:38,640
Speaker 16: pretty disciplined. We do one thing, we do one thing well,

659
00:32:38,680 --> 00:32:42,920
Speaker 16: which is true early stage investing. And so while markets

660
00:32:43,400 --> 00:32:46,880
Speaker 16: rise and fall, and you know, lots of things outside

661
00:32:46,880 --> 00:32:49,960
Speaker 16: of our control happened in the background, we don't tend

662
00:32:50,000 --> 00:32:53,240
Speaker 16: to get sucked into sort of hype cycles. And and

663
00:32:53,280 --> 00:32:55,480
Speaker 16: I you know, it's sort of been reflected in our returns,

664
00:32:55,520 --> 00:32:59,080
Speaker 16: and so we're fortunate that LPs continue to support us,

665
00:32:59,080 --> 00:33:02,760
Speaker 16: and you know, we're but let's say, we're happy to

666
00:33:02,800 --> 00:33:03,680
Speaker 16: have this behind us.

667
00:33:03,760 --> 00:33:07,040
Speaker 3: In this book, Ben, you know, we've discussed for many

668
00:33:07,160 --> 00:33:10,719
Speaker 3: years how early stage companies and their investors are more

669
00:33:10,760 --> 00:33:15,440
Speaker 3: like insulated from public markets and macro events until what

670
00:33:15,520 --> 00:33:19,480
Speaker 3: happened with Silicon Valley Bank and it became about operational

671
00:33:19,520 --> 00:33:22,400
Speaker 3: cash flow. Right, But you're still doing a new fund.

672
00:33:22,480 --> 00:33:25,320
Speaker 3: This report's about andresen doing a very very big fund.

673
00:33:25,640 --> 00:33:28,280
Speaker 3: Just talk to me about that environment more specifically at

674
00:33:28,280 --> 00:33:29,200
Speaker 3: the early stage.

675
00:33:30,200 --> 00:33:33,600
Speaker 16: Yeah, And actually I think the SVB crisis was for

676
00:33:34,080 --> 00:33:36,720
Speaker 16: certain funds a wake up call where you know, that

677
00:33:36,800 --> 00:33:39,200
Speaker 16: was sort of coming out of a hype cycle in

678
00:33:39,320 --> 00:33:43,200
Speaker 16: twenty one where money was flowing very freely. Companies were

679
00:33:43,240 --> 00:33:45,760
Speaker 16: raising lots of money and chasing growth at all costs.

680
00:33:45,840 --> 00:33:50,640
Speaker 16: And I think even for us at LH, we took

681
00:33:50,720 --> 00:33:54,080
Speaker 16: a moment to be very introspective and say, are we

682
00:33:54,440 --> 00:33:56,960
Speaker 16: on a company by company by company bases making sure

683
00:33:57,000 --> 00:34:00,840
Speaker 16: that folks are being really responsible and not falling prey

684
00:34:00,960 --> 00:34:04,320
Speaker 16: to lots of late stage money chasing hot companies and

685
00:34:05,040 --> 00:34:09,359
Speaker 16: driving some not great behaviors. And right now as we

686
00:34:09,400 --> 00:34:11,400
Speaker 16: sort of enter another moment of prices, I think that

687
00:34:11,520 --> 00:34:15,879
Speaker 16: some of the learnings from from that last significant sort

688
00:34:15,920 --> 00:34:19,680
Speaker 16: of blip have set at least our portfolio up in

689
00:34:19,680 --> 00:34:21,560
Speaker 16: a way where we feel like we have arms around

690
00:34:21,560 --> 00:34:24,320
Speaker 16: every company in the portfolio, where companies on a quarter

691
00:34:24,360 --> 00:34:27,359
Speaker 16: by quarter basis are burning less and less are being

692
00:34:28,200 --> 00:34:31,040
Speaker 16: are just taking more responsibility for building really sustainable long

693
00:34:31,120 --> 00:34:34,719
Speaker 16: term businesses and falling a little bit less sort of

694
00:34:34,760 --> 00:34:38,520
Speaker 16: a victim to getting on the late stage VC, you know,

695
00:34:38,600 --> 00:34:40,160
Speaker 16: sort of hamster wheel.

