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Speaker 1: From Marhart where Innovation, Money and Power Collie in Silicon Valley, NBN.

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Speaker 2: This is Bloomberg Technology with Caroline Hide and Ed Ludlow.

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Speaker 3: I'm Caroline Heide a Bloomberg's World headquarters in New York.

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Speaker 4: Ed Ludlow is off this week.

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Speaker 3: This is Bloomberg Technology coming up in the next hour.

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Speaker 3: Wall Street eagerly awaiting in videos earnings due out tomorrow,

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Speaker 3: will we get confirmation that shares can meet the sky

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Speaker 3: high expectation set by the boom in artificial intelligence? Plus

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Speaker 3: Apple loyalists, well, they're making a U turn on the

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Speaker 3: Vision pro, some returning the device to get their thirty

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Speaker 3: five hundred dollars back.

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Speaker 4: So as the headset truly the future.

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Speaker 3: And Bitcoin it climbs for four straight weeks, which means

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Speaker 3: a record high could be in sight for the largest

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Speaker 3: digital asset. Will have more this hour, but first it's

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Speaker 3: checking on these markets and look just maybe some profit

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Speaker 3: taking ahead of another big week when you're coming to

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Speaker 3: the earnings expectations. S and P five found it actually

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Speaker 3: below that five thousand dollar level we've had a run

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Speaker 3: up in February. Are we going to be selling some

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Speaker 3: of that fact into the second half? Nasdaq off by

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Speaker 3: more than a percentage point.

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Speaker 4: Is tech get sits the most?

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Speaker 3: It's interesting that I shine like some of the Chinese

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Speaker 3: tech stocks that traded here in the US off by

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Speaker 3: almost two percent. Look the riding to the rescue in

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Speaker 3: the mortgage area, in particular the cuts to the mortgage rates,

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Speaker 3: which are meant to be propping up the property sector.

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Speaker 3: Not enough lookewarm response, and certainly the Chinese sector in

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Speaker 3: terms of tech also exemplifying that.

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Speaker 4: Move on, have a look.

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Speaker 3: At so many individual movers and what's happening in crypto. Bitcoin,

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Speaker 3: as we said, is marched higher for four straight weeks.

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Speaker 3: We're up twenty one percent over the course of this

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Speaker 3: year alone, and it is notable that we're almost at

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Speaker 3: that fifty two thousand dollars level some balls some tech

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Speaker 3: charts when you're starting to signal that we could eclipse

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Speaker 3: that sixty nine thousand dollars handle we've had in the past.

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Speaker 3: Move on and have a little look at what's happening

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Speaker 3: in the world of individual movers. And as I say, well,

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Speaker 3: on the global founderies part, we're actually to up two

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Speaker 3: point eight percent. One of the tech outperformers of the day.

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Speaker 3: Why well, because they seem to be getting yet more

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Speaker 3: funding from the government, yet more movement towards supply chain

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Speaker 3: here in the United States and some building in Malta

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Speaker 3: in particular. So we're up at fifty to four dollars

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Speaker 3: eighty six Trade desk, pulling back on what was a

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Speaker 3: rampant rise on Friday. Numbers outperformed on the Thursday night.

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Speaker 3: We saw really earnings flourish for this particular advertising company,

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Speaker 3: and well they're just taking a little bit of profit today,

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Speaker 3: having risen more than twenty percent on Friday. In VideA

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Speaker 3: also sings some profit taking. In fact, chips across the board.

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Speaker 3: We wait and we watch what will happen tomorrow when

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Speaker 3: we get those earnings. I'm so pleased to say that

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Speaker 3: our next guest can really dive into the world of

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Speaker 3: those stocks, in particular when it comes to video. Let's

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Speaker 3: go to Multi Tetaman Global Cio Nancy Curtain. Nancy, it

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Speaker 3: is great to get your perspective when you've got such

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Speaker 3: an amount of money under assets sixty seven billion dollars

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Speaker 3: and you've really seen round corners when it comes to AI, are.

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Speaker 4: You thinking we'll sell the news tomorrow? When it comes

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Speaker 4: to Video.

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Speaker 1: Well, look, Caroline, first of all, lovely to be back again.

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Speaker 1: You know, there's seven hundred and seventy one companies and

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Speaker 1: now I've seen this week, but there's really only one

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Speaker 1: that matters, isn't that? And that is in Video of

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Speaker 1: course tomorrow after the close, and there's huge expectations built in.

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Speaker 1: I mean, the stock is up nearly fifty percent, a

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Speaker 1: little bit of correction today, but the stock is nearly

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Speaker 1: up fifty percent, you know, nearly eighteen times over the

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Speaker 1: last five years. So it's been on our roll here

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Speaker 1: two hundred and thirty percent last year, and of course

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Speaker 1: last week it edged out Amazon and Alphabet in terms

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Speaker 1: of you know, a size at one point eight trillion,

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Speaker 1: expectations are high, Caroline. I think probably they'll deliver. Who knows, really,

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Speaker 1: I have no insight into that, but what I can

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Speaker 1: say is the demand for in Vidia GPU chip seems

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Speaker 1: insatiable at the moment, and I think it's going to

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Speaker 1: be more about what Jensen says about the outlook, the

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Speaker 1: growth and the product lineup as opposed to what he

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Speaker 1: actually delivers in the earning.

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Speaker 4: Are you anticipating that really?

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Speaker 3: In Video as a winners takes all kind of scenario

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Speaker 3: or do we see catch up with other chip makers

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Speaker 3: able to make inroads into GPUs.

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Speaker 1: Well, look, anytime you have a market that's projected to

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Speaker 1: grow eighteen times over the next ten years, where in

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Speaker 1: video's ghost margins or seventy percent, you're going to have competition.

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Speaker 1: And at the moment, AMD and Intel are producing chips

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Speaker 1: that bit rival in video, and of course Jensen calls

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Speaker 1: them the frenemies. Who are those Microsoft? Meta, Amazon? They're

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Speaker 1: all developing accelerator chips as well. But look, in Vidio

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Speaker 1: does not stand still. They continue actually to bring out

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Speaker 1: a lot of product releases. You know, we've got the

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Speaker 1: H two hundred, We've got the so called Blackwell code

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Speaker 1: name Blackwell, and of course we have the X one

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Speaker 1: hundred next year. And in each of these what we

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Speaker 1: expect is to see greater energy efficiency, more processing capability,

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Speaker 1: and lowering costs as well. And this is going to

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Speaker 1: be all about the volume story heading forward. But you know,

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Speaker 1: don't write off in video. They have a pretty strong

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Speaker 1: competitive mode face it. You know, in Vidia is more

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Speaker 1: than a hardware company. It's hardware and software and tools

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Speaker 1: and development and trainee modules. This is really important for

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Speaker 1: the development community Kuda. This is a very very important

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Speaker 1: competitive mode that they have certainly Visa AMD and Intel,

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Speaker 1: but also in Vidia is cloud and platform agnostics. So

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Speaker 1: that's important for enterprises. If you're developing your large language model,

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Speaker 1: may not want to be just hitched up to one

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Speaker 1: hyper scale or so. There's a lot of you know,

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Speaker 1: competitive stuff that Nvidia still has in their favorite talk about.

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Speaker 3: The hyperscalers and talk about what we've seen in terms

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Speaker 3: of alphabet for example, trying to ultimately provide from the

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Speaker 3: cloud perspective. But also when they have been offering the

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Speaker 3: competitor to Microsoft's Open AI and being searched and they're like,

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Speaker 3: have you been impressed with the way in which big

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Speaker 3: tech has been able to ensure that they're not being

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Speaker 3: innovated out by some of them will nimble stotups.

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Speaker 1: Well, I think it's really interesting, Caroline, is at the

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Speaker 1: foundation level, the layer, the digital infrastructure. This is the

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Speaker 1: home of big tech. These are billions of dollars just

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Speaker 1: a small tech. Yeah, they can't compete, right, But I

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Speaker 1: think what we're seeing is a really interesting trend, which

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Speaker 1: is big tech and small tech working together. The poster

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Speaker 1: trial for that, of course is Microsoft and open AI,

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Speaker 1: and then you've got Amazon and Anthropic. But remember last

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Speaker 1: week we saw in video reveal a whole bunch of

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Speaker 1: investments in small technology. What's going on there? That's because

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Speaker 1: they need each other. Small tech is not going to

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Speaker 1: have the kind of capital to build the foundation level,

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Speaker 1: but large tech needs the innovation coming from small tech,

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Speaker 1: the training of models in particular complex areas such as pharmaceuticals,

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Speaker 1: drug discovery, autonomous vehicles ARM. You know, this is AI

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Speaker 1: on the edge. This is AI and everything we carry

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Speaker 1: with us our phones, our tablets, the meters at home, etc.

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Speaker 1: So I think this trend of big tech and little

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Speaker 1: tech working together goes under a bit of the regulatory scrutiny,

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Speaker 1: but it's also a win win for both sides.

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Speaker 3: Finnasi as Cio. Where do you gain that exposure? You're

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Speaker 3: obviously going to be getting into the publicly traded stocks,

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Speaker 3: but where have you found alternatives when you are looking

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Speaker 3: at the private markets?

