WEBVTT - US and China Trade Talks Impact Tech Ecosystem 0:00:02.520 --> 0:00:13.600 Bloomberg Audio Studios, Podcasts, radio news. Bloomberg Tech is alive 0:00:13.640 --> 0:00:17.439 from coast to coast with Caroline Hyde in New York 0:00:17.760 --> 0:00:20.920 and ed La Loow in San Francisco. 0:00:22.640 --> 0:00:25.840 This is Bloomberg Tech coming up. Apple closes a retail 0:00:25.920 --> 0:00:28.400 store in China for the first time ever. What this 0:00:28.520 --> 0:00:32.280 means for the iPhone maker's plan to revive sales, Plus US. 0:00:32.159 --> 0:00:35.600 And Chinese officials continue talks to extend the tariff truth 0:00:35.920 --> 0:00:40.879 beyond mid August expiring with Tech Export Controls under the microscope, and. 0:00:40.840 --> 0:00:44.720 We discuss SOFI second quarter earnings with the CEO, Anthony Nodo. 0:00:44.960 --> 0:00:48.280 As the stock surges, Apple's. 0:00:47.880 --> 0:00:49.720 Kind of softer down seven ten to one percent, a 0:00:49.760 --> 0:00:52.880 big points drag at the index level, closing a store 0:00:52.920 --> 0:00:55.000 in China which we can get to, and then headlines 0:00:55.000 --> 0:00:57.360 in the last hour from the Wall Street Journal that 0:00:57.480 --> 0:01:00.440 JP Morgan is now the front runner to take over 0:01:00.480 --> 0:01:01.800 that Apple credit card business. 0:01:01.800 --> 0:01:03.960 There's a lot to discuss, there is, and there's a 0:01:03.960 --> 0:01:06.759 person to do it with. Bloomberg's Tom Giles joins us 0:01:06.760 --> 0:01:09.320 now and Tom just first of all, this signal that 0:01:09.319 --> 0:01:12.720 we're getting pulling back from one particular area bricks and 0:01:12.720 --> 0:01:13.840 water in China. 0:01:13.959 --> 0:01:15.280 Is it a big deal for Apple? 0:01:17.319 --> 0:01:19.840 China is a huge deal for Apple. 0:01:20.000 --> 0:01:23.120 Let's put it in perspective this one particular store. 0:01:23.959 --> 0:01:25.880 There's a question mark about this mall. 0:01:26.319 --> 0:01:29.640 You've had other retailers US based retailers like Coach, Hugo 0:01:29.680 --> 0:01:32.680 Boss have gotten out of there. So I'm not sure 0:01:32.680 --> 0:01:35.440 how much to read into those one particular mall. But 0:01:35.600 --> 0:01:38.320 let's dial the lens back and talk about the big 0:01:38.360 --> 0:01:42.240 picture in China. China is a huge market for Apple, 0:01:42.560 --> 0:01:45.640 and they have seen sales declining there for a whole. 0:01:45.440 --> 0:01:47.440 Host of reasons. Most recently. 0:01:47.520 --> 0:01:50.040 You have to look at the domestic economy in China. 0:01:50.120 --> 0:01:53.320 There are deflationary pressures. There are questions about how much 0:01:53.360 --> 0:01:57.120 the tariffs are going to affect that economy. Remember, exports 0:01:57.280 --> 0:02:02.080 are a huge part of China's global economy, so demand there. 0:02:02.200 --> 0:02:06.080 How big is demand for products like Apple's iPhone. That's 0:02:06.080 --> 0:02:08.280 what Apple needs to take into consideration. We're going to 0:02:08.360 --> 0:02:10.520 be hearing from them in the next couple of days 0:02:10.520 --> 0:02:12.840 to see how things are going in China. And don't 0:02:12.880 --> 0:02:17.560 forget there's a lot of competition domestically in China from 0:02:17.880 --> 0:02:20.760 names like Huawei and Opo and Viva We talked about 0:02:20.800 --> 0:02:24.440 them before, but the competition there is real and people 0:02:24.520 --> 0:02:27.760 are looking for alternatives to Apple because of this whole 0:02:27.840 --> 0:02:32.080 all these questions about US China relations and whether and 0:02:32.120 --> 0:02:36.200 how much pressure the government is putting on domestic markets 0:02:36.200 --> 0:02:40.200 to focus on China names and not Apple. 0:02:40.360 --> 0:02:42.000 That sets us up really well for earning. 