WEBVTT - Protests at Apple Plant and Sam Bankman-Fried's Apology 0:00:13.200 --> 0:00:16.040 Caroline hired up Bloomberg's world headquarters in New York, and 0:00:16.040 --> 0:00:19.200 I'm made Lovelow in San Francisco. This is Bloomberg Technology 0:00:19.400 --> 0:00:23.440 coming up. Violent protests at Apple's main iPhone plant in China, 0:00:23.520 --> 0:00:26.320 the latest on the Bloomberg school that could impact sales 0:00:26.360 --> 0:00:29.960 ahead of the holiday season. Plus Sam Bankman Freed says 0:00:30.040 --> 0:00:33.360 the ft X empire quickly went from sixty billion dollars 0:00:33.400 --> 0:00:37.000 in collateral to nine billion, according to an apology letter 0:00:37.040 --> 0:00:39.760 to staff. More on that and how SPF got his 0:00:39.800 --> 0:00:42.839 start on Wall Street. And Elon Musk is having second 0:00:42.840 --> 0:00:47.320 thoughts about that Moderation Council after saying activists broke the deal. 0:00:47.760 --> 0:00:52.680 More on that and Musk's new trend of quoting well himself. Meanwhile, though, 0:00:52.800 --> 0:00:55.240 let's dig into what happened at the main iPhone making 0:00:55.280 --> 0:00:58.639 plant in China's hundreds of workers clashing the security personnel 0:00:58.840 --> 0:01:01.880 after almost a month a tough COVID restrictions, a piece 0:01:01.920 --> 0:01:04.400 to say running bergsone in King is here for more 0:01:04.440 --> 0:01:07.160 details and in you follow Fox con in particular, and 0:01:07.680 --> 0:01:10.880 well have this been anticipated? What sort of impact does 0:01:10.920 --> 0:01:12.800 this have on the output in the production as well 0:01:12.840 --> 0:01:16.559 as the people? Yeah, I mean, from an Apple perspective, 0:01:16.680 --> 0:01:20.120 this is not entirely surprising, given that we've seen increasing 0:01:20.160 --> 0:01:24.640 pressure in China, you know, people essentially fighting back being 0:01:24.680 --> 0:01:28.360 sick of these COVID lockdowns. Um so for Apple this 0:01:28.440 --> 0:01:31.720 isn't surprising, but it's also kind of worrying that this 0:01:31.800 --> 0:01:34.720 is an escalation, that we're actually seeing some form of 0:01:34.840 --> 0:01:39.199 open protests and open resistance to these rules. And and 0:01:39.280 --> 0:01:42.080 you know, if you take fox CON's word for everything's okay, now, 0:01:42.080 --> 0:01:44.600 don't worry. It was just a dispute and we'll deal 0:01:44.640 --> 0:01:47.319 with it in the contractual framework and everything will be fine. 0:01:47.360 --> 0:01:50.320 But in the overall context of what's happening in China, 0:01:50.720 --> 0:01:53.000 you know, the videos that some of our colleagues were 0:01:53.000 --> 0:01:54.960 able to take a lookout for us and get hold 0:01:54.960 --> 0:02:00.000 of are very worrying. Ian you cover a broad range 0:02:00.000 --> 0:02:03.040 of technologies for US at bloom Bow, principally the chip sector, 0:02:03.120 --> 0:02:06.960 but also kind of supply chains more broadly. This is 0:02:07.000 --> 0:02:09.560 like really difficult for fox Con. But what does it 0:02:09.600 --> 0:02:14.480 mean broadly about US China relations? Because technology is basically 0:02:14.480 --> 0:02:18.280 at the heart of that conversation, right, I mean, you've 0:02:18.280 --> 0:02:22.640 got an escalating trade dispute between the world's two largest economies, 0:02:22.639 --> 0:02:25.040 and what's being used by the US as this chief 0:02:25.040 --> 0:02:28.120 tool to attack China or to to hold China back 0:02:28.639 --> 0:02:31.880 is technology and something conductors in particular. So you have 0:02:31.960 --> 0:02:34.680 this escalating dispute, but at the same time, that part 0:02:34.680 --> 0:02:38.520 of China is an absolutely crucial part of this diverse, 0:02:38.600 --> 0:02:42.280 wonderful call it what you like, complicated supply chain that 0:02:42.320 --> 0:02:46.440 spans the globe. So much of the world's electronics economy 0:02:46.480 --> 0:02:49.080 goes through that part of the world. If we can't 0:02:49.120 --> 0:02:51.640 rely upon that, if there is going to be increasing 0:02:51.639 --> 0:02:53.680 difficulties of doing business there, then there has to be 0:02:53.720 --> 0:02:57.280 some huge changes. And those changes, at least for investors, 0:02:57.320 --> 0:03:00.680 are going to mean initially huge amounts, costs, and a 0:03:00.680 --> 0:03:03.880 lot of time probably to relocate some of those factories 0:03:03.880 --> 0:03:06.359 and some of that you know, expertise that exists there. 