696
00:34:41,480 --> 00:34:44,160
Speaker 3: Well kind of companies. Where are the companies? And how

697
00:34:44,239 --> 00:34:47,160
Speaker 3: much of an unlock has AI been? Because what I

698
00:34:47,239 --> 00:34:49,200
Speaker 3: here's my in box all the time right now and

699
00:34:49,320 --> 00:34:51,799
Speaker 3: is discussed in the zeitgeist, is you don't need to

700
00:34:51,880 --> 00:34:54,719
Speaker 3: learn how to code anymore. You know, previously, if you

701
00:34:54,760 --> 00:34:57,000
Speaker 3: pitched at Y Combinator or something and you didn't code

702
00:34:57,040 --> 00:34:59,600
Speaker 3: or have anyone your team that was a computer science

703
00:35:00,400 --> 00:35:02,799
Speaker 3: that would be dead for you. That avenue. I think

704
00:35:02,840 --> 00:35:05,000
Speaker 3: that's changed, right, Yeah.

705
00:35:05,360 --> 00:35:08,120
Speaker 16: Look, I mean our goal has always been sort of

706
00:35:08,160 --> 00:35:10,600
Speaker 16: to find great talent as true early stage investors. That's

707
00:35:10,640 --> 00:35:13,760
Speaker 16: the key to every investment that we make, and AI

708
00:35:13,880 --> 00:35:15,880
Speaker 16: is going to be an unlock in every single industry.

709
00:35:15,920 --> 00:35:19,239
Speaker 16: And frankly, if you're not leaning in incredibly heavily to

710
00:35:19,280 --> 00:35:22,239
Speaker 16: AI as an existing business or certainly as a sort

711
00:35:22,280 --> 00:35:26,600
Speaker 16: of Denobo startup, you're missing a huge opportunity to create

712
00:35:26,640 --> 00:35:30,080
Speaker 16: efficiency and move faster. And the tools that exist now

713
00:35:30,120 --> 00:35:34,320
Speaker 16: in terms of you know, helping companies code and build

714
00:35:34,320 --> 00:35:38,200
Speaker 16: product faster are unbelievable. There are companies in our portfolio

715
00:35:38,239 --> 00:35:41,319
Speaker 16: that are writing less than five percent of code by

716
00:35:41,320 --> 00:35:44,080
Speaker 16: hand at this point and are really just prompting and

717
00:35:44,160 --> 00:35:48,160
Speaker 16: managing third party AI software who are helping them with

718
00:35:48,360 --> 00:35:51,839
Speaker 16: much smaller teams, create unbelievable leverage in their business. It's

719
00:35:51,880 --> 00:35:55,400
Speaker 16: really exciting, but it's also terrifying because it's moving so quickly,

720
00:35:55,520 --> 00:35:57,640
Speaker 16: and you know, we're kitting ourselves if we know how

721
00:35:57,640 --> 00:36:00,640
Speaker 16: this all sort of where this land and where the

722
00:36:00,760 --> 00:36:03,919
Speaker 16: value falls and what is owned by the big large

723
00:36:03,960 --> 00:36:07,240
Speaker 16: language models and what's going to be owned by application

724
00:36:07,360 --> 00:36:10,640
Speaker 16: layer companies, and so you know, we take solace in

725
00:36:11,560 --> 00:36:14,080
Speaker 16: the idea that we're going to back incredible people and

726
00:36:14,120 --> 00:36:16,560
Speaker 16: they're going to navigate through this challenging environment and we're

727
00:36:16,600 --> 00:36:18,360
Speaker 16: going to be there to help keep them on the rails.

