Speaker 1: Bloomberg Audio Studios, podcasts, radio news from the heart of
Speaker 1: where innovation, money and power collide in Silicon Valley and beyond.
Speaker 1: This is Bloomberg Technology with Caroline Hyde and Ed Ludlow.
Speaker 2: Live from New York and San Francisco. This is Bloomberg Technology.
Speaker 2: Terrify anxieties are not going away with President Trump's global
Speaker 2: levies going into effect today, including those eyewatering one hundred
Speaker 2: and four percent tarifs on China. This is both China
Speaker 2: and the EU fight back with counter tariffs on US products.
Speaker 2: We cling to gains, but we fade this rally hard quickly.
Speaker 2: We're only up about a tenth of a percent on
Speaker 2: the nasat one hundred, after we managed to sell off
Speaker 2: yesterday as well. And it feels as though the magnificence
Speaker 2: sendmen trying to claw on Ed but no longer what
Speaker 2: you got on the micro.
Speaker 3: I want to go to a story that Bloomberg Spencer
Speaker 3: Soaper broke in the last thirty minutes. That is, Amazon
Speaker 3: has started canceling orders of inventory on specific products made
Speaker 3: in China. I'm talking consumer electronics, household goods. It didn't
Speaker 3: do much to change the fortune of the stock. It's higher,
Speaker 3: as many Mag seven names are, But that is an interesting,
Speaker 3: real time, real term story about the impact of tariffs
Speaker 3: that are now implemented right elsewhere. There's buoyancy in some
Speaker 3: of the MAG seven names. Apple in particular for now
Speaker 3: emphasize the for now why because at one point in
Speaker 3: yesterday's session, Apple was hired by a similar level closed
Speaker 3: down more than double that five percent. There is a
Speaker 3: function on the Bloomberg terminal ECTR. It's our trade flow map.
Speaker 3: The data is backward looking. We care about the relationship
Speaker 3: between US and China. There is a trade deficit. The
Speaker 3: US has a trade deficit with the US and China.
Speaker 3: And later in the program, when it came to tech,
Speaker 3: it is so important to discuss that number two hundred
Speaker 3: and sixty billion in twenty twenty three. We know from
Speaker 3: prelim data it went up in twenty twenty four. And
Speaker 3: we are talking about a US reliance on Chinese computers,
Speaker 3: consumer electronics, hair dryers, electric heated blankets, and that ties
Speaker 3: into that Amazon story that spent so sober broke.
Speaker 2: And Amazon just turned negative as you were talking about
Speaker 2: at ED. Let's just get the perspective of the global
Speaker 2: trade war heating up China the EU both retaliating against
Speaker 2: US tarifs. This is President Trump aims to bring back
Speaker 2: manufacturing in America, setting all his eyes on.
Speaker 4: Apple jobs in advanced technologies. The President is looking at
Speaker 4: all of those, he wants them to come back home.
Speaker 5: But iPhones specifically, is that's something that he thinks is
Speaker 5: the kind of technology that can move to the US.
Speaker 4: Absolutely, he believes we have the labor, we have the workforce,
Speaker 4: we have the resources to do it. And as you know,
Speaker 4: Apple has invested five hundred billion dollars here in the
Speaker 4: United States. So if Apple didn't think the United States
Speaker 4: could do it, they probably wouldn't have put up that
Speaker 4: big chunk of change.
Speaker 2: Well, as we all wait for more US made products,
Speaker 2: Amazon meanwhile canceling orders on some China made goods. So,
Speaker 2: according to sources and those Cadie Nines joins us from Washington,
Speaker 2: and at the moment, the response is a coming thick
Speaker 2: and fast, EU and China. What does the White House.
Speaker 6: Make of it?
Speaker 5: Well, the White House is sticking to its guns here, Caroline.
Speaker 5: President Trump, while he has indicated he wants to make
Speaker 5: a deal with China, wants China to come to him
Speaker 5: and at this point, it doesn't look like China is
Speaker 5: willing to have those conversations, as they have retaliated with
Speaker 5: this eighty four percent tariff against all US imports in
Speaker 5: exchange for one hundred and four percent levies the US
Speaker 5: implemented as of twelve oh one am this morning. So
Speaker 5: obviously an escalation in the trade war between the two
Speaker 5: largest economies and potentially has the ability to choke off
Speaker 5: the vast majority of trade that happens between the US
Speaker 5: and China. Already we're seeing, obviously our reporting on Amazon
Speaker 5: cutting off orders of things like air conditioning units or
Speaker 5: beach shares. That is changing company behavior in terms of
Speaker 5: where they want to source their inventory from. But it
Speaker 5: also has the potential ramification to affect whether or non
Speaker 5: American can access supply of things that don't easily have
Speaker 5: alternative suppliers to China. At the moment, according to data
Speaker 5: from the US Trade Commission, things like laptop computers for example,
Speaker 5: PC monitors, gaming consoles, all of that has about a
Speaker 5: seventy percent or more share of imports that come from
Speaker 5: China specifically, so that is where you could start to
Speaker 5: see some gaps emerging as this depending on how long
Speaker 5: this continues, but the administration argues all of this has
Speaker 5: an aim, and that aim is to bring back American manufacturing.
Speaker 5: As we just heard from the White House Press Secretary
Speaker 5: Caroline Levitt, but we've heard from others and the administration
Speaker 5: as well. If you recalled, just this past weekend on
Speaker 5: Sunday Morning television, the Commerce Secretary Howard Lutnik talked about
Speaker 5: the army of millions and millions of people screwing in
Speaker 5: tiny little screws and iPhones. He says, that's the kind
Speaker 5: of thing they're bringing back to America.
Speaker 3: That aim is so interesting because for the last twenty
Speaker 3: four hours I listened to everybody on Bloomberg Television, read
Speaker 3: every story, and I think the market still thinks, what
Speaker 3: is the aim here? Is it revenue generation for our country?
Speaker 3: Bring manufact uring back. I usually would like to go
Speaker 3: to the politics. I think I'm right in saying that
Speaker 3: away from tariffs, President Trump has not yet spoken to
Speaker 3: President she at any point since he took office. Am
Speaker 3: I right?