0:02:42.080 --> 0:02:44.560 So I think analyst consensus is that they will swing 0:02:44.680 --> 0:02:47.000 back to revenue growth on a year on year basis 0:02:47.040 --> 0:02:50.320 in Greater China. So we wait for that. The headline 0:02:50.320 --> 0:02:52.160 this morning is from the Wall Sweet Journal and that 0:02:52.280 --> 0:02:55.160 JP Morgan, in a pack of many, is now the 0:02:55.200 --> 0:02:58.480 front runner to take over the credit card business. Interesting 0:02:58.520 --> 0:03:00.840 in a sense that SERVICESVA is important. 0:03:00.919 --> 0:03:02.040 But what do we need to know? 0:03:02.600 --> 0:03:05.760 Well, remember that this is an important relationship for the banks. 0:03:05.800 --> 0:03:09.640 Goldman tried it with Apple, it fizzled. There are questions 0:03:09.639 --> 0:03:13.040 about Goldman's consumer strategy and whether that was the right 0:03:13.480 --> 0:03:16.760 mix for them. It's a big deal for JP Morgan. 0:03:16.760 --> 0:03:20.840 Gives them opportunity to push financial services products to a 0:03:20.919 --> 0:03:24.640 whole new legions of Apple customers. 0:03:24.800 --> 0:03:25.600 Big deal for them. 0:03:25.919 --> 0:03:29.400 Bloomberg's Senior executive edit for Tech, Tom Giles here in 0:03:29.400 --> 0:03:31.400 San Francisco. Thank you very much, let's stick with that 0:03:31.520 --> 0:03:34.680 China story. US and Chinese officials are in their second 0:03:34.760 --> 0:03:37.960 day of trade talks in Stockholm, this to extend their 0:03:38.000 --> 0:03:41.280 tariff truce beyond an initial ninety day period. Let's get 0:03:41.280 --> 0:03:44.520 over to Stockholm where Blueberg's Oliver Crook is standing by. 0:03:44.520 --> 0:03:47.080 Oliver, what's the latest. Yeah, that's right. 0:03:47.200 --> 0:03:48.960 We're just in the briefing room here where were expecting 0:03:49.040 --> 0:03:51.920 Treasury Secretary Scott Bessett at any moment now in the 0:03:51.920 --> 0:03:54.400 next couple of minutes, Jamison Greer, who have been locked 0:03:54.400 --> 0:03:57.520 in discussions with their Chinese counterparts for the last two days, 0:03:57.520 --> 0:04:00.400 with the Vice Premiere of China five hours yea yesterday, 0:04:00.440 --> 0:04:01.920 about six hours so far today. 0:04:01.920 --> 0:04:02.960 In terms of the trade. 0:04:02.680 --> 0:04:05.120 Negotiations and the ambition, as you say it is, to 0:04:05.160 --> 0:04:08.200 extend that trade truth that currently stands between the United 0:04:08.200 --> 0:04:10.760 States and China. Those teriffs from the US have dropped 0:04:10.800 --> 0:04:13.720 down to thirty percent, twenty percent of those are fentanyl related, 0:04:13.800 --> 0:04:16.080 ten percent of those sort of baseline tariffs, and that's 0:04:16.080 --> 0:04:17.920 down from the one hundred and twenty five percent level 0:04:17.960 --> 0:04:19.919 we reached at the sort of fever pitch of the 0:04:19.960 --> 0:04:22.160 trade war between the two sides. That is set to 0:04:23.000 --> 0:04:25.120 expire on August the twelfth, and that is what they're 0:04:25.160 --> 0:04:27.400 sort of locked in the discussions to try to extend 0:04:27.600 --> 0:04:30.040 over another ninety days. There are plani play of other 0:04:30.120 --> 0:04:32.080 issues at as you cover every single day that they 0:04:32.080 --> 0:04:34.040 have to discuss. The question will be we did they 0:04:34.040 --> 0:04:36.159 make progress on any of those things? Is there enough 0:04:36.160 --> 0:04:38.400 progress to give a kind of timeline on when a 0:04:38.440 --> 0:04:42.360 comprehensive framework could potentially be happening with the Chinese? Could 0:04:42.360 --> 0:04:44.760 there be something of a timeline on the meeting between 0:04:44.760 --> 0:04:46.200 Shiji Ping and Trump. These are going to be all 0:04:46.240 --> 0:04:47.960 of the questions that are going to have for Treasury 0:04:47.960 --> 0:04:50.400 Secretary Scott Besson't and probably a few other questions on 0:04:50.440 --> 0:04:53.760 other issues of trade, the deal with the EU. There's 0:04:53.760 --> 0:04:57.120 still some open questions about steel tariffs, about pharmaceutical tarrafts, 0:04:57.120 --> 0:04:59.279 so great many questions to put to the Treasury Secretary 0:04:59.360 --> 0:05:01.040 when it comes out in the next few minutes. 