728
00:36:19,000 --> 00:36:21,160
Speaker 2: A big personal fan of ba ble Bar, I can

729
00:36:21,239 --> 00:36:23,719
Speaker 2: imagine that's the sort of company that's having to think

730
00:36:23,719 --> 00:36:26,080
Speaker 2: about it supply chains right now. Ben. But I go

731
00:36:26,160 --> 00:36:29,959
Speaker 2: to that company because many associate you with consumer focused tech,

732
00:36:30,280 --> 00:36:33,160
Speaker 2: but you are exposed to enterprise. You've got fingers in

733
00:36:33,520 --> 00:36:36,920
Speaker 2: the fintech space in DeFi as well. You're across the board.

734
00:36:37,080 --> 00:36:40,000
Speaker 2: But when you're looking at the consumer opportunity right now, Ben,

735
00:36:40,360 --> 00:36:41,520
Speaker 2: how unnerving is that?

736
00:36:43,239 --> 00:36:43,719
Speaker 8: Yeah?

737
00:36:43,760 --> 00:36:48,560
Speaker 16: So I think that you know, we've been talking to

738
00:36:48,600 --> 00:36:52,120
Speaker 16: our sort of scaled consumer companies about tariffs and what

739
00:36:52,160 --> 00:36:55,840
Speaker 16: the implications of this could would should be over the

740
00:36:55,880 --> 00:36:58,320
Speaker 16: last several months. I think the best and most mature

741
00:36:58,360 --> 00:37:03,160
Speaker 16: businesses have been planning for this and have you know,

742
00:37:03,320 --> 00:37:05,880
Speaker 16: there's there's and have some mitigations in place. But the

743
00:37:05,920 --> 00:37:07,920
Speaker 16: reality is that there are companies that this is gonna

744
00:37:08,560 --> 00:37:11,320
Speaker 16: punch directly in the face and and it's going to

745
00:37:11,360 --> 00:37:12,879
Speaker 16: be unpleasant and they're going to need to figure out

746
00:37:12,880 --> 00:37:14,480
Speaker 16: how to manage through it. I think people are also

747
00:37:15,440 --> 00:37:16,520
Speaker 16: it's just so unclear.

748
00:37:16,680 --> 00:37:17,160
Speaker 7: You know that the.

749
00:37:17,640 --> 00:37:21,759
Speaker 16: Floor moves by the hour right now, and so I

750
00:37:21,800 --> 00:37:24,400
Speaker 16: think people don't want to over rotate and over respond

751
00:37:24,520 --> 00:37:27,680
Speaker 16: and you know, decide that they're absolutely positively pulling out

752
00:37:27,680 --> 00:37:31,360
Speaker 16: of China on a permanent basis. But it's going to

753
00:37:31,400 --> 00:37:33,319
Speaker 16: be It's something that companies are going to manage through.

754
00:37:33,760 --> 00:37:35,560
Speaker 16: People had to manage through COVID, and we saw the

755
00:37:35,560 --> 00:37:40,640
Speaker 16: best founders handle that not easily, but survive and thrive

756
00:37:40,680 --> 00:37:42,160
Speaker 16: on the backside of it. And the same is going

757
00:37:42,200 --> 00:37:45,360
Speaker 16: to happen here. I really believe that the best founders fight.

758
00:37:45,239 --> 00:37:47,480
Speaker 2: Away and then you're known for investing right here in

759
00:37:47,520 --> 00:37:49,000
Speaker 2: New York. Is that still a thesis?

760
00:37:49,880 --> 00:37:52,440
Speaker 16: Yeah, I mean we are huge believers in New York.

761
00:37:52,480 --> 00:37:54,160
Speaker 16: I grew up in New York. We started the fund

762
00:37:54,160 --> 00:37:56,759
Speaker 16: here in New York on a sort of high level

763
00:37:56,760 --> 00:38:01,239
Speaker 16: bet that New York has always had unbelievable talent, but

764
00:38:01,320 --> 00:38:04,920
Speaker 16: twenty years ago that talent naturally matriculated first to Wall Street,

765
00:38:04,960 --> 00:38:07,439
Speaker 16: and over time that talent now wants to go work

766
00:38:07,480 --> 00:38:10,359
Speaker 16: in tech. That's the biggest growth area that New York

767
00:38:10,680 --> 00:38:13,600
Speaker 16: has seen over the last decade in terms of job

768
00:38:13,640 --> 00:38:16,200
Speaker 16: growth and company growth. We think it's going to continue,

769
00:38:16,320 --> 00:38:20,680
Speaker 16: and we again see that sort of overlap of very

770
00:38:20,719 --> 00:38:23,400
Speaker 16: early stage in New York as a competitive edge for

771
00:38:23,520 --> 00:38:25,160
Speaker 16: US in a space where we have real right to win.

