WEBVTT - Micron's China Sales and Musk at VivaTech 0:00:01.680 --> 0:00:05.960 From Marhart where Innovation, Money and power Collie in Silicon 0:00:06.080 --> 0:00:10.520 Vallet NBN. This is Bloomberg Technology with Caroline Hyde and 0:00:10.760 --> 0:00:11.320 Ed Ludlow. 0:00:25.079 --> 0:00:28.040 I'm Caroline Heindet Bluemog's world headquarters in New York, and 0:00:28.080 --> 0:00:29.640 I'm Ed Ludlow in San Francisco. 0:00:29.760 --> 0:00:32.040 This is Bloomberg Technology coming up. 0:00:32.080 --> 0:00:35.159 Micron it's warning on its China sales again amid those 0:00:35.240 --> 0:00:38.839 geopolitical tensions, sending the shares lower. We are going to 0:00:38.880 --> 0:00:42.400 discuss chip companies. Are they diversifying their supply chains. 0:00:42.680 --> 0:00:43.320 We'll discuss. 0:00:44.400 --> 0:00:46.960 Plus we'll speak to the head of the Dblow Universe 0:00:47.000 --> 0:00:50.480 Activision Blizzard as the video game maker sees its best 0:00:50.560 --> 0:00:51.840 debut of all time. 0:00:52.440 --> 0:00:56.840 I'm Billionaires at lunch in a musque, Bernard, Anna. They 0:00:56.920 --> 0:00:59.360 hit town for a power lunch in Paris with their families. 0:00:59.520 --> 0:01:02.160 We'll break down exactly what we've learned from their day out. 0:01:02.720 --> 0:01:05.280 But first let's check in on these markets because we've 0:01:05.280 --> 0:01:09.840 got some nervousness, whether it's around geopolitics China US related 0:01:09.880 --> 0:01:12.600 when it comes to Micron nuclear, when it comes to 0:01:12.640 --> 0:01:15.040 Russia and Belarus. We just have enough to take the 0:01:15.040 --> 0:01:16.880 steam out of this market. As we head towards the 0:01:16.920 --> 0:01:19.080 weekend and what has been, of course a key run 0:01:19.160 --> 0:01:20.399 up post of the FED. I think it's been one 0:01:20.440 --> 0:01:23.319 of the best weeks for global stocks in months, at 0:01:23.400 --> 0:01:26.240 least since March. We're see NASA currently down tenth of 0:01:26.240 --> 0:01:29.240 a percent at the moment, the socks, the chips under pressure. 0:01:29.240 --> 0:01:31.160 As we talk Micron a little bit more in a moment, ED, 0:01:31.200 --> 0:01:32.839 I know you've got your eye on that, and interesting 0:01:32.880 --> 0:01:34.479 moves that we have in the bond market. We seem 0:01:34.480 --> 0:01:37.920 to be rebounding. We had yields pull lower yesterday. Today 0:01:37.959 --> 0:01:39.880 the march back hires. We have a couple of FED 0:01:39.959 --> 0:01:41.840 speak out. They're really saying, look, we've still got to 0:01:41.840 --> 0:01:42.640 focus on inflation. 0:01:42.680 --> 0:01:45.040 Maybe we do still need to tighten. Moving on, have 0:01:45.040 --> 0:01:45.440 a look. 0:01:45.280 --> 0:01:46.960 At what's happening to our risk assid a choice when 0:01:47.000 --> 0:01:48.760 it comes to the tech sector. We are looking at 0:01:48.800 --> 0:01:51.440 Bitcoin and look, has had quite the volatile week, particularly 0:01:51.480 --> 0:01:53.600 in the fourteenth and the fifteenth, but we've rerounded. Still 0:01:53.680 --> 0:01:56.720 under some pressure, we're some that twenty six thousand dollars level, 0:01:56.760 --> 0:01:59.920 but relatively sanguine when we think about all the regular 0:02:00.240 --> 0:02:01.520 focus on this particular asset. 0:02:01.600 --> 0:02:05.560 Then I'm hitting the earning story with Adobe, and yes 0:02:05.600 --> 0:02:08.359 it's about generative AI as well, raising its four year 0:02:08.400 --> 0:02:11.359 outlook for profit and revenue. But we're starting to get 0:02:11.360 --> 0:02:13.360 a censor of management about how we go from the 0:02:13.360 --> 0:02:16.520 headline and the hype to how this is impacting a 0:02:16.560 --> 0:02:19.760 company like Adobe's demand. 0:02:19.400 --> 0:02:20.720 Right for its software offerings. 0:02:20.760 --> 0:02:22.560 We're going to get more details later in the show 0:02:22.560 --> 0:02:24.120 and the Bloomberg Intelligence react. 