1 00:00:01,639 --> 00:00:06,920 Speaker 1: From Marhard. We're Innovation, Money and Power Collie in Silicon Valley, NBN. 2 00:00:07,280 --> 00:00:11,319 Speaker 2: This is Bloomberg Technology with Caroline Hyde and Ed Love Love. 3 00:00:24,800 --> 00:00:27,800 Speaker 3: I'm Caroline Heinderlumberg's world headquarters in New York and I 4 00:00:27,880 --> 00:00:29,320 Speaker 3: met Ludlow in San Francisco. 5 00:00:29,480 --> 00:00:31,520 Speaker 4: This is Bloomberg Technology coming up. 6 00:00:31,600 --> 00:00:33,200 Speaker 5: Full earnings coverage ahead. 7 00:00:33,200 --> 00:00:35,960 Speaker 3: We've got Qualcom, the ches popping after chip maker is 8 00:00:35,960 --> 00:00:39,120 Speaker 3: providing an upbeat forecast, singing the mobile phone slump. 9 00:00:38,880 --> 00:00:42,080 Speaker 4: It's easing and sticking with smartphones. We'll push your head 10 00:00:42,080 --> 00:00:44,360 Speaker 4: to earnings from Apple, which a duo to come out 11 00:00:44,400 --> 00:00:45,600 Speaker 4: after the bell today. 12 00:00:45,600 --> 00:00:47,320 Speaker 3: And we'll have the latest in the trial of Sam 13 00:00:47,320 --> 00:00:50,680 Speaker 3: Magunfried as Jura's begin deliberations today. 14 00:00:51,120 --> 00:00:52,879 Speaker 5: But first, let's check in on these markets and. 15 00:00:52,840 --> 00:00:55,800 Speaker 3: The feel good music after the Federal Reserve and that 16 00:00:55,960 --> 00:00:58,840 Speaker 3: feeling that the Fed is basically perhaps done with the 17 00:00:58,880 --> 00:01:02,080 Speaker 3: real fast and few pace of rate heights really dials 18 00:01:02,120 --> 00:01:04,840 Speaker 3: into a desire to buy these stocks in the particularly 19 00:01:04,840 --> 00:01:06,880 Speaker 3: in the tech space. We're up five straight days on then, 20 00:01:06,920 --> 00:01:09,240 Speaker 3: now's that one hundred best winning streets since we sinceince 21 00:01:09,280 --> 00:01:10,319 Speaker 3: about August of last year. 22 00:01:10,319 --> 00:01:11,600 Speaker 5: And indeed we're seeing. 23 00:01:11,400 --> 00:01:13,280 Speaker 3: S and P five hundred having its best day since 24 00:01:13,280 --> 00:01:16,039 Speaker 3: August on the day, so overall at one point three percent. 25 00:01:16,040 --> 00:01:18,840 Speaker 3: We're seeing All country World Index basically European stocks pushed higher, 26 00:01:19,000 --> 00:01:21,440 Speaker 3: so tooed in Asia we're having our best day in 27 00:01:21,720 --> 00:01:23,680 Speaker 3: one months, it would seen. We're up one point six percent, 28 00:01:23,800 --> 00:01:25,920 Speaker 3: best day on the All Country World Index since the 29 00:01:25,920 --> 00:01:27,559 Speaker 3: beginning of the year. And I'm looking at the US 30 00:01:27,680 --> 00:01:31,000 Speaker 3: thirty year as we see that sort of desire to 31 00:01:31,040 --> 00:01:34,080 Speaker 3: be buying into bond markets because yields are likely falling 32 00:01:34,120 --> 00:01:35,920 Speaker 3: because maybe the Federal Reserve doesn't have to keep on 33 00:01:36,000 --> 00:01:39,040 Speaker 3: hiking into this particular macro economy. We're down some nine 34 00:01:39,080 --> 00:01:41,280 Speaker 3: basis points on the longer end. We were down much 35 00:01:41,319 --> 00:01:43,760 Speaker 3: further earlier on today, And love quick look at what's 36 00:01:43,760 --> 00:01:44,959 Speaker 3: happening in the world of crypto, because this is. 37 00:01:44,959 --> 00:01:45,800 Speaker 5: An interesting one. 38 00:01:46,040 --> 00:01:49,240 Speaker 3: The dollar is down because we're not anticipating such a 39 00:01:49,280 --> 00:01:51,960 Speaker 3: hawkish FED, but those bitcoins, so that just shows that 40 00:01:51,960 --> 00:01:54,280 Speaker 3: there's really some pulling away from this particular risk asset. 41 00:01:54,280 --> 00:01:56,440 Speaker 3: At the moment, we're off by some two percent, so 42 00:01:56,480 --> 00:01:59,480 Speaker 3: thirty four thousand still heading above that all important sort 43 00:01:59,520 --> 00:02:01,600 Speaker 3: of thirty four thousand dollars level, but notable that we've 44 00:02:01,600 --> 00:02:03,520 Speaker 3: got a little bit of caution in that particular space. 45 00:02:03,600 --> 00:02:05,000 Speaker 5: What are you looking at in the micro. 46 00:02:05,600 --> 00:02:08,720 Speaker 4: There are many many technology earnings to pass over, and 47 00:02:08,800 --> 00:02:12,320 Speaker 4: the first is Peloton interesting because they gave a guidance 48 00:02:12,360 --> 00:02:14,400 Speaker 4: for revenue for the rest of the year there was 49 00:02:14,480 --> 00:02:18,079 Speaker 4: pretty weak. They're having trouble converting free users of their 50 00:02:18,120 --> 00:02:21,760 Speaker 4: app into paid subscribers. They were really down after Earning's hit. 51 00:02:22,000 --> 00:02:25,480 Speaker 4: Now they're up significantly eleven percent. Growth is coming, they 52 00:02:25,480 --> 00:02:28,399 Speaker 4: say in the market, clearly buying it another p Palenteer 53 00:02:28,760 --> 00:02:31,960 Speaker 4: also upgrading its profit outlook for the full year twenty three, 54 00:02:32,040 --> 00:02:36,560 Speaker 4: also slightly upgrading its revenue expectations. The story AI Palenteer's 55 00:02:36,560 --> 00:02:38,400 Speaker 4: and AI sorry you and I've hit all year long. 56 00:02:38,680 --> 00:02:41,200 Speaker 4: Now the financials are starting to show that four straight 57 00:02:41,240 --> 00:02:44,280 Speaker 4: quarter of profit also up eighteen percent. Then after market 58 00:02:44,280 --> 00:02:47,200 Speaker 4: we get Apple. We know what's coming. Four straight quarter 59 00:02:47,520 --> 00:02:49,880 Speaker 4: of sales declined. You have to go about two decades 60 00:02:50,040 --> 00:02:51,800 Speaker 4: for Apple to have a slump like that. But we 61 00:02:51,880 --> 00:02:54,640 Speaker 4: get some insight into how the iPhone fifteen is doing, 62 00:02:54,680 --> 00:02:56,920 Speaker 4: so we get about nine days worth of sales in 63 00:02:56,960 --> 00:02:59,080 Speaker 4: that September quarter. The main one I'm looking at right 64 00:02:59,120 --> 00:03:02,480 Speaker 4: now is quite forecast for the current period of revenue 65 00:03:02,560 --> 00:03:04,960 Speaker 4: nine point one to nine point nine billion dollars a 66 00:03:05,000 --> 00:03:08,119 Speaker 4: big range, but at the midpoint of that range you're 67 00:03:08,120 --> 00:03:12,000 Speaker 4: well above analyst expectations. Is for sales. The thinking it 68 00:03:12,160 --> 00:03:14,760 Speaker 4: signals that things were recovering in the smartphone market. So 69 00:03:14,800 --> 00:03:16,880 Speaker 4: let's get more on that cloud coom story and bring 70 00:03:16,880 --> 00:03:20,840 Speaker 4: in congen Sibani or Bloomberg intelligence. That's the guidance. What 71 00:03:20,960 --> 00:03:24,280 Speaker 4: do you read into that congent about the smartphone market globally? 72 00:03:25,560 --> 00:03:27,680 Speaker 6: Thanks Ed, I mean, coming into the quarter, it was 73 00:03:27,720 --> 00:03:31,200 Speaker 6: pretty clear that the smartt phone market had hit its bottom. 74 00:03:31,440 --> 00:03:34,399 Speaker 6: Customers have been clearing out inventory for a few weeks now, 75 00:03:34,600 --> 00:03:37,040 Speaker 6: but what was not clear was what to expect in 76 00:03:37,120 --> 00:03:39,960 Speaker 6: terms of the speed and size of the market snapback, 77 00:03:40,280 --> 00:03:43,160 Speaker 6: especially in the Android market in China, which is sort 78 00:03:43,200 --> 00:03:45,280 Speaker 6: of which was sort of holding back the start of 79 00:03:45,360 --> 00:03:47,800 Speaker 6: the recovery for Qualcom, and there was this build up 80 00:03:47,800 --> 00:03:50,240 Speaker 6: anxiety around if we are going to have brace for 81 00:03:50,320 --> 00:03:52,960 Speaker 6: another disappointment. So it was a sile of relief to 82 00:03:53,000 --> 00:03:56,080 Speaker 6: see signs of green shoots over there, especially from their 83 00:03:56,120 --> 00:03:58,880 Speaker 6: better one Q guidance and a couple of data points 84 00:03:58,880 --> 00:04:02,240 Speaker 6: to valid it was the twenty five percent sequential revenue 85 00:04:02,280 --> 00:04:06,200 Speaker 6: growth from the Chinese Android OEMs, and them confirming that 86 00:04:06,240 --> 00:04:09,360 Speaker 6: they will keep the majority share at Samsung twenty four launch. 87 00:04:10,280 --> 00:04:12,320 Speaker 3: All of this, though, is at a time where Christiana 88 00:04:12,400 --> 00:04:15,880 Speaker 3: Armon is trying to diversify away from really the all 89 00:04:15,920 --> 00:04:17,479 Speaker 3: in on the mobile space. 90 00:04:17,800 --> 00:04:18,680 Speaker 5: How is that working? 