1 00:00:01,440 --> 00:00:05,080 Speaker 1: From Mahard where Innovation of Money and Power Collie in 2 00:00:05,200 --> 00:00:06,720 Speaker 1: Silicon Valley, NBM. 3 00:00:07,040 --> 00:00:11,080 Speaker 2: This is Bloomberg Technology with Caroline Hyde and Ed Ludlove. 4 00:00:25,280 --> 00:00:27,440 Speaker 3: I'm Caroline. He had of Rumberge's world headquarters in New York. 5 00:00:27,600 --> 00:00:30,280 Speaker 3: Ed Ludlow, He's off. This is Bruebag technology coming up 6 00:00:30,440 --> 00:00:33,400 Speaker 3: well as the market's drop. We'll talk all things ipo 7 00:00:33,720 --> 00:00:36,440 Speaker 3: ARM completes the biggest of the instacart gives up to 8 00:00:36,440 --> 00:00:38,720 Speaker 3: go public next week. We have so much more ahead 9 00:00:38,920 --> 00:00:40,840 Speaker 3: and we'll talk the state of fintech with a former 10 00:00:40,920 --> 00:00:44,040 Speaker 3: CEO of so far as his company joins others in 11 00:00:44,120 --> 00:00:48,720 Speaker 3: withdrawing applications for banking charters. Why, plus how will the 12 00:00:48,800 --> 00:00:53,360 Speaker 3: uaw's unprecedented strikes impact automakers and the electric vehicle market. 13 00:00:53,800 --> 00:00:56,680 Speaker 3: An ARM still managing to treadwater buck the trend. We're 14 00:00:56,680 --> 00:00:59,240 Speaker 3: at more than two percent after its initial public offering, 15 00:00:59,240 --> 00:01:02,040 Speaker 3: and let's stick with that theme. The comeback. It's here 16 00:01:02,440 --> 00:01:04,720 Speaker 3: and of course this week was the biggest debut of 17 00:01:04,800 --> 00:01:06,679 Speaker 3: the year. We of course were speaking with the CEO, 18 00:01:06,760 --> 00:01:09,560 Speaker 3: Renee Has, who was confident in the outlook for his business. 19 00:01:11,560 --> 00:01:14,000 Speaker 1: We also have a very unique business model that gives 20 00:01:14,040 --> 00:01:16,440 Speaker 1: us the ability to have a very very good vision 21 00:01:16,560 --> 00:01:18,839 Speaker 1: in the future in terms of when people use our products. 22 00:01:19,080 --> 00:01:22,200 Speaker 1: So relative to our confidence in the outlook, we have 23 00:01:22,240 --> 00:01:24,319 Speaker 1: a very very high confidence that the growth rate that 24 00:01:24,360 --> 00:01:25,720 Speaker 1: we have talked about will be sustained. 25 00:01:27,920 --> 00:01:30,440 Speaker 3: So how do your syncratic was that event or how 26 00:01:30,480 --> 00:01:32,200 Speaker 3: can we read across the rest of the IPO's Katie 27 00:01:32,240 --> 00:01:34,480 Speaker 3: Roof is here in New York discuss it all. You 28 00:01:34,560 --> 00:01:38,760 Speaker 3: are the person who marries venture backed businesses as well 29 00:01:38,760 --> 00:01:40,800 Speaker 3: as M and A as well as into the public 30 00:01:40,800 --> 00:01:43,520 Speaker 3: markets and the banks, and I'm ultimately interested as to 31 00:01:43,560 --> 00:01:45,720 Speaker 3: how your sources are saying this read across for armor 32 00:01:45,760 --> 00:01:48,240 Speaker 3: is for the likes of instacrat, for Clevio and other 33 00:01:48,240 --> 00:01:50,240 Speaker 3: companies that want to hit this market running. 34 00:01:50,080 --> 00:01:51,720 Speaker 2: Well, the IPO window is open. 35 00:01:51,880 --> 00:01:55,080 Speaker 4: We've been talking about this for almost two years. You know, 36 00:01:55,160 --> 00:01:58,120 Speaker 4: tech IPAs came to a halt in late twenty twenty one, 37 00:01:58,440 --> 00:02:01,360 Speaker 4: and arm is just been the first big one and 38 00:02:01,400 --> 00:02:04,400 Speaker 4: it went well. It went up twenty five percent, which 39 00:02:04,440 --> 00:02:06,600 Speaker 4: is you know where they often aimed for these things 40 00:02:06,600 --> 00:02:09,640 Speaker 4: to go. So, you know, we saw instacart they raised 41 00:02:09,680 --> 00:02:14,320 Speaker 4: their price range probably partly because of this. It shows 42 00:02:14,320 --> 00:02:18,200 Speaker 4: that there's