0:05:01.360 --> 0:05:03.880 There certainly is Oliver just going back to our sweet 0:05:03.880 --> 0:05:06.159 spot of tech that has been a lot been made 0:05:06.320 --> 0:05:08.560 of rare earth metals, whether or not they've actually been 0:05:08.600 --> 0:05:12.280 able to get more swiftly from China into the United States, 0:05:12.440 --> 0:05:15.120 And of course there was that offering that olive branch 0:05:15.160 --> 0:05:17.039 of h twenties going back from Nvidia. 0:05:18.480 --> 0:05:20.120 Yeah, that's right, and that's really kind of the only 0:05:20.160 --> 0:05:23.080 place you've seen a great deal of olive branches extended 0:05:23.120 --> 0:05:24.800 from the US and from China. 0:05:24.560 --> 0:05:25.279 To one another. 0:05:25.440 --> 0:05:26.960 And we should say these are not just sort of 0:05:26.960 --> 0:05:29.560 acts of goodwill. These are two sectors in which each 0:05:29.600 --> 0:05:31.920 side is dependent on the other. Whether it's the Chinese 0:05:31.920 --> 0:05:34.240 who have a stranglehold on those rare earth metals, on 0:05:34.279 --> 0:05:36.680 those magnets, whether it's the United States that has a 0:05:36.720 --> 0:05:39.640 stranglehold on those advanced AI chips. And they've made those concessions, 0:05:39.720 --> 0:05:41.719 but not necessarily out of the goodness of their heart. 0:05:41.839 --> 0:05:43.400 There is going to be a question about whether or 0:05:43.440 --> 0:05:45.679 not those deliveries those rare earth metals have been flowing. 0:05:45.680 --> 0:05:46.600 I'm sure that will be one. 0:05:46.480 --> 0:05:50.000 Of the questions to Treasury Secretary Scott Besson. So we 0:05:50.040 --> 0:05:51.919 will get a little bit more detail on that, Caroline 0:05:51.920 --> 0:05:53.640 in the next couple of minutes. So stay tuned and 0:05:53.640 --> 0:05:56.320 we'll hear from the Treasury Secretary quite soon. 0:05:56.520 --> 0:05:58.800 We'll be coming back to you, Oliver Kruk, thank you 0:05:58.880 --> 0:06:01.520 from dot com. Let's get you bought a context now. 0:06:01.600 --> 0:06:03.760 Michelle Guide is with us. She is the CEO of 0:06:03.760 --> 0:06:06.320 the CROC Institute for Techti Promacy at Purdue. Served as 0:06:06.320 --> 0:06:09.400 Assistant Secretary of State for Global Public Affairs under the 0:06:09.400 --> 0:06:12.400 first Trump administration that was twenty eighteen to twenty twenty, 0:06:12.640 --> 0:06:15.720 and Michelle the context now is one of which US 0:06:15.760 --> 0:06:18.640 and China are setting themselves up for this race, whether 0:06:18.680 --> 0:06:20.880 it be in AI, whether it be in manufacturing, whether 0:06:20.880 --> 0:06:23.560 it be in energy, which is the most important outcomes 0:06:23.600 --> 0:06:26.640 you think in terms of where we take trade going forward, the. 0:06:26.640 --> 0:06:30.159 Most important outcome is going to be American security, prosperity, 0:06:30.200 --> 0:06:33.000 and leadership, and that's what all of these trade negotiations 0:06:33.040 --> 0:06:33.400 are about. 0:06:33.440 --> 0:06:34.720 There are means to that end. 0:06:35.120 --> 0:06:39.200 China has built a massive manufacturing economy, the United States 0:06:39.200 --> 0:06:41.320 has built a massive consumer economy. 0:06:41.360 --> 0:06:43.840 So they make stuff and we consume it and we 0:06:43.920 --> 0:06:44.320 buy it. 0:06:44.600 --> 0:06:47.280 And now, being a consumer at that scale is a 0:06:47.320 --> 0:06:51.320 big vulnerability when your largest supplier is an adversary, and 0:06:51.360 --> 0:06:55.080 we buy and consume three hundred billion dollars more stuff 0:06:55.120 --> 0:06:57.000 from China than they buy from US. 0:06:57.320 --> 0:06:58.080 And that matters. 