91 00:04:18,720 --> 00:04:21,200 Speaker 3: How is that bearing fruit when you're looking at connected devices, 92 00:04:21,200 --> 00:04:23,400 Speaker 3: when you're looking at automotive for example. 93 00:04:24,200 --> 00:04:27,200 Speaker 1: Look, the a PC is really a call option for them. 94 00:04:27,240 --> 00:04:30,480 Speaker 6: Specifically in terms of street estimates, the numbers right now 95 00:04:30,520 --> 00:04:33,680 Speaker 6: don't even attribute much revenue coming from this business, and 96 00:04:33,760 --> 00:04:37,520 Speaker 6: even by Qualcom's own commentary, they don't expect PC revenue 97 00:04:37,520 --> 00:04:40,919 Speaker 6: to start contributing significantly under twenty twenty five. So the 98 00:04:40,960 --> 00:04:43,880 Speaker 6: discussion right now around PC is more related to adding 99 00:04:43,880 --> 00:04:46,920 Speaker 6: to the sentiment around this rather than the fundamentals. 100 00:04:47,080 --> 00:04:49,760 Speaker 1: The good thing for them, though, is if they have any. 101 00:04:49,560 --> 00:04:51,839 Speaker 6: Success, no matter what the size, it will all be 102 00:04:52,040 --> 00:04:53,479 Speaker 6: upside from the current numbers. 103 00:04:55,360 --> 00:04:57,440 Speaker 4: Can general want to take into some of your analysis 104 00:04:57,440 --> 00:05:01,440 Speaker 4: you published last night that's about China. The landscape for 105 00:05:01,520 --> 00:05:04,359 Speaker 4: smartphones in China has changed in terms of where the 106 00:05:04,440 --> 00:05:07,440 Speaker 4: chips are coming from and also planning for the future. 107 00:05:07,839 --> 00:05:10,320 Speaker 4: Based on what Qualcom told us, what do you read 108 00:05:10,400 --> 00:05:12,200 Speaker 4: into the Chinese market for that name? 109 00:05:13,320 --> 00:05:15,080 Speaker 6: Yeah, I mean again, like I said, it was the 110 00:05:15,120 --> 00:05:18,560 Speaker 6: one thing that was holding back the strong recovery like 111 00:05:18,600 --> 00:05:21,640 Speaker 6: we're seeing in PCs versus not seeing in smartphone. So 112 00:05:21,760 --> 00:05:24,680 Speaker 6: there is good signs that the Chinese android OEMs are 113 00:05:24,720 --> 00:05:27,440 Speaker 6: now pulling in and building on that inventory. 114 00:05:27,480 --> 00:05:28,920 Speaker 1: So that's good for Qualcomm. 115 00:05:29,040 --> 00:05:32,680 Speaker 6: The other factor there is the uncertainty about Huave possibly 116 00:05:32,760 --> 00:05:36,520 Speaker 6: gaining share, So we still have to wait and see 117 00:05:36,520 --> 00:05:39,120 Speaker 6: how this plays out. But right now with them getting 118 00:05:39,120 --> 00:05:41,960 Speaker 6: Apple back and again getting a lot more content and 119 00:05:41,960 --> 00:05:44,960 Speaker 6: Android OEMs, as long as this market keeps coming back, 120 00:05:45,000 --> 00:05:47,320 Speaker 6: it's going to be a double tail wind for Qualcomm. 121 00:05:47,760 --> 00:05:49,839 Speaker 3: Conjohn Savani and we thank you so much for Blue 122 00:05:49,880 --> 00:05:53,360 Speaker 3: meg Intelligence and all things Qualcom and indeed China. Perfect 123 00:05:53,400 --> 00:05:55,480 Speaker 3: segue there for in to our next discussion because he 124 00:05:55,600 --> 00:05:58,000 Speaker 3: just mentioned Apple there, he mentioned Huawei. That's talking about 125 00:05:58,000 --> 00:06:00,719 Speaker 3: Apple's reporting results after the battle. Well, he hate to 126 00:06:00,720 --> 00:06:02,719 Speaker 3: walk us through what to expect is Bloomberg's Mark German 127 00:06:02,760 --> 00:06:05,960 Speaker 3: and Mark a lot of people anticipating that China is 128 00:06:06,000 --> 00:06:08,200 Speaker 3: going to play a big role in this set of numbers. 129 00:06:08,440 --> 00:06:09,719 Speaker 1: I want to really focus in. 130 00:06:09,760 --> 00:06:12,159 Speaker 7: I wish we had a replay of something Kunjan said 131 00:06:12,200 --> 00:06:15,200 Speaker 7: when he first started the discussion. He noted that the 132 00:06:15,440 --> 00:06:20,360 Speaker 7: Qualcom expectation for sales from Chinese handset makers our way up. 133 00:06:20,480 --> 00:06:22,919 Speaker 1: I was preparing for Apple earning yesterday. 134 00:06:22,839 --> 00:06:25,160 Speaker 7: And a headlined cross on the terminal during the pual 135 00:06:25,160 --> 00:06:30,080 Speaker 7: foam RaaS that said, Chinese phonemaker sales connected to Qualcom 136 00:06:30,160 --> 00:06:32,839 Speaker 7: are anticipated to be up a third in the current 137 00:06:32,920 --> 00:06:35,599 Speaker 7: quarter where they were just up a third. That's good 138 00:06:35,640 --> 00:06:38,279 Speaker 7: news for Qualcomb if you think about it, that's not 139 00:06:38,440 --> 00:06:42,120 Speaker 7: very good news for Apple. To answer your question, obviously, 140 00:06:42,200 --> 00:06:45,080 Speaker 7: Qualcomm makes a lot of the CPUs and chips that 141 00:06:45,160 --> 00:06:48,839 Speaker 7: go into Android phones, a lot of the ones developed 142 00:06:48,839 --> 00:06:50,120 Speaker 7: by Chinese manufacturers. 143 00:06:50,360 --> 00:06:54,200 Speaker 1: But Apple makes their own chips. Right, If Qualtcom sales are. 144 00:06:54,040 --> 00:06:57,839 Speaker 7: Going way up in China the handset makers there, something's 145 00:06:57,880 --> 00:07:00,680 Speaker 7: got to give, right, So that answer here's your question. 146 00:07:00,720 --> 00:07:02,640 Speaker 7: I think about what's going on with Apple in China. 147 00:07:02,800 --> 00:07:04,360 Speaker 7: We may be in for a little bit of a 148 00:07:04,400 --> 00:07:08,200 Speaker 7: dip there because Hawkom is taking share from somewhere, right, 149 00:07:08,680 --> 00:07:10,400 Speaker 7: So I think that's something to look out for. 150 00:07:10,400 --> 00:07:10,760 Speaker 1: For sure. 151 00:07:11,760 --> 00:07:15,040 Speaker 4: There's the financials backward looking at what happened in the 152 00:07:15,080 --> 00:07:17,360 Speaker 4: fiscal court had just gone and then you listen to 153 00:07:17,360 --> 00:07:19,720 Speaker 4: what Tim Cook and Eddie Q will say about the future. 154 00:07:20,200 --> 00:07:22,840 Speaker 4: The iPhone fifteen went on sale September twenty second, Right, 155 00:07:22,840 --> 00:07:25,559 Speaker 4: that gives about nine days of sales in the quarter 156 00:07:25,560 --> 00:07:29,160 Speaker 4: that they'll book. But in that time they've raised services prices. 157 00:07:29,360 --> 00:07:31,800 Speaker 4: We had all those details on the next generation Mac 158 00:07:32,360 --> 00:07:35,880 Speaker 4: and M three chips. What moves the needle mark outside 159 00:07:35,880 --> 00:07:37,800 Speaker 4: of iPhone towards the end of the year and into 160 00:07:37,800 --> 00:07:38,520 Speaker 4: twenty four. 161 00:07:39,840 --> 00:07:41,320 Speaker 1: Yeah, I think it's wearables. 162 00:07:41,680 --> 00:07:44,680 Speaker 7: I think it's stocking stoppers potentially like the lower end 163 00:07:44,720 --> 00:07:46,080 Speaker 7: Apple watches in the AirPods. 164 00:07:46,080 --> 00:07:47,960 Speaker 1: I think that is going to probably. 165 00:07:49,120 --> 00:07:50,800 Speaker 7: Result in a lot of the momentum you're going to 166 00:07:50,800 --> 00:07:53,440 Speaker 7: see from Apple in the holiday quarter. Obviously, the iPhone 167 00:07:53,480 --> 00:07:56,160 Speaker 7: fifteen pro is going to do exceptionally well. You know, 168 00:07:56,240 --> 00:07:59,520 Speaker 7: Apple has a pretty easy cart for the iPhone fifteen, Right, 169 00:07:59,600 --> 00:08:02,720 Speaker 7: this is a redesigned phone, titanium, that new look, that 170 00:08:02,760 --> 00:08:05,560 Speaker 7: new material, that new three and animator chip. That's what 171 00:08:05,680 --> 00:08:08,040 Speaker 7: sells consumers. And the good news for Apple is it 172 00:08:08,040 --> 00:08:11,120 Speaker 7: doesn't seem that they have any major production hiccups this 173 00:08:11,160 --> 00:08:14,520 Speaker 7: time around last year you had a minor iPhone update 174 00:08:14,560 --> 00:08:18,320 Speaker 7: with the iPhone fourteen, right, you had major shipment delays 175 00:08:18,320 --> 00:08:21,160 Speaker 7: and major shipment constraints that you don't have this year. 176 00:08:21,400 --> 00:08:24,000 Speaker 7: So you should see some nice growth on the iPhone 177 00:08:24,040 --> 00:08:28,080 Speaker 7: despite the situation potentially occurring in China. So I'm looking 178 00:08:28,080 --> 00:08:30,840 Speaker 7: for positivity for sure on the iPhone. In fact, if 179 00:08:30,840 --> 00:08:34,280 Speaker 7: you look at Wall Street expectations for the previous quarter, 180 00:08:34,600 --> 00:08:38,080 Speaker 7: the iPhone is one of the only business from Apple 181 00:08:38,200 --> 00:08:40,720 Speaker 7: that we're expecting growth in the other two and this 182 00:08:40,840 --> 00:08:43,040 Speaker 7: is very surprising given everything. 