public investor enthusiasm. Of course, ARM and instacart 43 00:02:18,200 --> 00:02:22,080 Speaker 4: are very different companies, but bankers are still going to 44 00:02:22,160 --> 00:02:26,440 Speaker 4: argue that this is, you know, a sign of tech enthusiasm. Broadly, 45 00:02:26,720 --> 00:02:30,200 Speaker 4: instacart raised their range from twenty six to twenty eight 46 00:02:30,360 --> 00:02:32,280 Speaker 4: to twenty eight to thirty. At the top of that 47 00:02:32,400 --> 00:02:34,680 Speaker 4: range they would be ten billion dollars on a fully 48 00:02:34,680 --> 00:02:37,480 Speaker 4: deleuted basis, so still lower than where they were, but 49 00:02:37,600 --> 00:02:38,600 Speaker 4: better than where they were hoping. 50 00:02:38,600 --> 00:02:39,320 Speaker 5: A few days ago. 51 00:02:40,400 --> 00:02:43,800 Speaker 3: One we hear the reports of just how hands on 52 00:02:44,280 --> 00:02:47,520 Speaker 3: Massa was in this process, and the idea that maybe 53 00:02:48,000 --> 00:02:51,519 Speaker 3: he decided to undershoot in the overall price range that 54 00:02:51,560 --> 00:02:53,520 Speaker 3: he could have got for the shares, leave money on 55 00:02:53,560 --> 00:02:55,760 Speaker 3: the table to get that pop. I mean, we'd like 56 00:02:55,760 --> 00:02:58,000 Speaker 3: you to see that replicated by the others that want to 57 00:02:58,040 --> 00:03:01,359 Speaker 3: come to this market. How how difficult to balancing act. 58 00:03:01,320 --> 00:03:04,280 Speaker 4: Is this at the moment, So what happened was pretty 59 00:03:04,360 --> 00:03:06,920 Speaker 4: unusual where they thought, you know, they could have priced 60 00:03:06,919 --> 00:03:08,840 Speaker 4: a banker spot that they could have priced the company 61 00:03:09,000 --> 00:03:11,959 Speaker 4: at fifty two a share, but ARM went with fifty one, 62 00:03:12,080 --> 00:03:15,000 Speaker 4: partly because Masa just wanted to ensure, you know, a 63 00:03:15,040 --> 00:03:16,800 Speaker 4: big pop on the first day, but of course that 64 00:03:16,840 --> 00:03:19,919 Speaker 4: means that a little less money was raised for the company. 65 00:03:20,560 --> 00:03:23,240 Speaker 4: I would say usually companies are going to take the 66 00:03:23,280 --> 00:03:28,160 Speaker 4: banker recommendation where whatever it may be. They do these 67 00:03:28,240 --> 00:03:31,480 Speaker 4: pops to incentivize new investors for taking a risk on 68 00:03:31,560 --> 00:03:34,000 Speaker 4: day one. Otherwise, why would you invest on day one? 69 00:03:34,000 --> 00:03:37,720 Speaker 4: You'd wait until and see how it went. But you know, 70 00:03:37,760 --> 00:03:40,040 Speaker 4: if you leave, if you do too much of a pop, 71 00:03:40,120 --> 00:03:43,280 Speaker 4: then that's more that the company could have raised, So 72 00:03:43,560 --> 00:03:45,520 Speaker 4: they try to time it. But of course it's all 73 00:03:45,560 --> 00:03:47,760 Speaker 4: just a guess. They do these road shows where they're 74 00:03:47,960 --> 00:03:50,839 Speaker 4: talking to all these public investors trying to figure out 75 00:03:51,000 --> 00:03:52,960 Speaker 4: what they're going to buy, how much they're going to buy, 76 00:03:53,120 --> 00:03:55,840 Speaker 4: and it. You know, they do some math, but it's 77 00:03:55,880 --> 00:03:56,440 Speaker 4: also a lot of. 78 00:03:56,400 --> 00:03:59,360 Speaker 3: Guessing, and they've gotten art of a guess that you 79 00:03:59,400 --> 00:04:01,920 Speaker 3: were just telling me before that. Well, the CFO of 80 00:04:02,000 --> 00:04:06,040 Speaker 3: instacart knows these banking worlds well, having come from Goldman. 