772
00:38:25,200 --> 00:38:26,400
Speaker 8: So we're going to keep doing that.

773
00:38:27,000 --> 00:38:28,840
Speaker 3: Ben Lara, Larryhip, it's great to have you back on

774
00:38:28,840 --> 00:38:32,239
Speaker 3: the program. Appreciate it. Thank you, Caroline. Some news in talking.

775
00:38:31,960 --> 00:38:34,520
Speaker 2: Tech, Yeah, time for talking tech. First up, Google ed

776
00:38:34,600 --> 00:38:37,800
Speaker 2: plans to help developers build AI assistance for a variety

777
00:38:37,800 --> 00:38:40,279
Speaker 2: of tasks at its annual Cloud Computing conference in Las

778
00:38:40,360 --> 00:38:42,960
Speaker 2: Vegas yesterday. The company said it would release the Agent

779
00:38:43,000 --> 00:38:46,239
Speaker 2: Development Kit, which can increase dependence on and revenue for

780
00:38:46,600 --> 00:38:49,920
Speaker 2: as cloud services. Plus the EU It's just presented a

781
00:38:49,920 --> 00:38:52,280
Speaker 2: plan to boost its AI industry and help it compete

782
00:38:52,320 --> 00:38:54,520
Speaker 2: more aggressively with the US and China. One of the

783
00:38:54,560 --> 00:38:57,360
Speaker 2: ways Europe plans to bolster regional AI developments is a

784
00:38:57,400 --> 00:39:00,399
Speaker 2: commitment to build a network of AI factories and create

785
00:39:00,480 --> 00:39:03,520
Speaker 2: specialized labs to improve the access of startups to high

786
00:39:03,600 --> 00:39:06,960
Speaker 2: quality training data. And The Energy and Commerce Committee just

787
00:39:07,000 --> 00:39:10,920
Speaker 2: approved a bipartisan bill known as Take It Down Act,

788
00:39:11,080 --> 00:39:13,839
Speaker 2: which aims to curb the spread of unauthorized deep fake pornography.

789
00:39:14,160 --> 00:39:16,719
Speaker 2: Getting the bill to the President's desk could mark one

790
00:39:16,760 --> 00:39:19,160
Speaker 2: of the most significant actions by Congress to respond to

791
00:39:19,239 --> 00:39:21,560
Speaker 2: risks and harms posed by AI ed.

792
00:39:22,560 --> 00:39:25,520
Speaker 3: Another news story we're watching, a Meta whistleblow is set

793
00:39:25,560 --> 00:39:29,360
Speaker 3: to testify before Congress, claiming that the social media giant

794
00:39:29,440 --> 00:39:33,200
Speaker 3: threaten US national security as it cozied up with China.

795
00:39:33,320 --> 00:39:36,480
Speaker 3: The former Meta executive alleges that the company brief members

796
00:39:36,520 --> 00:39:40,440
Speaker 3: of the CCP on emerging tech, which includes AI. Metas

797
00:39:40,480 --> 00:39:43,600
Speaker 3: denying those allegations. For let's bringing Bloomberg's Riley Griffin here

798
00:39:43,640 --> 00:39:45,359
Speaker 3: in SF what do we need to watch for? This

799
00:39:45,400 --> 00:39:46,359
Speaker 3: is going to happen very soon.

800
00:39:46,680 --> 00:39:49,279
Speaker 7: Yes, this is coming later today. In Washington, d C.