0:02:24.240 --> 0:02:24.880 But look at the shares. 0:02:24.880 --> 0:02:27.160 We're up two and a half percent since that commentary 0:02:27.240 --> 0:02:29.720 overnight trading at a February high. This is a stock 0:02:30.040 --> 0:02:32.680 that's up fifty percent year to date. Part of that 0:02:33.160 --> 0:02:35.320 is the hype. We will give you the granular detail 0:02:35.320 --> 0:02:38.840 and analysis from bi Otherwise, I'm looking at a tale 0:02:38.840 --> 0:02:41.920 of two chip stocks. In the first instance, Intel is 0:02:41.919 --> 0:02:43.280 now down half a percentage point. 0:02:43.360 --> 0:02:44.680 It had been markedly higher. 0:02:44.720 --> 0:02:47.040 Two reports out of Europe, the first that it's going 0:02:47.080 --> 0:02:50.799 to invest five billion dollars in a facility in Poland, 0:02:50.840 --> 0:02:53.519 the second being that it will get around eleven billion 0:02:53.560 --> 0:02:56.280 dollars of subsidy from Germany. We're going to get into 0:02:56.320 --> 0:03:01.040 that very shortly. This idea that Gelsing is playing with 0:03:01.080 --> 0:03:04.799 the smart capital approach. You use Capex, you use co investment, 0:03:04.960 --> 0:03:07.400 but you also look at publicly available money as well. 0:03:07.560 --> 0:03:09.360 That stock has turned a corner. And then micro un 0:03:09.440 --> 0:03:12.640 down one point six percent. It's warning that sales from 0:03:12.760 --> 0:03:16.440 its customers that have Chinese headquarters that fifty percent of 0:03:16.440 --> 0:03:18.200 it's under risk, and we're going to talk about why. 0:03:18.280 --> 0:03:22.160 But basically, this is China looking at a cybersecurity crackdown 0:03:22.440 --> 0:03:24.480 and that could hurt mic run in the long run. 0:03:24.639 --> 0:03:27.120 We're going to actually go straight to this, I think, Kara, 0:03:27.160 --> 0:03:28.520 We've got a good guest with you on set. 0:03:28.639 --> 0:03:31.800 Yeah, our very own Paula Pencar of Bloomberg Intelligence. You 0:03:31.840 --> 0:03:35.760 can really break down ultimately how much Micron's already tried 0:03:36.320 --> 0:03:40.560 to pivot, already tried to tell the market, tell the street, 0:03:40.600 --> 0:03:43.800 how much exposure they have from the geopolitics it can't control. 0:03:44.320 --> 0:03:47.080 But why this addition, what else is happening at the moment. 0:03:47.360 --> 0:03:53.560 Well, first of all, Mark Murphy, CFO of Micron recently 0:03:53.680 --> 0:03:57.440 said at a Golden SAS conference on May thirty first 0:03:57.800 --> 0:04:00.840 that even though they provided this guidance, that they were 0:04:00.880 --> 0:04:05.040 still uncertain because China never really defined what they were 0:04:05.080 --> 0:04:09.160 looking at and what this critical infrastructure security risk really entailed. 0:04:09.560 --> 0:04:12.640 So it really doesn't come as a huge surprise to me. 0:04:14.120 --> 0:04:17.880 Yet the market was sort of like relying on Micron's 0:04:17.920 --> 0:04:22.120 guidance of low single digit to high single digit percent 0:04:22.240 --> 0:04:23.360 impact on revenue. 0:04:23.800 --> 0:04:24.480 Higher than that. 0:04:24.640 --> 0:04:29.680 Now it's low double digits, twelve thirteen percent. 0:04:30.000 --> 0:04:32.400 And ultimately, what can it do when it's so dependent. 0:04:32.480 --> 0:04:35.880 Still from a client perspective on China, how are you 0:04:35.960 --> 0:04:39.080 seeing trying to diversify, Because yes, you can diversify your 0:04:39.120 --> 0:04:41.360 supply chains, but how do you pivot away from dependence 0:04:41.400 --> 0:04:43.560 on setting certain gear to certain customers. 0:04:44.240 --> 0:04:47.480 Micron's in a really tough spot because they don't want 0:04:47.520 --> 0:04:53.040 to give up the huge China market. It's significant and 0:04:53.240 --> 0:04:56.280 when they recover and when the Chinese start buying smartphones 0:04:56.320 --> 0:04:59.080 again and when all that picks up, I mean, Micron 0:04:59.120 --> 0:05:01.120 wants to be a part of that. Yet we've got 0:05:01.120 --> 0:05:04.599 this whole drive in the US to decouple. So they're 0:05:04.640 --> 0:05:08.240 trying really hard to sort of keep relations good with China, 0:05:08.720 --> 0:05:12.760 yet at the same time diversify to other regions. 