81 00:04:06,040 --> 00:04:09,360 Speaker 4: Yeah, exactly. Nick Giovanni, the CFO of Instacart, he used 82 00:04:09,360 --> 00:04:13,600 Speaker 4: to run Gordman's TMT, their investment banking group for tech, 83 00:04:13,720 --> 00:04:16,640 Speaker 4: so he was the one praising all these tech IPOs 84 00:04:16,680 --> 00:04:19,520 Speaker 4: in the past. So if there's anyone that knows how 85 00:04:19,560 --> 00:04:22,279 Speaker 4: to optimize Instacar's success, it would be him. 86 00:04:23,000 --> 00:04:25,400 Speaker 3: All lies on him or lives in Clavio as well. 87 00:04:25,600 --> 00:04:28,159 Speaker 3: For next week, we wait with beta breath, Katie Rufe, 88 00:04:28,160 --> 00:04:29,760 Speaker 3: We thank you for being here and save trip back 89 00:04:29,760 --> 00:04:32,680 Speaker 3: to La. Meanwhile, well, let's dig into more broadly the 90 00:04:32,720 --> 00:04:35,320 Speaker 3: market here and sentiment around technology names as we look 91 00:04:35,360 --> 00:04:37,239 Speaker 3: for this IPO window to be back up and running 92 00:04:37,240 --> 00:04:40,360 Speaker 3: with Laura Cooper black Rock, senior macro strategist for ices EMEA, 93 00:04:41,160 --> 00:04:44,359 Speaker 3: indeed a former strategist over here at Bloomberg as well. Laura, 94 00:04:44,400 --> 00:04:47,800 Speaker 3: and I'm interested as to you're in the world of ETFs, 95 00:04:47,800 --> 00:04:49,680 Speaker 3: So what's so interesting about the ARM listing? And I 96 00:04:49,720 --> 00:04:52,039 Speaker 3: know you can't go into individual names, but it's like 97 00:04:52,240 --> 00:04:54,479 Speaker 3: not going to get into ETFs more broadly as it 98 00:04:54,520 --> 00:04:56,840 Speaker 3: is an ADR of course a foreign company, but also 99 00:04:57,400 --> 00:05:01,960 Speaker 3: very small floats overall. What sort of focus are you're 100 00:05:01,960 --> 00:05:05,479 Speaker 3: putting for your clients on these new companies to come 101 00:05:05,480 --> 00:05:06,040 Speaker 3: to the market. 102 00:05:07,160 --> 00:05:09,359 Speaker 6: Well, I think probably what's the most interesting is that 103 00:05:09,360 --> 00:05:12,760 Speaker 6: we've seen a fairly muted IPO backdrop this year. It 104 00:05:12,839 --> 00:05:15,039 Speaker 6: has been a little bit stronger than last year, but 105 00:05:15,160 --> 00:05:17,880 Speaker 6: well below the levels that we saw back in twenty 106 00:05:17,920 --> 00:05:20,480 Speaker 6: twenty one, for example. And I think this reflects a 107 00:05:20,520 --> 00:05:23,040 Speaker 6: couple of factors. One is the fact that we are 108 00:05:23,080 --> 00:05:28,200 Speaker 6: in this environment of heightened macro uncertainty. Investors have uncertainty 109 00:05:28,320 --> 00:05:31,680 Speaker 6: about wherely where rates are going, what's the growth dynamics 110 00:05:31,720 --> 00:05:33,960 Speaker 6: going to be, like, will this actually be a profitable 111 00:05:34,040 --> 00:05:37,720 Speaker 6: type of backdrop to enter into this market? And then second, 112 00:05:37,839 --> 00:05:42,720 Speaker 6: I think there's this greater scrutiny around valuations because investors 113 00:05:42,760 --> 00:05:46,240 Speaker 6: aren't necessarily chasing the next big growth stock, but it's 114 00:05:46,320 --> 00:05:49,640 Speaker 6: really about looking at those margins, looking at the profitability 115 00:05:49,680 --> 00:05:53,159 Speaker 6: and demand dynamics to gauge is this actually you know 116 00:05:53,279 --> 00:05:55,599 Speaker 6: something we want to invest in at this uncertain time. 117 00:05:56,080 --> 00:05:59,640 Speaker 3: Uncertainty also geopolitical in when we think of the China 118 00:05:59,680 --> 00:06:02,640 Speaker 3: expose that ANAM has, we also think of the AI 119 00:06:02,800 --> 00:06:06,120 Speaker 3: hype that was satisfying at that moment. How much is 120 00:06:06,200 --> 00:06:10,960 Speaker 3: artificial intelligence leaning into the valuation conundrum for many of 121 00:06:11,000 --> 00:06:11,560 Speaker 3: your clients. 