0:03:07.080 --> 0:03:09.040 I want to watch no matter who you are, from 0:03:09.040 --> 0:03:12.440 a personal perspective and indeed from an investor perspective, in King, 0:03:12.560 --> 0:03:14.840 thank you for taking some time with us today, and 0:03:14.919 --> 0:03:17.480 let's continue this conversation. Let's get the investor perspective. I'm 0:03:17.560 --> 0:03:19.520 very pleased to say that I'm very managing partner and 0:03:19.560 --> 0:03:22.320 founder of Threadneedle Ventures is with us an investor, and 0:03:22.360 --> 0:03:24.960 Apple also an amcestor in Disney and Amazon and Meta. 0:03:25.080 --> 0:03:27.080 So many conversations to be having with you and at 0:03:27.080 --> 0:03:30.480 the moment, and let's just talk first and foremost about 0:03:30.919 --> 0:03:33.880 the Apple conversation. How worrying is this sort of violence 0:03:34.000 --> 0:03:36.960 erupting one that you'd already braced yourself for. Perhaps, Well, 0:03:37.280 --> 0:03:39.680 the reason I find it's a worrying, Caroline is this 0:03:39.760 --> 0:03:41.840 is at least one we know about. Which are the 0:03:41.840 --> 0:03:43.840 ones we don't know about? Says? We look ahead to 0:03:43.920 --> 0:03:45.480 how we roll out at the end of this year, 0:03:45.520 --> 0:03:47.960 which has been a very tentative one coming into the 0:03:47.960 --> 0:03:50.800 holiday season. If more of this is happening across China 0:03:50.840 --> 0:03:52.160 that we're not aware of, it means we are going 0:03:52.200 --> 0:03:53.960 to get some more bad news on supply chains to 0:03:53.960 --> 0:03:55.440 we head into the beginning of the next one. That's 0:03:55.440 --> 0:03:58.920 what I'm looking out for, certainly in the public markets. Hey, 0:03:58.960 --> 0:04:00.840 and this is a really interest the story, right, Why 0:04:00.880 --> 0:04:03.400 are we concerned about Jung Joe? Jung Joe accounts for 0:04:03.440 --> 0:04:07.440 four out of every five iPhone fourteen pro handsets made. 0:04:07.480 --> 0:04:10.320 Right when you look at the stock story, the equity story, 0:04:10.560 --> 0:04:13.040 are you worried. You know, this is a stock that's 0:04:13.080 --> 0:04:16.000 fed better than the SMP five, but it's still down, 0:04:16.080 --> 0:04:17.719 and that there a lot of voices in the market 0:04:17.800 --> 0:04:20.839 saying I'm not sure how impactful this will be in 0:04:20.920 --> 0:04:25.039 either direction for Apple. Well, you heard from Ian just 0:04:25.080 --> 0:04:27.440 the importance of that part of the world in terms 0:04:27.440 --> 0:04:31.440 of the concentration of chip manufacturing and consumer electronics manufacturing. 0:04:31.480 --> 0:04:33.479 I think in terms of the impact on the Apple story, 0:04:33.800 --> 0:04:36.600 the much bigger one has been around global demand. Everyone's 0:04:36.600 --> 0:04:39.520 accepted that supply chain disruption is going to be past 0:04:39.600 --> 0:04:42.760 for the course for a little bit longer. That The 0:04:42.800 --> 0:04:45.960 big uncertainty right now is how is consumer sentiment, How 0:04:46.040 --> 0:04:49.640 is consumer debt going to start to dampen expenditure on 0:04:49.720 --> 0:04:52.839 discretionary items such as the iPhone? And when is inflation 0:04:52.880 --> 0:04:55.040 going to a bait so that disposable incomes start coming 0:04:55.040 --> 0:04:56.640 back up again. I think those are the bigger drivers 0:04:56.640 --> 0:04:59.000 for the Apple story, and let's delve into that a 0:04:59.040 --> 0:05:01.120 little bit more. And because of course you do have 0:05:01.440 --> 0:05:04.520 an wide array of investments and indeed areas that you 0:05:04.600 --> 0:05:06.640 like to focus on retail first and foremost as well, 0:05:06.680 --> 0:05:08.720 talk to us a little bit about as we anticipate 0:05:08.920 --> 0:05:11.680 how Apple products will sell, but how every product will 0:05:11.720 --> 0:05:13.919 sell in the next few