0:05:12.839 --> 0:05:16.679 So I think that there will be diversification. We're seeing 0:05:16.680 --> 0:05:17.159 it happen. 0:05:17.240 --> 0:05:22.200 We're seeing capital going into other regions in the world away. 0:05:21.839 --> 0:05:23.360 From China and Southeast Asia. 0:05:24.200 --> 0:05:27.040 But if you look at what we saw announced just today, 0:05:27.720 --> 0:05:30.599 Micron is putting six hundred million dollars into a test 0:05:30.760 --> 0:05:34.760 and packaging facility in China. Is China pushing them to 0:05:34.800 --> 0:05:37.159 do that, coercing them to do that using a ban 0:05:37.279 --> 0:05:41.159 on their product as some leverage I don't know, or 0:05:41.320 --> 0:05:45.839 is it Micron basically saying, you know, at some point 0:05:45.960 --> 0:05:49.360 tensions with China will go away. This is a huge market. 0:05:49.920 --> 0:05:51.880 We want to keep our finger, you know, we want 0:05:51.920 --> 0:05:53.080 to stay in there in that. 0:05:53.160 --> 0:05:57.159 Market, Paula, let's stay global. But recap some of the 0:05:57.160 --> 0:05:59.800 other headlines from the top of the show. Bloomberg reporting 0:06:00.240 --> 0:06:03.280 that Intel will get about eleven billion dollars of subsidies 0:06:03.600 --> 0:06:06.560 from the German government for a chip plant in that nation. 0:06:06.800 --> 0:06:09.359 This is part of the smart capital approach that Pat 0:06:09.360 --> 0:06:13.320 Gelsinger has been telling me about CAPEX. Get some co investors, 0:06:13.320 --> 0:06:15.640 but get as much money that's available from the public 0:06:15.680 --> 0:06:16.600 sector as possible. 0:06:16.800 --> 0:06:18.400 What's your reaction to that reporting. 0:06:18.800 --> 0:06:21.440 Look, Pat Gelsinger is being really smart. 0:06:21.720 --> 0:06:24.800 He is angling in every way he can to get 0:06:24.800 --> 0:06:28.400 as much money as he can, to keep his costs 0:06:28.520 --> 0:06:33.240 down and to widen and broaden his reach in the market. 0:06:33.480 --> 0:06:35.720 I mean, Germany is a great market to be in 0:06:36.279 --> 0:06:40.840 and partnering with the government is a smart move. And 0:06:41.160 --> 0:06:46.960 Pat continue Gelsinger continues to just make really smart you know, 0:06:47.240 --> 0:06:48.279 chessboard moves. 0:06:50.320 --> 0:06:52.920 All right, PAULA pen called Bloomberg Intelligence. Great to have 0:06:52.960 --> 0:06:55.880 you on set with New York. Let's continue the conversation 0:06:56.240 --> 0:07:00.240 the global narrative around security chips of Chris Rulin. Now 0:07:00.240 --> 0:07:03.799 he's the CEO and founder of Phosphorus Cybersecurity, but also 0:07:03.880 --> 0:07:06.560 served as an advisor to the US government on cybersecurity 0:07:06.600 --> 0:07:09.920 issues for the last three decades. So Micron and this 0:07:10.080 --> 0:07:14.800 story Chris warning about the impact of revenue, but the 0:07:14.960 --> 0:07:18.440 cause is a clamp down by the Chinese government in 0:07:18.480 --> 0:07:19.760 the context of cybersecurity. 0:07:19.800 --> 0:07:20.640 What do you make of that? 0:07:22.240 --> 0:07:24.800 Well, what we see here is the planning field big 0:07:24.880 --> 0:07:28.720 set for really a next generation of economic warfare that's 0:07:28.720 --> 0:07:33.520 happening right now. The Chinese have been stealing ideas from 0:07:33.600 --> 0:07:37.080 American companies for years, and in the case of Micron, 0:07:37.160 --> 0:07:39.600 Micron might need to think about what type of technologies 0:07:39.600 --> 0:07:42.680 they can actually export and build in China, knowing that 0:07:42.680 --> 0:07:45.560 they're at the risk of being taken to reproduce. 