122 00:06:12,560 --> 00:06:15,680 Speaker 6: I think certainly the AI hype has been a key 123 00:06:15,920 --> 00:06:18,880 Speaker 6: driver around just the outperformance that we've seen in some 124 00:06:18,960 --> 00:06:21,599 Speaker 6: of those US tech stocks a year to date, Yes, 125 00:06:21,640 --> 00:06:24,599 Speaker 6: we have seen that come off a bit in recent weeks, 126 00:06:24,839 --> 00:06:28,719 Speaker 6: but I think underlying this AI euphoria there is still 127 00:06:28,800 --> 00:06:31,640 Speaker 6: strong fundamentals, and it's one of the reasons why we 128 00:06:31,760 --> 00:06:36,479 Speaker 6: do see artificial intelligence as a key secular megaporce over 129 00:06:36,520 --> 00:06:40,080 Speaker 6: the coming years. If we think about the profitability backdrop, 130 00:06:40,200 --> 00:06:43,280 Speaker 6: this was clearly coming through in earnings. These are really 131 00:06:43,360 --> 00:06:46,400 Speaker 6: those companies that can generate the type of earnings that 132 00:06:46,440 --> 00:06:49,680 Speaker 6: investors are demanding. If we look at earnings estimates for 133 00:06:49,720 --> 00:06:52,680 Speaker 6: the next twelve months, they're sitting at about that fifteen 134 00:06:52,720 --> 00:06:56,520 Speaker 6: percent mark. That's well above other sectors, and it's probably 135 00:06:56,520 --> 00:06:59,960 Speaker 6: the only sector that can actually meet those earnings expectations. 136 00:07:00,279 --> 00:07:04,400 Speaker 6: So as those earnings potentially are justified in the coming quarters, 137 00:07:04,640 --> 00:07:07,400 Speaker 6: we do think there's further scope for this tech rally 138 00:07:07,440 --> 00:07:10,679 Speaker 6: to run. Even as we start to see probably greater 139 00:07:10,800 --> 00:07:14,400 Speaker 6: bouts of volatility around some of the negative headlines coming through, 140 00:07:14,680 --> 00:07:17,720 Speaker 6: it doesn't really curb what we still see as a 141 00:07:17,760 --> 00:07:21,000 Speaker 6: favorable long term demand backdrop for these tech stocks. 142 00:07:21,240 --> 00:07:21,920 Speaker 7: Go global. 143 00:07:22,120 --> 00:07:25,120 Speaker 3: As of course, you currently sit in that NEA role 144 00:07:25,320 --> 00:07:27,520 Speaker 3: and I'm looking at technology on the stock six hundred, 145 00:07:27,560 --> 00:07:30,840 Speaker 3: the worst performing sector over the last three months overall, 146 00:07:30,920 --> 00:07:33,400 Speaker 3: it's one of the worst performing on the day as well. Laura, 147 00:07:33,480 --> 00:07:36,760 Speaker 3: how global is this view that technology is a sected 148 00:07:36,800 --> 00:07:37,160 Speaker 3: to be in. 149 00:07:38,640 --> 00:07:41,040 Speaker 6: I think it really depends on where we're going to 150 00:07:41,160 --> 00:07:44,600 Speaker 6: see those beneficiaries from some of the long term trends 151 00:07:44,640 --> 00:07:47,760 Speaker 6: around for example, re shoring in some of that semiconductor 152 00:07:47,800 --> 00:07:50,960 Speaker 6: space that is probably tilted a little bit more towards 153 00:07:51,000 --> 00:07:54,680 Speaker 6: the US, but it really does reflect this market concentration, 154 00:07:54,920 --> 00:07:57,960 Speaker 6: So that's leaning US probably more of a US equity 155 00:07:58,000 --> 00:08:00,880 Speaker 6: tilt over Europe at this juncture. But if we think 156 00:08:00,920 --> 00:08:03,160 Speaker 6: about kind of broader in the tech space, it's not 157 00:08:03,200 --> 00:08:05,560 Speaker 6: really known to be kind of the driver of those 158 00:08:05,600 --> 00:08:08,880 Speaker 6: European benchmarks. So I think overall, when we look at 159 00:08:08,920 --> 00:08:13,560 Speaker 6: positioning in these tech stocks, it's probably tilted towards the US. 160 00:08:13,760 --> 00:08:17,000 Speaker 6: That's probably where it's going to be the greatest demand resiliency. 161 00:08:17,360 --> 00:08:20,600 Speaker 6: But for example, semiconductors is a very strong conviction call 162 00:08:20,680 --> 00:08:24,280 Speaker 6: for US on the back of these medium term AI dynamics, 163 00:08:24,560 --> 00:08:28,040 Speaker 6: and that we advocate for taking a global exposure because 164 00:08:28,040 --> 00:08:31,000 Speaker 6: we do think there's pockets of opportunity and really not 165 00:08:31,360 --> 00:08:34,200 Speaker 6: taking too much of a concentrated risk because some of 166 00:08:34,200 --> 00:08:37,720 Speaker 6: those geopolitical fragmentations could arise and we don't want to 167 00:08:37,720 --> 00:08:41,760 Speaker 6: have any particular exposure in that broader semiconductor space. 