days. What is the consumer 0:05:13.920 --> 0:05:16.680 looking like to you? Well, you're really seeing Carolina, and 0:05:16.720 --> 0:05:18.360 we've seen this. This isn't the first time we saw 0:05:18.400 --> 0:05:20.120 this in two thousand and eight, ten thousand and nine. 0:05:20.200 --> 0:05:23.800 My backgrounds private equity, and whenever this kind of dynamic 0:05:23.839 --> 0:05:27.480 came about, we would look to try to find two 0:05:27.520 --> 0:05:29.640 areas of retail to focus on and including in tech 0:05:29.720 --> 0:05:33.720 and consumer products that are tech oriented. Hire income consumers 0:05:33.720 --> 0:05:37.000 tend to do fine. It is the lower income households 0:05:37.040 --> 0:05:40.360 that really struggle. The hiring income individuals and consumers tend 0:05:40.400 --> 0:05:43.120 to trade down. We've seen that with Walmart. I'm sure 0:05:43.160 --> 0:05:45.200 that some of the best buy news that we saw 0:05:45.240 --> 0:05:48.280 where people are bargain hunting, that's your hirer income consumer 0:05:48.520 --> 0:05:51.000 trying to go and find really great deals right now. 0:05:51.040 --> 0:05:54.359 That's what you're struggling household that's really been hit the 0:05:54.360 --> 0:05:57.440 hardest by inflation, really being hit the hardest by energy prices. 0:05:57.640 --> 0:05:59.520 So I think we're going to see value retells you 0:05:59.640 --> 0:06:01.800 very well because everyone's going there. And I think we're 0:06:01.800 --> 0:06:03.480 going to see luxury hold up when it comes to 0:06:03.520 --> 0:06:06.520 things like gifting and special holiday season expenditure. It's really 0:06:06.560 --> 0:06:09.719 bifurcated as an and it's painful as always the same 0:06:09.720 --> 0:06:11.720 people seem to get hurt, the same people seem to win, 0:06:11.800 --> 0:06:14.599 but interestingly, do the same players win. I'm thinking also 0:06:14.600 --> 0:06:16.520 of Amazon, which you have a big expocia too. This 0:06:16.560 --> 0:06:18.719 is a company that's become so large and every part 0:06:18.720 --> 0:06:21.200 of our lives where this way we consume, we've the visuals, 0:06:21.400 --> 0:06:23.680 whether it's about the way we spend. Are they going 0:06:23.720 --> 0:06:26.200 to do well navigating this environment? Do you know what 0:06:26.240 --> 0:06:28.080 I love with that? Amazon? Actually, Caroline, and you know 0:06:28.120 --> 0:06:29.760 I've talked about this in the past. I think that 0:06:29.800 --> 0:06:33.960 Amazon becomes it's most innovative and it's most creative, and frankly, 0:06:33.960 --> 0:06:36.360 it's gutsy us when it comes to these kinds of environments. 0:06:36.400 --> 0:06:38.560 So Amazon really announce that they're going to be launching 0:06:38.560 --> 0:06:41.080 telehealth services. And I'm sure you saw that they've been 0:06:41.080 --> 0:06:43.520 trying to push into healthcare. They bought pill Pack, They've 0:06:43.560 --> 0:06:49.000 been looking at ways to integrate Farmer into their prime services. 0:06:49.600 --> 0:06:51.360 But this is where you see the Amazon stepping back 0:06:51.360 --> 0:06:52.919 and saying, Okay, how am I going to allocate my 0:06:52.960 --> 0:06:55.680 capital now? It's actually not going to be on consumer stuff. 0:06:56.000 --> 0:06:58.159 It's going to be in services and places like healthcare. 0:06:58.279 --> 0:07:00.960 So I think those pivots are actually the strongest indicators 0:07:01.040 --> 0:07:02.600 right now for where they're going to see longer term 0:07:02.640 --> 0:07:08.680 investment trends. And another huge story of the week Disney Bob, 0:07:08.720 --> 0:07:12.640 I get back b J peck out your reaction please 0:07:12.720 --> 0:07:14.760 as an investor in that company, I'm going to start 0:07:14.800 --> 0:07:16.640 as a brit since they are now three of us here. 0:07:16.680 --> 0:07:20.760 But I was playing before, I playing take that back 0:07:20.800 --> 0:07:22.760 for Good almost as the kind of the jump off 0:07:22.960 --> 0:07:25.000 for when I saw that announcement. Look, I think it's 0:07:25.400 --> 0:07:27.920 it's very good to have a safe pair of hands 0:07:27.920 --> 0:07:30.640 back in the saddle. And I think Ed and Caroline, 0:07:30.640 --> 