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Speaker 1: So three ways that we're looking to play this. Number one,

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Speaker 1: we've got passive s and P five hundred exposure, thank

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Speaker 1: you very much. It's very cheap so and it means

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Speaker 1: we don't underperform, which is a good thing lots of

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Speaker 1: people did last year. But the second thing is we're

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Speaker 1: adding a global tech manager because we think there's a divergence.

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Speaker 1: You know, last year was all about the Magnificent seven,

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Speaker 1: you had to own all of them. Take a look

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Speaker 1: at this year and Vidia is up nearly fifty percent,

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Speaker 1: Tesla's down twenty five Hello, So divergence in performance. We

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Speaker 1: also think there will be a broadening in the tech space.

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Speaker 1: We see with asml ARM, you know SAP by way

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Speaker 1: of example, lots of companies are going to participate as

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Speaker 1: they become part of the GENAI journey and opportunity ahead.

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Speaker 1: And we also think, you know, smart technology managers focused

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Speaker 1: on winners and losers can really think about areas that

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Speaker 1: have not been priced in. So those are two things

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Speaker 1: we're doing the public market. I talked about big tech

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Speaker 1: and little tech. We're going to play that through the

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Speaker 1: private markets because we get exposure to leading, leading venture

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Speaker 1: and growth managers that are investing in this space. And

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Speaker 1: we think that's a phenomenal opportunity because if we get

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Speaker 1: that right, those gains aren't like ten percent a year,

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Speaker 1: they're absolutely enormous potentially. So we think that's interesting. But

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Speaker 1: the final thing I'll say, Caroline is infrastructure. You know,

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Speaker 1: Jensen Satin Nadella. There's a trillion dollars of infrastructure spend

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Speaker 1: to happen in the digital space. It's not just going

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Speaker 1: to be data centers, you know, fiber optics, towers, edge

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Speaker 1: computing power, and we think infrastructure very interesting. Uncorrelated to

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Speaker 1: the equity markets, has a bit of an inflation hedge.

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Speaker 1: That's quite nice given the numbers we saw last week,

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Speaker 1: and we're under rutting that to about a ten to

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Speaker 1: twelve percent return, so we think that's pretty nice as well.

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Speaker 3: Talking diversification, i'll see Tinaman Global Cio Nancy.

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Speaker 4: Great to have you back on the show. Coming lovely

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Speaker 4: to be here. Thank you there.

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Speaker 3: Meanwhile, let's just talk about one of those Magnificent seven

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Speaker 3: that we talk about less in the world of ai though.

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Speaker 3: Apple's chief operating officer, Jeff Williams is on a reir

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Speaker 3: visit to Taiwan to celebrate the fiftieth anniversary of fox Conn.

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Speaker 3: It's a company that helped build the iPhone empire by

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Speaker 3: assembling those devices to exacting standards in factories across China. Bluwags,

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Speaker 3: Mark Gumman, Justice Now what's happening across the ball with Apple.

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Speaker 4: And how certain companies.

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Speaker 3: He wasn't the only executive to go along to this

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Speaker 3: ultimately quite rare event happening in Taiwan. Often executives don't

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Speaker 3: want to be making big, flamboyant trips like this.

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Speaker 5: Yeah, this is certainly a rare event, but like you said,

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Speaker 5: it's a very important occasion. This is the fifty year

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Speaker 5: anniversary of Apple's most important partner, and I don't even

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Speaker 5: think that's arguable. Fox con builds ninety plus percent of

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Speaker 5: the device's Apple cells, the core of the company's business,

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Speaker 5: and Jeff Williams, as the company's chief operating officer, he

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Speaker 5: really oversees that relationship, along with his top lieutenant, Sabby Kahan,

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Speaker 5: who's the senior vice president of operations. So the two

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Speaker 5: of them we've reported are in Taiwan for that fifty

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Speaker 5: year anniversary. Tim Cook, who really created that relationship a

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Speaker 5: couple of decades ago when he became Apple's head of

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Speaker 5: operations in the early two thousands, he is not there. Instead,

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Speaker 5: we're told that he sent a video message. And obviously

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Speaker 5: we're all well aware of the geopolitical challenges related to China,

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Speaker 5: and Taiwan. We're aware of the sort of the little

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Speaker 5: dance that Tim Cook and other Apple executives have to

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Speaker 5: play in terms of managing that relationship in China, and

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Speaker 5: perhaps Cook and Apple felt it was more proper for

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Speaker 5: Cook not to go to Taiwan for this event, but

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Speaker 5: rather send two of his top deputies.

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Speaker 3: And maybe he's focused in on the sales or in

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Speaker 3: terms of a certain new product that's hit the market

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Speaker 3: with Apple. You're talking about with power on this weekend.

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Speaker 5: Yeah, the Vision Pro. I mean, first of all, I

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Speaker 5: don't think Tim Cook is boarded up in a conference

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Speaker 5: room in Kupertino at Apple Park because of this. I

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Speaker 5: don't think Apple is at a crisis or anything with

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Speaker 5: the Vision Pro. But we have heard that the vision

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Speaker 5: Pro return rate is somewhere between average and above average,

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Speaker 5: depending on the store the device itself. We've had some

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Speaker 5: people complain about the bugginess of the operating system, the

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Speaker 5: battery life, and more importantly, the comfort actually being able

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Speaker 5: to wear it for long periods of time. So people

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Speaker 5: have been setting it back for that reason and why

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Speaker 5: that's interesting. Obviously, people buy Apple products and return them

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Speaker 5: all the time, but if you're buying the Vision Pro

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Speaker 5: at the current price. From the get go, it means

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Speaker 5: you're a very early adopter or a massive Apple fan.

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Speaker 6: Those are the.

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Speaker 5: People who typically are not returning your Apple products, and

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Speaker 5: so those are the people doing it this time. That's

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Speaker 5: why it's so interesting. In terms of me, I love it.

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Speaker 5: I'm continuing to use it. It's buggy, it gets uncomfortable from

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Speaker 5: time to time, but it's great for watching video. My

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Speaker 5: hope is that it gets better soon. I don't anticipate

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Speaker 5: the bugs really dropping into a big Vision OS update.

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Speaker 5: That's the operating system till the fall, but I am

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Speaker 5: banking on some improvements and they're not two distant future.

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Speaker 4: This is version one.

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Speaker 3: Mark Gumman, we thank you so much for bringing us

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Speaker 3: all across the board of things.

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Speaker 4: Apple.

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Speaker 7: Bitcoin is the exit strategy. It is the strongest asset.

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Speaker 7: So what we see right now is the bitcoin is

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Speaker 7: just emerged as a trillion dollar asset class, and it's

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Speaker 7: alongside names like Apple and Google and Microsoft. But the

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Speaker 7: difference between Bitcoin and the Magnificent seven is Bitcoin's an

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Speaker 7: asset class.

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Speaker 2: It's not a company.

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Speaker 7: There's not enough room in the capital structure of those

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Speaker 7: companies to hold ten trillion or one hundred trillion dollars

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Speaker 7: worth of capital.

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Speaker 3: Of course, that was micro Strategy chairman co founder Sailor

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Speaker 3: there of course pretty long bitcoin. His comments come off

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Speaker 3: Bitcoin's recent rally to fifty two thousand dollars, It's price

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Speaker 3: actually tripling since the start of twenty twenty three, and

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Speaker 3: now what Bitcoin might even retest a new record high

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Speaker 3: according to some technical analysis. Now consider this, The rally

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Speaker 3: includes four straight weeks of increases through February eighteenth, and

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Speaker 3: according to data compiled by Bloomberg, in the past five years,

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Speaker 3: the cryptocurrency has climbed on average almost fifty percent over

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Speaker 3: three months after following a four week winning run that

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Speaker 3: would take bitcoin two or seventy eight thousand dollars or thereabouts. Now,

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Speaker 3: let's move away from just price points to get a

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Speaker 3: read on where people are putting money to work in

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Speaker 3: VC and flowing into the wider crypto space. Right now,

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Speaker 3: despite last year's downturn, the crypto focused firm hack vc

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Speaker 3: is actually just managed to raise one hundred and fifty

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Speaker 3: million dollar fund dedicated to the digital asset industry. Let's

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Speaker 3: bringing Alex pack On, co founder and managing partner of

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Speaker 3: hack vc, and this isn't your first time raising money

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Speaker 3: and you've raised two hundred million in the past. This

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Speaker 3: is sort of a follow on for what part of

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Speaker 3: the ecosystem and what size of companies, what kind of

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Speaker 3: problems do you want to see fixed here?

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Speaker 8: Yeah, thank you for having me on. Yeah, it was

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Speaker 8: a bit of a challenging fundraising environment now versus prior years,

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Speaker 8: of course, but for us, we're hyper focused on early

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Speaker 8: stage Web three venture capital. I know web three also

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Speaker 8: is maybe a word that isn't as common on this

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Speaker 8: program than in the last few years. But the thing

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Speaker 8: that excites us the most is basically this sort of

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Speaker 8: duality in our industry where on the one hand, we've

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Speaker 8: been in sort of this prolonged bear market for a

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Speaker 8: couple of years, but we're starting to see all this

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Speaker 8: upswing in terms of prices and surge of interest from

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Speaker 8: the ETF inflows regulatory clarity around the world. But the

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Speaker 8: thing that excites us the most is that fundamental usage

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Speaker 8: is still growing and still doing really well. So there's

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Speaker 8: millions of people using blockchains and using Web three around

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Speaker 8: the world, and stable coins are a real killer use case,

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Speaker 8: so they're a highlight and our job is to invest

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Speaker 8: and goals to invest in sort of the infrastructure that's

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Speaker 8: being built right now that can catabult these use cases

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Speaker 8: to the mainstream over a multi year period.