168 00:08:42,679 --> 00:08:44,640 Speaker 3: Good on the day. If you're looking at the socks, 169 00:08:44,840 --> 00:08:48,119 Speaker 3: I'm interested in digging into some of the individual intricacies 170 00:08:48,160 --> 00:08:50,920 Speaker 3: of what makes an AI company an AI company for you, 171 00:08:51,040 --> 00:08:54,120 Speaker 3: or indeed an AI opportunity. Which are the areas of 172 00:08:54,160 --> 00:08:56,280 Speaker 3: application that you think is most profuitful. 173 00:08:57,480 --> 00:09:00,560 Speaker 6: Well, I think there's really three ways of framing artificial 174 00:09:00,600 --> 00:09:05,120 Speaker 6: intelligence from an investment perspective. The first would be around, Okay, 175 00:09:05,200 --> 00:09:08,880 Speaker 6: how does AI actually boost a company's earnings? How are 176 00:09:08,960 --> 00:09:11,880 Speaker 6: we going to see this kind of change pricing models, 177 00:09:11,920 --> 00:09:16,160 Speaker 6: revenue growth going forward, Particularly if we think about software providers, 178 00:09:16,240 --> 00:09:18,200 Speaker 6: how are they actually going to deploy this to the 179 00:09:18,200 --> 00:09:21,839 Speaker 6: broader landscape. So those companies that have actually been able 180 00:09:21,920 --> 00:09:25,520 Speaker 6: to secure AI patents actually have seen an increase in 181 00:09:25,559 --> 00:09:29,080 Speaker 6: their economic value, so they're already showcasing the impact of 182 00:09:29,120 --> 00:09:32,079 Speaker 6: AI at the company level. Then we can think about, okay, 183 00:09:32,120 --> 00:09:35,840 Speaker 6: how is AI going to impact operational efficiency? Are we 184 00:09:35,920 --> 00:09:39,840 Speaker 6: going to see more streamlined businesses, more cost cuts, or 185 00:09:39,960 --> 00:09:42,080 Speaker 6: the other side of that, are we going to see 186 00:09:42,120 --> 00:09:46,720 Speaker 6: this AI generated boom drive this efficiency, this productivity gains 187 00:09:46,760 --> 00:09:50,120 Speaker 6: that in turn will have some benefits for some of 188 00:09:50,120 --> 00:09:52,880 Speaker 6: these companies. And then third, I think is probably the 189 00:09:52,960 --> 00:09:55,800 Speaker 6: key question that we've been asked by clients more recently, 190 00:09:56,240 --> 00:09:59,440 Speaker 6: is really around how is AI going to disrupt this 191 00:09:59,600 --> 00:10:02,600 Speaker 6: on a sector basis? So which of those sectors are 192 00:10:02,640 --> 00:10:05,960 Speaker 6: going to be the greatest beneficiaries. Some are quite obvious, 193 00:10:06,000 --> 00:10:10,040 Speaker 6: for example, the software providers, semiconductors as well if we 194 00:10:10,080 --> 00:10:14,000 Speaker 6: think the next step around cybersecurity, some of those proprietary 195 00:10:14,080 --> 00:10:17,160 Speaker 6: data providers. But it's also the thing about healthcare, medical 196 00:10:17,160 --> 00:10:19,880 Speaker 6: device innovation, in the legal field, where are we going 197 00:10:19,880 --> 00:10:23,440 Speaker 6: to see a disruptions. So it's about capturing those areas 198 00:10:23,480 --> 00:10:25,840 Speaker 6: where we think is not actually in the price yet, 199 00:10:25,880 --> 00:10:28,640 Speaker 6: but they're probably going to be net beneficiaries. As is 200 00:10:28,679 --> 00:10:29,679 Speaker 6: AI trend. 