0:07:32.480 when you look at what's happened over the last six 0:07:32.520 --> 0:07:36.120 to nine months, whether it's private companies, whether it's public ones, 0:07:36.560 --> 0:07:40.080 the businesses that have had bad news, whether it's attrition 0:07:40.120 --> 0:07:45.360 subscription in Netflix, whether it's been Snap for example, where 0:07:45.400 --> 0:07:47.800 we've seen a number of users little down. Let's go 0:07:47.800 --> 0:07:50.360 and use that word again, Caroline, bifurcation. The ones that 0:07:50.360 --> 0:07:52.360 have at least come out with the plan have been 0:07:52.400 --> 0:07:55.120 rewarded Netflix. We don't really know if it's going to 0:07:55.160 --> 0:07:56.760 work in the long run where they're added, but they've 0:07:56.800 --> 0:07:59.680 been rewarded. The ones with no plan snap have been 0:07:59.760 --> 0:08:03.040 a slutely punished. Disney to me is going to be 0:08:03.040 --> 0:08:04.800 a little bit somewhere in the middle right now. So 0:08:04.840 --> 0:08:06.880 we've got a trusted, safe pair of hands back in 0:08:06.920 --> 0:08:09.040 the CEO seat, But we need to hear what the 0:08:09.080 --> 0:08:10.960 plan is going to be. And until we hear what 0:08:11.000 --> 0:08:13.760 that plan is, I do think we're going to have 0:08:13.800 --> 0:08:16.160 someone certainty around Disney for the moment. I'm pleased. I 0:08:16.200 --> 0:08:18.920 want to hear the details. Hey, and we're so grateful 0:08:18.960 --> 0:08:20.640 to have you to wrap the news of the week, 0:08:20.680 --> 0:08:22.840 but just very quickly before you go give us the 0:08:22.960 --> 0:08:26.720 end very three outlook. Oh you know what. I wish 0:08:26.720 --> 0:08:28.520 I were the bearer of brilliant news going into the 0:08:28.560 --> 0:08:30.920 Thanksgiving season, but I've been a bit more bearished than some. 0:08:31.080 --> 0:08:32.880 And I think that's because we're riding the sort of 0:08:32.880 --> 0:08:35.319 bubble at the moment of optimism that the Fed's going 0:08:35.360 --> 0:08:37.640 to start slowing down on their rate hikes. But I 0:08:37.679 --> 0:08:41.960 think this issue of how how much the consumer is suffering, 0:08:41.960 --> 0:08:44.560 not just in the US, also in Europe. I don't 0:08:44.559 --> 0:08:46.600 think we talk enough about Europe here in the US 0:08:46.760 --> 0:08:48.920 right now, and just in the impact. I think we're 0:08:48.920 --> 0:08:51.559 going to see that filtering through in three So I'm 0:08:51.600 --> 0:08:55.080 really looking at much sort of safer stories right now, 0:08:55.280 --> 0:08:58.120 much less discretionary spending. I'm looking at all sorts of investments, 0:08:58.120 --> 0:09:01.800 particularly in the private side, for the good term place. Okay, 0:09:01.920 --> 0:09:05.920 Thread Needle Ventures managing partner and founder and Berry, thank you. 0:09:13.400 --> 0:09:15.520 It's still the story of the week, of the month 0:09:15.720 --> 0:09:18.400 of the year. Let's continue to dive deeper into what 0:09:18.440 --> 0:09:21.080 propelled the fall of Crypto Exchange f TX. Have foundness 0:09:21.080 --> 0:09:23.680 a magmun for you to apologizing to employees for the 0:09:23.679 --> 0:09:27.319 Crypto Exchanges failure bugs. Animasa joins us for more on 0:09:27.440 --> 0:09:30.320 what we've learned from the bankruptcy hearing again Annie and 0:09:30.400 --> 0:09:33.000 also his own background. First and foremost, what do you 0:09:33.040 --> 0:09:34.880 make of any sort of apology coming at this point? 0:09:35.760 --> 0:09:38.880 That's right, So Sam BigMan Fried has apologized now in 0:09:38.880 --> 0:09:43.520 a letter to the exchanges employees, and he sort of 0:09:43.559 --> 0:09:46.040 said that he wishes that they didn't end up in 0:09:46.080 --> 0:09:48.800 this place, that he's sorry for what went wrong. I mean, 0:09:48.840 --> 0:09:52.480 it's up to those employees who have really experienced dramatic 0:09:52.520 --> 0:09:57.280 fallout from this implosion to decide whether that's enough of 0:09:57.320 --> 0:10:01.000 an apology for them, But he is still speaking out 0:10:01.080 --> 0:10:05.079 about what happened and giving his side of the story. Hey, Annie, 0:10:05.080 --> 0:10:07.520 if