0:06:58.120 --> 0:07:00.440 When it's not just toys at walm More, and it's 0:07:00.480 --> 0:07:01.680 not just home appliances. 0:07:02.120 --> 0:07:04.920 We are consuming things independent on them for. 0:07:04.920 --> 0:07:06.880 Things that are really important to our national security, as 0:07:06.920 --> 0:07:10.040 you had just mentioned rare earth magnets, it's batteries, it's 0:07:10.040 --> 0:07:14.040 pharmaceutical ingredients, it's the ability to make ships across the 0:07:14.080 --> 0:07:16.400 world that have a commercial and a defense implication. So 0:07:17.080 --> 0:07:20.720 rebalancing our trade relationship is key to making sure that 0:07:20.760 --> 0:07:24.520 we are reincentivizing our ability and making it more attractive 0:07:24.560 --> 0:07:26.680 to buy and to build these things at home than 0:07:26.760 --> 0:07:28.200 to rely on China to. 0:07:28.160 --> 0:07:28.800 Do those things. 0:07:29.040 --> 0:07:31.760 It's interesting we've of course had MPY Materials with an 0:07:31.800 --> 0:07:34.640 announcement that they as one of the only rare rev 0:07:34.720 --> 0:07:36.880 metal miners here in the United States, they're going to 0:07:36.880 --> 0:07:40.040 be supplying apple in some way. But are there enough incentives? Well, 0:07:40.080 --> 0:07:42.880 what is ultimately a very dirty process? Do we want 0:07:42.920 --> 0:07:43.600 to bring that home? 0:07:43.640 --> 0:07:47.040 Michelle more portly, Well, China is either going to do 0:07:47.080 --> 0:07:49.760 it in a very dirty process, because we have seen 0:07:49.800 --> 0:07:51.560 that the Chinese Communist Party does not. 0:07:51.600 --> 0:07:53.640 Have a lot of regard for the environment. 0:07:53.480 --> 0:07:56.440 Or we can incentivize American companies to do it here 0:07:56.640 --> 0:07:59.240 in a much cleaner and more efficient and effective way. 0:07:59.280 --> 0:08:01.720 And so I think have America lead in these things. 0:08:02.120 --> 0:08:05.520 Rare earth processing and other critical minerals is going to 0:08:05.520 --> 0:08:08.840 be really important. We'll do it much cleaner, more effectively, safely, 0:08:08.840 --> 0:08:11.320 and trustworthy than the Chinese Communist Party. 0:08:12.400 --> 0:08:14.840 Michelle, good morning, it's ed in San Francisco. 0:08:15.000 --> 0:08:17.680 I don't want to go broad that meeting that's happening 0:08:17.760 --> 0:08:21.920 right now in Stockholm between Chinese trade officials and American 0:08:21.920 --> 0:08:26.120 trade officials. Who is currently on top in this negotiation. 0:08:27.960 --> 0:08:29.880 Well, I think what we've seen is that everything is 0:08:29.920 --> 0:08:31.720 on the table, and the United States has a lot 0:08:31.720 --> 0:08:33.800 of leverage. As you said, you know, they want a 0:08:33.840 --> 0:08:36.200 lot of things from the United States, including our chips 0:08:37.040 --> 0:08:41.199 and including our consumer economy because they are largely export based, and. 0:08:41.160 --> 0:08:43.520 So we matter to them as much as they matter 0:08:43.600 --> 0:08:43.880 to us. 0:08:43.920 --> 0:08:46.520 And so I think everything's on the table, and ultimately 0:08:46.600 --> 0:08:48.400 here the goal is to walk out with a better 0:08:48.440 --> 0:08:51.479 deal for the United States, so we are more prosperous, 0:08:51.520 --> 0:08:54.160 more free, more secure, and we can incentivize building the 0:08:54.200 --> 0:08:57.040 sectors here that are going to be important to American leadership. 0:08:57.120 --> 0:08:59.439 The President last week just talked about our big AI 0:08:59.559 --> 0:09:03.120 Action plan and wanting to run on American tech, and 0:09:03.120 --> 0:09:05.240 so we need to incentivize the industries that are going 0:09:05.320 --> 0:09:06.720 to make that possible. 0:09:06.840 --> 0:09:08.840 And one of the pillars of that plan is for 0:09:08.960 --> 0:09:12.920 America to export technology to the world. How important an 0:09:12.920 --> 0:09:17.199 export market is China for the American technology stack. 