Speaker 5: He has spoken to President She and he actually invited
Speaker 5: him to his inauguration, but there hasn't been a conversation
Speaker 5: really since this escalation of the trade war. The initial
Speaker 5: tariffs that went into place regarding fentanyl, which first of
Speaker 5: course was ten percent and twenty percent, then the eighty
Speaker 5: four percent on top that has gone into effect as
Speaker 5: of midnight tonight, But there have not been direct high
Speaker 5: level talks between those two leaders. That there has been
Speaker 5: communication at some lower rungs of the Chinese and US
Speaker 5: government when it comes to trade. I guess we'll see
Speaker 5: if that phone call is scheduled, because again, the President
Speaker 5: and others in the Administration and White House have made
Speaker 5: clear he is looking to make a deal with China here,
Speaker 5: and we understand based off of our reporting and as
Speaker 5: well as what the White House is saying, that there's
Speaker 5: some seventy countries that have called into the White House
Speaker 5: to try to begin negotiations. It's just not clear at
Speaker 5: this time that China is one of them. In the meantime,
Speaker 5: the Administration is our arguing that China fundamentally has been
Speaker 5: messing with the US on trade and has been engaging
Speaker 5: in unfair trade practices for years, and that is what
Speaker 5: they are trying to reverse, which is one of the
Speaker 5: reasons they use to justify tariffs. That it's not just
Speaker 5: about bringing back American manufacturing. They also think it's about
Speaker 5: lowering trade deficits with the US making trade fairer across
Speaker 5: the globe.
Speaker 7: In addition to the.
Speaker 5: Revenue raising aspect, they also argue would be a benefit
Speaker 5: of this. The thing is, if you have tariffs of
Speaker 5: this level, like one hundred and four percent, that is
Speaker 5: likely to reduce important volumes according to most economists you
Speaker 5: would speak with, and that means less imports that you
Speaker 5: actually can tear iff, which actually could mean that you're
Speaker 5: not bringing in the kind of revenue levels you would
Speaker 5: think that you wil Bloomberg Economics estimates that if tariffs
Speaker 5: are intact as it stands now, they could bring in
Speaker 5: about three hundred billion dollars a year because of the
Speaker 5: reduction in imports. That's half of what the White Houses
Speaker 5: argued could generate.
Speaker 3: Blimbers K lines, we appreciate it, Thank you very much.
Speaker 3: Let's get more on the global tech markets perspective amid
Speaker 3: what is an active trade war? A Sema Shah, Principal
Speaker 3: Asset Management Chief Global Strategists, joins us, Now, when you
Speaker 3: think about the mag seven, let's say Apple in particular
Speaker 3: is an example, right, are you preparing for that Scenariokaylee outlined,
Speaker 3: which is the onshoring of jobs in this country or
Speaker 3: is this more about pricing in modeling a fundamental change
Speaker 3: in how the world does trade effectively.
Speaker 6: I think everything is on the table at the moment.
Speaker 6: I mean, one of the things that Cody was talking
Speaker 6: about with regards to having a lot of those other
Speaker 6: jobs that go into making the parts something to move
Speaker 6: to the US, I mean one of the clear impacts
Speaker 6: of that is the US has got much much higher
Speaker 6: wage wages than parts of Asia, So you would be
Speaker 6: looking at significant increase in cost brushes for these companies
Speaker 6: for the mag seven impact on their margins and therefore
Speaker 6: on their earnings growth potential. So there are so many
Speaker 6: offsets of this, so it makes it quite difficult to
Speaker 6: even fathom that you could see this complete alteration and
Speaker 6: change in the way that I think the world has
Speaker 6: got accustom to thinking about trade and a product. But
Speaker 6: this is all encompassing. Of course, It's not just technology.
Speaker 6: This is about every single product that you think through.
Speaker 6: Because of global trade, every single part will have elements
Speaker 6: of different countries about them, and shifting it back to
Speaker 6: the US is simply very inflationary.
Speaker 3: I want to show the earnings calendar for the mag
Speaker 3: seven and those names that have asteriskness to them are
Speaker 3: still tensative right. They haven't confirmed the date. But there
Speaker 3: is a split in the market I see this morning.
Speaker 3: Many believe that we won't see a bottom in equity
Speaker 3: markets until we have earnings calls and a revision to
Speaker 3: guidance that's been given, or a complete removal of guidance.
Speaker 3: Others say that earnings and guidance is not important. All
Speaker 3: we need is a strong positive piece of political news.
Speaker 3: Where do you stand, Seema, I think we need one
Speaker 3: or the other.
Speaker 6: Either one would be important. I think probably the most
Speaker 6: important would be if the administration walks back from tariffs
Speaker 6: very significantly. Then you would see the market centerment improving.
Speaker 6: And I think you see markets start to write, and
Speaker 6: not a very very sharp rally, because I think some
Speaker 6: fundamental damage has been done here, but certainly a rally
Speaker 6: in terms of earnings guidance. I think one of the
Speaker 6: things that we're waiting to see is that, look, if
Speaker 6: recession really is on the cards, we need to see
Speaker 6: a more realistic earnings outlook for companies across all sectors,
Speaker 6: including technology, and it's only once you have that realistic forecast,
Speaker 6: when you have got that forward guidance talking through what
Speaker 6: the impact of tarists and this new global environment is,
Speaker 6: only then can you start to think about where the
Speaker 6: floor is. And then once you know where the flora is,
Speaker 6: then you can start thinking forward.
Speaker 2: Why there are people buying if we're not sure where
Speaker 2: the floor is in the moment, why is Apple in
Speaker 2: the green for example?
Speaker 6: Well, I think one of the things that we've been
Speaker 6: seeing for MAC seven has been really interesting for US
Speaker 6: is I mean, from an asset allocation portfolio perspective, we
Speaker 6: have been trying to move away from the tactical. It's
Speaker 6: very difficult to be tactical when there's such an uncertain environment,
Speaker 6: so you almost go back to your strategic positioning. From
Speaker 6: a strategic perspective, we still like big tech if you're
Speaker 6: looking out over five to ten year horizon. Certainly the
Speaker 6: outlook has deteriorated even on the long term horizon, but
Speaker 6: it's still fairly important from a global or a US
Speaker 6: growth perspective. The other part of this is is that
Speaker 6: typically in this kind of environment, when there is uncertainty,
Speaker 6: when there are fears about what's going to happen, to
Speaker 6: economic growth. You want companies which you've got the big
Speaker 6: balance sheets, the positive cash flow, the fairly large motes
Speaker 6: around them, and the Max seven dies still come into play.
Speaker 6: And you've already seen a very significant valuation rerating in
Speaker 6: the past couple of months, which means that at least
Speaker 6: the Max seven the big tech companies are a little
Speaker 6: bit head of the game in terms of having a
Speaker 6: slightly more realistic pictures attached to them.
Speaker 2: It has to be said Apple having its worst four
Speaker 2: day sell off since the year two thousand, many saying
Speaker 2: from an RSI perspective relative strength index, it was over sold.
Speaker 2: This must be the point at which you pick up
Speaker 2: some of these shares. But seem who are the investor
Speaker 2: base right now who are willing to buy into big tech?
Speaker 2: You yourself sat in London. Are international buyers still coming in?