0:07:45.960 --> 0:07:48.280 Yeah, I mean what's fascinating Chris is actually it was 0:07:48.280 --> 0:07:50.240 but a day or so ago Bloomberg had a story 0:07:50.280 --> 0:07:53.240 that Micron is still investing. They're investing six hundred million 0:07:53.280 --> 0:07:56.960 dollars in terms of trying to still build out in China, 0:07:57.080 --> 0:07:59.840 still trying to think about a packaging plant in particular. 0:08:00.120 --> 0:08:01.040 Paula said it so right. 0:08:01.080 --> 0:08:03.720 They don't want to lose out on an economy that 0:08:03.840 --> 0:08:07.640 is still eventually going to rebound post COVID And as 0:08:07.680 --> 0:08:12.680 a key consumer, how will we ultimately be separate? Will 0:08:12.720 --> 0:08:16.720 we have one technology economy versus another. 0:08:18.360 --> 0:08:23.440 Well, when we have a situation where foreign state actors 0:08:23.560 --> 0:08:29.240 are actively rewarded and hacking into United States companies, American 0:08:29.320 --> 0:08:34.200 CEOs are actually going head to head with these state intelligence. 0:08:33.640 --> 0:08:36.239 Agencies, and it's a serious challenge. 0:08:36.600 --> 0:08:39.400 And I think there will always be risk management in 0:08:39.480 --> 0:08:43.360 how much of our technology we have built and share 0:08:43.880 --> 0:08:46.680 overseas versus in the United States, and I do think 0:08:46.720 --> 0:08:51.439 we see a pullback there and some more conservative behaviors 0:08:51.440 --> 0:08:52.439 across the board. 0:08:53.679 --> 0:08:54.920 In the world of technology. 0:08:54.960 --> 0:08:59.080 We also see Bill Gates in China, Chris meeting with 0:08:59.160 --> 0:09:04.520 President g and reports from the media saying that g 0:09:05.160 --> 0:09:12.120 in the conversation would welcome USAI companies to China and 0:09:12.160 --> 0:09:15.280 have their technology in that nation. From a cybersecurity perspective, 0:09:15.280 --> 0:09:17.320 how does that work in practice? 0:09:17.440 --> 0:09:21.120 Well, the United States is great at cybersecurity. 0:09:21.520 --> 0:09:26.480 Our government has eyewater in capabilities in cybersecurity. The Chinese 0:09:26.520 --> 0:09:28.040 are ahead of us in AI. 0:09:28.600 --> 0:09:31.719 TikTok has been the biggest experiment and successful adventure in 0:09:31.760 --> 0:09:36.800 our official intelligence. So the thought of our artificial intelligence technologies. 0:09:36.760 --> 0:09:39.440 Shipping them to China, I don't think it is a very. 0:09:39.280 --> 0:09:44.079 Good idea until we either alter this behavior or really 0:09:44.120 --> 0:09:47.240 lock ourselves down and take this threat seriously. China plays 0:09:47.280 --> 0:09:49.800 the long game. They don't want to take our ideas. 0:09:50.000 --> 0:09:52.520 They don't want to make iPhones for us. They want 0:09:52.600 --> 0:09:55.960 to be Apple, they want to be Micron. That is 0:09:56.000 --> 0:10:00.560 the long game. The other adversaries, Russia, other state actors 0:10:00.920 --> 0:10:05.760 where they're more interested in near term economic game like ransomware, 0:10:06.200 --> 0:10:09.719 have different motivations than the Chinese were a point one 0:10:09.760 --> 0:10:11.040 game on intellectual progress. 0:10:11.040 --> 0:10:14.160 Serve Chris bear with us, Caroline, I think we've got 0:10:14.200 --> 0:10:16.240 some breaking news on the subject of China. 