you're new to this story, I have some sympathy 0:10:07.559 --> 0:10:10.920 because each day a new name comes up. The latest 0:10:11.000 --> 0:10:14.720 name is Jane Street. Could you explain to the audience 0:10:14.760 --> 0:10:18.280 the relationship between Sam Bankman, Freed f t X and 0:10:18.360 --> 0:10:21.240 Jane Street. Sure, there are a lot of players to 0:10:21.320 --> 0:10:23.960 keep track of, like you mentioned, so Sam Bankman, Freed 0:10:24.440 --> 0:10:28.360 ran f t X, the now bankrupt crypto exchange, once 0:10:28.440 --> 0:10:31.520 the second largest crypto exchange in the world. But before 0:10:31.559 --> 0:10:35.280 all that, and before this dramatic downfall, he worked at 0:10:35.679 --> 0:10:39.400 Wall Street trading firm called Jane Street and Jane Street 0:10:39.480 --> 0:10:44.240 is really known um for its obsessive focus on risk 0:10:44.840 --> 0:10:47.720 and it's a very successful trading firm. And his pedigree 0:10:47.760 --> 0:10:50.720 and background at Jane Street is part of what helped 0:10:50.800 --> 0:10:53.439 him get to the level that he got to. It's 0:10:53.520 --> 0:10:57.000 part of what helped him impress VC investors and people 0:10:57.080 --> 0:11:00.960 all around both traditional Wall Street and crypto um. Jane 0:11:00.960 --> 0:11:05.880 Streets known for attracting really um you know, very high 0:11:06.160 --> 0:11:09.480 i Q math nerds. It's known for its love of 0:11:09.880 --> 0:11:13.600 puzzles and games and uh and just for its success. 0:11:13.640 --> 0:11:16.360 But it's a very stealthy firm. So in our story 0:11:16.400 --> 0:11:19.480 we pointed out today that f t X doesn't seem 0:11:19.520 --> 0:11:22.240 to have brought to bear Jane Streets focus on risk 0:11:22.400 --> 0:11:25.959 to its own enterprise, to say the least. Yeah, exactly. 0:11:26.000 --> 0:11:29.400 I mean the fact that overall over Jane Street, they 0:11:29.400 --> 0:11:32.280 permanly were trying to learn from previous mistakes, trying to 0:11:32.320 --> 0:11:34.760 analyze would have gone wrong, trying to keep on invading 0:11:34.800 --> 0:11:37.640 and and looking at risk. He seems to have done 0:11:37.760 --> 0:11:41.160 basically the opposite. Many would blame because of the stratospheric 0:11:41.160 --> 0:11:43.280 way in which the company grew. Some would talk it 0:11:43.360 --> 0:11:46.840 just messy accounting whatever they want to be divulging of it. 0:11:47.240 --> 0:11:50.600 But the bridge that he built between crypto and traditional 0:11:50.640 --> 0:11:53.760 finance and regulators, how much is that now seemingly been 0:11:53.840 --> 0:11:56.520 undercut by what he was up to. Yeah, so he 0:11:56.600 --> 0:12:00.520 had this background from a traditional Wall Street firm, you know, 0:12:00.559 --> 0:12:03.480 from traditional financial markets. James Streets an enormous player in 0:12:03.559 --> 0:12:07.200 E T F S and M and James Streets, you know, 0:12:07.280 --> 0:12:12.000 well known and very well respected. So he brought this 0:12:12.120 --> 0:12:15.360 pedigree really to the world of crypto, and it helped 0:12:15.480 --> 0:12:20.280 ingratiate him and and helped make other investors feel comfortable 0:12:20.320 --> 0:12:24.480 with him, and helped really helped him impress them, impress 0:12:24.520 --> 0:12:27.360 the rest of the trading world. So, I mean, what's 0:12:27.360 --> 0:12:29.920 happened at FTS has really like boggled the minds of 0:12:30.000 --> 0:12:32.840 those VC investors, of traditional Wall Street and of crypto 0:12:32.920 --> 0:12:35.920 as well. Um, the way that it's unraveled so rapidly 0:12:36.080 --> 0:12:41.720 and the intertwined really really deeply intertwined ties between Alameda 0:12:42.040 --> 0:12:45.040 his trading firm, and hedge fund and f t X, 0:12:45.120 --> 0:12:48.640 and it's it's really shocked, um, everyone in in all 0:12:48.640 --> 0:12:52.880 of those spheres. Alright, just very deep, terrific reporting there 0:12:52.880 --> 0:12:55.880 from Bloomberg's any massa thank you? Coming up, we'll be 0:12:55.960 --> 0:12:59.880 joined by autodes CEO Andrew Anagnosed to talk about his 0:13:00.080 --> 0:13:02.679 vision for the company and how it's navigating a pretty 0:13:02.720 --> 0:13:16.400 