Speaker 2: Are we seeing it more from not only funds in
Speaker 2: the United States? For example?
Speaker 6: I think we have seen some retail invest is studying
Speaker 6: to do their feed in them. They really believe in
Speaker 6: the brand's perspective. So I think that's where you're seeing
Speaker 6: a bit of a dip bike. But as I said,
Speaker 6: you know, I mean the other thing to consider is
Speaker 6: that whilst you do start to see if we see
Speaker 6: some positive headlines coming through which can be sustained. Again,
Speaker 6: these are the companies which have got that long term
Speaker 6: earnings potential. So I think people have got an eye
Speaker 6: on the idea that there could be a walk back
Speaker 6: at any time. May not come, but certainly could happen
Speaker 6: at any moment. So people do still want to have
Speaker 6: exposure to these companies that can potentially ride out what
Speaker 6: would you most likely be still a challenging economic environment
Speaker 6: for the coming months.
Speaker 3: There's this note from Bank of America out this morning
Speaker 3: that says a US bill typhoon could cost ninety nine
Speaker 3: zero percent more than it currently does. But that is
Speaker 3: a goal of this administration right bring jobs, manufacturing, jobs
Speaker 3: in tech back to the United States or to the
Speaker 3: United States for the first time. Is there any upside
Speaker 3: or sort of silver lining or bright outcome that you
Speaker 3: see with this tariff's process.
Speaker 8: I'm not sure if there's.
Speaker 6: Well, look I think over a long term perspective, you know,
Speaker 6: a four or five year period, then maybe yes, there
Speaker 6: could be some positive. You would have maybe a US
Speaker 6: economy which is a bit stronger, you have a manufacturing
Speaker 6: base which is more formidable, you have less reliance on
Speaker 6: external partners, so that would be the positive, but it
Speaker 6: really comes through in the longside. It's really in the
Speaker 6: short term that you start to see this additional pain
Speaker 6: coming through. So I think it's challenging to see some
Speaker 6: really good positive news coming through. I guess the one
Speaker 6: thing is though, is that you know to that point
Speaker 6: where an iPhone could be significantly more expensive, that inflation
Speaker 6: pressure just puts upper pressure on the long end of
Speaker 6: the yeelk CUB. We're already being seen that playing out
Speaker 6: in the last couple of days, and from our perspective,
Speaker 6: that may be the pressure point from the Trump administration.
Speaker 6: They have repeatedly talked about their focus on treasury yields,
Speaker 6: so maybe this is what necessarily pushes them back from
Speaker 6: the edge and you could see some negotiations coming through
Speaker 6: in the next.
Speaker 2: Couple of days, or of a bio straight on the
Speaker 2: bond market. At least, yealds up about nine basis points
Speaker 2: in the ten ure. Simashah and Principal Asset Management, thanks
Speaker 2: so much for joining us.
Speaker 7: Coming up.
Speaker 2: Look as companies they race to adjust plans amid the
Speaker 2: trade tensions. Neither the US or China appears to be
Speaker 2: backing down. We'll have more on the impact for the
Speaker 2: tech sector. This has been their technology.
Speaker 9: China's paid almost seven hundred billion dollars in tariffs under me,
Speaker 9: and then they say Donald Trump hasn't been tough on China.
Speaker 2: Meanwhile, Apple's lost about seven hundred billion dollars worth of
Speaker 2: its market cap since the tariffs were imposed. Let's get
Speaker 2: more on what the one hundred and four percent tariffs
Speaker 2: on Chinese goods could mean for the tech world, and
Speaker 2: of course the eight percent counter tariff on US exports
Speaker 2: to China. Riva Gujano's with US director for Roodium Group Riva.
Speaker 2: It's really interesting to understand how supply chains are going
Speaker 2: to be impacted by all of this, because we know
Speaker 2: that in many ways China is the assembly point for apples.
Speaker 2: Some of the products in an Apple phone are actually
Speaker 2: made in Kentucky and ship to China and then ship
Speaker 2: back to US. But ultimately, are we in a game
Speaker 2: of chicken when it comes to US China tip for
Speaker 2: tat right now?
Speaker 10: Well, yeah, at one hundred and four percent tariffs, I'd
Speaker 10: say so. And so yeah, there are loaded assumptions on
Speaker 10: both the US and the Chinese sides over this trade war.
Speaker 10: Each side believes the others, in the weaker economic position
Speaker 10: that the other one will fold, and Beijing at this
Speaker 10: point is basically saying bring it right. They're counting on
Speaker 10: US inventories to get shaved down. People checking their Amazon
Speaker 10: orders and seeing that they're not coming through, going to Walmart,
Speaker 10: seeing their shelves empty out, and so at that point,
Speaker 10: this is obviously going to force a conversation, but to
Speaker 10: what end. Right, there's not much fodder for real negotiation here.
Speaker 10: You could have some sort of a reset, maybe getting
Speaker 10: back to let's say fifty four percent tariffs, but that's
Speaker 10: not much of a win here right after this scale
Speaker 10: of disruption, and already supply chains as you as you mentioned,
Speaker 10: are going to be greatly disrupted.
Speaker 2: We've heard time and time again that the US thinks
Speaker 2: China wants to make a deal. Do you think that
Speaker 2: ultimately it does that we ever get to a better
Speaker 2: outcome in this scenario, because there are companies currently locked
Speaker 2: not knowing what to do in this scenario as to
Speaker 2: whether the tariff's a short term a long term.
Speaker 10: Look, China would of course love a real negotiation with
Speaker 10: the US that spans into other domains as well, to say,
Speaker 10: for example, okay, if the US wants to reduce its
Speaker 10: trade deficit with China, then fine, let's talk about large
Speaker 10: scale purchases. Let's talk about importing more in video semiconductors,
Speaker 10: for example, which would in part then blow apart the
Speaker 10: export control regime. You can see how Beijing would be
Speaker 10: angling for that now with that happen, I think that's
Speaker 10: very low likelihood because remember we're just talking about a
Speaker 10: conflict spiral in the trade domain right now. There is
Speaker 10: a whole other layer here when it comes to the
Speaker 10: tech controls trajectory escalation on that front also, so how
Speaker 10: China is getting more creative with its own retaliatory toolkit,
Speaker 10: which is going to put multinationals in China, particularly tech companies,
Speaker 10: in a very difficult position in the months ahead.
Speaker 3: So I want to stay on this point because for
Speaker 3: the technology industry, tariffs are one tool or policy point,
Speaker 3: and the export of technology and the controls and those exports,
Speaker 3: as you point out, were the most significant prior to
Speaker 3: last week. Do you expect both to increase? In other words,
Speaker 3: where we see further specific controls by the United States
Speaker 3: on cutting edge GPUs and other technology.