183 00:08:42,640 --> 00:08:44,360 Speaker 1: We just discussed. Is Greater China. 184 00:08:44,640 --> 00:08:48,559 Speaker 7: Wall Street is anticipating two billion dollars of year over 185 00:08:48,600 --> 00:08:51,000 Speaker 7: year growth in the China business, right, going from about 186 00:08:51,000 --> 00:08:54,080 Speaker 7: fifteen billion and change to about seventeen billion in just 187 00:08:54,120 --> 00:08:57,120 Speaker 7: that Greater China region. So you know, it appears even 188 00:08:57,120 --> 00:08:59,760 Speaker 7: if the iPhone does slow down in China, they're they're 189 00:08:59,760 --> 00:09:01,760 Speaker 7: going to make up for the iPhone sales and other regions, 190 00:09:01,760 --> 00:09:02,679 Speaker 7: and they're going to make up for. 191 00:09:02,600 --> 00:09:04,520 Speaker 1: The iPhone China with other products. 192 00:09:04,520 --> 00:09:08,400 Speaker 7: The Apple Watch is certainly growing in popularity in China. 193 00:09:08,440 --> 00:09:11,719 Speaker 7: It's become a really big deal there. Even the Mac right, 194 00:09:11,840 --> 00:09:15,960 Speaker 7: these higher priced, more luxurious Macs those are becoming bigger 195 00:09:16,040 --> 00:09:19,880 Speaker 7: sellers in China. So no matter what's happening to the iPhone, 196 00:09:19,960 --> 00:09:22,160 Speaker 7: I think based on what Wall Street is saying that 197 00:09:22,200 --> 00:09:23,000 Speaker 7: they are going to make. 198 00:09:22,920 --> 00:09:23,240 Speaker 8: Up for it. 199 00:09:23,360 --> 00:09:26,800 Speaker 3: So we want to thank you Marghum and all things 200 00:09:26,840 --> 00:09:28,640 Speaker 3: Apple as we anticipate those numbers off the bell. I 201 00:09:28,679 --> 00:09:31,640 Speaker 3: mean while coming up, Look, Canadian e commerce firm Shopify 202 00:09:32,160 --> 00:09:34,720 Speaker 3: talking earning there two beating estimates for the third quarter. 203 00:09:34,760 --> 00:09:35,719 Speaker 5: Shares they rally hard. 204 00:09:35,760 --> 00:09:38,760 Speaker 3: A conversation with the president Harley Finkelstein, that's coming up next. 205 00:09:39,000 --> 00:09:55,560 Speaker 3: This is Bluemberg technology, discipline, cost cutting, that's just one 206 00:09:55,600 --> 00:09:57,679 Speaker 3: of the factors that helps Shopify see positive results in 207 00:09:57,720 --> 00:09:59,960 Speaker 3: their third quarter. The Canadian based e commerce platform shop 208 00:10:00,760 --> 00:10:04,720 Speaker 3: says it's report showcase the durability of its business model, revenue, 209 00:10:04,840 --> 00:10:07,680 Speaker 3: earnings per share, they beat estimates and then some joining 210 00:10:07,760 --> 00:10:10,400 Speaker 3: us now on how the strategy is playing out. Harley Finkelstein, 211 00:10:10,679 --> 00:10:14,200 Speaker 3: president of Shopify, And look, clearly investors love the numbers today. 212 00:10:14,200 --> 00:10:17,520 Speaker 3: We're seeing the shares rally hard. Harley, how sustainable is that? 213 00:10:17,520 --> 00:10:20,280 Speaker 3: That level of discipline but also showing growth into the 214 00:10:20,320 --> 00:10:21,199 Speaker 3: next fiscal quarter. 215 00:10:22,000 --> 00:10:23,400 Speaker 9: Yeah, thanks for having me on the show. 216 00:10:23,559 --> 00:10:24,680 Speaker 1: Caroline and Ed look. 217 00:10:24,720 --> 00:10:27,560 Speaker 9: We later at a very deliberate vision to balance both 218 00:10:27,600 --> 00:10:30,080 Speaker 9: operational ambition, which we certainly have a lot of, but 219 00:10:30,160 --> 00:10:33,040 Speaker 9: also the financial discipline. And the results speak for themselves. 220 00:10:33,120 --> 00:10:36,640 Speaker 9: We are delivering top land growth and profitability. Q three GMV, 221 00:10:36,800 --> 00:10:38,600 Speaker 9: which of course is the proxy for how well the 222 00:10:38,640 --> 00:10:41,040 Speaker 9: merchants are doing on Shopify, was up twenty two percent 223 00:10:41,080 --> 00:10:43,559 Speaker 9: to fifty six billion, Revenue was up to twenty five 224 00:10:43,559 --> 00:10:46,079 Speaker 9: percent to one point seven billion, and as you pointed out, 225 00:10:46,360 --> 00:10:48,199 Speaker 9: we have cash flow of north of two hundred and 226 00:10:48,200 --> 00:10:51,200 Speaker 9: seventy million now with every quarter ticking up. That cash 227 00:10:51,160 --> 00:10:53,160 Speaker 9: flow is a percentage of revenue, and Q four is 228 00:10:53,200 --> 00:10:55,559 Speaker 9: expected to keep this trend going. One of the other 229 00:10:55,559 --> 00:10:57,200 Speaker 9: things that I don't think is getting covered, but is 230 00:10:57,280 --> 00:10:59,520 Speaker 9: very exciting to us, is that more of the largest 231 00:10:59,520 --> 00:11:02,360 Speaker 9: and most hord and brands on the planet are joining Shopify, 232 00:11:02,800 --> 00:11:06,120 Speaker 9: like Ted Baker and Tom's and LVMH's, Puuci and Quicksilver 233 00:11:06,280 --> 00:11:07,600 Speaker 9: and Billabong. 234 00:11:07,679 --> 00:11:09,920 Speaker 1: And it's a really great for us. 235 00:11:09,960 --> 00:11:11,760 Speaker 9: It's a great story, but it's a story of balancing 236 00:11:11,800 --> 00:11:15,440 Speaker 9: both growth and profitability simultaneously. And that's because we have 237 00:11:15,480 --> 00:11:17,000 Speaker 9: a new shape of the company, which is far more 238 00:11:17,000 --> 00:11:19,920 Speaker 9: focused on our main quest and things that are most important. 239 00:11:20,720 --> 00:11:22,960 Speaker 4: Highly on that new shape and those brands that you're 240 00:11:23,000 --> 00:11:26,160 Speaker 4: talking about. How much of that focuses into the outlook. 241 00:11:26,160 --> 00:11:28,600 Speaker 4: There's an accusation out there from some on the street 242 00:11:28,679 --> 00:11:31,720 Speaker 4: that you guys are a little bit conservative with the 243 00:11:31,760 --> 00:11:33,760 Speaker 4: outlook and maybe you could do a bit more. 244 00:11:34,880 --> 00:11:37,440 Speaker 9: Yeah, well, look, I think we are as a company 245 00:11:37,480 --> 00:11:40,360 Speaker 9: firing up all cylinders, both horizontally and vertically. On the 246 00:11:40,440 --> 00:11:43,920 Speaker 9: vertical side, obviously, Shopify is known to be the entrepreneurship company, 247 00:11:43,960 --> 00:11:46,480 Speaker 9: the place where millions of small businesses go to start 248 00:11:46,880 --> 00:11:49,440 Speaker 9: businesses and grow those businesses. But we also have this 249 00:11:49,559 --> 00:11:52,920 Speaker 9: incredible effort around enterprise commerce whereby some of the largest 250 00:11:52,920 --> 00:11:55,240 Speaker 9: companies some of those I mentioned, but you know, companies 251 00:11:55,320 --> 00:11:57,920 Speaker 9: like Spanks for example, and Glossier for example, and the 252 00:11:57,960 --> 00:12:01,000 Speaker 9: Mars Company for example, and Blackenedncker. 253 00:12:00,400 --> 00:12:01,760 Speaker 4: All come into Shopify as well. 254 00:12:02,000 --> 00:12:04,160 Speaker 9: At the same time, one of the other metrics that 255 00:12:04,200 --> 00:12:06,719 Speaker 9: we really think a lot about is our product attach rate, 256 00:12:07,000 --> 00:12:09,280 Speaker 9: and that really is a proxy for the usage of 257 00:12:09,320 --> 00:12:12,280 Speaker 9: our products and platform buyer merchants. That's over three percent, 258 00:12:12,320 --> 00:12:14,680 Speaker 9: so that means more merchants are taking more of our products, 259 00:12:14,800 --> 00:12:17,800 Speaker 9: whether that's things like capital or shipping, or payments or 260 00:12:17,880 --> 00:12:20,520 Speaker 9: even audiences for example. We like that, we like being 261 00:12:20,520 --> 00:12:23,040 Speaker 9: the center of the business for these millions of stores, and. 262 00:12:23,040 --> 00:12:25,559 Speaker 3: You managed this way bigger players and keep those smaller 263 00:12:25,559 --> 00:12:28,079 Speaker 3: players at the same time as increasing pricing. I'm interested 264 00:12:28,080 --> 00:12:31,320 Speaker 3: in how you are thinking about monetization going forward. 265 00:12:31,320 --> 00:12:31,600 Speaker 5: Holly. 