0:10:16.440 --> 0:10:16.600 Yeah. 0:10:16.640 --> 0:10:19.920 Anthony Blincoln of course currently set to be on a 0:10:19.960 --> 0:10:22.760 trip soon enough to China. Currently telling us a new 0:10:22.800 --> 0:10:25.600 news conference, he looks forward to his Beijing trip overall, 0:10:25.640 --> 0:10:30.600 and then he wants open communications with China. Chris to 0:10:30.679 --> 0:10:32.720 that end when miss seeing such breaking news. When it 0:10:32.720 --> 0:10:36.240 comes to a geobilic political narrative, that we remember that 0:10:36.280 --> 0:10:38.720 Anthony B. Lincoln was meant to be with Jijingping, or 0:10:38.760 --> 0:10:42.480 indeed in China, and then a so called spy balloon 0:10:42.800 --> 0:10:47.600 up ended that back in February Today, how much more 0:10:48.160 --> 0:10:51.280 risk is there from a cyber perspective, from a technological 0:10:51.840 --> 0:10:55.400 exchange perspective, can we ever really see sort of bridges 0:10:55.440 --> 0:10:58.839 being built from your perspective, from a political perspective, and 0:10:58.880 --> 0:11:02.360 then indeed from an economic one, Well, yeah, I. 0:11:02.320 --> 0:11:04.120 Think that's really a cultural issue. 0:11:04.200 --> 0:11:09.199 The Chinese don't feel it's wrong to take other people's 0:11:09.320 --> 0:11:10.560 ideas and implement them. 0:11:10.920 --> 0:11:11.920 They will keep doing this. 0:11:12.040 --> 0:11:14.040 Not much has changed in the cyber landscape in the 0:11:14.120 --> 0:11:16.800 last three months, other than the fact that in the 0:11:16.920 --> 0:11:19.880 last week we've seen three major cyber attacks, two of 0:11:19.880 --> 0:11:21.720 them attributed to China. 0:11:22.960 --> 0:11:25.559 For this visit going on, if you. 0:11:25.520 --> 0:11:28.280 Were having lunch with someone who had just broken into 0:11:28.320 --> 0:11:31.959 your house, you might want to talk to them about it. 0:11:33.400 --> 0:11:36.640 One way of putting it fosphorous cybersecurity CEO, We thank 0:11:36.679 --> 0:11:40.040 you so much. Co founder there, Chris Ruland with some 0:11:40.080 --> 0:11:44.120 perspective on or the ever growing geopolitical headaches certainly swelling 0:11:44.120 --> 0:11:47.520 around Micron, and we look towards that meeting between Anthony 0:11:47.520 --> 0:11:50.439 Blincoln and indeed the Chinese leader. Meanwhile, another story, we're 0:11:50.440 --> 0:11:52.880 watching jd dot Com on track to emerge from a 0:11:52.960 --> 0:11:55.680 record sales funk as a bounce back in parts of 0:11:55.760 --> 0:11:59.480 Chinese economy begins to revive the once booming online's commerce sector. 0:12:00.440 --> 0:12:04.640 Retail CEO actually joined the program shin Legion, expecting that 0:12:04.679 --> 0:12:07.480 the commerce revenue will grow starting from the second quarter 0:12:07.559 --> 0:12:09.920 after a two percent decline in January to March period. 0:12:10.120 --> 0:12:11.679 Spoke exclusively to Bloomberg. 0:12:12.120 --> 0:12:17.200 Well, you guess, I think our service revenue will grow 0:12:17.440 --> 0:12:21.440 relatively steadily in the second and third quarters. It's still 0:12:21.559 --> 0:12:24.480 hard to say how much it will grow, but it 0:12:24.559 --> 0:12:28.880 is part of the overall ecosystem for marketplace merchants. So 0:12:29.000 --> 0:12:31.760 long as we do a good job in the infrastructure 0:12:31.800 --> 0:12:35.400 of the ecosystem, the growth will remain healthy. 0:12:43.240 --> 0:12:45.760 Let's talk about Adobe after its numbers shares actually on 0:12:45.800 --> 0:12:48.319 the app after the company raised its full year revenue 0:12:48.320 --> 0:12:51.520 and profits a bit, and the outlooks of course surrounding 0:12:51.600 --> 0:12:54.600 the optimism of generative AI, the features that they've been 0:12:54.600 --> 0:12:57.160 introducing when he spurring demand for the software, huaranteed for 0:12:57.240 --> 0:12:59.079 the shares what they're up about fifty percent so far 0:12:59.120 --> 0:13:02.240 in the month, and our r A bringbag Intelligence joins us. 0:13:02.240 --> 0:13:06.160 Now fascinating how much this company seems to have swung 0:13:06.280 --> 0:13:08.640 from what many felt was behind the curve and AI 0:13:08.720 --> 0:13:09.600 to really leading it. 0:13:10.960 --> 0:13:12.720 Yeah, you know, one of the things I would say is, 0:13:12.760 --> 0:13:15.200 going back six to nine months ago, there was a 0:13:15.200 --> 0:13:18.240 lot of discussion around you know, increased competition in the 0:13:18.280 --> 0:13:22.280 creative space, and frankly, Adobe was facing very tough comparisons 0:13:22.280 --> 0:13:25.400 in that segment for this year. But they have shown 0:13:25.440 --> 0:13:28.280 that they can still grow that segment in low double 0:13:28.280 --> 0:13:32.199 digits despite you know, tougher comparison, more competition. And I 0:13:32.280 --> 0:13:34.760 think that's the key reason why we are seeing you know, 0:13:34.880 --> 0:13:37.480 the Stoker reacting the way it is today. 