Speaker 10: So attention span is a question right for the current
Speaker 10: US administration, We'll have to see you as BIS under
Speaker 10: commerce is starting to ramp up, is it going to
Speaker 10: have the latitude to patch up export controls? For example,
Speaker 10: there have been pending controls to expand chip controls to
Speaker 10: cover for example, in VIDEAH twenty chips in the wake
Speaker 10: of deep Seek's big breakthrough. But there's more than that, right,
Speaker 10: there's a bigger conversation around how do you evolve economic
Speaker 10: security standards that effectively exclude China from AI infrastructure build
Speaker 10: outs globally. So there's a lot more that's coming on
Speaker 10: the tech front. And meanwhile, China's looking at a number
Speaker 10: of retaliatory tools where it's singling out US big tech
Speaker 10: companies as well.
Speaker 3: It's REVA. How do you interpret China's responses China's actions.
Speaker 10: In this, Yeah, so a few things, right, So when
Speaker 10: you look beyond the tip for tat on the tariffs, right,
Speaker 10: China's doing some interesting things where, for example, in it's
Speaker 10: implementing provisions for the Anti Foreign Sanctions Law, it's talking
Speaker 10: about countermeasures that include suspending IP rights for US companies
Speaker 10: in China. That's explosive. Right, if China goes down that path,
Speaker 10: that's a very slippery slope. That's something that's going to
Speaker 10: spread alarm, not just to US companies, right, but Japanese,
Speaker 10: European everyone, once you start to break apart those norms. Moreover,
Speaker 10: you know, China has its anti monopoly arm sammer that
Speaker 10: has veto power over a number of strategic m and
Speaker 10: a around the world. There are a lot of strategic
Speaker 10: deals that are supposed to be struck as a result
Speaker 10: of these trade wars. At least that's the intent of
Speaker 10: the administration. We still don't know, for example, what's going
Speaker 10: to happen with Intel and TSMC. Right as Intel has
Speaker 10: been struggling, do you really think that the US is
Speaker 10: going to recognize the Chinese veto over a major merger
Speaker 10: that is based on national security arguments? So we're already
Speaker 10: vearying toward this conflict of law conundrum on that front,
Speaker 10: as well as on the IP front, which again is
Speaker 10: a very slippery slope for tech companies.
Speaker 3: With Gujon, director at Roodium Group, really great having the show.
Speaker 8: Thank you.
Speaker 2: President Trump's AI promises. They started strong with the announcement
Speaker 2: of a five hundred billion dollar style Gate infrastructure project
Speaker 2: back in January. Remember, but his new Liberation Day agenda
Speaker 2: looks set to undermine those earlier AI ambitions. Bluemberg Opinion
Speaker 2: columnists Daily writing, the Trump taroff agenda risks a cascading
Speaker 2: effect that will drag down the America AI effort. The
Speaker 2: new economic order could force the American AI industry to
Speaker 2: compete on China's terms rather than harness its own strengths.
Speaker 2: Davely is with us now. And when you say compete
Speaker 2: on China terms, ultimately it's about forcing them not to
Speaker 2: have access to the most sophistic GPUs and therefore having
Speaker 2: to do more with less. We become more Deep.
Speaker 11: Seek absolutely exactly like Deep Sea. I mean, you remember
Speaker 11: when there was the market sell off when deep Seek
Speaker 11: made its arrival because everyone thought, wow, China knows how
Speaker 11: to do this more cheaply and with less computing power
Speaker 11: and so on. But the American response, and the response
Speaker 11: that we got from the likes of Saturn Adella at
Speaker 11: Microsoft was don't worry, because our differentiate is we can
Speaker 11: do this on a bigger scale with more computing power.
Speaker 11: We can serve more people, we can do more inferencing.
Speaker 11: You know, the powering of AI once you've you've trained it.
Speaker 11: Now if all of that gets more expensive, which these
Speaker 11: towers seems set to do, then all of a sudden
Speaker 11: that advantage doesn't go away completely, but I think it
Speaker 11: becomes just harder to deploy, and it could take longer
Speaker 11: to deploy it as well. So I've had, you know,
Speaker 11: I've talking to a number of people who have said,
Speaker 11: maybe if you're a small startup in the space, you
Speaker 11: might be thinking maybe we could try and become more
Speaker 11: of a deep seek than you know, an open AI
Speaker 11: for example.
Speaker 3: Well, your core point is that the ability of a
Speaker 3: Meta or an Amazon or a Microsoft to invest was
Speaker 3: built on its core businesses and that is where the
Speaker 3: uncertainty impact comes. I think at least.
Speaker 11: Yeah, absolutely, And last earning season, all of these companies
Speaker 11: came out and said and shared their capex plans for
Speaker 11: the year, and they were huge. I think I tossed
Speaker 11: up at one point more than three hundred and fifty
Speaker 11: billion dollars that is going to be spent on data
Speaker 11: centers and you know, getting more energy and so forth.
Speaker 11: That money, even if they keep at those levels, which
Speaker 11: I think is in question, it's not going to go
Speaker 11: as far because building these data centers just got considerably
Speaker 11: more expensive, even though the sort of core component of
Speaker 11: the semiconductor right now is the subject to a tariff,
Speaker 11: although some are speculating that it might be in the
Speaker 11: not to some future. So yes, and all of that
Speaker 11: spending was concocted and agreed to it, you know, backed
Speaker 11: by investors on the basis that companies like Apple have
Speaker 11: the iPhone and it was a rowing business, or companies
Speaker 11: like Meta have this great advertising business that just prints money.
Speaker 11: That may not be the case anymore.
Speaker 3: Daily a Bloomberg opinion, it's a must read today. Liberation day,
Speaker 3: Thank you very much.
Speaker 11: This is like uncharted territory we are talking about here.
Speaker 12: It's really tough to be a technology You have to
Speaker 12: wear a company right now.
Speaker 13: I think the more significant area that is a factor
Speaker 13: is the Asian nations to have deeply and better supply Chaine.
Speaker 9: Obviously, Apple is more of a because of the tariffs
Speaker 9: and what they manufacture in China. Right the rest of
Speaker 9: the MAC seven, more of the communication names. They're a
Speaker 9: little bit better space, but it's not as if anyone's
Speaker 9: in great space.
Speaker 12: From a valuation perspective, I think the good news is
Speaker 12: we don't have a valuation problem in tech.
Speaker 14: Mega SIN seven is something like fifty five percent of
Speaker 14: profits coming from overseas, So while they have a lot
Speaker 14: of secular AI driven growth, they also tend to have
Speaker 14: a lot of international driven growth. So we don't really
Speaker 14: see MAG seven coming back to the fore. If these
Speaker 14: tariffs stick.