challenging macro economic environment right now. This is Bloomberg. Autodesk 0:13:16.559 --> 0:13:20.160 slumped as much as ten percent on Wednesday before pairing losses. Still, 0:13:20.480 --> 0:13:23.120 it was the worst performing stock on the NASDAC one 0:13:23.600 --> 0:13:26.080 this after it cut its four year billings outlook. And 0:13:26.160 --> 0:13:29.960 let's say, demand for multi year contracts fell as customers 0:13:30.000 --> 0:13:32.679 preferred one year contracts. That's the story of Bordered Desk. 0:13:32.720 --> 0:13:35.520 They want to move to annual renewals, but it's also 0:13:35.960 --> 0:13:40.360 the challenging macro environment. Fortunately, Autodesk CEO Andrew Anagnosis is 0:13:40.400 --> 0:13:43.360 here with us. So I guess the question at this point, Andrew, 0:13:43.480 --> 0:13:47.920 is why why are customers behaving in this way? What 0:13:47.960 --> 0:13:52.240 are you learning from your earnings report this season. First off, 0:13:52.240 --> 0:13:55.240 we're learning that the business is highland resultient. It's highly diverse, 0:13:55.360 --> 0:13:57.720 so we're seeing a lot of great outcomes in from 0:13:57.720 --> 0:14:01.480 the diversity business outside of Nina and Russia. But we're 0:14:01.480 --> 0:14:04.839 also seeing sensitivity to currency fluctuations. We saw that in 0:14:04.880 --> 0:14:08.120 the quarter where we see that moving forward, but we're 0:14:08.160 --> 0:14:11.240 also seeing softness in Europe, and like you said earlier 0:14:11.240 --> 0:14:13.040 in the introduction, one of the things we're trying to 0:14:13.080 --> 0:14:16.679 do is we're moving our customers away from paying up 0:14:16.679 --> 0:14:19.920 front for multi year contracts to buying multi year contracts 0:14:19.920 --> 0:14:23.360 that are build annually. And you know, when you're entering 0:14:23.360 --> 0:14:27.280 a period of uncertainty, people start to conserve cash, and 0:14:27.320 --> 0:14:29.200 that's what you saw with regards of the building in 0:14:29.440 --> 0:14:31.560 Guidence and I think a lot of the reaction you 0:14:31.560 --> 0:14:33.920 start at the stock wasn't really about what we're talking 0:14:33.960 --> 0:14:36.560 about in the next quarter. It's about some of the 0:14:36.600 --> 0:14:39.840 signs that we were projecting about next year. Yeah, talk 0:14:39.880 --> 0:14:42.960 about those projections though, because our bloom Bag intelligence analysts, 0:14:42.960 --> 0:14:45.360 many of analysts out there sort of talking about you 0:14:45.400 --> 0:14:50.000 were very optimistic back in, almost perhaps too optimistic, sending 0:14:50.000 --> 0:14:53.600 yourself grand targets, and then due to Macrobe, maybe due 0:14:53.640 --> 0:14:56.520 to micro you're having to pare back from how hard 0:14:56.600 --> 0:14:59.240 is it in this environment to forecast for the next 0:14:59.320 --> 0:15:02.800 year to full cost out further than the next year. Yeah, 0:15:02.840 --> 0:15:05.160 we we were. We were We were optimistic before the 0:15:05.200 --> 0:15:09.080 pandemic hit, and certainly we actually performed incredibly well through 0:15:09.120 --> 0:15:13.120 the entire pandemic. But really what's really making it hard 0:15:13.240 --> 0:15:17.360 right now is the unprecedented volatility we're seeing in the 0:15:17.440 --> 0:15:20.760 currency exchange rates. I mean, we we signaled next year 0:15:20.800 --> 0:15:24.080 that there's probably a five point headwind on on our 0:15:24.120 --> 0:15:27.600 revenue are are as reported revenue just from currency head winds, 0:15:28.000 --> 0:15:30.000 you know, and also that look, the uncertainty in Europe 0:15:30.040 --> 0:15:32.200 right now. You're one of your earlier speakers spoke about 0:15:32.200 --> 0:15:34.760 the fact that Europe's not getting enough airtime. I would 0:15:34.800 --> 0:15:36.840 tend to agree with that. You know, we're about to 0:15:36.880 --> 0:15:39.840 head into the Russian winter there, and you know that 0:15:39.840 --> 0:15:43.160 that could eject more volatility and more more concerned into 0:15:43.160 --> 0:15:45.920 our end markets and into other people's end markets as 0:15:45.920 --> 0:15:48.800 we move forward. So it pays to be cautious as 