0:13:38.040 --> 0:13:41.319 An Rak, Why are you shining a light on Adobe's 0:13:41.360 --> 0:13:43.640 creative tools in a tough macro environment. 0:13:44.920 --> 0:13:47.360 Well, the reason is because it makes over for more 0:13:47.440 --> 0:13:50.040 than seventy percent of their sales and the rest of 0:13:50.080 --> 0:13:52.960 the business, which is the digital experience business, which is 0:13:53.000 --> 0:13:54.880 tied to more enterprise spending. 0:13:55.080 --> 0:13:56.440 You know, they actually pulled back. 0:13:56.320 --> 0:13:58.679 Guidance for that particular segment, which is what we were 0:13:58.720 --> 0:14:01.800 expecting going in. But to our surprise that the one 0:14:01.840 --> 0:14:05.040 that is you know, tied with SMBs and consumers that's 0:14:05.080 --> 0:14:08.040 holding up very nice new users coming in. They are 0:14:08.280 --> 0:14:10.679 you know, spending a lot more for those products, whether 0:14:10.760 --> 0:14:15.920 that's you know, Acro, Acrobat or Photoshop illustrator, which basically 0:14:15.920 --> 0:14:18.439 says that everything that has to do with you know, 0:14:18.480 --> 0:14:23.480 creating more you know, digital imprints, whether it's pictures, videos, 0:14:23.760 --> 0:14:26.480 or even digital documents, that's remains very strong. 0:14:27.840 --> 0:14:31.800 A reminder, Adobe raised the outlook for its profit and 0:14:31.840 --> 0:14:35.800 revenue in response to what they're seeing with generatord Ai 0:14:35.960 --> 0:14:41.480 demand do you buy management's optimism annorag that that translates 0:14:41.480 --> 0:14:42.880 into top and bottom line growth. 0:14:44.280 --> 0:14:45.560 See, that's going to take some time. 0:14:45.600 --> 0:14:47.720 It's probably going to take one to two years before 0:14:47.760 --> 0:14:50.280 we really see a big push into that. But the 0:14:50.320 --> 0:14:52.400 one thing you have to think about is in this 0:14:52.440 --> 0:14:55.280 particular area, who are going to be the winners? You know, 0:14:55.320 --> 0:14:58.880 in our view, there are two distinct categories of companies 0:14:58.880 --> 0:15:00.880 that are going to, you know, be the winners. One 0:15:00.880 --> 0:15:03.520 that has a lot of capital that they can invest 0:15:03.560 --> 0:15:05.960 in to create new products, and the second one the 0:15:05.960 --> 0:15:08.080 ones that have a lot of data. And there is 0:15:08.120 --> 0:15:11.120 nobody out there that has more data on digital documents 0:15:11.320 --> 0:15:13.680 than Adobe. There is nobody out there that has more 0:15:14.040 --> 0:15:18.200 data on the number of pictures and videos somebody is creating. 0:15:18.480 --> 0:15:21.120 So from that point, Adobe does have an advantage that 0:15:21.160 --> 0:15:25.520 it can commercialize some of that underlying data with new technologies. 0:15:25.920 --> 0:15:29.560 Some of the overhang remains Figma, the deal, whether it 0:15:29.600 --> 0:15:33.160 gets done, the regulation that still needs to be jumped through, 0:15:33.480 --> 0:15:36.560 and argue, does it matter ultimately how important is this 0:15:36.720 --> 0:15:38.120 enormous deal for them? 0:15:38.640 --> 0:15:40.840 You know, it's actually very funny. When the deal was announced, 0:15:40.840 --> 0:15:43.360 everybody hated it, and then in six months everybody is 0:15:43.400 --> 0:15:45.760 worried that if the deal doesn't go through, Adobe is 0:15:45.800 --> 0:15:48.400 going to be in trouble. But I actually differ from 0:15:48.400 --> 0:15:52.680 that