Speaker 12: Big tech has massive recash flow generation, even if we
Speaker 12: kind of discount some of the tariff issues at hand.
Speaker 3: Right now, that's what some of Bloomberg Television's recent guests
Speaker 3: had to say about the impact of tariffs on the
Speaker 3: tech sector. And this is what markets look like right now.
Speaker 3: Way off session highs on the Nasdaq one hundred, you know,
Speaker 3: I go to the NAZDAK one hundred cause concentration of tech.
Speaker 3: But then as that Golden Dragon China index really interested US,
Speaker 3: listed ADRs of many Chinese technology companies been higher two
Speaker 3: and a half percent now lowering the session, and we're
Speaker 3: trying to digest China's retaliative measures single names. This is
Speaker 3: what we're looking like in the green. Apple continues to
Speaker 3: push hiring. Caroline made a really important point earlier prior
Speaker 3: to this session, four straight days of declines where Apple
Speaker 3: experienced its biggest drop since the year two thousand. That's important.
Speaker 3: We should keep saying.
Speaker 1: That, KARC.
Speaker 2: We should. But also what's interesting in another data point
Speaker 2: that you and I saw today, the PC shipment data,
Speaker 2: it actually grew the fastest quarterly pace in four years.
Speaker 2: Has has companies stocked up inventory ahead of tariffs? Look desktops, workstations,
Speaker 2: portable computers. They rose more than nine percent, according to
Speaker 2: market tracker Canalis. For more on how these tarifts are
Speaker 2: impacting tech supply chains, We've got the perfect guest, David Warwick,
Speaker 2: executive vice president over an overhaul a supply chain visibility
Speaker 2: and risk management company, who work for Microsoft for years
Speaker 2: overseeing their global supply chain. Have companies how long have
Speaker 2: they bought in terms of inventory because they seem to
Speaker 2: see the risk while investors didn't.
Speaker 15: I mean, and I think everybody has known this is
Speaker 15: coming at some level, and so what they've been trying
Speaker 15: to do is they've been trying.
Speaker 8: To prepare as best they can.
Speaker 15: And you know, even this week, you know, in the
Speaker 15: last seven or ten days, what we've seen is an
Speaker 15: increase in rates for air cargo coming out of China,
Speaker 15: which means that you know, supply is drying up a
Speaker 15: little bit, and people are still trying to move as
Speaker 15: much product as they can before they were impacted by tariffs.
Speaker 8: So I think that companies have tried to be smart,
Speaker 8: They've tried.
Speaker 15: To position themselves as best they can, but I'm not
Speaker 15: sure that anybody actually saw the sheer extent of these
Speaker 15: tariffs and what it would mean.
Speaker 2: You are currently still advising the Microsoft's the dicens. I
Speaker 2: go to the data that shows that China is basically
Speaker 2: ninety percent of all consoles coming from China to the
Speaker 2: United States, and I'm interested as what on earth Xbox
Speaker 2: executives do at this moment. Are they thinking, Okay, longer term,
Speaker 2: we shift our supply chain even further away from China,
Speaker 2: or do they just ride this out in the short term.
Speaker 8: I think that it's a very challenging situation to be in.
Speaker 15: I think that, you know, the advice that I'm giving
Speaker 15: a lot of companies right now is basically to hurry
Speaker 15: up and wait and making a strategic decision today could
Speaker 15: fall apart very quickly within the next week, as we've
Speaker 15: kind of seen over the last month, Caroline, you know,
Speaker 15: we saw the Mexico, Canada dispute. We saw a lot
Speaker 15: of things happening there very quickly. If you'd made a
Speaker 15: strategic decision to move everything overnight, you could have been
Speaker 15: caught on the wrong side of that.
Speaker 8: So right now, I think that you know, it's not
Speaker 8: just the consoles.
Speaker 15: It's not just PCs, it's across the board, And I
Speaker 15: think that companies have to be really, really thoughtful in
Speaker 15: terms of their immediate next steps versus their longer term strategies.
Speaker 15: If the tireff stick and if we have to ride
Speaker 15: out this entire storm, it's a different set of decisions
Speaker 15: that you would make if you knew that this was
Speaker 15: going to happen for you know, maybe three months and
Speaker 15: then start to taper off.
Speaker 8: So it's a very challenging time for.
Speaker 15: Supply chains and trying to figure out the short term
Speaker 15: versus the media term versus the long term.
Speaker 3: David, explain to our audience how an iPhone would be
Speaker 3: built or assembled in the United States and what the
Speaker 3: price impact would be based on your experience.
Speaker 15: That's a challenging question, Ed, I'm not sure you know,
Speaker 15: I'm not sure that I understand the full extent of
Speaker 15: the Apple supply chain. But look, you've got to understand
Speaker 15: that this is not about just moving a manufacturing plant.
Speaker 15: This is an ecosystem. The tier two suppliers, the Tier
Speaker 15: three suppliers have all built up over time around those
Speaker 15: specific factories in China.
Speaker 8: Or in Vietnam or in India, and.
Speaker 15: It takes time to develop that ecosystem. So what would
Speaker 15: it take. Well, you have to build a factory. Then
Speaker 15: you have to develop that ecosystem to be able to
Speaker 15: supply that factory. You have to source your raw materials,
Speaker 15: you have to source your semi finished goods, your sub assemblies.
Speaker 8: And bring all of those in. So this isn't just
Speaker 8: flicking a switch.
Speaker 15: And you build a new factory and everything starts up again.
Speaker 15: It takes time to build that ecosystem them and to
Speaker 15: make sure that your supply chain meains intact from a
Speaker 15: quality perspective and everything else.
Speaker 3: That was a pretty good answer, David. To be fair,
Speaker 3: I think that sums up well. And I know Tesla
Speaker 3: in its local supply chain in Shanghai has a similar situation.
Speaker 3: What happens in four years time if there's a completely
Speaker 3: different administration in the White House and all of the
Speaker 3: tariffs get undone and the executives at the companies you
Speaker 3: advise decided to do something extreme in adjusting their supply
Speaker 3: chain here and now.
Speaker 15: I think in the first case, I'll be a little
Speaker 15: bit bored. If at all reverses, then you know, I'm
Speaker 15: not sure what I'll be doing every day. But you know,
Speaker 15: I think that this short term versus medium term versus
Speaker 15: long term, I think that that is where we're caught
Speaker 15: in a trap right now, whereby it's very difficult to
Speaker 15: make that long term decision because to your point, a
Speaker 15: new administration could decide to go in a very different
Speaker 15: direction from a trade perspective, and so supply chains have
Speaker 15: to be cautiously. We were taught some lessons over the
Speaker 15: last five years through COVID. We realized that our supply
Speaker 15: chains were ultimately fragile, and we had to find a
Speaker 15: better way to build some resilience into those supply chains.