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Speaker 3: Might surprise you to know that we do have the

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Speaker 3: odd person on talking Web three from time to time,

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Speaker 3: and a lot of them in your portfolios or indeed

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Speaker 3: some unicorns that you've backed in the previous ye is Alex.

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Speaker 3: The reason we turn to you is because you do

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Speaker 3: have experience, You have back some winners. I think of Avalanche,

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Speaker 3: I think of what's happening with DYDX, I think of

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Speaker 3: some of the protocols that you've been back in, and

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Speaker 3: indeed some of the intersections of Web three and crypto

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Speaker 3: and DeFi and ultimately artificial intelligence. How are you thinking

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Speaker 3: about access to compute now when you're backing companies like

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Speaker 3: crusocloud or a jasper AI.

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Speaker 4: When it comes to application of generative AI, yep.

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Speaker 8: It's a probably multi trillion dollar topic right now.

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Speaker 2: So I think broadly, where.

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Speaker 8: We are in the space is sort of like the

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Speaker 8: mid nineties equivalent of where the Internet was is where

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Speaker 8: we are in crypto today, which is to say, like

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Speaker 8: a lot of users and a lot of things happening,

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Speaker 8: but the experience of using crypto is really poor.

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Speaker 9: From an infrastructure perspective.

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Speaker 8: There are it's like slow, it's insecure, there's packs happening

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Speaker 8: all the time, and steps and things like that. And

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Speaker 8: then the one that you're the area you're talking about,

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Speaker 8: which I think is really huge too, is this question

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Speaker 8: about how web three can help support AI and the reverse.

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Speaker 8: What web three does really really well is it provides

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Speaker 8: like democratized access to when it comes to bitcoin or DeFi,

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Speaker 8: provides democratized access to financial services, and people around the

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Speaker 8: world can get access to dollars and lending and things

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Speaker 8: like that. But the other thing it does really well

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Speaker 8: is democratize access to resources, right, And so one area

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Speaker 8: that's really interesting in crypto AI specifically is this opportunity

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Speaker 8: to basically provide AI compute like GPUs, you know, hiring

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Speaker 8: the chip stack to AI startups and AI developers around

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Speaker 8: the world. That's something that blockchains are great at. There's

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Speaker 8: already several multi billion dollar companies in the blockchain industry

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Speaker 8: like Crusoe Cloud which is in our Extended Portfolio portfolio,

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Speaker 8: and core Weave a few others that are basically big.

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Speaker 8: They started as bitcoin mining companies that and they provided

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Speaker 8: cheap compute, and it was also very climate friendly. You

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Speaker 8: would get compute and entered, you would get energy from

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Speaker 8: like in a very cheap way from Exon and Chevron

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Speaker 8: that was being wasted and you would use it to

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Speaker 8: provide power that would support like the bitcoin ecosystem and mining.

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Speaker 8: But now a lot of these companies are also providing

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Speaker 8: AI compute and it's democratized, so we can live in

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Speaker 8: a world now, I hope once it's successful where it's

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Speaker 8: not just open Ai and Microsoft that hog all the

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Speaker 8: AI compute and the GPUs.

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Speaker 3: Some pivoting there and some app pivoting. Alex It's great

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Speaker 3: to have some time with you, of course, back by

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Speaker 3: Sekoe Capital Fidelity, Marc Andreesen. It's great to have some

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Speaker 3: time with you on the new fund, co founder managing

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Speaker 3: partner over at hack VC. Meanwhile, coming up that we're

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Speaker 3: going to dive into all the news coming out of

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Speaker 3: well another KEYVC player, soft Bang. Of course with the

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Speaker 3: Vision Fund, we'll get into that. Meanwhile, watching shares of Ford. Now,

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Speaker 3: keep an eye on the price points of evs. We're

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Speaker 3: talking Mac three here, we're talking about what's happening with

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Speaker 3: Ford having to cut the cost ultimately of their Mustang

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Speaker 3: version of the EV. And this is all as we

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Speaker 3: see sales really being pulled back an EV, but also

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Speaker 3: the supply really ramping up in terms of inventory, so

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Speaker 3: Ford slashing the price of its electric Mustang Mustang the

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Speaker 3: Mac E after sales plunged.

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Speaker 4: It's a bluemotechnology.

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Speaker 3: Time now for talking tech, And first up, it's a

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Speaker 3: coalition of international law enforcement agencies, including the FBI the

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Speaker 3: UK National Crime Agency that have said they have disrupted

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Speaker 3: a lot bit one of the most prolific hacker groups

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Speaker 3: of all time, including shunning down websites the organization used

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Speaker 3: for some ransomware payments. Meanwhile, EU regulators announced a formal

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Speaker 3: investigation into TikTok's alleged failure to protect miners who use

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Speaker 3: the video sharing platform, which could result in some heavy

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Speaker 3: penalties for TikTok owner bike Dance. EU Internal Market Commissioner

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Speaker 3: Tierre Breton announced that the social media platform will face

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Speaker 3: a formal investigation under the.

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Speaker 4: Blocks of Flagship Digital Services Act, which.

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Speaker 3: Empowers regulators to levy fines of as much as six

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Speaker 3: percent of annual sales or ban repeat offenders from the

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Speaker 3: EU plus SoftBank Vision Fund. America's managing partner, Lydia Jet

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Speaker 3: is leading the investment firm.

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Speaker 4: According to sources.

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Speaker 3: Now Jet has represented SoftBank on boards of we of Fanatics,

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Speaker 3: a flip Card, of Coupang, among some other companies. There's

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Speaker 3: a lot of news surrounding SoftBank at the moment, and

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Speaker 3: let's go to the parent company now. The founder, Masayoshi

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Speaker 3: Son is considering the creation of a one hundred billion

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Speaker 3: dollar chip venture that would supply AI enabling semiconductors. Interesting

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Speaker 3: thing is where he's doing this and who with bloemmegs

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Speaker 3: alex Web has a story and we should perhaps have

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Speaker 3: no surprise at SoftBank, having taken money from Saudi Arabia

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Speaker 3: into the Vision Fund, is equally willing to build a

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Speaker 3: new chip reality with the country too.

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Speaker 10: Yeah, it's obviously a huge opportunity when it comes to investments.

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Speaker 10: Saladi's are sitting on a huge amount of capital. They're

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Speaker 10: trying to, of course, diversify their economy away from oil.

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Speaker 10: This is not news. The fact is that you have

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Speaker 10: to wonder whether Saudi's are once bitten twice shy in

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Speaker 10: terms of the money they put into the Vision Fund

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Speaker 10: and that fund didn't seem to deliver quite as much

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Speaker 10: as it promised from day one. But at the same time,

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Speaker 10: we are still seeing Saldi plowerhead with efforts to bolster

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Speaker 10: their domestic manufacturing efforts. Whether this chip chip venture that

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Speaker 10: you know, Bloomberg sources report mass Yoshi Sona is exploring

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Speaker 10: with some vigor whether that forms part of it will

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Speaker 10: be fascinating given the requirements of to manufacture such a

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Speaker 10: thing in terms of intellectual resources, people, you need to

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Speaker 10: actually set up these sort of fabs.

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Speaker 4: It's interesting because we've had a lot of reporting that.

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Speaker 3: Of course, one Samultman has been going back and forth

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Speaker 3: to the Middle East and indeed to Massily or She's

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Speaker 3: un discussing the future of chip making and manufacturing.

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Speaker 4: Saudi Arabia has.

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Speaker 3: What one hundred billion dollars in terms of an investment firm.

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Speaker 3: They have a load of deals that they're announcing and

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Speaker 3: one hundred and fifty million with soft Bank is going

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Speaker 3: to be into what fully automated manufacturing. What sort of

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Speaker 3: focus can we see coming from Saudi Arabia.

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Speaker 10: So we hear talk of this, and that's what's been

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Speaker 10: announced just recently that they are building a new sort

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Speaker 10: of one hundred billion. Well, they're building a new manufacturing

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Speaker 10: and research and development conurbation. Essentially much of that is

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Speaker 10: likely to be in slightly old school manufacturing things like cars,

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Speaker 10: Lucid motors, right in the middle of Saudi's manufacturing ambitions, alex.

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Speaker 4: Web with all the inside. Such a global story. We

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Speaker 4: thank you. Email coming up.

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Speaker 3: We're going to continue to do again to what earnings

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Speaker 3: mean for more broadly the market. This is Blue meg Technology.

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Speaker 3: Welcome back to BLUEMG Technology. I'm Karen Hide in New

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Speaker 3: York and Ludlow he's off this week. Let's get a

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Speaker 3: quick check in on these markets because we're seeing a

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Speaker 3: little bit of profit taking, perhaps as we anticipate FED speak,

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Speaker 3: as we anticipate FED minutes come Wednesday, but also the

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Speaker 3: micro is becoming macro here, and we anticipating earnings from

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Speaker 3: Nvidia weight with bited breath as to where they can

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Speaker 3: live up.