801
00:39:49,520 --> 00:39:52,200
Speaker 7: We're seeing Sarah wyn Williams, the author of the best

802
00:39:52,200 --> 00:39:55,680
Speaker 7: selling memoir Now Careless People, be asked to speak before

803
00:39:55,800 --> 00:40:00,600
Speaker 7: lawmakers about her what she witnessed the dealings Meta in

804
00:40:00,719 --> 00:40:05,560
Speaker 7: China back through her tenure in twenty seventeen. The interesting

805
00:40:05,600 --> 00:40:08,440
Speaker 7: thing about her prepared remarks, which we've gotten our hands

806
00:40:08,440 --> 00:40:10,839
Speaker 7: on here at Bloomberg, is that she's going to make

807
00:40:10,840 --> 00:40:14,920
Speaker 7: the case that Meta's discussions with China have actually helped

808
00:40:15,000 --> 00:40:18,560
Speaker 7: it in its AI ambitions in this global race arms

809
00:40:18,640 --> 00:40:20,440
Speaker 7: race that she's describing around AI.

810
00:40:21,360 --> 00:40:24,440
Speaker 2: What's interesting is Meta's response has been clear on all

811
00:40:24,440 --> 00:40:27,879
Speaker 2: of this, Riley, and for example, they've said that Mark

812
00:40:27,920 --> 00:40:30,520
Speaker 2: Zackerberg has been public about the company's past interest in

813
00:40:30,560 --> 00:40:34,040
Speaker 2: offering services in China, and details were widely reported beginning

814
00:40:34,080 --> 00:40:36,919
Speaker 2: over a decade ago. But the fact is this, says

815
00:40:36,960 --> 00:40:40,320
Speaker 2: Andy Stone, we do not operate our services in China today.

816
00:40:41,200 --> 00:40:44,400
Speaker 2: What will Meta's response be, particularly in this global environment

817
00:40:44,440 --> 00:40:45,799
Speaker 2: of US versus China.

818
00:40:46,840 --> 00:40:49,560
Speaker 7: Meta is holding firm that it does not offer services

819
00:40:49,640 --> 00:40:53,399
Speaker 7: like Facebook, Instagram and China. Sarah and Williams, however, will

820
00:40:53,440 --> 00:40:57,879
Speaker 7: be contending that it continues to make a great deal

821
00:40:57,880 --> 00:41:00,919
Speaker 7: of its revenue out of China. About eight billion last

822
00:41:01,000 --> 00:41:04,279
Speaker 7: year in advertising revenue came from China, and so she

823
00:41:04,400 --> 00:41:09,040
Speaker 7: is making the case that this is a present discussion.

824
00:41:09,080 --> 00:41:12,040
Speaker 7: While Meta calls this old news, Sarah and Williams is

825
00:41:12,080 --> 00:41:14,600
Speaker 7: making this about the here and now and about this

826
00:41:14,760 --> 00:41:17,279
Speaker 7: arms race and about the money that matter continues to make.

827
00:41:17,719 --> 00:41:20,040
Speaker 2: Well, we'll watch for that hearing later today. Riley Griffin,

828
00:41:20,200 --> 00:41:22,440
Speaker 2: thanks for bringing it to us. Now let's stick with

829
00:41:22,520 --> 00:41:25,680
Speaker 2: social media. Can't Look Away. It is a new film

830
00:41:25,719 --> 00:41:28,680
Speaker 2: by Bluemberg Originals, which followed a team of lawyers battling

831
00:41:28,760 --> 00:41:32,640
Speaker 2: tech giants on behalf of families. His children suffered great harm.

832
00:41:32,840 --> 00:41:35,000
Speaker 2: Link to social media, and the film is based on

833
00:41:35,040 --> 00:41:38,520
Speaker 2: the reporting by Our Burero's Varion Olivia Carvill, who joins us.

834
00:41:38,560 --> 00:41:42,800
Speaker 2: Now the reaction, of course, is to the legal battle

835
00:41:43,440 --> 00:41:46,279
Speaker 2: that is trying to hold big tech accountable. Is it

836
00:41:46,320 --> 00:41:48,040
Speaker 2: managing to in the courts right now?