0:09:18.200 --> 0:09:20.720 Well, the jury is still out on whether or not 0:09:20.800 --> 0:09:23.160 China is going to be an economy that wants the 0:09:23.200 --> 0:09:26.560 American technology stack. If you listen to what Hijin Ping 0:09:26.640 --> 0:09:30.880 has said, he wants an independent, controllable AI hardware and 0:09:30.920 --> 0:09:32.400 software foundational system. 0:09:32.679 --> 0:09:34.120 That means a Chinese tech stack. 0:09:34.480 --> 0:09:37.360 And so we'll see whether or not Chi Jianping and 0:09:37.400 --> 0:09:40.199 the Chinese economy wants American tech. It's all the more 0:09:40.240 --> 0:09:43.040 reason that deals with our allies like the EU that 0:09:43.160 --> 0:09:47.520 just happened, like Japan that just happened matter because if 0:09:47.559 --> 0:09:49.760 you look at the US and our top ten democratic 0:09:49.800 --> 0:09:53.440 allies the EU included, that's like sixty to seventy percent 0:09:53.559 --> 0:09:56.040 of global GDP. What a great place to start for 0:09:56.120 --> 0:09:59.040 us to deploy American technology is the backbone of the 0:09:59.080 --> 0:10:01.120 global economy and the free world and then start to 0:10:01.160 --> 0:10:01.960 work out from there. 0:10:02.400 --> 0:10:07.240 Michelle, it's almost the one area of bipartisanship has been 0:10:07.480 --> 0:10:10.880 a hawkish nature towards China. But I think about a 0:10:10.920 --> 0:10:12.679 potential ban on TikTok. 0:10:12.440 --> 0:10:13.400 Currently not happening. 0:10:13.640 --> 0:10:17.079 When we think about a potential meeting between Trump and jijingping, 0:10:17.400 --> 0:10:19.680 some China Hawks, some of the most odd and in 0:10:19.760 --> 0:10:23.000 the current administration for frustrated that actually President Trump is 0:10:23.040 --> 0:10:24.880 giving way too much for a deal. 0:10:25.040 --> 0:10:25.920 What do you make of it? 0:10:26.720 --> 0:10:28.959 Well, I think the big picture is all of these 0:10:29.000 --> 0:10:32.560 things are chips in the bargaining tools. They're all on 0:10:32.640 --> 0:10:35.000 the table and up for negotiation, so we can ultimately 0:10:35.040 --> 0:10:37.240 get to a deal that does make us more secure 0:10:37.240 --> 0:10:40.800 and more prosperous. And so we've seen back and forth 0:10:40.840 --> 0:10:43.160 on TikTok. We know that the Age twenty chips from 0:10:43.240 --> 0:10:46.719 Nvidia were under export controls in April, and then in 0:10:46.800 --> 0:10:49.840 July there were assurances that those licenses would be granted 0:10:49.880 --> 0:10:50.559 to export them. 0:10:50.559 --> 0:10:52.160 But all of these things are in flux. 0:10:51.920 --> 0:10:54.280 And it's part of the high stakes negotiations that are 0:10:54.320 --> 0:10:57.120 taking place. Ultimately that we want to get to a 0:10:57.200 --> 0:11:01.360 place where we are incentivizing American leadership and security first. 0:11:01.360 --> 0:11:03.520 And that takes regulation here at home as well. The 0:11:03.559 --> 0:11:07.240 AI Action Plan meant to foster growth, particularly when it 0:11:07.240 --> 0:11:11.080 comes to the underlying large language models and indeed the infrastructure. 0:11:11.320 --> 0:11:13.480 What's interesting is there is this game of cat and 0:11:13.520 --> 0:11:17.080 mouse and China yet more and more sophisticated models, open 0:11:17.120 --> 0:11:20.560 ones coming to the full. How do you measure how 0:11:20.600 --> 0:11:22.920 far China is in the generative AI race? 0:11:24.200 --> 0:11:27.160 Well, I think it's how many countries and partners across 0:11:27.160 --> 0:11:30.000 the world are adopting Chinese tech versus American tech. And 0:11:30.040 --> 0:11:32.720 our goal is to have more countries and more companies 0:11:32.760 --> 0:11:35.840 adopting American tech and in some cases Allied tech if 0:11:35.920 --> 0:11:39.000 we're not the category leader, so that the tech stack 0:11:39.040 --> 0:11:41.880 across the world is trusted. And so having a scorecard 0:11:42.559 --> 0:11:45.080 where we track how many companies and countries are adopting 0:11:45.160 --> 0:11:48.800 US and Allied technology versus Chinese technology is really important. 