201 00:10:29,440 --> 00:10:34,080 Speaker 3: Unfolds still totally all encompassing this AI conversation or a 202 00:10:34,120 --> 00:10:36,880 Speaker 3: cooper create us some time with you happy weekend, of course, 203 00:10:36,920 --> 00:10:40,080 Speaker 3: a black roll meanwhile coming up well before AI, we're 204 00:10:40,080 --> 00:10:41,920 Speaker 3: all talking about the hype around crypto. We're going to 205 00:10:41,960 --> 00:10:44,040 Speaker 3: go back to that hype, but talk about its application 206 00:10:44,200 --> 00:10:47,120 Speaker 3: right now, and indeed, more broadly, where we're seeing fintech 207 00:10:47,160 --> 00:10:52,079 Speaker 3: firms finding some concerns around actually wanting to become banks. 208 00:10:52,480 --> 00:10:54,959 Speaker 3: We'll discuss with a figure co founder of Mike Cagney. 209 00:10:55,160 --> 00:11:10,040 Speaker 3: That's next. This is Bloomback. Now we wait with Beta 210 00:11:10,120 --> 00:11:12,600 Speaker 3: breath for potentially a statement coming from the White House. 211 00:11:12,640 --> 00:11:14,880 Speaker 3: President Biden going to be speaking about the strike action 212 00:11:15,000 --> 00:11:18,160 Speaker 3: currently underway. We know it's actually kind of been a 213 00:11:18,200 --> 00:11:21,079 Speaker 3: focus across many in industry, but members of the moment 214 00:11:21,160 --> 00:11:25,760 Speaker 3: united at Auto Workers Union, they voted to strikers midnight 215 00:11:26,120 --> 00:11:29,160 Speaker 3: after negotiations with what Fords, Atlantist General Motors they all 216 00:11:29,160 --> 00:11:31,840 Speaker 3: fell through. In fact, GM CEO Mary Barrow weighed in 217 00:11:31,920 --> 00:11:34,040 Speaker 3: earlier today on Blue Make Tevitlevision. Take a listen. 218 00:11:35,400 --> 00:11:37,240 Speaker 8: I will say we're ready for this. You know, as 219 00:11:37,280 --> 00:11:40,160 Speaker 8: we've dealt with the COVID and dealt with the semiconductor 220 00:11:40,200 --> 00:11:43,160 Speaker 8: shortage as well as other supply chain challenges that have 221 00:11:43,559 --> 00:11:46,600 Speaker 8: you know, continued to persist from COVID. Our team knows 222 00:11:46,640 --> 00:11:49,360 Speaker 8: how to manage these situations. They're staying agile and we're 223 00:11:49,360 --> 00:11:50,880 Speaker 8: going to do what's right for the company. We're going 224 00:11:50,920 --> 00:11:52,440 Speaker 8: to make sure everyone stays safe. 225 00:11:52,960 --> 00:11:55,160 Speaker 3: We now can go to the White House. We understand 226 00:11:55,160 --> 00:11:57,160 Speaker 3: where President Biden is addressing the nation. 227 00:11:58,720 --> 00:12:01,760 Speaker 9: Began the last few weeks and over the last the 228 00:12:01,800 --> 00:12:07,240 Speaker 9: past decade, auto companies have seen record profits, including the 229 00:12:07,280 --> 00:12:10,960 Speaker 9: last few years, because of the extraordinary skill and sacrifices 230 00:12:11,000 --> 00:12:14,840 Speaker 9: of the UAW workers. Those record profits have not been 231 00:12:14,960 --> 00:12:18,880 Speaker 9: shared fairly, in my view, with those workers. Just as 232 00:12:18,920 --> 00:12:22,040 Speaker 9: the Treasury Department has released the report pointing out that 233 00:12:22,120 --> 00:12:25,160 Speaker 9: the most Comperhence report ever dealing with how unions are 234 00:12:25,240 --> 00:12:29,200 Speaker 9: good for both union workers and non union workers to 235 00:12:29,400 --> 00:12:30,679 Speaker 9: the annual overall economy. 236 00:12:31,440 --> 00:12:33,160 Speaker 2: Unions raise workers wages, they. 237 00:12:33,080 --> 00:12:38,360 Speaker 9: Said, incomes, increase home ownership, increased retirement savors, increase access 238 00:12:38,440 --> 00:12:42,960 Speaker 9: to critical benefits like sickly and childcare, and reduced inequality, 239 00:12:43,480 --> 00:12:46,720 Speaker 9: all of which strengthen our economy for all workers. That's 240 00:12:46,800 --> 00:12:52,120 Speaker 9: because unions. Unions raised standards across the workplaces and entire industries, 241 00:12:52,679 --> 00:12:56,240 Speaker 9: pushing up wages and strengthening benefits for everyone. That's why 242 00:12:56,280 --> 00:12:59,840 Speaker 9: strong unions are critical. They're