266 00:12:32,200 --> 00:12:35,160 Speaker 9: Yeah, montation is something that we certainly in the last 267 00:12:35,280 --> 00:12:36,360 Speaker 9: year and a half or so, I have been spending 268 00:12:36,360 --> 00:12:38,520 Speaker 9: a lot more time thinking about. I've been at Shopify 269 00:12:38,559 --> 00:12:41,400 Speaker 9: now for over a third of my life, almost fourteen 270 00:12:41,480 --> 00:12:44,520 Speaker 9: years now, and we really never change pricing. We made 271 00:12:44,520 --> 00:12:46,800 Speaker 9: our first change last year to our basic plan, which 272 00:12:46,920 --> 00:12:49,640 Speaker 9: most merchants are using. We increased it by about a third, 273 00:12:49,679 --> 00:12:52,360 Speaker 9: by but thirty three percent, and we saw very little pushback. 274 00:12:52,400 --> 00:12:54,680 Speaker 9: And that sort of suggests to us that the value 275 00:12:54,720 --> 00:12:57,280 Speaker 9: to cost ratio of Shopify is so far in the 276 00:12:57,280 --> 00:12:59,960 Speaker 9: side of value, and so as we think about changing 277 00:13:00,040 --> 00:13:03,360 Speaker 9: pricing across other products or even other plans, we want 278 00:13:03,360 --> 00:13:05,000 Speaker 9: to be deliberate about it, but we believe that we 279 00:13:05,000 --> 00:13:06,960 Speaker 9: still have an opportunity to increase pricing in the future. 280 00:13:07,800 --> 00:13:11,240 Speaker 4: Holly, quickly, what's the AI story for Shopify? 281 00:13:12,320 --> 00:13:15,319 Speaker 9: Yeah, Well, look, I think we are actually uniquely positioned 282 00:13:15,440 --> 00:13:18,400 Speaker 9: to harness the power of AI. We think that particularly 283 00:13:18,440 --> 00:13:21,520 Speaker 9: small businesses and entrepreneurs will really benefit from these tools. 284 00:13:21,760 --> 00:13:24,959 Speaker 9: But unlike other generator of AI products, are AI product 285 00:13:24,960 --> 00:13:29,120 Speaker 9: which is called Shopify Magic One. It's designed specifically for 286 00:13:29,200 --> 00:13:32,160 Speaker 9: commerce and retail. But also it's not just one feature, 287 00:13:32,200 --> 00:13:34,719 Speaker 9: one product. What we've done is we've embedded across all 288 00:13:34,760 --> 00:13:36,640 Speaker 9: of our features and all of our workflows so that 289 00:13:36,720 --> 00:13:38,959 Speaker 9: more people can start businesses and more people can be 290 00:13:39,000 --> 00:13:41,480 Speaker 9: a lot more successful. And merchants are finding it to 291 00:13:41,520 --> 00:13:44,280 Speaker 9: be really valuable. They spend more time making their products 292 00:13:44,320 --> 00:13:47,240 Speaker 9: and less time doing some of the administrative tasks, which frankly, 293 00:13:47,320 --> 00:13:48,600 Speaker 9: AI is really good at. 294 00:13:48,840 --> 00:13:52,080 Speaker 4: Holly Finklestein, president of Shop five, Always greats. Catch up, 295 00:13:52,120 --> 00:13:52,559 Speaker 4: Thank you. 296 00:14:00,240 --> 00:14:02,400 Speaker 3: Welcome back to Bloomberg Technology. I'm Caroline had in New 297 00:14:02,440 --> 00:14:03,440 Speaker 3: York and. 298 00:14:03,360 --> 00:14:05,920 Speaker 4: I'm Ed Ludlow in San Francisco. Carra quit check in 299 00:14:05,960 --> 00:14:07,640 Speaker 4: on the markets, and as you know, this week we're 300 00:14:07,720 --> 00:14:10,360 Speaker 4: checking in on the European close. Given the time difference, 301 00:14:10,400 --> 00:14:12,800 Speaker 4: the stock six hundred Europe, which is our main gauge 302 00:14:12,840 --> 00:14:15,400 Speaker 4: of European equities, on track for a fourth straight gain 303 00:14:15,520 --> 00:14:17,600 Speaker 4: or has closed now and hit a four straight day 304 00:14:17,640 --> 00:14:20,120 Speaker 4: of gains, which is its longest streak of winds going 305 00:14:20,160 --> 00:14:22,080 Speaker 4: back to July. A lot of the trading was around 306 00:14:22,080 --> 00:14:24,800 Speaker 4: what was happening with the Fed last night, even though 307 00:14:24,920 --> 00:14:28,200 Speaker 4: that's a different jurisdiction. Also the BOE, the Bank of England, 308 00:14:28,320 --> 00:14:32,200 Speaker 4: keeping rates are unchanged and really talking down the prospect 309 00:14:32,240 --> 00:14:34,920 Speaker 4: of further cuts. We just heard, of course on Bloomberg 310 00:14:34,960 --> 00:14:37,320 Speaker 4: Television our interview with the Bank of England's governor. This 311 00:14:37,440 --> 00:14:39,200 Speaker 4: is what the foot see one hundred looks like, up 312 00:14:39,240 --> 00:14:42,760 Speaker 4: one point four percent on the day, Serling GBPUSD up 313 00:14:42,840 --> 00:14:45,000 Speaker 4: to ten to four percent, and UK ten year yield 314 00:14:45,240 --> 00:14:47,920 Speaker 4: soft for a little bit eleven basis points four point 315 00:14:48,120 --> 00:14:50,000 Speaker 4: three eight percent. One more day in the week. We'll 316 00:14:50,000 --> 00:14:52,960 Speaker 4: review that European market close update, Caroline. 317 00:14:52,960 --> 00:14:55,000 Speaker 5: Meanwhile, let's just check in on how the US is performing. 318 00:14:55,040 --> 00:14:56,280 Speaker 3: And I have to say it was rallying in the 319 00:14:56,320 --> 00:14:58,400 Speaker 3: UK and we've been rallying worldwide today on the back 320 00:14:58,440 --> 00:15:01,720 Speaker 3: of macropolicy. The Federal of course looking like it's done, 321 00:15:01,720 --> 00:15:05,360 Speaker 3: perhaps with its really hawkish viewpoint on where rates have 322 00:15:05,440 --> 00:15:07,520 Speaker 3: to go. Now sack at one point three percent. I'm 323 00:15:07,560 --> 00:15:09,760 Speaker 3: shining a light, and what on earth is happening with Peloton, 324 00:15:09,840 --> 00:15:12,360 Speaker 3: because of course it is, you know, a volatile stock. 325 00:15:12,400 --> 00:15:14,520 Speaker 3: Nowaday is only worth five dollars when you're looking at 326 00:15:14,560 --> 00:15:18,880 Speaker 3: it's per share price point twelve dollars, a twelve percent 327 00:15:18,960 --> 00:15:22,120 Speaker 3: rally when we had been sinking hard after their numbers. 328 00:15:22,120 --> 00:15:23,400 Speaker 5: This is all is really. 329 00:15:23,400 --> 00:15:25,520 Speaker 3: They actually managed to beat in their fiscal first quart 330 00:15:25,720 --> 00:15:27,160 Speaker 3: when it comes to revenue, when it comes to a 331 00:15:27,160 --> 00:15:28,480 Speaker 3: bit darm when it comes to margin. 332 00:15:28,720 --> 00:15:30,720 Speaker 5: But there is a slightly weak look ahead in. 333 00:15:30,720 --> 00:15:34,640 Speaker 3: Terms of signaling what Bernstein is saying basically zero growth. 334 00:15:34,880 --> 00:15:36,400 Speaker 5: So there's a bare narrative there. 335 00:15:36,440 --> 00:15:40,440 Speaker 3: However, the first called Martin first quarter margins were particularly strong, 336 00:15:40,440 --> 00:15:41,160 Speaker 3: says Bernstein. 337 00:15:41,720 --> 00:15:43,120 Speaker 5: Nevertheless, kind of co ingenuity. 338 00:15:43,120 --> 00:15:45,920 Speaker 3: For example of that particular analyst downgrading the stock to 339 00:15:45,920 --> 00:15:48,440 Speaker 3: a price target of five versus eight dollars and cuts 340 00:15:48,440 --> 00:15:50,640 Speaker 3: from a hold to a hold from a by So 341 00:15:50,960 --> 00:15:54,280 Speaker 3: interesting narrative coming from Peloton. Bitcoin under pressure today even 342 00:15:54,280 --> 00:15:56,600 Speaker 3: with the dollar weaker, So interesting selling of that particular 343 00:15:56,640 --> 00:15:57,320 Speaker 3: with scasid d. 344 00:15:58,440 --> 00:16:01,200 Speaker 4: All Right, another earnings one. We're watching Airbnb. Let's bring 345 00:16:01,240 --> 00:16:04,160 Speaker 4: in more, get more with Bloomberg's Natali learning Natalie, I'm 346 00:16:04,160 --> 00:16:06,920 Speaker 4: looking at shares with down more than three percent. This 347 00:16:07,120 --> 00:16:09,800 Speaker 4: is the story of the world economy catching up with 348 00:16:09,880 --> 00:16:12,360 Speaker 4: Airbnb a little bit in terms of the outlook that 349 00:16:12,400 --> 00:16:13,320 Speaker 4: they gave us. 350 00:16:14,080 --> 00:16:19,240 Speaker 8: Yes, So, in their fourth quarter outlook statement, they mentioned 351 00:16:19,400 --> 00:16:22,600 Speaker 8: they saw some early volatility in the quarter. On their 352 00:16:22,600 --> 00:16:25,280 Speaker 8: earnings call, they mentioned it was hard to pinpoint what 353 00:16:25,360 --> 00:16:29,560 Speaker 8: exactly it was, but they pointed it to macro economic 354 00:16:29,800 --> 00:16:32,480 Speaker 8: factors as well as political tensions. 355 00:16:33,080 --> 00:16:35,440 Speaker 3: Leslie, we sit here in New York and what's been 356 00:16:35,480 --> 00:16:38,680 Speaker 3: so interesting is the regulatory pressure that Airbnb is coming 357 00:16:38,760 --> 00:16:41,520 Speaker 3: under in this particular city. Do they speak to that 358 00:16:41,600 --> 00:16:43,640 Speaker 3: narrative just how much the business model is kind of 359 00:16:43,680 --> 00:16:45,800 Speaker 3: being uphended at the moment right. 