0:11:49.000 --> 0:11:50.800 And I think, as the President laid out in his 0:11:50.880 --> 0:11:53.840 AI Action Plan, what the administration is going to start 0:11:53.880 --> 0:11:57.520 to do is put together exportable AI packages to start 0:11:57.559 --> 0:11:59.240 to facilitate that more effectively. 0:12:00.559 --> 0:12:03.800 Michelle Geider of the CROC Institute of Tech Diplomacy at Purdue, 0:12:03.800 --> 0:12:07.080 thank you very much. Now, coming up, Spotify shares drop 0:12:07.120 --> 0:12:10.440 as the music streaming company disappoints investors with a surprise 0:12:10.480 --> 0:12:11.360 second quarter loss. 0:12:11.360 --> 0:12:13.840 We'll have the details next. This is Bloomberg Tech. 0:12:21.640 --> 0:12:25.880 Spotify shares having their worst day in two years, as 0:12:25.880 --> 0:12:28.840 the company reported a loss in the second quarter. Let's 0:12:28.880 --> 0:12:31.599 get more of Spotify's earnings or Bloomberg's Ashley Carmen, the 0:12:31.679 --> 0:12:34.480 scene seems to be about employee pay in some ways 0:12:34.480 --> 0:12:35.400 and taxes upon that. 0:12:36.160 --> 0:12:37.960 Yeah, in some ways, Spotify is a victim of its 0:12:38.000 --> 0:12:41.080 own success. They've basically said that because they've been doing 0:12:41.080 --> 0:12:43.160 so well on the stock market, they've had to pay 0:12:43.200 --> 0:12:43.559 out a. 0:12:43.520 --> 0:12:45.439 Lot more than they anticipated. 0:12:44.800 --> 0:12:47.800 To employees for payroll, taxes and whatnot, and so that 0:12:47.880 --> 0:12:49.720 ended up in a loss in earnings per share. 0:12:50.520 --> 0:12:53.840 There's a lot of like earnings mechanics and financial wizardry 0:12:53.840 --> 0:12:55.400 around this kind of stuff. Is there a kind of 0:12:55.480 --> 0:12:59.640 core Spotify story actually of how streaming audio is going 0:12:59.679 --> 0:13:01.880 for them, and maybe a little bit about their video 0:13:01.920 --> 0:13:02.840 strategy as well. 0:13:03.559 --> 0:13:07.920 Yeah, So Spotify keeps adding subscribers users like they keep. 0:13:07.760 --> 0:13:10.079 Growing every single quarter. It's pretty remarkable. 0:13:10.480 --> 0:13:12.400 But what's sort of been a challenge for them is 0:13:12.440 --> 0:13:14.080 figuring out what their next verticals are. 0:13:13.920 --> 0:13:15.200 And seeing that through successfully. 0:13:15.240 --> 0:13:18.040 So they've really made a push for advertising that hasn't 0:13:18.040 --> 0:13:20.720 really panned out. They said now they are going to 0:13:20.760 --> 0:13:22.679 be kind of rethinking. 0:13:22.240 --> 0:13:23.760 That approach with advertising. 0:13:24.120 --> 0:13:28.120 Their head of advertising actually stepped down yesterday. He's taking 0:13:28.160 --> 0:13:30.680 a job at DoorDash, So they sort of suggested that 0:13:30.720 --> 0:13:32.160 this is going to be a direction that they're going 0:13:32.200 --> 0:13:34.840 to change course. And then they're making a very concentrated 0:13:34.840 --> 0:13:37.800 push into video, and on today's earnings call, they said 0:13:37.880 --> 0:13:39.600 one of their co praresidents said that. 0:13:39.480 --> 0:13:42.280 This is a very exciting opportunity, but it's not a 0:13:42.400 --> 0:13:43.560 necessary opportunity. 