growing economy and growing from 243 00:12:59,880 --> 00:13:03,000 Speaker 9: the middle out the bottom up, not the top down. 244 00:13:03,720 --> 00:13:06,760 Speaker 9: That's especially true as we transition to a clean energy future, 245 00:13:06,760 --> 00:13:09,400 Speaker 9: which are in the process of doing. I believe that 246 00:13:09,440 --> 00:13:13,000 Speaker 9: transition should be fair and a win win for issued me, 247 00:13:13,480 --> 00:13:17,040 Speaker 9: for auto workers and auto companies. But I also believe 248 00:13:17,120 --> 00:13:20,560 Speaker 9: in the contract agreement must lead to a vibrant, made 249 00:13:20,600 --> 00:13:24,360 Speaker 9: in America future that promotes good, strong, middle class jobs 250 00:13:24,679 --> 00:13:27,720 Speaker 9: that workers can raise a family on, where the UAW 251 00:13:27,880 --> 00:13:30,840 Speaker 9: remains at the heart of auto economy, and where the 252 00:13:30,840 --> 00:13:34,200 Speaker 9: Big three companies continue to lead an innovation, excellence, quality 253 00:13:34,240 --> 00:13:38,920 Speaker 9: and leadership. Last night, after negotiations broke down, the UAW 254 00:13:39,000 --> 00:13:42,520 Speaker 9: announced the targeted strike and a few Big three auto plants. 255 00:13:43,760 --> 00:13:47,079 Speaker 9: Let's be clear, no one wants to strike. Say it again, 256 00:13:47,160 --> 00:13:50,040 Speaker 9: no one wants to strike. But I respect workers right 257 00:13:50,080 --> 00:13:52,960 Speaker 9: to use their options under the collective bargaining system, and 258 00:13:53,000 --> 00:13:57,559 Speaker 9: I understand the worker's frustration over generations. Auto workers sacrifice 259 00:13:57,559 --> 00:14:00,520 Speaker 9: so much to keep the industry alive and strong, especially 260 00:14:00,679 --> 00:14:04,440 Speaker 9: the economic crisis and the pandemic. Workers deserve a fair 261 00:14:04,520 --> 00:14:06,920 Speaker 9: share of the benefits they help create for an enterprise. 262 00:14:07,600 --> 00:14:10,280 Speaker 9: I do appreciate that the parties have been working around 263 00:14:10,320 --> 00:14:12,920 Speaker 9: the clock, and when I first call them at the 264 00:14:13,080 --> 00:14:15,520 Speaker 9: very first day of the negotiation, I said, please stay 265 00:14:15,520 --> 00:14:17,960 Speaker 9: at the table as long as you can to try 266 00:14:18,000 --> 00:14:21,640 Speaker 9: to work this out. And they've been around the clock, 267 00:14:21,680 --> 00:14:24,160 Speaker 9: and the companies have made some significant offers. 268 00:14:24,520 --> 00:14:25,280 Speaker 2: But I believe they. 269 00:14:25,200 --> 00:14:28,760 Speaker 9: Should go further to ensure record corporate profits mean record 270 00:14:28,880 --> 00:14:33,120 Speaker 9: contracts for the UAWM stated again, record corporate profits which 271 00:14:33,160 --> 00:14:36,720 Speaker 9: they have should be shared by record contracts for the 272 00:14:36,840 --> 00:14:40,240 Speaker 9: uaw And just as we were building an economy of 273 00:14:40,280 --> 00:14:41,480 Speaker 9: the future, we. 274 00:14:41,440 --> 00:14:43,080 Speaker 2: Need labor agreements for the future. 275 00:14:43,600 --> 00:14:46,320 Speaker 9: It's my hope that the parties can returned the negotiation 276 00:14:46,440 --> 00:14:50,080 Speaker 9: table to forge a win win agreement to continue our 277 00:14:50,120 --> 00:14:54,000 Speaker 9: active engagement. I'm deplug dispatching two members of my team 278 00:14:54,040 --> 00:14:57,640 Speaker 9: to Detroit, Acting Labor Secretary Julie Schue and White House 279 00:14:57,680 --> 00:15:00,000 Speaker 9: Senior Advisor Gene Sperling. Both of them have been involved 280 00:15:00,040 --> 00:15:03,360 Speaker 9: loutching now to offer their full support for the parties 281 00:15:03,360 --> 00:15:07,000 Speaker 9: and reaching a contract. The bottom line is that auto 282 00:15:07,000 --> 00:15:11,080 Speaker 9: workers help create America's