particular thesis. We think Adobe should be fine with 0:15:52.840 --> 0:15:55.680 or without Figma. If anything, the last two to three 0:15:55.760 --> 0:15:58.560 quarters of results have shown that they can still grow 0:15:58.600 --> 0:16:01.480 the creative business with aug Figma, And you know, to 0:16:01.480 --> 0:16:04.080 be honest, that size of a business growing thirteen to 0:16:04.120 --> 0:16:07.600 fourteen percent organically in constant currency is pretty impressive in 0:16:07.640 --> 0:16:07.960 our view. 0:16:09.760 --> 0:16:12.440 All right, Bloomberg Intelligence, Anna rag Rhana with the react 0:16:12.720 --> 0:16:15.520 to those aderby ownings, Thank you so much, a story 0:16:15.560 --> 0:16:16.560 that we're also following. 0:16:16.600 --> 0:16:16.880 Karo. 0:16:17.080 --> 0:16:21.280 FTC chair Lena Khan has declined to recuse herself from 0:16:21.280 --> 0:16:24.560 a case against Meta, despite the advice of the agency's 0:16:24.600 --> 0:16:28.280 top ethics official. That's according to internal agency documents. The 0:16:28.320 --> 0:16:32.200 FTC's ethics official recommended that Khan remove herself from the 0:16:32.240 --> 0:16:34.680 case to avoid the appearance of bias, but left it 0:16:34.760 --> 0:16:38.680 up to Khan to decide, concluding it wasn't an ethics 0:16:38.760 --> 0:16:41.960 violation if she took part. Meta had sought to disqualify 0:16:42.040 --> 0:16:45.680 Khan from participating in the case over the company's proposed 0:16:45.720 --> 0:16:48.880 acquisition of a popular virtual reality startup. 0:16:49.320 --> 0:16:51.040 Within now coming. 0:16:50.880 --> 0:16:54.720 Up, Elon Musk Bernard Arnault, the two richest people in 0:16:54.760 --> 0:16:57.560 the world. They go out to lunch. The big question 0:16:58.520 --> 0:17:02.200 who picks up the chair? More on that next and 0:17:02.280 --> 0:17:04.520 really quickly, Caroline, it's been a weird twenty four hours. 0:17:04.560 --> 0:17:07.320 We're watching shares of Nikola. They're on track for a 0:17:07.520 --> 0:17:11.840 record weekly game. I'm at my desk last night Trevor Milton, 0:17:12.000 --> 0:17:14.680 the founder who has been charged and found guilty of 0:17:14.720 --> 0:17:18.720 securities fraud, breaks a three year social media silence to 0:17:19.040 --> 0:17:22.600 tell investors to vote against all company proposals at the 0:17:22.680 --> 0:17:26.760 upcoming AGM. Shares now down two point eighty three percent 0:17:26.800 --> 0:17:27.440 in the session. 0:17:27.800 --> 0:17:44.800 It's been a wild ride. This is bloomberg time for 0:17:44.840 --> 0:17:45.960 talking tech. First up. 0:17:46.000 --> 0:17:50.560 International cooperation is needed to properly regulate crypto firms. That's 0:17:50.600 --> 0:17:54.639 according to France Central bankhead Francois Villeroi, who spoke earlier 0:17:54.800 --> 0:17:57.639 at Viva Tech in Paris. Is stressed that the European 0:17:57.720 --> 0:18:00.920 Union was ahead in cryptoregulation. He noted that a new 0:18:01.000 --> 0:18:04.840 version of the EU regulation MIKA two, would be needed 0:18:04.840 --> 0:18:08.600 to tackle crypto conglomerates. Also at Viva Tech, AI is 0:18:08.640 --> 0:18:11.439 bursting onto the scene. A French startup called mistral Ai 0:18:11.680 --> 0:18:14.119 has already raised a whopping one hundred and five million 0:18:14.160 --> 0:18:17.680 euros in funding despite being barely a month old. French 0:18:17.720 --> 0:18:20.600 President Emmanuel Macran is pushing to make the nation more 0:18:20.640 --> 0:18:24.480 attractive to tech and AI businesses. Plus the world's two 0:18:24.600 --> 0:18:28.359 richest people, Tesla CEO Elon Musk and Bernard Arnault of 0:18:28.520 --> 0:18:31.800 LVMH together they got together for what we're calling a 0:18:31.880 --> 0:18:34.880 power lunch. The meeting follows a fever tech event which 0:18:34.920 --> 0:18:38.280 Mush spoke at. Both men share a combined wealth of 0:18:38.320 --> 0:18:41.480 about four hundred and twenty six billion dollars that according 0:18:41.480 --> 0:18:43.360 to the Bloomberg Billionaires Index. 