0:15:48.800 --> 0:15:50.880 we kind of get through this winter season and head 0:15:50.880 --> 0:15:54.760 into next year. But currency fluctuations make it really hard 0:15:55.120 --> 0:15:57.120 to know where things are going to go. And also 0:15:57.200 --> 0:15:59.400 some of these concerns with regards the energy costs in 0:15:59.440 --> 0:16:02.880 Europe are are affecting some of our biggest customers. Talk 0:16:03.120 --> 0:16:06.960 fundamentals here though, because almost in fex conversion is in 0:16:07.000 --> 0:16:11.160 some way technical, But really, how bleak does the economic 0:16:11.240 --> 0:16:12.720 out look look in Europe? And do you have to 0:16:12.720 --> 0:16:15.280 start pivoting away, start deciding that you're going to change 0:16:15.320 --> 0:16:17.360 up your business? Look at the costs over there, look 0:16:17.360 --> 0:16:18.840 at the way in which you thought you would penetrate 0:16:18.880 --> 0:16:22.280 Europe more broadly? Absolutely not, yes, because you're you're right, 0:16:22.720 --> 0:16:26.520 Heathens is a technical thing. Costant currency wise, our business 0:16:26.560 --> 0:16:29.400 looks a lot stronger, and Europe continued to grow, it 0:16:29.600 --> 0:16:32.560 just slowed, all right, And I think it's important to 0:16:32.800 --> 0:16:35.960 recognize that you're will continue to slow. However, here's what's 0:16:35.960 --> 0:16:39.920 important in the customers who are using our products are 0:16:39.960 --> 0:16:43.600 working on critical parts of the economy. They're working on buildings, 0:16:43.600 --> 0:16:47.040 they're working on infrastructure, they're working on manufacturing. They need 0:16:47.080 --> 0:16:50.360 these products to complete what they're doing, and in tough times, 0:16:50.600 --> 0:16:53.600 what they do is invest in greater digitization. And what 0:16:53.640 --> 0:16:55.880 we want to do is partner with our European customers, 0:16:55.880 --> 0:16:59.400 are American customers, are Asian customers, to help them digitize 0:16:59.480 --> 0:17:02.240 more effect comply in a world where they're frankly telling 0:17:02.320 --> 0:17:07.440 us they have capacity problems, labor shortages, material material access shortages, 0:17:07.760 --> 0:17:10.720 they have more business than they can actually execute on 0:17:10.840 --> 0:17:12.080 right now. And I think that's what we have to 0:17:12.080 --> 0:17:14.960 pay attention for the long term. Hey, Andrew, I think 0:17:14.960 --> 0:17:17.240 it's where from minding the audience right, what Autodesk does 0:17:17.320 --> 0:17:20.920 you guys make software for architects for big construction projects 0:17:20.960 --> 0:17:23.199 that helps with design, and I know you want to 0:17:23.240 --> 0:17:25.639 move into other areas. That leads me to M and A. 0:17:26.480 --> 0:17:28.439 M and A their options for you there. I know 0:17:28.520 --> 0:17:31.520 there's some chatter in the market about some private names 0:17:31.520 --> 0:17:34.480 some arc g I S makers, ESRI is one. Have 0:17:34.600 --> 0:17:36.520 you tried to buy a name like that? Could you 0:17:36.560 --> 0:17:40.119 buy a name like that? Well, we never comment publicly 0:17:40.119 --> 0:17:42.600 on on M and A, but what I will say 0:17:42.840 --> 0:17:46.520 is we've always been an acquisitive company and we're super 0:17:46.600 --> 0:17:49.520 interested in growing adjacents around our business. We want to 0:17:49.640 --> 0:17:52.919 fully connect design and make together in the cloud. So 0:17:53.000 --> 0:17:55.800 we're always looking at things that lean into the future 0:17:55.800 --> 0:17:58.280 of where our markets going. So look for us to 0:17:58.320 --> 0:18:02.600 continue to be inquisitive. Valuations of reset a reset of 0:18:03.000 --> 0:18:05.119 quite a bit this year, so we were less acquisitive 0:18:05.119 --> 0:18:07.280 than usual years, but look for us to get back 0:18:07.280 --> 0:18:11.600 to our normal levels levels of acquisitiveness we move forward. Hey, 0:18:12.119 --> 0:18:15.040 another big story this week, HP cutting up to six 0:18:15.080 --> 0:18:17.920 thousand jobs over the next three years. I know that's 0:18:17.920 --> 0:18:20.080 on the hard west side, but you know, in terms 0:18:20.119 --> 0:18:23.280 of financial discipline, in terms of reacting to the macro picture, 0:18:23.720 --> 0:18:26.639 what cost cut measures, what discipline measures are you taking? 