Speaker 15: So we diversified a little bit. We started to move
Speaker 15: manufacturing to other countries. We started to do very sensible things.
Speaker 15: Did we do that to the level that we should
Speaker 15: have done it? Maybe not, Maybe there was more room
Speaker 15: to actually move things aby, But I think supply chains
Speaker 15: now you know, we are problem solver. Supply chain practitioners
Speaker 15: are designed to solve problems. This is another major problem.
Speaker 15: Call it a gray swan or a black swan. It's
Speaker 15: another major problem that we have to deal with. It
Speaker 15: will force a change in terms of high supply chains.
Speaker 15: Think high supply chains are engineered over the coming years.
Speaker 2: And ultimately you might have tried to front run by
Speaker 2: moving out of China as many have take it Apple
Speaker 2: more into India and Vietnam, and ultimately they've been tariff too.
Speaker 2: I mean, of course to a less extent when it
Speaker 2: comes to India. But longer term, then are we seeing
Speaker 2: companies willing to hit the margin when you've got a
Speaker 2: record gross margin of forty six point nine percent for
Speaker 2: Apple recently. In the short term they swallow it, David,
Speaker 2: Is that what Dyson's and Microsoft do? They take the
Speaker 2: hit until they get long term charity.
Speaker 15: I think in the short term, any supply chain will
Speaker 15: look at what can be done. So if you've already
Speaker 15: diversified to some level, and you've moved production to more
Speaker 15: friendlier tariff countries, you would look now to say, is
Speaker 15: there any excess capacity available? Can I move maybe from
Speaker 15: a China to a Philippines or to Malaysia to reduce
Speaker 15: some of that tariff burden.
Speaker 8: However, you know, the longer term.
Speaker 15: Is going to be Okay, what does a tar friendly
Speaker 15: country actually look like?
Speaker 8: Have we actually moved the dynamics too far?
Speaker 15: And you know, we're all hoping that this will actually
Speaker 15: roll over. We are all hoping that the president will
Speaker 15: do as he says and he is open to negotiation,
Speaker 15: and the countries are coming to the table. We've heard today,
Speaker 15: South Korea, Japan are already coming to the table.
Speaker 8: From a supply chain.
Speaker 15: Perspective, we're hoping that common sense will prevail and there
Speaker 15: will be a more balanced trading agreements set setup trading
Speaker 15: agreements put in place in the coming weeks and months,
Speaker 15: which will alleviate some of the current pin but it
Speaker 15: still doesn't take away from the longer term strategy nine
Speaker 15: needs to be figured on, and that's what supply chains
Speaker 15: are going to be working hard to do.
Speaker 2: David. I'm going to make a really pointed question on
Speaker 2: many of the executives you're talking to taking it seriously
Speaker 2: that they need to build or assemble in the United
Speaker 2: States more fully, a lot.
Speaker 15: Of executives are certainly having the discussion, they're looking at
Speaker 15: the implications of obviously the capital cost and also the
Speaker 15: timeline is involved. You know, setting up a factory in
Speaker 15: the United States to manufacture in the United States.
Speaker 8: You don't do that overnight.
Speaker 15: And then, as I said earlier, it's the ecosystem which
Speaker 15: is the really important part. How long will it take
Speaker 15: to actually, you know, bring all those things together.
Speaker 8: I answered a question earlier.
Speaker 15: On this week in a different interview where somebody said, hey,
Speaker 15: you know, for a American med products, how are going
Speaker 15: to be impacted by the new China tariffs?
Speaker 8: And my question to that question.
Speaker 15: Was, well, what do you mean by American made products?
Speaker 15: You're talking about chocolate in this instance, you know, where
Speaker 15: does the coca come from to make that chocolate?
Speaker 8: It in itself is subject.
Speaker 15: To a tariff coming into the US to manufacture in
Speaker 15: the US.
Speaker 8: Supply chains are complicated. Supply chains are.
Speaker 15: Very very complex elements, and so figuring these pieces out
Speaker 15: is everything that executives are doing right now to understand
Speaker 15: the impact but also to understand what can be done next.
Speaker 3: Hair dryers, toasters all come from China as well. David
Speaker 3: Warwick from Overhaul, really great conversation. Thank you for joining US.
Speaker 2: Care now coming up. We're going to get the VC
Speaker 2: the private market perspective. Ben Lahra is with US VC
Speaker 2: firm Lara Hippo is actually just closed a mammoth two
Speaker 2: hundred million dollars round for a new fund. Amiddle this uncertainty,
Speaker 2: how they do it? This is a broom, big technology
Speaker 2: VC firm. Lara Hippo is just closed a two hundred
Speaker 2: million dollar fund. It's ninth early stage one. This is
Speaker 2: vcs and startups faced Tarif anxiety, many opting to pause
Speaker 2: plans for IPOs. But yet the conviction is there from LPs.
Speaker 2: Let's talk about why Nara Hippo managing partner Ben Lara
Speaker 2: joins us. Now, Ben, how did you get this over
Speaker 2: the line in this current environment?
Speaker 16: Yeah, I think Look, one of the one of the
Speaker 16: things we're proudest of is that we, over a long
Speaker 16: period of time, have been really consistent and I think
Speaker 16: pretty disciplined. We do one thing, we do one thing well,
Speaker 16: which is true early stage investing. And so while markets
Speaker 16: rise and fall, and you know, lots of things outside
Speaker 16: of our control happened in the background, we don't tend
Speaker 16: to get sucked into sort of hype cycles. And and
Speaker 16: I you know, it's sort of been reflected in our returns,
Speaker 16: and so we're fortunate that LPs continue to support us,
Speaker 16: and you know, we're but let's say, we're happy to
Speaker 16: have this behind us.
Speaker 3: In this book, Ben, you know, we've discussed for many
Speaker 3: years how early stage companies and their investors are more
Speaker 3: like insulated from public markets and macro events until what
Speaker 3: happened with Silicon Valley Bank and it became about operational
Speaker 3: cash flow. Right, But you're still doing a new fund.
Speaker 3: This report's about andresen doing a very very big fund.
Speaker 3: Just talk to me about that environment more specifically at
Speaker 3: the early stage.
Speaker 16: Yeah, And actually I think the SVB crisis was for
Speaker 16: certain funds a wake up call where you know, that
Speaker 16: was sort of coming out of a hype cycle in
Speaker 16: twenty one where money was flowing very freely. Companies were
Speaker 16: raising lots of money and chasing growth at all costs.