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Speaker 4: To the high expectations.

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Speaker 3: NASDAK is currently off by a percentage point. Tenure yeld

435
00:22:34,720 --> 00:22:37,000
Speaker 3: just down about three basis points. We're still training in

436
00:22:37,000 --> 00:22:39,480
Speaker 3: that four point two five let's call it on the

437
00:22:39,520 --> 00:22:41,480
Speaker 3: tenure for that sort of a handle. Bitcoin actually just

438
00:22:41,480 --> 00:22:42,919
Speaker 3: coming down a little bit, but only a tiny bit,

439
00:22:42,920 --> 00:22:45,040
Speaker 3: by three tens percent. We're still near that fifty two

440
00:22:45,040 --> 00:22:48,240
Speaker 3: thousand dollars level, having exceeded it recently. Move on and

441
00:22:48,240 --> 00:22:50,640
Speaker 3: look at some of the micro pictures, because in factually,

442
00:22:50,800 --> 00:22:52,560
Speaker 3: across the board it feels that we're seeing some profit

443
00:22:52,680 --> 00:22:55,240
Speaker 3: taking today, whether it be in Nvidia as an individual

444
00:22:55,320 --> 00:22:57,720
Speaker 3: name off by five point six percent, but remember it's

445
00:22:57,760 --> 00:22:59,880
Speaker 3: tripled since the beginning of twenty twenty three in terms

446
00:22:59,920 --> 00:23:02,520
Speaker 3: of market capitalization. But the socks more broadly, of course,

447
00:23:02,560 --> 00:23:05,880
Speaker 3: the Philadelphia Semiconductor Index is actually seeing its worst day

448
00:23:05,880 --> 00:23:07,760
Speaker 3: since the end of January, as we see just chip

449
00:23:07,800 --> 00:23:10,520
Speaker 3: makers fall across the board, AMDs on the downside as well.

450
00:23:10,680 --> 00:23:12,840
Speaker 3: The only one out performing is Global Founderies after its

451
00:23:12,840 --> 00:23:15,160
Speaker 3: recent deal to build more manufacturing here in the US.

452
00:23:15,359 --> 00:23:18,280
Speaker 4: But let's just talk about what micro is macro.

453
00:23:18,400 --> 00:23:21,040
Speaker 3: How much we are all focused on whether the AI

454
00:23:21,160 --> 00:23:23,600
Speaker 3: hype is real, particularly around in Vidia. I'm so please

455
00:23:23,600 --> 00:23:25,359
Speaker 3: to say Liz Young is with us so far ahead

456
00:23:25,359 --> 00:23:27,440
Speaker 3: of investment strategy, and I mean, is.

457
00:23:27,400 --> 00:23:28,399
Speaker 4: It all about in Vidia?

458
00:23:28,480 --> 00:23:30,760
Speaker 3: Do we sort of care much about the FED when

459
00:23:30,800 --> 00:23:32,760
Speaker 3: we come to more of a focus on AI right now?

460
00:23:34,040 --> 00:23:36,040
Speaker 11: Well, I think we always care about the FED, and

461
00:23:36,400 --> 00:23:38,919
Speaker 11: last week was a good indication of that. We're starting

462
00:23:38,920 --> 00:23:41,359
Speaker 11: to see the data stack up in a way that

463
00:23:41,440 --> 00:23:44,120
Speaker 11: says inflation maybe isn't solved entirely.

464
00:23:44,160 --> 00:23:45,480
Speaker 9: And now we've pushed.

465
00:23:45,280 --> 00:23:47,920
Speaker 11: That first cut back to June, so markets are trying

466
00:23:47,960 --> 00:23:50,680
Speaker 11: to grapple with the idea that the cutting cycle might

467
00:23:50,760 --> 00:23:54,880
Speaker 11: start later than we originally anticipated. But this week number one,

468
00:23:54,880 --> 00:23:57,400
Speaker 11: there isn't a whole ton of macro data, at least

469
00:23:57,400 --> 00:24:00,479
Speaker 11: not loud macro data for the market to queue off of.

470
00:24:00,760 --> 00:24:03,600
Speaker 11: And in videos, earnings are going to be the story

471
00:24:03,600 --> 00:24:06,639
Speaker 11: that we all anticipate and wait with baited breath, like

472
00:24:06,680 --> 00:24:09,919
Speaker 11: you said, to find out. The risk that I see

473
00:24:09,960 --> 00:24:13,119
Speaker 11: in this and not necessarily in the company itself, but

474
00:24:13,200 --> 00:24:15,159
Speaker 11: the risk that I see in this is that in

475
00:24:15,200 --> 00:24:19,399
Speaker 11: twenty twenty three we had such concentrated performance, and so

476
00:24:19,520 --> 00:24:21,400
Speaker 11: far in twenty twenty four, we've.

477
00:24:21,240 --> 00:24:22,639
Speaker 9: Had a lot of the same.

478
00:24:22,920 --> 00:24:25,320
Speaker 11: We've had a few fake outs of broadening out in

479
00:24:25,359 --> 00:24:27,879
Speaker 11: the market that you've got things like small caps that

480
00:24:27,960 --> 00:24:30,639
Speaker 11: can't quite get above a certain level. We've seen some

481
00:24:30,800 --> 00:24:34,200
Speaker 11: sectors broaden out, but others not participate yet. And we've

482
00:24:34,200 --> 00:24:37,920
Speaker 11: seen that Magnificent seven turn into more of the Magnificent four.

483
00:24:38,080 --> 00:24:42,480
Speaker 11: So the concentrated performance is still present. And the risk

484
00:24:42,520 --> 00:24:45,040
Speaker 11: that you have when we have so much attention on

485
00:24:45,040 --> 00:24:48,040
Speaker 11: one name is that the entire industry group or the

486
00:24:48,200 --> 00:24:51,520
Speaker 11: entire sector ends up trading just based off of what

487
00:24:51,640 --> 00:24:53,560
Speaker 11: might happen in that one name. Now, that could be

488
00:24:53,600 --> 00:24:56,600
Speaker 11: good or bad in the short term, but it does

489
00:24:56,760 --> 00:25:01,160
Speaker 11: present another type of concentrated risk to investors that are

490
00:25:01,160 --> 00:25:04,400
Speaker 11: invested in whether it's semiconductors or the AI theme.

491
00:25:04,840 --> 00:25:08,919
Speaker 3: Okay, lis So being that diversification is basically everything, do

492
00:25:08,960 --> 00:25:13,800
Speaker 3: you diversify within where AI can propel, either it's application

493
00:25:13,840 --> 00:25:16,680
Speaker 3: in different industry groups or indeed the picks and the

494
00:25:16,680 --> 00:25:18,760
Speaker 3: shovels we're talking to Nancy Curtain a little bit earlier

495
00:25:18,800 --> 00:25:21,119
Speaker 3: about ultimately the infrastructure spending that's going to happen here

496
00:25:21,119 --> 00:25:22,440
Speaker 3: in the US, or do you have to get out

497
00:25:22,440 --> 00:25:24,760
Speaker 3: of the section and just sink diversification more broadly in

498
00:25:24,800 --> 00:25:25,760
Speaker 3: other industry groups.

499
00:25:27,080 --> 00:25:29,360
Speaker 11: Well, it's a tough conversation. It's a good question because

500
00:25:29,400 --> 00:25:32,720
Speaker 11: it's a tough conversation to have with investors today when

501
00:25:32,920 --> 00:25:36,480
Speaker 11: really the experience they've had is that diversification hasn't worked

502
00:25:36,600 --> 00:25:39,359
Speaker 11: right they've had concentrated performance, and if you were in

503
00:25:39,440 --> 00:25:41,920
Speaker 11: the right names, you would have done better than if

504
00:25:41,960 --> 00:25:44,880
Speaker 11: you were in a diversified portfolio of stocks. So it's

505
00:25:44,880 --> 00:25:48,440
Speaker 11: a difficult thing to convince people of today. But when

506
00:25:48,640 --> 00:25:50,760
Speaker 11: you invest in a theme, and this is just broadly

507
00:25:50,800 --> 00:25:53,000
Speaker 11: how I approach themes and what I would say as

508
00:25:53,000 --> 00:25:55,560
Speaker 11: a principle of investing, just the way that I think

509
00:25:55,600 --> 00:25:58,200
Speaker 11: about it, When you invest in a theme, and AI

510
00:25:58,359 --> 00:26:01,640
Speaker 11: is a theme today, one you have to expect that

511
00:26:01,640 --> 00:26:04,320
Speaker 11: that theme is going to take two to five years,

512
00:26:04,440 --> 00:26:07,760
Speaker 11: maybe even longer, to really come to fruition, to really

513
00:26:07,800 --> 00:26:11,000
Speaker 11: mature into what we're expecting it to be. And over

514
00:26:11,040 --> 00:26:14,680
Speaker 11: that timeframe, things are going to change. So the way

515
00:26:14,720 --> 00:26:16,600
Speaker 11: that we see the theme today, the way that we're

516
00:26:16,600 --> 00:26:20,840
Speaker 11: expecting things to be optimistic about that particular theme today.