0:13:43.600 --> 0:13:45.120 So I think they're still kind of figuring out where 0:13:45.120 --> 0:13:46.040 they want to move next. 0:13:46.440 --> 0:13:48.920 It's interesting that the week dollar, of course, plays into 0:13:48.920 --> 0:13:50.960 all of this, and the third quarter to forecasts not 0:13:50.960 --> 0:13:55.000 looking that pretty either. Ultimately, they are building more and 0:13:55.040 --> 0:13:57.000 more users. As they say, it's sort of growing like 0:13:57.080 --> 0:13:59.199 a weed, so that's going to be a positive momentum 0:13:59.280 --> 0:14:00.800 story for many longer term. 0:14:00.880 --> 0:14:02.800 Yeah, I think that that's how they're trying to position 0:14:02.920 --> 0:14:05.400 this is that in the long term they seem very bullish, 0:14:05.480 --> 0:14:07.880 they're excited, they feel like they've had a really great product. 0:14:08.040 --> 0:14:08.720 It's just these. 0:14:08.559 --> 0:14:12.040 Short term issues that they're kind of dealing with, and investors, 0:14:12.200 --> 0:14:13.760 we'll see how they're feeling about it. 0:14:14.440 --> 0:14:16.839 The stock's down almost eleven percent, which introday is the 0:14:16.880 --> 0:14:19.280 biggest drop since early April, but if it closed, there 0:14:19.400 --> 0:14:21.440 be the biggest drop since June of twenty twenty three, 0:14:21.600 --> 0:14:22.040 So it's. 0:14:21.880 --> 0:14:22.720 A strong reaction. 0:14:23.200 --> 0:14:24.840 I'm not asking you something to ask you every single 0:14:24.880 --> 0:14:28.000 quarter because this is how I listen to podcasts. How 0:14:28.040 --> 0:14:29.720 is Spotify doing in podcasts? 0:14:30.480 --> 0:14:33.760 They've really pivoted into video podcasts and they've been trying 0:14:33.760 --> 0:14:36.800 to recruit more video creators to the platform, so they 0:14:36.800 --> 0:14:40.080 really have not focused on these audio podcasts anymore. I've 0:14:40.120 --> 0:14:42.840 reported quite a bit on how this initiative is going 0:14:42.880 --> 0:14:44.720 for them. They're still missing quite a few of the 0:14:44.800 --> 0:14:46.720 largest podcasters on that service. 0:14:46.440 --> 0:14:48.880 For video, but they're still pushing and they're still trying. 0:14:49.840 --> 0:14:53.320 Where is the audience for them? Always the growth story 0:14:53.360 --> 0:14:54.480 at least it seems like. 0:14:54.440 --> 0:14:57.520 It's developing markets, Yeah, but then also just trying to 0:14:57.560 --> 0:14:59.560 get people to spend more time on the platform watch 0:14:59.600 --> 0:15:01.720 these video which they compensate based. 0:15:01.560 --> 0:15:03.040 That consumption rather than adds. 0:15:03.200 --> 0:15:05.400 They're really trying to appeal spend more time through audiobooks 0:15:05.440 --> 0:15:08.040 and maybe up level them to different tiers of subscriptions. 0:15:08.240 --> 0:15:10.320 So I think that's where they're eyeing some possible growth. 0:15:11.440 --> 0:15:14.720 Bluemogs actually Carmen on the streaming and Spotify beat. Thank 0:15:14.760 --> 0:15:17.200 you very much. We have another earning story in PayPal. 0:15:17.520 --> 0:15:19.920 Look at shares of the company down significantly, on track 0:15:19.920 --> 0:15:22.760 for their biggest drop in almost six months. In part, 0:15:22.840 --> 0:15:25.320 it's just the basics that they're seeing slow in growth 0:15:25.320 --> 0:15:28.600 and payment volumes. But what happened in the morning session 0:15:28.760 --> 0:15:31.600 was that the CEO on the call was talking about 0:15:31.680 --> 0:15:37.880 US retail spending and sort of softening economic consumer data. 0:15:37.680 --> 0:15:38.120 That kind thing. 0:15:38.160 --> 0:15:39.640 But he was basically saying that they see a slight 0:15:39.960 --> 0:15:42.680 acceleration and that's kind of worried people a little bit. 0:15:42.680 --> 0:15:44.240 It's going to be interesting later in the hour Carrier 0:15:44.280 --> 0:15:47.640 when we have Sofi, because it's somewhat analogous, right that 0:15:47.720 --> 0:15:50.120 we might get a similar or maybe different read on 0:15:50.160 --> 0:15:52.560 the strength of the consumer through the fintech lens. 0:15:52.880 --> 0:15:55.240 From a share performance is a very different story for 0:15:55.280 --> 0:15:58.080 so Far, which is up a whopping thirteen percent right now. 0:15:58.520 --> 0:16:01.080 That interview to come at right here, right now. Coming up, 0:16:01.120 --> 0:16:04.720 we've got open Ai back startup Ambient's healthcare. It was 0:16:04.760 --> 0:16:07.160 reaching a one billion dollars valuation. We speak the co 0:16:07.240 --> 0:16:08.440 founder Nik Kilberduma. 