Speaker 16: And I think even for us at LH, we took
Speaker 16: a moment to be very introspective and say, are we
Speaker 16: on a company by company by company bases making sure
Speaker 16: that folks are being really responsible and not falling prey
Speaker 16: to lots of late stage money chasing hot companies and
Speaker 16: driving some not great behaviors. And right now as we
Speaker 16: sort of enter another moment of prices, I think that
Speaker 16: some of the learnings from from that last significant sort
Speaker 16: of blip have set at least our portfolio up in
Speaker 16: a way where we feel like we have arms around
Speaker 16: every company in the portfolio, where companies on a quarter
Speaker 16: by quarter basis are burning less and less are being
Speaker 16: are just taking more responsibility for building really sustainable long
Speaker 16: term businesses and falling a little bit less sort of
Speaker 16: a victim to getting on the late stage VC, you know,
Speaker 16: sort of hamster wheel.
Speaker 3: Well kind of companies. Where are the companies? And how
Speaker 3: much of an unlock has AI been? Because what I
Speaker 3: here's my in box all the time right now and
Speaker 3: is discussed in the zeitgeist, is you don't need to
Speaker 3: learn how to code anymore. You know, previously, if you
Speaker 3: pitched at Y Combinator or something and you didn't code
Speaker 3: or have anyone your team that was a computer science
Speaker 3: that would be dead for you. That avenue. I think
Speaker 3: that's changed, right, Yeah.
Speaker 16: Look, I mean our goal has always been sort of
Speaker 16: to find great talent as true early stage investors. That's
Speaker 16: the key to every investment that we make, and AI
Speaker 16: is going to be an unlock in every single industry.
Speaker 16: And frankly, if you're not leaning in incredibly heavily to
Speaker 16: AI as an existing business or certainly as a sort
Speaker 16: of Denobo startup, you're missing a huge opportunity to create
Speaker 16: efficiency and move faster. And the tools that exist now
Speaker 16: in terms of you know, helping companies code and build
Speaker 16: product faster are unbelievable. There are companies in our portfolio
Speaker 16: that are writing less than five percent of code by
Speaker 16: hand at this point and are really just prompting and
Speaker 16: managing third party AI software who are helping them with
Speaker 16: much smaller teams, create unbelievable leverage in their business. It's
Speaker 16: really exciting, but it's also terrifying because it's moving so quickly,
Speaker 16: and you know, we're kitting ourselves if we know how
Speaker 16: this all sort of where this land and where the
Speaker 16: value falls and what is owned by the big large
Speaker 16: language models and what's going to be owned by application
Speaker 16: layer companies, and so you know, we take solace in
Speaker 16: the idea that we're going to back incredible people and
Speaker 16: they're going to navigate through this challenging environment and we're
Speaker 16: going to be there to help keep them on the rails.
Speaker 2: A big personal fan of ba ble Bar, I can
Speaker 2: imagine that's the sort of company that's having to think
Speaker 2: about it supply chains right now. Ben. But I go
Speaker 2: to that company because many associate you with consumer focused tech,
Speaker 2: but you are exposed to enterprise. You've got fingers in
Speaker 2: the fintech space in DeFi as well. You're across the board.
Speaker 2: But when you're looking at the consumer opportunity right now, Ben,
Speaker 2: how unnerving is that?
Speaker 8: Yeah?
Speaker 16: So I think that you know, we've been talking to
Speaker 16: our sort of scaled consumer companies about tariffs and what
Speaker 16: the implications of this could would should be over the
Speaker 16: last several months. I think the best and most mature
Speaker 16: businesses have been planning for this and have you know,
Speaker 16: there's there's and have some mitigations in place. But the
Speaker 16: reality is that there are companies that this is gonna
Speaker 16: punch directly in the face and and it's going to
Speaker 16: be unpleasant and they're going to need to figure out
Speaker 16: how to manage through it. I think people are also
Speaker 16: it's just so unclear.
Speaker 7: You know that the.
Speaker 16: Floor moves by the hour right now, and so I
Speaker 16: think people don't want to over rotate and over respond
Speaker 16: and you know, decide that they're absolutely positively pulling out
Speaker 16: of China on a permanent basis. But it's going to
Speaker 16: be It's something that companies are going to manage through.
Speaker 16: People had to manage through COVID, and we saw the
Speaker 16: best founders handle that not easily, but survive and thrive
Speaker 16: on the backside of it. And the same is going
Speaker 16: to happen here. I really believe that the best founders fight.
Speaker 2: Away and then you're known for investing right here in
Speaker 2: New York. Is that still a thesis?
Speaker 16: Yeah, I mean we are huge believers in New York.
Speaker 16: I grew up in New York. We started the fund
Speaker 16: here in New York on a sort of high level
Speaker 16: bet that New York has always had unbelievable talent, but
Speaker 16: twenty years ago that talent naturally matriculated first to Wall Street,
Speaker 16: and over time that talent now wants to go work
Speaker 16: in tech. That's the biggest growth area that New York
Speaker 16: has seen over the last decade in terms of job
Speaker 16: growth and company growth. We think it's going to continue,
Speaker 16: and we again see that sort of overlap of very
Speaker 16: early stage in New York as a competitive edge for
Speaker 16: US in a space where we have real right to win.
Speaker 8: So we're going to keep doing that.
Speaker 3: Ben Lara, Larryhip, it's great to have you back on
Speaker 3: the program. Appreciate it. Thank you, Caroline. Some news in talking.
Speaker 2: Tech, Yeah, time for talking tech. First up, Google ed
Speaker 2: plans to help developers build AI assistance for a variety
Speaker 2: of tasks at its annual Cloud Computing conference in Las
Speaker 2: Vegas yesterday. The company said it would release the Agent
Speaker 2: Development Kit, which can increase dependence on and revenue for
Speaker 2: as cloud services. Plus the EU It's just presented a
Speaker 2: plan to boost its AI industry and help it compete
Speaker 2: more aggressively with the US and China. One of the
Speaker 2: ways Europe plans to bolster regional AI developments is a
Speaker 2: commitment to build a network of AI factories and create
Speaker 2: specialized labs to improve the access of startups to high
Speaker 2: quality training data. And The Energy and Commerce Committee just
Speaker 2: approved a bipartisan bill known as Take It Down Act,
Speaker 2: which aims to curb the spread of unauthorized deep fake pornography.
Speaker 2: Getting the bill to the President's desk could mark one
Speaker 2: of the most significant actions by Congress to respond to
Speaker 2: risks and harms posed by AI ed.
Speaker 3: Another news story we're watching, a Meta whistleblow is set
Speaker 3: to testify before Congress, claiming that the social media giant
Speaker 3: threaten US national security as it cozied up with China.