517
00:26:20,640 --> 00:26:22,000
Speaker 9: Are probably going to morph.

518
00:26:22,000 --> 00:26:24,800
Speaker 11: And you can compare it to something like the Internet

519
00:26:25,119 --> 00:26:29,040
Speaker 11: in the late nineties early two thousands. The original way

520
00:26:29,080 --> 00:26:31,880
Speaker 11: that we expected the Internet to be profitable and exciting

521
00:26:32,119 --> 00:26:33,880
Speaker 11: was not actually how it ended up being.

522
00:26:33,960 --> 00:26:36,480
Speaker 9: Later, or at the very least, there were other things

523
00:26:36,480 --> 00:26:39,040
Speaker 9: that were born out of that Internet boom. Right, we

524
00:26:39,040 --> 00:26:41,040
Speaker 9: didn't know that e commerce would be a big thing.

525
00:26:41,119 --> 00:26:43,399
Speaker 9: We didn't know that ad spending would be.

526
00:26:43,440 --> 00:26:45,800
Speaker 11: A big thing for all these companies, So that same

527
00:26:46,119 --> 00:26:49,199
Speaker 11: thing is likely to happen with the AI theme. So

528
00:26:49,760 --> 00:26:52,119
Speaker 11: I would suggest when you're investing in a theme, I

529
00:26:52,160 --> 00:26:55,479
Speaker 11: would suggest investing in it in a diversified way, and

530
00:26:55,520 --> 00:26:57,960
Speaker 11: then keeping in mind that the timeframe for a theme

531
00:26:58,359 --> 00:27:01,080
Speaker 11: is much longer than one year, and right now I

532
00:27:01,119 --> 00:27:03,680
Speaker 11: think we're queuing off of really short term periods.

533
00:27:03,880 --> 00:27:06,080
Speaker 3: And Liz, what's so great about having a voice on

534
00:27:06,240 --> 00:27:09,320
Speaker 3: is that we all can get very myopic about equities.

535
00:27:09,800 --> 00:27:12,800
Speaker 3: This is different asset classes that gain us exposure as well.

536
00:27:12,800 --> 00:27:14,840
Speaker 3: How many of your clients are asking you, well, what

537
00:27:14,880 --> 00:27:16,639
Speaker 3: about the bond market exposure? I can get hit what

538
00:27:16,680 --> 00:27:18,440
Speaker 3: about corporate Bod's not just US treasuries.

539
00:27:19,600 --> 00:27:23,680
Speaker 11: Yeah, that's another good thing to think about that. Obviously,

540
00:27:23,720 --> 00:27:26,320
Speaker 11: over the last three years or even just since the pandemic,

541
00:27:26,359 --> 00:27:28,640
Speaker 11: equities have taken center stage, and there's been a lot

542
00:27:28,640 --> 00:27:31,280
Speaker 11: of juicy stories about things that have happened in the

543
00:27:31,280 --> 00:27:35,159
Speaker 11: equity market, meme stocks, AI, the Magnificent seven. I mean,

544
00:27:35,160 --> 00:27:38,400
Speaker 11: the list goes on and on. But the thing that's

545
00:27:38,400 --> 00:27:40,840
Speaker 11: happened in the last year, because rates are higher than

546
00:27:40,840 --> 00:27:44,040
Speaker 11: they've been in forty years. People started to wake up

547
00:27:44,119 --> 00:27:46,879
Speaker 11: to the fact that, oh, maybe treasury bonds are not

548
00:27:46,960 --> 00:27:49,520
Speaker 11: as boring as I thought they were. Maybe it's okay

549
00:27:49,560 --> 00:27:52,400
Speaker 11: to sit in something and get paid well, I wait,

550
00:27:52,560 --> 00:27:55,560
Speaker 11: get paid a dividend, get paid a coupon, and realizing

551
00:27:55,600 --> 00:27:59,119
Speaker 11: that maybe there's even capital appreciation opportunity in some of

552
00:27:59,160 --> 00:28:02,080
Speaker 11: those spaces that seemed so boring and vanilla before.

553
00:28:02,720 --> 00:28:04,240
Speaker 9: The thing that I would warn people about.

554
00:28:04,280 --> 00:28:06,399
Speaker 11: Though, I do think that there's good opportunity in the

555
00:28:06,480 --> 00:28:09,000
Speaker 11: treasury market, particularly on the shorter end of the curve.

556
00:28:09,440 --> 00:28:12,280
Speaker 11: But I think yield volatility is here to stay for

557
00:28:12,359 --> 00:28:15,400
Speaker 11: a while, especially while we sit through this period where

558
00:28:15,400 --> 00:28:17,920
Speaker 11: we cannot figure out when the FED is going to cut,

559
00:28:18,160 --> 00:28:20,800
Speaker 11: and it continues to be more and more volatile every day.

560
00:28:21,000 --> 00:28:24,600
Speaker 11: I'd also point to some of the relationships on days,

561
00:28:24,640 --> 00:28:27,560
Speaker 11: at least in twenty twenty four. So far, the relationships

562
00:28:27,560 --> 00:28:30,200
Speaker 11: aren't working the way that we would expect today. Yields

563
00:28:30,200 --> 00:28:32,920
Speaker 11: are down, the Nasdaq is also taking it on the chin,

564
00:28:33,320 --> 00:28:36,439
Speaker 11: so are small caps. You'd usually expect the opposite, So

565
00:28:36,840 --> 00:28:39,840
Speaker 11: there is still risk out there. Investors are obviously waiting

566
00:28:39,880 --> 00:28:42,280
Speaker 11: and looking around a corner for something that might come

567
00:28:42,320 --> 00:28:45,480
Speaker 11: out of left field and shock them, and I would

568
00:28:45,520 --> 00:28:48,280
Speaker 11: tell people to invest with that mentality.

569
00:28:48,960 --> 00:28:50,960
Speaker 3: So if I head of investment strategy, so I love

570
00:28:50,960 --> 00:28:53,240
Speaker 3: having you on the show. Thank you, Lizzy Young, Thank

571
00:28:53,240 --> 00:28:55,160
Speaker 3: you a good rest of the week. Meanwhile, let's talk

572
00:28:55,160 --> 00:28:58,719
Speaker 3: about Tinder for a moment. It's expanding its identity verification program.

573
00:28:58,760 --> 00:29:01,200
Speaker 3: With crime on dating apps on the rise, and of

574
00:29:01,240 --> 00:29:04,360
Speaker 3: course artificial intelligence actually making it more and more difficult.

575
00:29:04,120 --> 00:29:06,440
Speaker 4: To figure out who's real who's fake.

576
00:29:06,720 --> 00:29:09,160
Speaker 3: The dating platform will roll out the system in the

577
00:29:09,240 --> 00:29:11,560
Speaker 3: US and the UK, Brazil and Mexico over the coming

578
00:29:11,600 --> 00:29:14,040
Speaker 3: weeks and months. It's already been testing the feature in

579
00:29:14,080 --> 00:29:16,960
Speaker 3: Australia and New Zealand, where verified users get this a

580
00:29:17,040 --> 00:29:21,320
Speaker 3: sixty seven percent increase in matches compared to those who weren't.

581
00:29:21,840 --> 00:29:23,680
Speaker 3: Coming up, we're going to discuss the latest in the

582
00:29:23,760 --> 00:29:26,880
Speaker 3: VC space. Portage partner Stephanie Chu is going to be

583
00:29:26,880 --> 00:29:28,440
Speaker 3: on with us, and in fact, she's got a real

584
00:29:28,560 --> 00:29:31,520
Speaker 3: laser focus on all things fintech. Well, here's a fintech

585
00:29:31,560 --> 00:29:35,040
Speaker 3: flavor for you. Big deal happening and it is big,

586
00:29:36,080 --> 00:29:39,840
Speaker 3: enormously moving Discover Financial. We're up fourteen percent Capital One

587
00:29:39,960 --> 00:29:42,800
Speaker 3: agreeing to buy Discover Financial Services and the thirty five

588
00:29:42,800 --> 00:29:44,800
Speaker 3: billion dollar all stock deal. It's going to create the

589
00:29:44,840 --> 00:29:48,120
Speaker 3: largest US credit card company by loan volume. And the

590
00:29:48,200 --> 00:29:50,800
Speaker 3: kicker is the CEO of Capital One, seventy three year

591
00:29:50,840 --> 00:29:53,520
Speaker 3: old Richard Fairbanks, saying this is a singular opportunity to

592
00:29:53,520 --> 00:29:56,640
Speaker 3: bring together two companies that can compete.

593
00:29:56,120 --> 00:29:58,880
Speaker 4: In the largest payment networks. This is blumbag technology.

594
00:30:11,240 --> 00:30:13,719
Speaker 3: Time to turn to the VC space, starting with and

595
00:30:13,800 --> 00:30:17,320
Speaker 3: Recent Horowitz, because well, this firm has up the anteam

596
00:30:17,360 --> 00:30:19,320
Speaker 3: when it comes to lobbying in Washington to help the

597
00:30:19,360 --> 00:30:22,520
Speaker 3: defense focused startups it invests in particular. Now, last year,

598
00:30:22,520 --> 00:30:25,280
Speaker 3: according to disclosures, the firm spent almost one million dollars

599
00:30:25,280 --> 00:30:28,040
Speaker 3: on lobbying. It's first official spending on it and easily

600
00:30:28,120 --> 00:30:30,600
Speaker 3: the most paid out by a VC firm.