0:16:08.640 --> 0:16:10.120 That's an expertive roombed tech. 0:16:21.280 --> 0:16:24.560 Open AI back startup Ambience Healthcare has announced it's raised 0:16:24.560 --> 0:16:26.720 two hundred and forty three million dollars in a new 0:16:26.760 --> 0:16:30.320 funding round, valuing the administrative AI company at more than 0:16:30.360 --> 0:16:31.440 one billion dollars. 0:16:31.480 --> 0:16:31.840 For more. 0:16:32.000 --> 0:16:35.640 Nik Kilberduma, Ambience Healthcare co founder and chief scientists, joins 0:16:35.680 --> 0:16:38.920 us it's really interesting, you know, I actually go back 0:16:39.000 --> 0:16:41.200 to maybe even three years, and this is where a 0:16:41.240 --> 0:16:43.160 lot of people said the promise in the near term 0:16:43.400 --> 0:16:47.400 was AI and healthcare, you know, the administrative task. 0:16:47.680 --> 0:16:48.840 But the round is big. 0:16:48.960 --> 0:16:50.520 I mean, what do you need two hundred and forty 0:16:50.520 --> 0:16:51.600 three million dollars to do? 0:16:51.920 --> 0:16:52.160 Yeah. 0:16:52.280 --> 0:16:55.520 I think this round two hundred forty three million dollars 0:16:55.600 --> 0:16:57.840 values as the company at one point twenty five billion dollars. 0:16:57.880 --> 0:17:00.440 Now that round is led by oak HCFT and recent 0:17:00.480 --> 0:17:03.480 Horoitz and with participation from open AI. I think it's 0:17:03.520 --> 0:17:06.080 a testament to this platform that we've built for health systems, 0:17:06.080 --> 0:17:09.719 which liberates clinicians from the administrative burden and enables them 0:17:09.720 --> 0:17:12.000 to focus on their patient. And a big part of 0:17:12.000 --> 0:17:14.359 it is we've built the sort of busting class platform, 0:17:14.400 --> 0:17:17.000 which in practice what it does is before the patient 0:17:17.040 --> 0:17:20.000 walks into the room. The system actually summarizes all the 0:17:20.040 --> 0:17:22.040 context for the clinicians so they know what's going on 0:17:22.119 --> 0:17:24.760 with that particular patient in the visit. It's listening in 0:17:24.800 --> 0:17:28.360 the background, it's generating the documentation automatically for the clinician 0:17:28.400 --> 0:17:30.720 on behalf of them, as also summary for the patient 0:17:30.720 --> 0:17:33.359 and their families. And then afterwards it's automating all the 0:17:33.400 --> 0:17:38.159 downstream sort of revenue cycle, coding and billing prior authorization workflows, 0:17:38.280 --> 0:17:41.160 which is how health systems get paid. I think it's 0:17:41.200 --> 0:17:43.879 allowing us to essentially work with many more institutions. We 0:17:43.920 --> 0:17:46.960 work with some of the largest healthcare organizations, academic medical 0:17:47.000 --> 0:17:50.639 centers in the country Cleveland Clinic, UCSF, Houston Methodists. 0:17:50.640 --> 0:17:52.200 I think this surround is a testament to that way. 0:17:52.800 --> 0:17:55.840 What's the company's core competence? You know, I understand the platform, 0:17:55.840 --> 0:17:57.560 but what is it that you're good at that's allowed 0:17:57.560 --> 0:17:58.679 you to build the platform. 0:17:58.760 --> 0:18:01.320 I think a big part of it is we've built 0:18:01.320 --> 0:18:04.120 an incredibly deep working relationship with open AI and other 0:18:04.160 --> 0:18:07.080 foundation model makers to build the most capable foundation models 0:18:07.080 --> 0:18:09.600 for healthcare and medicine, and then we've taken that and 0:18:09.680 --> 0:18:12.600 packaged that into a series of workflows to help clinicians. 0:18:12.600 --> 0:18:15.080 So I'll give you one example. We work with Cleveland Clinic, 0:18:15.119 --> 0:18:18.560