Speaker 3: The former Meta executive alleges that the company brief members
Speaker 3: of the CCP on emerging tech, which includes AI. Metas
Speaker 3: denying those allegations. For let's bringing Bloomberg's Riley Griffin here
Speaker 3: in SF what do we need to watch for? This
Speaker 3: is going to happen very soon.
Speaker 7: Yes, this is coming later today. In Washington, d C.
Speaker 7: We're seeing Sarah wyn Williams, the author of the best
Speaker 7: selling memoir Now Careless People, be asked to speak before
Speaker 7: lawmakers about her what she witnessed the dealings Meta in
Speaker 7: China back through her tenure in twenty seventeen. The interesting
Speaker 7: thing about her prepared remarks, which we've gotten our hands
Speaker 7: on here at Bloomberg, is that she's going to make
Speaker 7: the case that Meta's discussions with China have actually helped
Speaker 7: it in its AI ambitions in this global race arms
Speaker 7: race that she's describing around AI.
Speaker 2: What's interesting is Meta's response has been clear on all
Speaker 2: of this, Riley, and for example, they've said that Mark
Speaker 2: Zackerberg has been public about the company's past interest in
Speaker 2: offering services in China, and details were widely reported beginning
Speaker 2: over a decade ago. But the fact is this, says
Speaker 2: Andy Stone, we do not operate our services in China today.
Speaker 2: What will Meta's response be, particularly in this global environment
Speaker 2: of US versus China.
Speaker 7: Meta is holding firm that it does not offer services
Speaker 7: like Facebook, Instagram and China. Sarah and Williams, however, will
Speaker 7: be contending that it continues to make a great deal
Speaker 7: of its revenue out of China. About eight billion last
Speaker 7: year in advertising revenue came from China, and so she
Speaker 7: is making the case that this is a present discussion.
Speaker 7: While Meta calls this old news, Sarah and Williams is
Speaker 7: making this about the here and now and about this
Speaker 7: arms race and about the money that matter continues to make.
Speaker 2: Well, we'll watch for that hearing later today. Riley Griffin,
Speaker 2: thanks for bringing it to us. Now let's stick with
Speaker 2: social media. Can't Look Away. It is a new film
Speaker 2: by Bluemberg Originals, which followed a team of lawyers battling
Speaker 2: tech giants on behalf of families. His children suffered great harm.
Speaker 2: Link to social media, and the film is based on
Speaker 2: the reporting by Our Burero's Varion Olivia Carvill, who joins us.
Speaker 2: Now the reaction, of course, is to the legal battle
Speaker 2: that is trying to hold big tech accountable. Is it
Speaker 2: managing to in the courts right now?
Speaker 8: We don't know yet.
Speaker 13: There are positive signs that some of these cases are
Speaker 13: breaking through and that we might see at least one
Speaker 13: lawsuit pus section two thirty of the Communications Decency Act,
Speaker 13: which is really been that immunity blanket for big tech
Speaker 13: over the past two decades, preventing them from being held
Speaker 13: liable for user harms like what are portrayed in the film,
Speaker 13: And as it currently stands, it looks like we are
Speaker 13: going to see one of these cases go to trial
Speaker 13: later this year. So it's kind of all eyes on
Speaker 13: the justice system right now.
Speaker 3: Olivia Peace, could you explain what the process of making
Speaker 3: the film was like? And it's a different medium, but
Speaker 3: I guess the reporting that went into it from you.
Speaker 13: Yeah, it's been a two and a half year journey
Speaker 13: to get here. I first approached Christen Powers, Bloomberg's deputy
Speaker 13: head of media, asking if it might be possible to
Speaker 13: shadow this law firm, and we really dove in without
Speaker 13: knowing where these cases were going to go or if
Speaker 13: any of them would eventually reach trial.
Speaker 2: So it was a leap of.
Speaker 13: Faith by Bloomberg and the production team at DCTV, particularly
Speaker 13: directors Met O'Neil and Perry Peltz. Documentary is a completely
Speaker 13: different medium to print, which is what I'm used to.
Speaker 13: It's like a jigsaw puzzle trying to pull together all
Speaker 13: these different scenes, and you really need to have visual
Speaker 13: segues between talking heads on camera, and that's something that
Speaker 13: you know, It's been a huge learning process for me
Speaker 13: trying to understand what it takes to bring a documentary
Speaker 13: to the screens. And I also think that there needs
Speaker 13: to be a broader message in the film and for
Speaker 13: us with Can't Look Away, that is really the fight
Speaker 13: for corporate accountability. Can't look Away is about, you know
Speaker 13: exactly what that title implies, That there's a generation of
Speaker 13: kids who are glued to their screens and quite literally
Speaker 13: can't look away, and the lawyers and families fighting to
Speaker 13: hold those companies accountable for this situation.
Speaker 2: Protections continue to come though Matter has brought them to Instagram,
Speaker 2: bringing them also to Facebook. Some of their other products.
Speaker 2: You've had Roblock CEO joining us recently with more parental controls.
Speaker 2: I'm interested as to the visuals that Mark Zuckerberg himself
Speaker 2: had to be confronted with. The pictures of the children
Speaker 2: have had tragic ends to consumption of social media. They're
Speaker 2: getting it, do you think or not?
Speaker 16: Well?
Speaker 13: I think the whole conversation around social media has shifted
Speaker 13: in recent years. We've seen it move from a question
Speaker 13: of can these platforms how mental health?
Speaker 2: Are they really good for our kids?
Speaker 13: And it's moved towards this is a full blown public
Speaker 13: health crisis for our children. And that's what I'm hearing
Speaker 13: now from the experts because we've seen books like Jonathan
Speaker 13: Height's Anxious Generations, Sarah wyn Williams Careless People, which we're
Speaker 13: just talking about on this show Netflix series like Adolescents,
Speaker 13: really pushing the cultural conversation towards is this a good
Speaker 13: situation for our children?
Speaker 2: Is this what we want them to be doing?
Speaker 13: And let's just think about the facts. Ninety five percent
Speaker 13: of kids use social media, more than a third are
Speaker 13: showing signs of addiction. And this film was chronicling the
Speaker 13: very extreme harms that some of those kids have experienced
Speaker 13: in the digital world.
Speaker 2: It's been such a long journey of reporting and now
Speaker 2: in to the big theaters as well. Olivia Carvill, we
Speaker 2: thank you so much. That does it for this addition
Speaker 2: of let's just check in on these markets for a moment.
Speaker 1: Ed.
Speaker 2: We're currently seeing a whitsawing on the day, Magnificent sevens
Speaker 2: staying higher to the tune of one point three percent,
Speaker 2: but who knows how we'll close today and then as
Speaker 2: that one hundred rebounding from yesterday's sellof This is Bloomberg
Speaker 2: Technology