837
00:41:48,560 --> 00:41:49,439
Speaker 8: We don't know yet.

838
00:41:49,600 --> 00:41:52,359
Speaker 13: There are positive signs that some of these cases are

839
00:41:52,400 --> 00:41:55,399
Speaker 13: breaking through and that we might see at least one

840
00:41:55,480 --> 00:41:59,319
Speaker 13: lawsuit pus section two thirty of the Communications Decency Act,

841
00:41:59,560 --> 00:42:02,799
Speaker 13: which is really been that immunity blanket for big tech

842
00:42:02,840 --> 00:42:06,320
Speaker 13: over the past two decades, preventing them from being held

843
00:42:06,360 --> 00:42:09,680
Speaker 13: liable for user harms like what are portrayed in the film,

844
00:42:10,080 --> 00:42:13,399
Speaker 13: And as it currently stands, it looks like we are

845
00:42:13,400 --> 00:42:15,240
Speaker 13: going to see one of these cases go to trial

846
00:42:15,320 --> 00:42:17,360
Speaker 13: later this year. So it's kind of all eyes on

847
00:42:17,400 --> 00:42:18,680
Speaker 13: the justice system right now.

848
00:42:19,600 --> 00:42:22,960
Speaker 3: Olivia Peace, could you explain what the process of making

849
00:42:22,960 --> 00:42:25,440
Speaker 3: the film was like? And it's a different medium, but

850
00:42:25,520 --> 00:42:28,120
Speaker 3: I guess the reporting that went into it from you.

851
00:42:28,840 --> 00:42:30,720
Speaker 13: Yeah, it's been a two and a half year journey

852
00:42:30,760 --> 00:42:34,440
Speaker 13: to get here. I first approached Christen Powers, Bloomberg's deputy

853
00:42:34,480 --> 00:42:36,719
Speaker 13: head of media, asking if it might be possible to

854
00:42:36,760 --> 00:42:40,040
Speaker 13: shadow this law firm, and we really dove in without

855
00:42:40,160 --> 00:42:42,799
Speaker 13: knowing where these cases were going to go or if

856
00:42:42,840 --> 00:42:45,160
Speaker 13: any of them would eventually reach trial.

857
00:42:45,600 --> 00:42:46,560
Speaker 2: So it was a leap of.

858
00:42:46,520 --> 00:42:50,560
Speaker 13: Faith by Bloomberg and the production team at DCTV, particularly

859
00:42:50,600 --> 00:42:54,839
Speaker 13: directors Met O'Neil and Perry Peltz. Documentary is a completely

860
00:42:54,880 --> 00:42:57,360
Speaker 13: different medium to print, which is what I'm used to.

861
00:42:57,760 --> 00:43:00,239
Speaker 13: It's like a jigsaw puzzle trying to pull together all

862
00:43:00,280 --> 00:43:03,440
Speaker 13: these different scenes, and you really need to have visual

863
00:43:03,520 --> 00:43:07,239
Speaker 13: segues between talking heads on camera, and that's something that

864
00:43:07,360 --> 00:43:09,600
Speaker 13: you know, It's been a huge learning process for me

865
00:43:09,719 --> 00:43:12,800
Speaker 13: trying to understand what it takes to bring a documentary

866
00:43:12,840 --> 00:43:15,520
Speaker 13: to the screens. And I also think that there needs

867
00:43:15,560 --> 00:43:18,920
Speaker 13: to be a broader message in the film and for

868
00:43:19,080 --> 00:43:21,839
Speaker 13: us with Can't Look Away, that is really the fight

869
00:43:21,920 --> 00:43:25,080
Speaker 13: for corporate accountability. Can't look Away is about, you know

870
00:43:25,120 --> 00:43:28,160
Speaker 13: exactly what that title implies, That there's a generation of

871
00:43:28,239 --> 00:43:31,200
Speaker 13: kids who are glued to their screens and quite literally

872
00:43:31,239 --> 00:43:34,560
Speaker 13: can't look away, and the lawyers and families fighting to

873
00:43:34,600 --> 00:43:36,799
Speaker 13: hold those companies accountable for this situation.