360 00:16:46,240 --> 00:16:49,600 Speaker 8: Their take is that New York is like a smaller 361 00:16:49,640 --> 00:16:52,240 Speaker 8: market right now for them, like around one percent of 362 00:16:52,280 --> 00:16:56,240 Speaker 8: their revenue before the regulations kicked in. And their take 363 00:16:56,320 --> 00:16:58,720 Speaker 8: is that over eighty percent of their top markets have 364 00:16:58,800 --> 00:17:02,680 Speaker 8: been regulated. So they're still confident that with their business model, 365 00:17:02,720 --> 00:17:05,320 Speaker 8: with supply of the listing still growing at a double 366 00:17:05,359 --> 00:17:05,920 Speaker 8: digit rate. 367 00:17:06,320 --> 00:17:08,960 Speaker 3: What was interesting also about Airbnb and its leadership was 368 00:17:09,000 --> 00:17:11,879 Speaker 3: they didn't have to sort of make those painful announcements 369 00:17:11,880 --> 00:17:13,879 Speaker 3: of job cuts when everyone else was they managed to 370 00:17:13,880 --> 00:17:16,359 Speaker 3: steer the business remain lean. Are they going to have 371 00:17:16,440 --> 00:17:19,400 Speaker 3: to think about that a little bit more with macroeconomic headwinds, 372 00:17:19,560 --> 00:17:22,679 Speaker 3: with geopolitical tensions, with the old regulatory headwind here in 373 00:17:22,720 --> 00:17:23,480 Speaker 3: the US. 374 00:17:23,480 --> 00:17:28,600 Speaker 8: Right, a lot of analysts who have It's serrating at 375 00:17:28,600 --> 00:17:31,320 Speaker 8: the highest number right now, and a lot of her 376 00:17:31,359 --> 00:17:36,240 Speaker 8: are looking for long term growth catalysts, and this is 377 00:17:36,240 --> 00:17:38,880 Speaker 8: why they are coming up with product updates to try 378 00:17:38,920 --> 00:17:42,840 Speaker 8: to make the platform more reliable, getting continue hosting with 379 00:17:42,880 --> 00:17:45,840 Speaker 8: them and also gets to continue booking with them. 380 00:17:46,520 --> 00:17:48,879 Speaker 4: So the response is really key here. You know, the 381 00:17:48,920 --> 00:17:52,679 Speaker 4: pandemic era, that behavior of consumers has changed. Stays of 382 00:17:52,720 --> 00:17:55,240 Speaker 4: twenty eight days or more in focus. But next week 383 00:17:55,560 --> 00:17:57,480 Speaker 4: we think we're going to get all kinds of new products. 384 00:17:57,480 --> 00:18:00,480 Speaker 4: What does the future look like for Airbnb and Natalie. 385 00:18:00,200 --> 00:18:05,800 Speaker 8: Right CEO Brian Cheskey says, they're laying the foundation for 386 00:18:05,840 --> 00:18:08,160 Speaker 8: a lot of the new services that are coming out, 387 00:18:09,480 --> 00:18:13,880 Speaker 8: whether it's using AI as a better matching service. All 388 00:18:14,680 --> 00:18:17,960 Speaker 8: these updates are to you know, tell guests and hosts 389 00:18:18,000 --> 00:18:21,160 Speaker 8: to keep you know, booking and using their platforms. 390 00:18:21,960 --> 00:18:24,600 Speaker 3: Won't keep an eye on how those product anounments do 391 00:18:24,640 --> 00:18:27,000 Speaker 3: you transpond Natalie Lung, We thank you for the inside 392 00:18:27,000 --> 00:18:30,040 Speaker 3: track on Airbnb. Meanwhile, we've got more on earnings, etc. 393 00:18:30,280 --> 00:18:31,080 Speaker 3: Of course came out. 394 00:18:31,280 --> 00:18:33,480 Speaker 5: We want to bring in Punham, Gil from Bluebeg Intelligence 395 00:18:33,480 --> 00:18:33,879 Speaker 5: and Punham. 396 00:18:33,960 --> 00:18:37,359 Speaker 3: I'm so fascinated with ETC's numbers because we just spoke 397 00:18:37,400 --> 00:18:40,760 Speaker 3: with the president of Shopify feeling very resilient about where 398 00:18:40,800 --> 00:18:44,120 Speaker 3: a consumer is managing to be and really show path 399 00:18:44,119 --> 00:18:44,520 Speaker 3: to growth. 400 00:18:44,560 --> 00:18:45,160 Speaker 5: Why is etc. 401 00:18:45,359 --> 00:18:47,639 Speaker 3: Not managing to mimic that sort of consumer strength. 402 00:18:48,440 --> 00:18:50,439 Speaker 2: I think it's it's a little bit of a different 403 00:18:50,480 --> 00:18:54,200 Speaker 2: story because we are seeing consumer spending slow down, consumers 404 00:18:54,240 --> 00:18:57,000 Speaker 2: are making trade offs, so I think it's about more 405 00:18:57,119 --> 00:18:59,480 Speaker 2: where are you finding what you want? We saw a 406 00:18:59,480 --> 00:19:02,239 Speaker 2: good result out of Amazon, so you can't say that 407 00:19:02,240 --> 00:19:04,720 Speaker 2: the consumer is down everywhere. But I think with Etsy. 408 00:19:05,240 --> 00:19:06,920 Speaker 2: You know, when you think of Etsy, you think about 409 00:19:06,960 --> 00:19:09,360 Speaker 2: gift giving, right, you think about what can you get 410 00:19:09,400 --> 00:19:12,320 Speaker 2: that's unique and different? But Etsy offers so much more 411 00:19:12,359 --> 00:19:14,879 Speaker 2: than that that there just is an awareness for so 412 00:19:14,960 --> 00:19:17,720 Speaker 2: I think it's about them continuing to build that awareness 413 00:19:17,920 --> 00:19:20,800 Speaker 2: that's going to get more buyers onto the platform. They 414 00:19:20,840 --> 00:19:23,520 Speaker 2: saw a really nice increase in sellers in the quarter. 415 00:19:23,560 --> 00:19:26,159 Speaker 2: They were up about nineteen percent, which is encouraging. So 416 00:19:26,200 --> 00:19:28,480 Speaker 2: people want to sell on Etsy. Small businesses want to 417 00:19:28,520 --> 00:19:30,240 Speaker 2: sell on Etsy, but they still need. 418 00:19:30,080 --> 00:19:30,640 Speaker 5: The buyer growth. 419 00:19:30,840 --> 00:19:32,520 Speaker 2: We need to see more buyer growth. We need to 420 00:19:32,520 --> 00:19:35,400 Speaker 2: see buyers want different things from Etsy, not. 421 00:19:35,560 --> 00:19:39,159 Speaker 4: Just the gifts Panama. I was reading your outlook on 422 00:19:39,200 --> 00:19:41,440 Speaker 4: Etsy last night, and one of the things you talk 423 00:19:41,480 --> 00:19:44,399 Speaker 4: about is something Caroline and I have discussed with every 424 00:19:44,600 --> 00:19:48,800 Speaker 4: commerce company in the world, which is personalization. Why will 425 00:19:48,800 --> 00:19:53,320 Speaker 4: that help them address the issues you just outlined Because. 426 00:19:53,000 --> 00:19:55,560 Speaker 2: When you go online, you have an endless aisle. You 427 00:19:55,560 --> 00:19:57,560 Speaker 2: go to a store, you walked the aisle where you 428 00:19:57,560 --> 00:19:59,679 Speaker 2: know you'll find what you want. But when you go online, 429 00:20:00,080 --> 00:20:02,879 Speaker 2: list goes on and on and on forever. So the 430 00:20:02,960 --> 00:20:06,399 Speaker 2: ability to personalize for any company and really give the 431 00:20:06,440 --> 00:20:10,760 Speaker 2: consumer more of what they want than just everything, is 432 00:20:10,800 --> 00:20:15,040 Speaker 2: going to help drive conversion. Online conversion is just low 433 00:20:15,080 --> 00:20:18,399 Speaker 2: single digits, so people browse more online than they buy, 434 00:20:18,760 --> 00:20:21,879 Speaker 2: and the ability to personalize, the ability to cater to 435 00:20:21,920 --> 00:20:24,320 Speaker 2: their needs is really going to help drive that conversion higher. 436 00:20:24,800 --> 00:20:27,879 Speaker 3: I mean, I'm kind of amazed that people don't realize 437 00:20:27,880 --> 00:20:29,480 Speaker 3: the breadth of things you can get on Etsy. 438 00:20:29,520 --> 00:20:31,200 Speaker 5: I'm just thinking producers. 439 00:20:30,800 --> 00:20:34,160 Speaker 3: Reminding us of the Taylor Swift and the Beyonce getting 440 00:20:34,200 --> 00:20:36,399 Speaker 3: your glitter and your silver ahead of time. Everyone was 441 00:20:36,440 --> 00:20:38,359 Speaker 3: turning to an Etsy at that particular moment. I think 442 00:20:38,400 --> 00:20:40,440 Speaker 3: of how much Halloween must be a push forward for 443 00:20:41,040 --> 00:20:41,960 Speaker 3: makers on Etsy. 444 00:20:42,560 --> 00:20:43,080 Speaker 5: What do you think? 445 00:20:43,160 --> 00:20:45,240 Speaker 3: What do you want to see from leadership here? Basically 446 00:20:45,280 --> 00:20:46,400 Speaker 3: to market themselves. 