601
00:30:30,840 --> 00:30:33,040
Speaker 4: Let's bring in Bloomberg's Anda Juton for more on this.

602
00:30:33,200 --> 00:30:35,960
Speaker 3: And I love your story with the zette because you

603
00:30:36,000 --> 00:30:38,880
Speaker 3: go into the details of Espresso Martini's being sipped on

604
00:30:39,040 --> 00:30:43,600
Speaker 3: branded glasses while they sort of talk with various lawmakers

605
00:30:43,640 --> 00:30:46,840
Speaker 3: and their startups and on what has and Resent Horowitz

606
00:30:46,880 --> 00:30:49,880
Speaker 3: been doing that's different from other venture Well, you know.

607
00:30:49,960 --> 00:30:52,480
Speaker 12: It's not just different than other venture affirms, but also

608
00:30:52,520 --> 00:30:55,240
Speaker 12: different than other industries and other tech companies because a

609
00:30:55,240 --> 00:30:57,040
Speaker 12: lot of industries lobby in Washington, a lot.

610
00:30:57,000 --> 00:30:59,040
Speaker 6: Of people are kind of walking in the quarridors of

611
00:30:59,120 --> 00:31:00,400
Speaker 6: power in Washington in DC.

612
00:31:00,880 --> 00:31:03,040
Speaker 12: What's different about this is that it's not just the

613
00:31:03,080 --> 00:31:07,000
Speaker 12: companies themselves that are developing their relationships with lawmakers, it's.

614
00:31:06,840 --> 00:31:08,160
Speaker 6: Their financial backers.

615
00:31:08,200 --> 00:31:12,160
Speaker 12: So you see this American dynamism practice from Andres and

616
00:31:12,200 --> 00:31:15,640
Speaker 12: Horst really trying to kind of create a culture in Washington,

617
00:31:15,720 --> 00:31:19,480
Speaker 12: d C. That is optimistic about technology that will benefit

618
00:31:19,520 --> 00:31:22,920
Speaker 12: their investments. So a really kind of interesting strategy from

619
00:31:23,240 --> 00:31:24,760
Speaker 12: these companies' financial backers.

620
00:31:25,040 --> 00:31:29,600
Speaker 3: And given the manifesto published across social media at the

621
00:31:29,720 --> 00:31:31,480
Speaker 3: end of last year by Mark Andrews, and we should

622
00:31:31,480 --> 00:31:35,040
Speaker 3: perhaps be unsurprising that he is really optimistic and probably

623
00:31:35,120 --> 00:31:37,880
Speaker 3: slightly bored of all the pulling up in front of

624
00:31:37,960 --> 00:31:40,240
Speaker 3: Congress of prior bets that he's made, particularly when it

625
00:31:40,240 --> 00:31:40,600
Speaker 3: comes to.

626
00:31:40,560 --> 00:31:41,560
Speaker 4: Social media and the like.

627
00:31:41,600 --> 00:31:44,440
Speaker 3: But ultimately, what do they want out of these government discussions.

628
00:31:44,520 --> 00:31:46,960
Speaker 3: Is it a light to touch regulation. Is it an

629
00:31:47,040 --> 00:31:49,400
Speaker 3: understanding of who the players are at this time that

630
00:31:49,480 --> 00:31:53,320
Speaker 3: can make us more competitive in a new geopolitical landscape.

631
00:31:54,160 --> 00:31:55,400
Speaker 6: Yeah, it's really a few things.

632
00:31:55,440 --> 00:31:57,400
Speaker 12: You know, they're almost, like I said, trying to create

633
00:31:57,440 --> 00:31:59,880
Speaker 12: like a new culture in Washington, d C. That's part

634
00:31:59,880 --> 00:32:03,120
Speaker 12: of about technology EU seeing the so called tech lash

635
00:32:03,120 --> 00:32:06,280
Speaker 12: where you have lawmakers of both parties really being suspicious

636
00:32:06,280 --> 00:32:09,719
Speaker 12: to some of the consumer brands like Google, Meta, Apple,

637
00:32:09,800 --> 00:32:10,480
Speaker 12: and Amazon.

638
00:32:10,680 --> 00:32:13,160
Speaker 6: But what we have now is kind of smaller.

639
00:32:13,480 --> 00:32:17,600
Speaker 12: Defense minded startups in some cases kind of you know,

640
00:32:17,680 --> 00:32:21,760
Speaker 12: advanced manufacturing and other cases companies that are actually building stuff,

641
00:32:21,960 --> 00:32:25,160
Speaker 12: that are doing things, you know, using technology, using innovation

642
00:32:25,480 --> 00:32:27,400
Speaker 12: in a way that could benefit US.

643
00:32:27,280 --> 00:32:29,680
Speaker 6: National defense and domestic economy.

644
00:32:29,920 --> 00:32:32,920
Speaker 12: So that's really where Andrews and Horowitz has focused as

645
00:32:32,960 --> 00:32:36,480
Speaker 12: American Dynamism Practice, and they're trying to kind of change

646
00:32:35,960 --> 00:32:40,040
Speaker 12: the calculation in Washington that technology is not something to

647
00:32:40,080 --> 00:32:43,480
Speaker 12: be regulated, something to be feared, something to be hauled

648
00:32:43,480 --> 00:32:46,040
Speaker 12: in to Congress, like you said, to testify in front

649
00:32:46,040 --> 00:32:48,560
Speaker 12: of committees. But it's something to be celebrated and something

650
00:32:48,600 --> 00:32:52,200
Speaker 12: to be used as a national advantage. And that's something

651
00:32:52,200 --> 00:32:55,560
Speaker 12: we see especially in relation to the competition with China

652
00:32:55,600 --> 00:32:57,880
Speaker 12: and things like AI kind of computing. You know, some

653
00:32:57,920 --> 00:33:01,160
Speaker 12: of these you know cutting edge technologies that will really

654
00:33:01,200 --> 00:33:04,200
Speaker 12: shape the economy and the geopolitics of the future.

655
00:33:04,840 --> 00:33:08,640
Speaker 3: Healthy sprinkling of space to Anna Edgerton, brilliant story.

656
00:33:08,720 --> 00:33:11,280
Speaker 4: Go read it dot com. We thank you so much.

657
00:33:11,680 --> 00:33:14,240
Speaker 3: Meanwhile, let's stick with the world of VC and perhaps

658
00:33:14,520 --> 00:33:16,760
Speaker 3: while where regulators may or may not be playing when

659
00:33:16,760 --> 00:33:18,280
Speaker 3: it comes to big M and A in the world

660
00:33:18,320 --> 00:33:18,760
Speaker 3: of fintech.

661
00:33:18,760 --> 00:33:19,280
Speaker 4: I'm please to.

662
00:33:19,240 --> 00:33:21,800
Speaker 3: Welcome to the show Stephanie Chew for today's VC Spotlight,

663
00:33:21,840 --> 00:33:25,120
Speaker 3: partner at the Fintech Focus at VC firm Portage. You've

664
00:33:25,120 --> 00:33:27,360
Speaker 3: got to have a two billion dollars in assets under management,

665
00:33:27,400 --> 00:33:29,080
Speaker 3: and boy, you must have woken up today and been

666
00:33:29,120 --> 00:33:33,080
Speaker 3: like Capital One and Discovery, this deal might get through.

667
00:33:33,200 --> 00:33:35,880
Speaker 3: How is this going to shake up fintech investing and

668
00:33:36,040 --> 00:33:37,560
Speaker 3: M and A more broadly in the space?

669
00:33:37,600 --> 00:33:38,080
Speaker 4: Do you think?

670
00:33:39,360 --> 00:33:41,880
Speaker 13: I think this is a really exciting announcement because we've

671
00:33:41,920 --> 00:33:44,960
Speaker 13: been waiting to see some big M and A news

672
00:33:45,040 --> 00:33:47,080
Speaker 13: for a little while. If this, I think this is

673
00:33:47,120 --> 00:33:50,480
Speaker 13: going to be a big question mark for antitrust and

674
00:33:50,520 --> 00:33:53,960
Speaker 13: the regulators around whether or not this deal will actually

675
00:33:53,960 --> 00:33:54,480
Speaker 13: go through.

676
00:33:55,000 --> 00:33:57,240
Speaker 9: But with the public markets.

677
00:33:56,880 --> 00:34:00,600
Speaker 13: Being fairly closed for the last couple of years, the

678
00:34:00,640 --> 00:34:04,320
Speaker 13: exit options from an IPO perspective have been pretty limited

679
00:34:04,320 --> 00:34:09,600
Speaker 13: in the fintech space, so seeing a marquee acquisition on

680
00:34:09,960 --> 00:34:12,719
Speaker 13: in the incumbent area will certainly spur I think a

681
00:34:12,719 --> 00:34:15,560
Speaker 13: lot of discussion on what the M and A opportunities

682
00:34:15,760 --> 00:34:18,759
Speaker 13: will look like for FinTechs going forward, and I hope

683
00:34:18,760 --> 00:34:22,400
Speaker 13: it'll potentially bolster the market environment. And we're seeing this

684
00:34:22,800 --> 00:34:25,759
Speaker 13: on top of a pretty good public markets run in

685
00:34:25,840 --> 00:34:28,399
Speaker 13: early twenty four and late twenty three, so we could

686
00:34:28,440 --> 00:34:32,080
Speaker 13: see multiple exit avenues open up for startups this year.