874
00:43:37,320 --> 00:43:41,680
Speaker 2: Protections continue to come though Matter has brought them to Instagram,

875
00:43:41,800 --> 00:43:44,480
Speaker 2: bringing them also to Facebook. Some of their other products.

876
00:43:44,480 --> 00:43:47,640
Speaker 2: You've had Roblock CEO joining us recently with more parental controls.

877
00:43:48,000 --> 00:43:51,240
Speaker 2: I'm interested as to the visuals that Mark Zuckerberg himself

878
00:43:51,280 --> 00:43:53,440
Speaker 2: had to be confronted with. The pictures of the children

879
00:43:53,600 --> 00:43:57,560
Speaker 2: have had tragic ends to consumption of social media. They're

880
00:43:57,600 --> 00:43:59,319
Speaker 2: getting it, do you think or not?

881
00:44:00,080 --> 00:44:00,200
Speaker 16: Well?

882
00:44:00,239 --> 00:44:03,200
Speaker 13: I think the whole conversation around social media has shifted

883
00:44:03,239 --> 00:44:05,720
Speaker 13: in recent years. We've seen it move from a question

884
00:44:05,880 --> 00:44:08,480
Speaker 13: of can these platforms how mental health?

885
00:44:08,480 --> 00:44:10,080
Speaker 2: Are they really good for our kids?

886
00:44:10,520 --> 00:44:13,720
Speaker 13: And it's moved towards this is a full blown public

887
00:44:13,760 --> 00:44:16,680
Speaker 13: health crisis for our children. And that's what I'm hearing

888
00:44:16,719 --> 00:44:19,960
Speaker 13: now from the experts because we've seen books like Jonathan

889
00:44:20,040 --> 00:44:23,759
Speaker 13: Height's Anxious Generations, Sarah wyn Williams Careless People, which we're

890
00:44:23,800 --> 00:44:27,920
Speaker 13: just talking about on this show Netflix series like Adolescents,

891
00:44:28,280 --> 00:44:32,360
Speaker 13: really pushing the cultural conversation towards is this a good

892
00:44:32,480 --> 00:44:33,960
Speaker 13: situation for our children?

893
00:44:34,080 --> 00:44:35,640
Speaker 2: Is this what we want them to be doing?

894
00:44:36,000 --> 00:44:38,600
Speaker 13: And let's just think about the facts. Ninety five percent

895
00:44:38,640 --> 00:44:41,799
Speaker 13: of kids use social media, more than a third are

896
00:44:41,880 --> 00:44:45,600
Speaker 13: showing signs of addiction. And this film was chronicling the

897
00:44:45,760 --> 00:44:48,799
Speaker 13: very extreme harms that some of those kids have experienced

898
00:44:48,800 --> 00:44:49,760
Speaker 13: in the digital world.

899
00:44:50,600 --> 00:44:53,640
Speaker 2: It's been such a long journey of reporting and now

900
00:44:53,680 --> 00:44:57,640
Speaker 2: in to the big theaters as well. Olivia Carvill, we

901
00:44:57,719 --> 00:44:59,360
Speaker 2: thank you so much. That does it for this addition

902
00:44:59,400 --> 00:45:02,600
Speaker 2: of let's just check in on these markets for a moment.

903
00:45:02,960 --> 00:45:03,040
Speaker 1: Ed.

904
00:45:03,160 --> 00:45:06,880
Speaker 2: We're currently seeing a whitsawing on the day, Magnificent sevens

905
00:45:06,880 --> 00:45:09,160
Speaker 2: staying higher to the tune of one point three percent,

906
00:45:09,600 --> 00:45:11,120
Speaker 2: but who knows how we'll close today and then as

907
00:45:11,120 --> 00:45:13,680
Speaker 2: that one hundred rebounding from yesterday's sellof This is Bloomberg

908
00:45:13,719 --> 00:45:14,239
Speaker 2: Technology