0:18:43.440 --> 0:18:46.320 Caroline, that's stick on that, because well we know that 0:18:46.480 --> 0:18:48.879 in Omsk went on to take to the stage at 0:18:49.080 --> 0:18:52.920 France's tech event, Viva techsir conference they hold each. 0:18:52.760 --> 0:18:54.879 Year, had a lot to say about AI. Take listen. 0:18:56.119 --> 0:19:00.760 I'm in favor of AI regulation because I think advanced 0:19:00.760 --> 0:19:04.000 AI is a risk to the public, and anything that's 0:19:04.000 --> 0:19:05.520 the risk to the public, there needs to be. 0:19:05.440 --> 0:19:06.399 Some kind of referee. 0:19:06.640 --> 0:19:08.440 That referee is the regulator. 0:19:08.640 --> 0:19:12.240 And so I think that my strong recommendation is to 0:19:12.720 --> 0:19:14.879 have some regulation for AI. 0:19:16.400 --> 0:19:19.120 Is the old time in Paris for a Friday Bloommegg's 0:19:19.200 --> 0:19:21.359 bro chief. I'm very pious to say, staying a bit 0:19:21.440 --> 0:19:24.200 late for us, Alan Catz. So what do we make 0:19:24.480 --> 0:19:27.240 first of Elon Musk, even being their present, he was 0:19:27.280 --> 0:19:30.760 of course meeting with the wealthiest man as well, but 0:19:30.920 --> 0:19:32.960 also meeting with Macron too. 0:19:33.040 --> 0:19:35.520 This is about bringing technology to France. 0:19:38.000 --> 0:19:41.840 So Elon Musk has talked about creating a battery factory 0:19:41.880 --> 0:19:45.280 in Europe, and he's got sort of lots of European 0:19:45.280 --> 0:19:48.760 politicians essentially begging him to do so. So he met 0:19:48.760 --> 0:19:52.399 with as you mentioned, with French President Demandor Macron earlier 0:19:52.440 --> 0:19:55.600 today and maxconn gave a tweet of him shaking Musk's 0:19:55.600 --> 0:20:00.320 hands saying let's work together. He met yesterday with the 0:20:00.359 --> 0:20:04.480 Italian leader Georgia Maloney and who and he's apparently talked 0:20:04.520 --> 0:20:06.520 about potentially putting the battery of factory there. People have 0:20:06.560 --> 0:20:10.159 talked about Tesla putting this battery factory in Spain, and 0:20:10.200 --> 0:20:12.919 so he's sort of got, as sometimes happens with these 0:20:12.960 --> 0:20:16.439 kinds of investments, sort of politicians desperately trying to get 0:20:16.720 --> 0:20:19.600 him to invest in their country and is using that 0:20:20.280 --> 0:20:22.800 as a way to sort of, you know, gather. 0:20:22.600 --> 0:20:23.320 Them around him. 0:20:23.320 --> 0:20:26.199 And he has made himself the center of attention in 0:20:26.200 --> 0:20:26.840 that respect. 0:20:27.880 --> 0:20:32.000 Thousands of people alan at Viva tech elon Musk walks 0:20:32.040 --> 0:20:36.000 on stage. There's a big reaction taught to us about 0:20:36.080 --> 0:20:38.920 kind of the star power of this man in France 0:20:39.000 --> 0:20:39.679 in particular. 0:20:41.800 --> 0:20:45.720 So it's a funny thing because France is not a 0:20:45.840 --> 0:20:48.080 very pro business environment. 0:20:47.640 --> 0:20:48.680 In many respects. 0:20:49.160 --> 0:20:51.119 I mean, it's become much more so under under Manual 0:20:51.160 --> 0:20:53.800 mack Home, but still sort of in terms of popular 0:20:53.920 --> 0:20:58.399 public opinion, business people are not generally heroes here in 0:20:58.440 --> 0:21:01.640 the way that they can be in the US specifically, 0:21:01.960 --> 0:21:04.960 but Elon Musk has managed to really transcend that, you know. 0:21:04.960 --> 0:21:06.880 In addition to meeting with politicians, as he pointed out, 0:21:06.880 --> 0:21:09.600 he had lunch with bah I know who. By the way, 0:21:09.680 --> 0:21:13.679 even though again their their relative wealth goes back and 0:21:13.680 --> 0:21:15.520 forth on who's the richest man in the world, I'll 0:21:15.520 --> 0:21:17.639 know it is not like a star like Musk is. 0:21:17.680 --> 0:21:19.439