687
00:34:32,360 --> 00:34:35,440
Speaker 3: And what about also the competitive the competitive landscape and

688
00:34:35,480 --> 00:34:37,640
Speaker 3: how it changes up. When I think Capital one and Discover,

689
00:34:37,719 --> 00:34:39,080
Speaker 3: I think of, well what does that mean for Visa

690
00:34:39,080 --> 00:34:41,080
Speaker 3: and mask caard. But you must be thinking, Okay, where

691
00:34:41,080 --> 00:34:44,040
Speaker 3: do my portfolio companies gain an edge here? Where are

692
00:34:44,040 --> 00:34:45,440
Speaker 3: they going to be needed? Where are they going to

693
00:34:45,480 --> 00:34:48,239
Speaker 3: be necessary? Where can they disrupt what areas you're trying

694
00:34:48,280 --> 00:34:49,640
Speaker 3: to invest in it At the moment.

695
00:34:50,640 --> 00:34:53,760
Speaker 13: I think we've been spending a lot of time. Consumer

696
00:34:53,800 --> 00:34:57,640
Speaker 13: credit I think has been a pretty no go space

697
00:34:58,080 --> 00:35:01,640
Speaker 13: for the last little while for VC investors, just given

698
00:35:01,640 --> 00:35:04,200
Speaker 13: where the market environments have been and cost of capital

699
00:35:04,200 --> 00:35:06,840
Speaker 13: and interest rates I think that there are still really

700
00:35:06,920 --> 00:35:08,480
Speaker 13: interesting investments.

701
00:35:08,000 --> 00:35:09,200
Speaker 6: To be made in that space.

702
00:35:09,239 --> 00:35:13,600
Speaker 13: In the consumer space specifically, we've seen a number of

703
00:35:13,719 --> 00:35:17,120
Speaker 13: large rounds, like builds like Manzo get done in the

704
00:35:17,160 --> 00:35:20,239
Speaker 13: past year or in the past quarter really and so

705
00:35:20,320 --> 00:35:22,760
Speaker 13: I think that there will be hopefully some renewed interests

706
00:35:22,760 --> 00:35:23,960
Speaker 13: on the consumer side.

707
00:35:24,080 --> 00:35:26,359
Speaker 6: I think we've been talking to.

708
00:35:26,320 --> 00:35:29,680
Speaker 13: A lot of our financial services corporate clients, so banks,

709
00:35:29,880 --> 00:35:34,160
Speaker 13: wealth managers, insurance companies, many of whom service our portfolio

710
00:35:34,200 --> 00:35:36,400
Speaker 13: companies actually service, and there's been a huge amount of

711
00:35:36,400 --> 00:35:39,080
Speaker 13: interest in AI. So we're spending a lot of time

712
00:35:39,160 --> 00:35:42,719
Speaker 13: looking at the intersection of financial services and some of

713
00:35:42,760 --> 00:35:44,080
Speaker 13: the new advances in JENAI.

714
00:35:44,520 --> 00:35:45,880
Speaker 5: It's obviously very new.

715
00:35:46,200 --> 00:35:48,920
Speaker 13: We're spending time in fraud ten billion dollars of fraud,

716
00:35:48,920 --> 00:35:51,640
Speaker 13: which is a record amount of fraud lost in twenty

717
00:35:51,680 --> 00:35:54,480
Speaker 13: twenty three. Lots of new fraud vectors coming up with

718
00:35:54,560 --> 00:35:58,560
Speaker 13: JENI as well, so an evergreen space that were many

719
00:35:58,640 --> 00:36:01,799
Speaker 13: of our corporate partners interested in learning more about as well.

720
00:36:02,160 --> 00:36:03,440
Speaker 6: And then finally, in the wealth.

721
00:36:03,280 --> 00:36:06,960
Speaker 13: Management space, the democratization of alternatives is an area that

722
00:36:07,000 --> 00:36:09,359
Speaker 13: we're looking at quite a bit.

723
00:36:09,719 --> 00:36:13,360
Speaker 3: It's interesting, of course, you mentioned Monzo which is UK based.

724
00:36:13,440 --> 00:36:15,720
Speaker 3: You mentioned some of the other areas of the rounds

725
00:36:15,719 --> 00:36:17,880
Speaker 3: that built here in New York. How are you seeing

726
00:36:18,640 --> 00:36:21,920
Speaker 3: the talent growing and where it's growing from at the moment.

727
00:36:22,080 --> 00:36:24,440
Speaker 3: Has there been some sort of regulatory arbitrage ATOL that

728
00:36:24,480 --> 00:36:25,200
Speaker 3: you see globally.

729
00:36:26,880 --> 00:36:29,680
Speaker 13: I'm not sure that there's been a huge I actually

730
00:36:29,719 --> 00:36:35,440
Speaker 13: think fintech has been a generally under invested category in

731
00:36:35,480 --> 00:36:38,319
Speaker 13: the last two years. I would say there was a

732
00:36:38,320 --> 00:36:40,360
Speaker 13: big spike up and down, So I'm not sure that

733
00:36:40,400 --> 00:36:44,719
Speaker 13: there's huge differences and where talent flows are going. I

734
00:36:44,760 --> 00:36:47,080
Speaker 13: think certainly AI is the big story of the day,

735
00:36:47,160 --> 00:36:49,600
Speaker 13: and so a lot of the talent that we're seeing

736
00:36:50,120 --> 00:36:52,600
Speaker 13: want to work on problems related to AI.

737
00:36:53,080 --> 00:36:54,760
Speaker 6: I do think we will see.

738
00:36:54,600 --> 00:37:00,799
Speaker 13: Financial services oriented AI solutions where that is is I

739
00:37:00,840 --> 00:37:04,000
Speaker 13: think where we've seen a lot of really interesting new

740
00:37:04,120 --> 00:37:08,080
Speaker 13: seed companies and many of our existing portfolio companies hiring

741
00:37:08,719 --> 00:37:13,600
Speaker 13: for and or implementing new solutions in the AI space

742
00:37:13,800 --> 00:37:16,880
Speaker 13: that leverage AI with existing text acts.

743
00:37:17,760 --> 00:37:19,919
Speaker 3: We'll see how it impacts us the user as well,

744
00:37:20,040 --> 00:37:24,520
Speaker 3: rather than just in support conversations with various chatbots. Stephanie

745
00:37:24,560 --> 00:37:26,640
Speaker 3: Cho just always so great to have your expertise on

746
00:37:26,680 --> 00:37:37,040
Speaker 3: the show Thank You Partner at Portage Now, the ex

747
00:37:37,040 --> 00:37:40,279
Speaker 3: account of the widow of opposition leader Alexi Navalni in

748
00:37:40,360 --> 00:37:43,640
Speaker 3: Russia was briefly suspended a day after it was used

749
00:37:43,680 --> 00:37:46,560
Speaker 3: to help her challenge Russian President Vladimir Putin over the

750
00:37:46,600 --> 00:37:48,759
Speaker 3: death of her husband. Now In a video posted on

751
00:37:48,800 --> 00:37:53,240
Speaker 3: her account on Monday, Julia Novalnier accused Putin of killing

752
00:37:53,320 --> 00:37:56,200
Speaker 3: husband as she announced that she was taking over Navalni's

753
00:37:56,280 --> 00:37:59,200
Speaker 3: role as opposition leader after his death in a remote

754
00:37:59,280 --> 00:38:02,640
Speaker 3: Russian prison on Friday. We want to talk about the

755
00:38:02,719 --> 00:38:06,400
Speaker 3: roles and responsibilities of Elon Musk's platform right now, because

756
00:38:06,600 --> 00:38:09,200
Speaker 3: this brief suspension comes just a week after the same

757
00:38:09,200 --> 00:38:12,120
Speaker 3: platform published at full unedited interview of the Russian president

758
00:38:12,320 --> 00:38:14,520
Speaker 3: with former Fox News host Tucker Carlson.

759
00:38:14,880 --> 00:38:16,360
Speaker 4: Who else to discuss.

760
00:38:16,120 --> 00:38:18,719
Speaker 3: In our very own Kurt Wagner, whose book Battle for

761
00:38:18,760 --> 00:38:21,799
Speaker 3: the Bird, which dives deep into the social media platform,

762
00:38:22,040 --> 00:38:25,560
Speaker 3: is out today. He joins us now and Kurt. All

763
00:38:25,640 --> 00:38:30,000
Speaker 3: of this concern about the way in which x as

764
00:38:30,160 --> 00:38:34,280
Speaker 3: was Twitter gained a new leadership suddenly changed up basically.

765
00:38:33,880 --> 00:38:35,160
Speaker 4: Most of its employee base.