447 00:20:46,840 --> 00:20:49,280 Speaker 2: I think they need to just invest in marketing. They 448 00:20:49,320 --> 00:20:51,400 Speaker 2: need to get the word out there that Etsy has 449 00:20:51,440 --> 00:20:53,600 Speaker 2: a lot more. You know, think about the home category 450 00:20:53,640 --> 00:20:56,480 Speaker 2: that they talked about. We are seeing people invest back 451 00:20:56,520 --> 00:20:58,240 Speaker 2: in their homes. You know, they took a pause after 452 00:20:58,240 --> 00:21:00,639 Speaker 2: the pandemic, but now you're thinking, you know, can I 453 00:21:00,720 --> 00:21:03,080 Speaker 2: upgrade something in my home because it's too expensive to 454 00:21:03,160 --> 00:21:05,439 Speaker 2: upgrade out of my home into a new one. So 455 00:21:05,480 --> 00:21:08,359 Speaker 2: you're seeing stuff like that plan and at C sells 456 00:21:08,400 --> 00:21:10,320 Speaker 2: a lot of home but that's not where you go 457 00:21:10,520 --> 00:21:13,119 Speaker 2: for your home stuff. Right now, You've got a Wayfair, 458 00:21:13,160 --> 00:21:15,440 Speaker 2: you got to Amazon, You've got to target Walmart. 459 00:21:15,040 --> 00:21:15,480 Speaker 5: Et cetera. 460 00:21:15,880 --> 00:21:18,800 Speaker 3: Interesting, it's saying that Shopers are focused on essentials less 461 00:21:18,880 --> 00:21:23,000 Speaker 3: on discretionary. That's the macro impact. Punam Goyle love speaking 462 00:21:23,040 --> 00:21:24,720 Speaker 3: with you. Thank you from Bloomberg Intelligence. 463 00:21:25,040 --> 00:21:27,320 Speaker 5: Meanwhile, coming up, we'll get the latest from the trial 464 00:21:27,400 --> 00:21:31,360 Speaker 5: and Juan sam magmuin Freed. DURAS they're beginning their deliberations today. 465 00:21:31,880 --> 00:21:33,720 Speaker 3: We're going to be joined by a rock Change Association 466 00:21:33,800 --> 00:21:36,879 Speaker 3: CEO Chris Smith about well the overall impact on the 467 00:21:36,880 --> 00:21:37,800 Speaker 3: cryptospace ed. 468 00:21:38,720 --> 00:21:41,119 Speaker 4: YEP more earnings as well paypower as a mover to 469 00:21:41,160 --> 00:21:44,240 Speaker 4: the upside boosted its profit outlook. Remember this is the 470 00:21:44,280 --> 00:21:47,320 Speaker 4: first earnings that Alex Chris is overseeing as CEO. They 471 00:21:47,320 --> 00:21:52,160 Speaker 4: announcement you see FO Jamie Miller who joins from ERTs 472 00:21:52,200 --> 00:21:55,080 Speaker 4: and Young. They also received a subpoena from the SEC 473 00:21:55,760 --> 00:21:59,000 Speaker 4: relating to their work in dollar denominated stable coin and 474 00:21:59,040 --> 00:22:02,160 Speaker 4: in the regulatory filing say they're complying with the SEC. 475 00:22:02,200 --> 00:22:03,760 Speaker 4: So that's going to be a story track which shares 476 00:22:03,840 --> 00:22:21,320 Speaker 4: up almost five percent. This is Bloombog Technology. With the 477 00:22:21,359 --> 00:22:25,040 Speaker 4: FTX trial now wrapped up, DURAS are beginning deliberation on 478 00:22:25,119 --> 00:22:29,239 Speaker 4: Sam Bankman Freed's fate right now today. What does it 479 00:22:29,280 --> 00:22:31,679 Speaker 4: mean for the crypto industry? What does it mean for 480 00:22:31,720 --> 00:22:34,720 Speaker 4: Sam Bankman Free. That's bringing Kristensen Air, CEO of the 481 00:22:34,760 --> 00:22:38,160 Speaker 4: Blockchain Association for kind of the bigger picture on what's 482 00:22:38,200 --> 00:22:41,159 Speaker 4: going on here? But first of all, okay, the jury 483 00:22:41,200 --> 00:22:46,080 Speaker 4: is away deliberating. Yes, the closing argument from Sam Bankman, 484 00:22:46,119 --> 00:22:49,600 Speaker 4: Freed's attorney was that he has been painted unjustifiably so 485 00:22:49,760 --> 00:22:52,520 Speaker 4: as a villain. And Bloomberg has this piece today that 486 00:22:52,520 --> 00:22:56,840 Speaker 4: there were six opportunities where he was given a choice 487 00:22:56,880 --> 00:22:59,320 Speaker 4: tell the truth or double down, and the prosecution says 488 00:22:59,760 --> 00:23:02,400 Speaker 4: he doubled down. What are you makable of that? 489 00:23:02,520 --> 00:23:02,720 Speaker 5: Yeah? 490 00:23:02,760 --> 00:23:05,960 Speaker 10: I mean, I think the evidence is incredibly compelling. It 491 00:23:06,040 --> 00:23:08,879 Speaker 10: seemed that every time Sam got in trouble, instead of 492 00:23:08,880 --> 00:23:11,720 Speaker 10: confronting that trouble, he was like a gambler in Vegas 493 00:23:11,800 --> 00:23:14,760 Speaker 10: and ended up doubling down again. And unfortunately he was 494 00:23:15,040 --> 00:23:16,960 Speaker 10: apparently getting that money from customer fund. 495 00:23:17,080 --> 00:23:19,120 Speaker 4: So, you know, very interesting. 496 00:23:19,119 --> 00:23:22,320 Speaker 10: I think, a dramatic trial. I'm very curious to see 497 00:23:22,320 --> 00:23:25,960 Speaker 10: what verdict the jury returns. It sounds like some speculate 498 00:23:26,040 --> 00:23:29,040 Speaker 10: that could happen even as soon as today. But you know, 499 00:23:29,080 --> 00:23:32,480 Speaker 10: I think from the crypto industry perspective, we're very eager 500 00:23:32,520 --> 00:23:35,560 Speaker 10: to see this chapter closed. We feel like people are 501 00:23:35,640 --> 00:23:39,080 Speaker 10: unfairly conflating the entire industry with one man in one company, 502 00:23:39,320 --> 00:23:41,199 Speaker 10: when really this is a story about a krook, not 503 00:23:41,240 --> 00:23:44,200 Speaker 10: a story about crypto, and so we're excited to move forward. 504 00:23:44,600 --> 00:23:47,840 Speaker 10: But yes, certainly been an entertaining, an interesting trial, something 505 00:23:47,880 --> 00:23:49,399 Speaker 10: I think they'll make movies on. 506 00:23:50,000 --> 00:23:53,359 Speaker 4: This is very much an innocent until proven guilty situation. 507 00:23:53,480 --> 00:23:56,480 Speaker 4: It is a jury trial after rule, but in the 508 00:23:56,560 --> 00:24:03,359 Speaker 4: event survivor outcome. Has this series been damaging to the 509 00:24:03,400 --> 00:24:08,680 Speaker 4: goals of the Blockchain Association because you essentially want the 510 00:24:09,119 --> 00:24:13,320 Speaker 4: underlying technology that supports crypto to be mainstream globally. 511 00:24:13,440 --> 00:24:16,399 Speaker 10: Yes, absolutely, and we're trying to get public policy makers 512 00:24:16,400 --> 00:24:19,520 Speaker 10: in Washington to understand the technology so that we can 513 00:24:19,560 --> 00:24:23,639 Speaker 10: get the appropriate regulatory framework in place. And I think absolutely, 514 00:24:23,680 --> 00:24:27,600 Speaker 10: without question, this case and this trial has been damaging 515 00:24:27,680 --> 00:24:30,520 Speaker 10: to the industry. I think the good news though, is 516 00:24:30,600 --> 00:24:33,639 Speaker 10: in the past year since these events went down, we 517 00:24:33,720 --> 00:24:38,280 Speaker 10: have seen leaders across the crypto industry from other leading companies, 518 00:24:38,640 --> 00:24:42,399 Speaker 10: We've seen entrepreneurs, we've seen individual members of the community. 519 00:24:42,680 --> 00:24:45,840 Speaker 10: They've really taken an interest in working in Washington and 520 00:24:45,960 --> 00:24:49,119 Speaker 10: talking with policymakers, and so what used to be just 521 00:24:49,160 --> 00:24:52,199 Speaker 10: sort of Sam Bateman free going around and taking up 522 00:24:52,240 --> 00:24:54,600 Speaker 10: a lot of the time that has been replaced with 523 00:24:54,640 --> 00:24:57,960 Speaker 10: a much broader, more diverse set of individuals in the 524 00:24:58,000 --> 00:25:01,359 Speaker 10: crypto ecosystem, and those actually have the right values, that 525 00:25:01,400 --> 00:25:04,320 Speaker 10: are building things, that believe in the power of decentralization, 526 00:25:04,720 --> 00:25:08,440 Speaker 10: and they aren't just here to make a bunch of money. 527 00:25:08,200 --> 00:25:08,960 Speaker 4: So they can give it away. 528 00:25:08,960 --> 00:25:11,399 Speaker 10: At least that's a sam stated motive. 529 00:25:12,680 --> 00:25:13,160 Speaker 5: Some of the. 530 00:25:13,160 --> 00:25:15,800 Speaker 3: Voices that are now speaking to regulators, well, one of 531 00:25:15,840 --> 00:25:18,080 Speaker 3: them might be over at PayPal at the moment. We understand, 532 00:25:18,160 --> 00:25:21,920 Speaker 3: of course, that the SEC is looking into their view 533 00:25:21,960 --> 00:25:23,600 Speaker 3: on stable coins in particular. 534 00:25:23,880 --> 00:25:26,240 Speaker 5: How are you seeing that sort of discussion bear out 535 00:25:26,280 --> 00:25:26,760 Speaker 5: at the moment. 536 00:25:26,800 --> 00:25:30,000 Speaker 3: We know that Gary Gensler is pretty well cynical, shall 537 00:25:30,040 --> 00:25:31,720 Speaker 3: we say, about the space, But what are the other 538 00:25:31,720 --> 00:25:33,480 Speaker 3: people in the room at the moment saying? 539 00:25:33,840 --> 00:25:36,520 Speaker 10: Yeah, No, that's an interesting question, Caroline. I mean, we 540 00:25:36,560 --> 00:25:39,040 Speaker 10: don't know a whole lot about what the SEC is 541 00:25:39,119 --> 00:25:42,639 Speaker 10: asking PayPal about its new stable coin business, only that 542 00:25:42,720 --> 00:25:45,400 Speaker 10: they are asking questions, so it's a little bit unclear. 