0:18:27.400 --> 0:18:29.840 You know? The goodness is is we've always been really 0:18:30.000 --> 0:18:34.720 disciplined heading through this entire cycle. We never tried to 0:18:34.760 --> 0:18:37.520 get over our skis in terms of investing for the future. 0:18:37.920 --> 0:18:42.040 We've tried to invest prudently strategically, We've taken adjustments as 0:18:42.040 --> 0:18:44.480 we went along, if if we if we found ourselves 0:18:44.480 --> 0:18:47.960 building up headcount where we shouldn't, we adjusted as we 0:18:48.000 --> 0:18:51.200 went along. We've always done small adjustments. So we feel 0:18:51.280 --> 0:18:53.320 that we're in a really good place that we can 0:18:53.359 --> 0:18:56.240 prudently move forward. We're going to continue to invest and 0:18:56.280 --> 0:18:58.560 if there's a problem, we just turn off the hirings. 0:18:58.600 --> 0:19:03.520 Pigot okay autodes CEO Andrew Anagnosis, Real pleasure to have 0:19:03.600 --> 0:19:13.480 you of us. Thank you, welcome back to blom Bog Technology. 0:19:13.480 --> 0:19:15.439 I'm Caroline Hyde in New York and Ludlow he's over 0:19:15.480 --> 0:19:17.840 in San Francisco and end just talk to us once again. 0:19:17.880 --> 0:19:20.440 Elon Musk pulling out another rub it in the hat 0:19:20.480 --> 0:19:23.400 in terms of the Twitter saga, what's he doing now? Well, 0:19:23.640 --> 0:19:26.160 everything we've talked about has been so focused on the company, 0:19:26.240 --> 0:19:29.160 the layoffs, how the company is structured. But what about 0:19:29.200 --> 0:19:32.520 the platform? Right tweets on Wednesday, the day before Thanksgiving 0:19:33.000 --> 0:19:36.000 that activists that he appears to have had an agreement 0:19:36.040 --> 0:19:40.680 with have renewed on that bargain, on that deal, which 0:19:40.720 --> 0:19:43.800 was part of his reasoning for forming a moderation council. 0:19:43.880 --> 0:19:46.480 Go back a few weeks he talks about this Moderation 0:19:46.520 --> 0:19:49.800 Council being a wide and diverse range of voices who 0:19:49.840 --> 0:19:53.919 would make basically content moderation and policy decisions. Now, the 0:19:53.960 --> 0:19:56.400 reason I bring that up is that some key things 0:19:56.400 --> 0:19:58.600 have happened in recent days, right, and you think about 0:19:58.640 --> 0:20:01.080 the actions that have been take he can he said 0:20:01.080 --> 0:20:05.320 that he would not reinstate President Trump's Twitter account without 0:20:06.359 --> 0:20:09.399 being informed by this Moderation Council. November, he tweets the 0:20:09.400 --> 0:20:12.639 pole you see that on your screen. The majority of 0:20:12.640 --> 0:20:16.560 respondents vote in favor of reinstating Trump. So on the 0:20:16.560 --> 0:20:19.600 following day, the ninete, he does reinstate Trump, though Trump 0:20:19.640 --> 0:20:22.399 says he's not interested in returning to the platform. He's 0:20:22.440 --> 0:20:26.840 sticking with true social Fast forward November twenty two, present day, 0:20:27.160 --> 0:20:30.560 he tweets, now, what's not clear. Does that mean that 0:20:30.640 --> 0:20:33.600 Musk is done with the Moderation Council and that idea 0:20:33.680 --> 0:20:36.080 is over or does it mean it's been compromised or 0:20:36.119 --> 0:20:38.800 undermined by what most cause activists. We don't know who 0:20:38.800 --> 0:20:41.960 these activists are specifically, but it's an interesting question because 0:20:41.960 --> 0:20:45.600 now what we startin c Caroline is platform decisions, not 0:20:45.760 --> 0:20:48.680 company decisions, but things that you know they impact your 0:20:48.720 --> 0:20:51.920 and my ability, the audience's ability to use the Twitter platform, 0:20:52.200 --> 0:20:54.120 and let's just talk a little bit also about how 0:20:54.160 --> 0:20:59.520 he uses the platform himself, because it's taking a lot 0:20:59.560 --> 0:21:03.119 it would Elon Musk of his own advice on Twitter 0:21:03.160 --> 0:21:05.280 at the moment when it comes to his management style 0:21:05.320 --> 0:21:08.480