766
00:38:35,520 --> 00:38:38,480
Speaker 3: There were concerns about content moderation first and foremost, How

767
00:38:38,520 --> 00:38:41,640
Speaker 3: does these sorts of day to day headlines make you

768
00:38:41,680 --> 00:38:43,680
Speaker 3: think about how it's occurring over there right now?

769
00:38:44,480 --> 00:38:47,399
Speaker 14: Yeah, I mean, clearly this is something that they are

770
00:38:47,560 --> 00:38:50,160
Speaker 14: struggling with to do at scale.

771
00:38:50,280 --> 00:38:50,440
Speaker 12: Right.

772
00:38:50,520 --> 00:38:54,400
Speaker 14: I'm told that this particular suspension was done automatically, so

773
00:38:54,480 --> 00:38:59,160
Speaker 14: it's both flagged automatically, suspended automatically, and then ultimately reversed

774
00:38:59,200 --> 00:39:02,279
Speaker 14: after a human review. But again, you know, these are

775
00:39:02,320 --> 00:39:06,000
Speaker 14: the kinds of complicated sort of issues that these types

776
00:39:06,000 --> 00:39:08,480
Speaker 14: of companies deal with. And it's sort of interesting because,

777
00:39:08,640 --> 00:39:10,520
Speaker 14: of course, when Elon Musk was on the outside, this

778
00:39:10,640 --> 00:39:12,760
Speaker 14: was the exact kind of thing that he might complain about,

779
00:39:12,840 --> 00:39:15,120
Speaker 14: right that he would say, hey, Twitter is being biased

780
00:39:15,320 --> 00:39:18,279
Speaker 14: because they took this account down. And now he's on,

781
00:39:18,400 --> 00:39:20,040
Speaker 14: you know, the inside, and we're seeing that they're still

782
00:39:20,040 --> 00:39:21,600
Speaker 14: struggling with the same kind of stuff. So I think

783
00:39:21,600 --> 00:39:24,640
Speaker 14: this sort of just you know, highlights how difficult it

784
00:39:24,760 --> 00:39:27,000
Speaker 14: is to do this content moderation at scale.

785
00:39:27,360 --> 00:39:31,040
Speaker 3: I mean, your book really chronicles then Twitter's struggles with

786
00:39:31,120 --> 00:39:34,719
Speaker 3: content moderation when it came to former President Trump as well,

787
00:39:34,760 --> 00:39:36,880
Speaker 3: And I want to gauge your perspective of what you

788
00:39:36,960 --> 00:39:39,440
Speaker 3: learn through that reporting out and writing and how it

789
00:39:39,480 --> 00:39:42,800
Speaker 3: pushes us forward to potentially run off in an election

790
00:39:42,880 --> 00:39:43,920
Speaker 3: here in the United States.

791
00:39:44,840 --> 00:39:47,000
Speaker 14: Yeah, I mean, it's so interesting to think about, right,

792
00:39:47,080 --> 00:39:51,000
Speaker 14: because that was a huge portion of the company, like

793
00:39:51,040 --> 00:39:53,480
Speaker 14: a huge part of the company's history was sort of

794
00:39:53,480 --> 00:39:55,880
Speaker 14: this run up to the twenty twenty election, how they

795
00:39:55,920 --> 00:39:58,920
Speaker 14: dealt with President Trump, how he used the service to

796
00:39:59,160 --> 00:40:03,960
Speaker 14: you know, complain about the voting, complain about the election

797
00:40:04,120 --> 00:40:06,759
Speaker 14: results and things like that, and ultimately Twitter at the

798
00:40:06,800 --> 00:40:09,280
Speaker 14: time ended up banning him, as we know. But President

799
00:40:09,280 --> 00:40:11,320
Speaker 14: Trump is now back, right, and there's a new regime

800
00:40:11,360 --> 00:40:14,720
Speaker 14: at X that has been very hands off and basically

801
00:40:14,760 --> 00:40:17,640
Speaker 14: said they don't want to enforce any of those types

802
00:40:17,640 --> 00:40:19,759
Speaker 14: of things. So it'll be really interesting to see we

803
00:40:19,880 --> 00:40:21,799
Speaker 14: as we head into twenty twenty four to one, does

804
00:40:21,840 --> 00:40:24,799
Speaker 14: President Trump, former President Trump really start to use X

805
00:40:24,840 --> 00:40:27,759
Speaker 14: more regularly, And if we get to a point where

806
00:40:27,760 --> 00:40:29,640
Speaker 14: he starts to complain about the same stuff he did

807
00:40:29,680 --> 00:40:33,040
Speaker 14: in twenty twenty, right, a rigged election, for example, will

808
00:40:33,200 --> 00:40:35,719
Speaker 14: X step in and do anything about it? And we

809
00:40:35,920 --> 00:40:38,239
Speaker 14: know that was a huge deal, you know, four years ago.

810
00:40:38,600 --> 00:40:41,319
Speaker 14: I'm really fascinated to see if this is going to

811
00:40:41,320 --> 00:40:43,560
Speaker 14: sort of play on repeat again and how they're going

812
00:40:43,600 --> 00:40:46,080
Speaker 14: to handle this time around and talk.

813
00:40:45,920 --> 00:40:49,680
Speaker 3: About alternate universes here or what might have been, Because

814
00:40:49,680 --> 00:40:52,600
Speaker 3: what's so interesting is some of the really juicy details

815
00:40:52,640 --> 00:40:54,640
Speaker 3: you reveal in the book. For example, who could have

816
00:40:54,719 --> 00:40:57,200
Speaker 3: led the business other than Jack Dorsey at the time,

817
00:40:57,280 --> 00:40:59,000
Speaker 3: and before Elon Well took.

818
00:40:58,800 --> 00:40:59,839
Speaker 4: It over, who was that?

819
00:41:00,760 --> 00:41:02,680
Speaker 14: Yeah, this is one of my favorite details. That's right

820
00:41:02,719 --> 00:41:04,800
Speaker 14: at the front of the book. When Jack Dorsey returned

821
00:41:05,120 --> 00:41:08,720
Speaker 14: as CEO in twenty fifteen, the board was actually considering

822
00:41:08,760 --> 00:41:13,200
Speaker 14: another candidate, Andy Jasse, who at the time was running AWS.

823
00:41:13,239 --> 00:41:16,840
Speaker 14: We obviously all now know he's the CEO of Amazon today.

824
00:41:17,080 --> 00:41:19,840
Speaker 14: And it's just a really interesting, you know, thought process

825
00:41:19,960 --> 00:41:22,360
Speaker 14: or a thought experiment, I should say, to think about

826
00:41:22,360 --> 00:41:25,120
Speaker 14: what Twitter would have looked like had the board decided

827
00:41:25,160 --> 00:41:28,440
Speaker 14: to go with more of a business minded CEO versus

828
00:41:28,640 --> 00:41:30,840
Speaker 14: Jack Dorsey, who was a product minded CEO. And that

829
00:41:30,880 --> 00:41:33,799
Speaker 14: was ultimately the deciding factor, I'm told is that they

830
00:41:33,840 --> 00:41:36,880
Speaker 14: thought Twitter was a product a company that had a

831
00:41:36,880 --> 00:41:39,880
Speaker 14: product problem, so they just decided to go and bring

832
00:41:39,920 --> 00:41:43,280
Speaker 14: back Jack Dorsey back. But again, it's just really interesting

833
00:41:43,520 --> 00:41:47,319
Speaker 14: to think, like where would the business have been had

834
00:41:47,360 --> 00:41:49,040
Speaker 14: they brought in someone who was, you know, maybe a

835
00:41:49,080 --> 00:41:51,800
Speaker 14: little bit more traditional in terms of their their business chops.

836
00:41:52,280 --> 00:41:56,640
Speaker 3: Well, we know how much work Blood Sweiners you put

837
00:41:56,680 --> 00:41:59,800
Speaker 3: into this book, and congratulations on it going on sale today.

838
00:42:00,040 --> 00:42:02,239
Speaker 3: Appreciate all your expertise day and day out in the show.

839
00:42:02,239 --> 00:42:05,600
Speaker 3: We thank you, Bloomberg's Kirk Wagner. Go buy the book. Meanwhile,

840
00:42:05,880 --> 00:42:08,120
Speaker 3: that does it for this edition of Bloemberg Technology. You

841
00:42:08,160 --> 00:42:10,360
Speaker 3: do not want to forget to check out our podcast

842
00:42:10,719 --> 00:42:12,719
Speaker 3: that there is going to be so much to be digesting,

843
00:42:12,760 --> 00:42:15,160
Speaker 3: and you can do it on your terminal, online on Apple,

844
00:42:15,239 --> 00:42:18,239
Speaker 3: Spotify or iHeart all of this as we anticipate the

845
00:42:18,280 --> 00:42:21,280
Speaker 3: all important numbers coming from Nvidea after the bell tomorrow.

846
00:42:21,719 --> 00:42:24,560
Speaker 3: Will they live up to expectations? Will we see AI

847
00:42:24,640 --> 00:42:27,400
Speaker 3: height become a reality? Will we see that revenue continue

848
00:42:27,640 --> 00:42:30,560
Speaker 3: to double on triple We'll see this is Bloomberg Technology,