543 00:25:45,760 --> 00:25:48,840 Speaker 10: You know, typically the SEC does not have jurisdiction over 544 00:25:48,880 --> 00:25:53,199 Speaker 10: stable coins because stable coins are not securities. But we 545 00:25:53,240 --> 00:25:55,520 Speaker 10: are seeing right now is a lot of discussion on 546 00:25:55,560 --> 00:25:58,919 Speaker 10: Capitol Hill about what is the right regulatory framework for 547 00:25:58,960 --> 00:26:02,040 Speaker 10: stable coins. Both in the Trump administration and in the 548 00:26:02,080 --> 00:26:06,080 Speaker 10: Biden administration, we had reports from the President's Working Group 549 00:26:06,160 --> 00:26:10,080 Speaker 10: that recommended ideas for regulatory framework. This summer, we saw 550 00:26:10,119 --> 00:26:13,240 Speaker 10: Patrick McHenry pass a bill through his committee that would 551 00:26:13,280 --> 00:26:16,399 Speaker 10: provide a regulatory framework for stable coins. And I do 552 00:26:16,440 --> 00:26:19,320 Speaker 10: think there's a very good chance that before perhaps not 553 00:26:19,400 --> 00:26:20,919 Speaker 10: the end of this year, but before the end of 554 00:26:20,960 --> 00:26:23,800 Speaker 10: this Congress, that we do see stable coin legislation move forward, 555 00:26:23,800 --> 00:26:26,080 Speaker 10: because this is an issue that everyone agrees needs to 556 00:26:26,080 --> 00:26:28,680 Speaker 10: be addressed. But it's not the role of Gary Gensler 557 00:26:28,720 --> 00:26:31,760 Speaker 10: to regulate stable coins. He's a securities regulator and stable 558 00:26:31,760 --> 00:26:32,800 Speaker 10: coins are not securities. 559 00:26:33,560 --> 00:26:38,760 Speaker 3: Wow Hill debate that CFPB, the Consumer Financial Protections Bureau, 560 00:26:38,800 --> 00:26:43,400 Speaker 3: also overlooking these sorts of movements from big companies towards 561 00:26:43,560 --> 00:26:47,320 Speaker 3: accessing crypto at large by a consumer base. What about 562 00:26:47,359 --> 00:26:50,720 Speaker 3: the ETF's conversation as well. I mean, ultimately that's what's 563 00:26:50,760 --> 00:26:53,600 Speaker 3: sort of been driving bitcoin the og of the crypto space. 564 00:26:54,080 --> 00:26:56,439 Speaker 3: Are we anticipating as soon as this end of this 565 00:26:56,560 --> 00:26:58,639 Speaker 3: year that we will get US sport bitcoin ETF? And 566 00:26:58,840 --> 00:27:00,960 Speaker 3: how much do you think that will be like loathed 567 00:27:01,040 --> 00:27:03,879 Speaker 3: when we still have this slightly colouled over the whole space. 568 00:27:04,600 --> 00:27:04,800 Speaker 5: Yeah. 569 00:27:04,880 --> 00:27:07,200 Speaker 10: No, I mean I think we're already starting to see 570 00:27:07,200 --> 00:27:10,439 Speaker 10: some price action in the markets on anticipation of a 571 00:27:10,440 --> 00:27:13,960 Speaker 10: bitcoin ETF. You know, we had a very important moment 572 00:27:14,000 --> 00:27:16,879 Speaker 10: over the summer where the SEC lost a case that 573 00:27:16,960 --> 00:27:20,240 Speaker 10: it acted in an arbitrary and capricious manner by not 574 00:27:20,800 --> 00:27:23,640 Speaker 10: moving forward with a spot bitcoin ETF. You know, much 575 00:27:23,680 --> 00:27:25,560 Speaker 10: thanks to Gray Scale and our legal team for all 576 00:27:25,600 --> 00:27:27,639 Speaker 10: of the hard work that they put in to get 577 00:27:27,680 --> 00:27:30,520 Speaker 10: to get that ruling. And so I think what we 578 00:27:30,560 --> 00:27:34,600 Speaker 10: have now are multiple applications. These applications have deadlines where 579 00:27:34,600 --> 00:27:37,880 Speaker 10: the SEC has an opportunity to extend them, but most 580 00:27:37,920 --> 00:27:40,280 Speaker 10: of these deadlines are coming up in January. So I 581 00:27:40,320 --> 00:27:42,879 Speaker 10: think it's highly likely in the next couple of months 582 00:27:42,880 --> 00:27:45,840 Speaker 10: that we will get a Bitcoin spot a spot bitcoin 583 00:27:45,880 --> 00:27:48,200 Speaker 10: ETF approved, And I think that there are a lot 584 00:27:48,200 --> 00:27:51,080 Speaker 10: of investors that are eager to be able to access 585 00:27:51,480 --> 00:27:55,120 Speaker 10: exposure to bitcoin through their typical brokerage platform. 586 00:27:55,280 --> 00:27:58,320 Speaker 4: There was one tangible example of blockchain technology use out 587 00:27:58,320 --> 00:28:01,600 Speaker 4: of London this morning, HSB A frankly one of the 588 00:28:01,600 --> 00:28:05,800 Speaker 4: biggest billion banks in the world, using distribute distributed ledger 589 00:28:05,800 --> 00:28:10,520 Speaker 4: excuse me to to prove that tokenizing ownership of gold works. 590 00:28:10,600 --> 00:28:12,199 Speaker 4: Did you see that and if so, how does that 591 00:28:12,240 --> 00:28:12,840 Speaker 4: make you feel? 592 00:28:13,040 --> 00:28:15,280 Speaker 10: Is it really I didn't see that particular story, but 593 00:28:15,359 --> 00:28:16,959 Speaker 10: I know there are a lot of people looking right 594 00:28:17,000 --> 00:28:19,200 Speaker 10: now to figure out how can we tie these real 595 00:28:19,240 --> 00:28:22,879 Speaker 10: world assets to blockchains, because they can be an incredibly 596 00:28:23,640 --> 00:28:27,600 Speaker 10: efficient way for tracking information. And so the key kind 597 00:28:27,640 --> 00:28:30,119 Speaker 10: of becomes, how do you connect that asset, the digital 598 00:28:30,119 --> 00:28:31,960 Speaker 10: asset to the real world asset. But there are a 599 00:28:31,960 --> 00:28:34,399 Speaker 10: lot of people that are exploring exploring this place right now, 600 00:28:34,440 --> 00:28:36,240 Speaker 10: and I think there are a lot of opportunities for 601 00:28:36,359 --> 00:28:39,280 Speaker 10: upgrading the infrastructure for tracking a lot of things we 602 00:28:39,360 --> 00:28:41,960 Speaker 10: do in the traditional investment space. 603 00:28:42,440 --> 00:28:44,800 Speaker 3: A lot of people still talking about that underlying technology. 604 00:28:44,800 --> 00:28:47,400 Speaker 3: Blockchain Association CEO Christma Smith, thank you so much for 605 00:28:47,520 --> 00:28:48,880 Speaker 3: joining us on this day. 606 00:28:48,960 --> 00:28:51,000 Speaker 5: Meanwhile, and you're sticking with a crypto. 607 00:28:51,360 --> 00:28:54,600 Speaker 4: Yeah, we got some news sticking with crypto sentiment around coinbase, 608 00:28:54,760 --> 00:28:57,880 Speaker 4: which is rising with the long anticipated debut of a 609 00:28:57,880 --> 00:29:02,480 Speaker 4: bitcoin etf appearing in ant This has been fueling expectations 610 00:29:02,480 --> 00:29:06,320 Speaker 4: for a widespread increase in demand and prompting some investors 611 00:29:06,360 --> 00:29:09,360 Speaker 4: to disregard the uncertainty which we've been talking about surrounding 612 00:29:09,440 --> 00:29:12,360 Speaker 4: the largest US crypto exchange, even as the SEC lawsuit 613 00:29:12,560 --> 00:29:17,000 Speaker 4: filed earlier this year continues to clown coinbases out look 614 00:29:25,840 --> 00:29:28,200 Speaker 4: time for Talking Tech and first up into It is 615 00:29:28,280 --> 00:29:32,280 Speaker 4: winding down personal finance app Mint and pushing users to 616 00:29:32,280 --> 00:29:35,160 Speaker 4: shift to credit Karma, a similar service that the company 617 00:29:35,160 --> 00:29:37,920 Speaker 4: acquired in twenty twenty. Mint will no longer be available 618 00:29:37,920 --> 00:29:40,320 Speaker 4: at the start of twenty twenty four, and its team 619 00:29:40,440 --> 00:29:44,719 Speaker 4: and product features are being moved within Credit Karma. And 620 00:29:44,760 --> 00:29:48,080 Speaker 4: Google's vice president of Search testified about the company's AI 621 00:29:48,160 --> 00:29:51,720 Speaker 4: efforts that the Justice Department's antitrust trial against the search 622 00:29:51,880 --> 00:29:56,320 Speaker 4: giant and disputed suggestions that the company rushed to release 623 00:29:56,360 --> 00:30:00,040 Speaker 4: its AI chatbot Bard earlier this year in order to 624 00:30:00,080 --> 00:30:03,880 Speaker 4: beat Microsoft's offering. Plus, the UK Summit on AI Safety 625 00:30:03,960 --> 00:30:06,840 Speaker 4: is wrapping up, with AI leaders debating over how much 626 00:30:06,880 --> 00:30:12,800 Speaker 4: to focus on the supposed existential risks of AI, highlighting 627 00:30:12,840 --> 00:30:16,200 Speaker 4: those broader tensions in the tech community as lawmakers propose 628 00:30:16,400 --> 00:30:21,760 Speaker 4: regulation and safeguards. Prime Minister Richie Sunak will be leading 629 00:30:21,800 --> 00:30:24,560 Speaker 4: talks on the final day of the summit before a 630 00:30:24,600 --> 00:30:28,880 Speaker 4: conversation with Elon Musk later today gosh, that was a 631 00:30:28,880 --> 00:30:29,920 Speaker 4: lot to take on board. 632 00:30:29,720 --> 00:30:33,520 Speaker 3: Carolina, and let's get more from the AI summit. Mark 633 00:30:33,560 --> 00:30:35,800 Speaker 3: Bergen joins US now from London, and there has been 634 00:30:35,800 --> 00:30:39,800 Speaker 3: this tension about immediate threats of AI versus long term 635 00:30:39,880 --> 00:30:41,960 Speaker 3: and many they're trying to say, look, it's not actually 636 00:30:41,960 --> 00:30:43,520 Speaker 3: about the risks, it's about the models that are in 637 00:30:43,560 --> 00:30:46,000 Speaker 3: development and analyzing where they go in the next year. 638 00:30:46,040 --> 00:30:48,960 Speaker 3: But ultimately, what are some of the takeaways from this summer? 639 00:30:49,000 --> 00:30:50,240 Speaker 5: What have they actually progressed on. 640 00:30:52,240 --> 00:30:54,640 Speaker 11: I mean, one of the major takeaways we saw yesterday 641 00:30:54,920 --> 00:30:59,240 Speaker 11: the speech from the Karma US Commerce Secretary followed by 642 00:30:59,360 --> 00:31:04,320 Speaker 11: Vice Minister of China sharing the same stage, agreeing on 643 00:31:04,640 --> 00:31:07,920 Speaker 11: very broad terms with the kind of that all the 644 00:31:07,960 --> 00:31:12,320 Speaker 11: countries put out around these catastrophic harms. But at least 645 00:31:12,360 --> 00:31:15,880 Speaker 11: that's a symbolic and sort of diplomatic victory here for 646 00:31:15,920 --> 00:31:18,200 Speaker 11: the UK and for the summit, the fact that they 647 00:31:18,240 --> 00:31:21,800 Speaker 11: could bring together the US and China where they have 648 00:31:21,920 --> 00:31:26,120 Speaker 11: clearly desperate views on the geopolitics involved with AI and 649 00:31:26,680 --> 00:31:30,400 Speaker 11: the US and certainly has has talked about China's AI 650 00:31:30,480 --> 00:31:32,640 Speaker 11: development as being a sort of military threat. 651 00:31:33,360 --> 00:31:35,680 Speaker 3: It's interesting we're going to debate a little bit more 652 00:31:35,720 --> 00:31:38,920 Speaker 3: about who was there and whether or not they were 653 00:31:38,920 --> 00:31:41,040 Speaker 3: being mobbed or not. It seems as though there's some 654 00:31:41,160 --> 00:31:43,280 Speaker 3: talk that Ranning in a musk was mobbed and he 655 00:31:43,280 --> 00:31:45,720 Speaker 3: held court with delegates, but also. 656 00:31:45,600 --> 00:31:47,880 Speaker 5: And other times were sitting and listening and taking all. 657 00:31:47,760 --> 00:31:51,200 Speaker 3: In some of the discussions around AI and the control 658 00:31:51,240 --> 00:31:55,520 Speaker 3: of AI. How how has basically the corporate side of 659 00:31:55,520 --> 00:31:56,720 Speaker 3: the conversation gone. 660 00:31:56,520 --> 00:31:59,520 Speaker 4: Mark, It's funny, I meationed Elin. 661 00:31:59,560 --> 00:32:01,840 Speaker 11: I mean you said, like the UK has put him 662 00:32:01,840 --> 00:32:05,960 Speaker 11: out as a as an interesting figurehead and sort of 663 00:32:05,800 --> 00:32:09,080 Speaker 11: the shining big CEO that they got. I mean there's 664 00:32:09,080 --> 00:32:13,480 Speaker 11: a debatable certainly his company is involved artificial intelligence, but 665 00:32:13,520 --> 00:32:16,560 Speaker 11: he's definitely not one of the leaders building these large 666 00:32:16,640 --> 00:32:19,680 Speaker 11: language models that were all paying attention to, and that 667 00:32:19,760 --> 00:32:22,000 Speaker 11: frankly is sort of this frontier AI that the conference 668 00:32:22,080 --> 00:32:23,840 Speaker 11: is meant to be about. And then we saw, you know, 669 00:32:23,880 --> 00:32:27,840 Speaker 11: the benefit here is they get the Elon halo attached 670 00:32:27,880 --> 00:32:31,160 Speaker 11: to that and a lot of attention, and then the 671 00:32:31,320 --> 00:32:33,080 Speaker 11: side is that, you know, the the other side of 672 00:32:33,080 --> 00:32:34,560 Speaker 11: Elon is his tweet that he put out I think 673 00:32:34,560 --> 00:32:36,200 Speaker 11: it is less than an hour ago, right, this sort 674 00:32:36,240 --> 00:32:41,800 Speaker 11: of cartoon that was I only interpreted as a criticism 675 00:32:41,840 --> 00:32:43,080 Speaker 11: of the conference itself. 676 00:32:44,320 --> 00:32:48,719 Speaker 4: Well must tweeting a meme shock there is some mechanics 677 00:32:48,720 --> 00:32:51,800 Speaker 4: of things to come. This evening Musk and Prime Minister 678 00:32:51,880 --> 00:32:54,280 Speaker 4: sun Act just quickly woke us through what we're expecting. 679 00:32:55,400 --> 00:32:57,360 Speaker 11: I mean, you know, Elon has talked a lot about 680 00:32:57,400 --> 00:32:59,920 Speaker 11: sort of what we what we've paraphrases is the doom 681 00:33:00,200 --> 00:33:04,280 Speaker 11: doomsayer version of AI or at the existential risk. He 682 00:33:04,440 --> 00:33:07,720 Speaker 11: was one of the notable signatories on this letter earlier 683 00:33:07,720 --> 00:33:10,800 Speaker 11: this year about slowing down the advancement. I do and 684 00:33:11,240 --> 00:33:13,720 Speaker 11: very curious to seeing one of the conversations that's happening 685 00:33:13,800 --> 00:33:15,320 Speaker 11: kind of on the fringes of the event and even 686 00:33:15,360 --> 00:33:16,240 Speaker 11: at the event itself. 687 00:33:16,600 --> 00:33:19,400 Speaker 4: Meta has made this claim. This their chief scientist. 688 00:33:19,520 --> 00:33:21,720 Speaker 11: And then we had a really fascinating interview with with 689 00:33:21,920 --> 00:33:25,360 Speaker 11: Google's deep Minds demos about this idea that there's this 690 00:33:25,520 --> 00:33:29,640 Speaker 11: regulatory capture that the biggest companies are basically saying, regulate 691 00:33:29,720 --> 00:33:32,640 Speaker 11: us and only us, so the smaller companies can compete. 692 00:33:32,920 --> 00:33:35,240 Speaker 11: And I imagine that Elin will have and certainly have 693 00:33:35,280 --> 00:33:39,200 Speaker 11: an opinion on that, and probably likely I would say 694 00:33:39,240 --> 00:33:42,320 Speaker 11: that there is some regulatory capture involved Bergen. 695 00:33:42,360 --> 00:33:44,480 Speaker 3: I'm sure you'll be tuning in some of those conversations 696 00:33:44,480 --> 00:33:46,760 Speaker 3: going on on X in a minute, and we thank 697 00:33:47,040 --> 00:33:49,840 Speaker 3: Mark can I. Meanwhile, we've got news relating to musks 698 00:33:49,920 --> 00:33:50,640 Speaker 3: other ventures, Ryan. 699 00:33:51,400 --> 00:33:54,240 Speaker 4: Yeah, and also via social media posts. Starlink, the space 700 00:33:54,280 --> 00:33:57,880 Speaker 4: based internet service offered by SpaceX, has it cash flow 701 00:33:57,960 --> 00:34:02,000 Speaker 4: break even. According to Elon muscle Man and SpaceX CEO 702 00:34:02,160 --> 00:34:05,640 Speaker 4: posted the financial update to his social media platform chs 703 00:34:05,840 --> 00:34:08,319 Speaker 4: for meerly known as Swiss, who also shares this. Starlink 704 00:34:08,880 --> 00:34:12,960 Speaker 4: has launched a majority of all the satellites cumulatively from 705 00:34:13,000 --> 00:34:15,400 Speaker 4: Earth by next year, Kara, And this just shows the 706 00:34:15,480 --> 00:34:18,000 Speaker 4: proyus they've made. But investors want to know, a are 707 00:34:18,000 --> 00:34:20,680 Speaker 4: they going to make money on Starlink? Apparently so when 708 00:34:20,680 --> 00:34:22,120 Speaker 4: will they spin it off in an ipo? 709 00:34:22,760 --> 00:34:25,879 Speaker 3: And still what the most valuable private company out there? 710 00:34:26,080 --> 00:34:28,359 Speaker 4: Big time? Yes, still the most valuable, and we've been 711 00:34:28,400 --> 00:34:32,040 Speaker 4: reporting based on these tender rounds the valuation edging above 712 00:34:32,040 --> 00:34:35,960 Speaker 4: one hundred and fifty billion, which is crazy quite a lot. 713 00:34:36,120 --> 00:34:38,360 Speaker 5: Meanwhile, that does it for this edition of Bloomberg Technology. 714 00:34:38,400 --> 00:34:41,480 Speaker 4: Yeah, we have the podcast wherever you get your podcasts 715 00:34:41,480 --> 00:34:44,560 Speaker 4: on all the Bloomberg platforms but also on Apple, Spotify, 716 00:34:44,680 --> 00:34:47,360 Speaker 4: and iHeart. We really appreciate all of you that listen 717 00:34:47,400 --> 00:34:49,920 Speaker 4: in from New York and SF. This is Bloomberg