middle class. They deserve a contract 283 00:15:11,600 --> 00:15:14,840 Speaker 9: that sustains them in the middle class. So thank you 284 00:15:14,960 --> 00:15:16,520 Speaker 9: very much. It's on. I'm going to say thanks you. 285 00:15:17,400 --> 00:15:20,280 Speaker 5: You can directly involved in negotiations, should Hunter get a 286 00:15:20,320 --> 00:15:20,640 Speaker 5: part in. 287 00:15:20,760 --> 00:15:24,400 Speaker 3: Mister President President Joe Biden there speaking on the uaw 288 00:15:24,560 --> 00:15:28,080 Speaker 3: workers strike, really reiterating that the workers have his support. 289 00:15:28,200 --> 00:15:31,160 Speaker 3: Nobody wants to strike, he says, but they are dispatching 290 00:15:31,200 --> 00:15:33,600 Speaker 3: officials to offer support in the talks, and he wants 291 00:15:33,640 --> 00:15:37,320 Speaker 3: the parties to return to the negotiating table and reach 292 00:15:37,360 --> 00:15:39,400 Speaker 3: an agreement that he says would be a win win. 293 00:15:40,080 --> 00:15:42,720 Speaker 3: Let's first and almost then go out to Washington. I 294 00:15:42,800 --> 00:15:45,240 Speaker 3: think we have Katie Lion standing by just to wrap 295 00:15:45,320 --> 00:15:47,560 Speaker 3: up what is quite a difficult balancing act for the 296 00:15:47,560 --> 00:15:51,160 Speaker 3: president because he wants to be pro worker, pro union, 297 00:15:51,320 --> 00:15:53,520 Speaker 3: but also wants to be pro ev transition. 298 00:15:54,920 --> 00:15:57,440 Speaker 10: Yeah, that's exactly right, Caroline, and you certainly see that 299 00:15:57,520 --> 00:16:00,680 Speaker 10: pro union sentiment coming through in the remarks he just made, 300 00:16:00,720 --> 00:16:03,880 Speaker 10: among many other things, him saying that they should go 301 00:16:03,960 --> 00:16:06,960 Speaker 10: further because record corporate profits should be shared with a 302 00:16:07,040 --> 00:16:10,680 Speaker 10: record contract for the United Auto Workers, saying that autoworkers 303 00:16:10,680 --> 00:16:12,760 Speaker 10: help build the middle class and deserve a contract that 304 00:16:12,800 --> 00:16:16,000 Speaker 10: helps sustain them and the middle class. So clearly trying 305 00:16:16,040 --> 00:16:18,360 Speaker 10: to be on the side of the union here, even 306 00:16:18,400 --> 00:16:21,080 Speaker 10: as he says that nobody does want to strike, because 307 00:16:21,080 --> 00:16:24,360 Speaker 10: that strike also puts the other objective this administration has, 308 00:16:24,440 --> 00:16:26,600 Speaker 10: or one of them, at least, Caroline, which you alluded to. 309 00:16:26,840 --> 00:16:29,920 Speaker 10: They're desire for a clean energy economy of transition to 310 00:16:29,960 --> 00:16:33,240 Speaker 10: EVS potentially at risk depending on how long this strike goes. 311 00:16:33,320 --> 00:16:36,280 Speaker 10: Remember this is an administration that, through the Inflation Reduction Act, 312 00:16:36,400 --> 00:16:39,600 Speaker 10: is offering massive subsidies on new electric vehicle sales. It 313 00:16:39,640 --> 00:16:42,160 Speaker 10: also has a goal of having half of all vehicle 314 00:16:42,200 --> 00:16:46,280 Speaker 10: sales new vehicle sales by twenty thirty be electric. So 315 00:16:46,360 --> 00:16:49,440 Speaker 10: these two goals are really in conflict here for this administration, 316 00:16:49,480 --> 00:16:51,760 Speaker 10: it is a very difficult line to walk, but obviously 317 00:16:52,000 --> 00:16:54,120 Speaker 10: what they ultimately want at the end of the day 318 00:16:54,240 --> 00:16:57,040 Speaker 10: is this conflict resolved, which is why he is dispatching 319 00:16:57,080 --> 00:17:01,000 Speaker 10: both being Spurling and acting Labor Secretary. Julie's to Detroit. 320 00:17:01,680 --> 00:17:04,119 Speaker 3: Perfect wrap up, Thank you so much, Kaylie. Lions on 321 00:17:04,160 --> 00:17:06,440 Speaker 3: the ground in Washington. Let's get you more contacts from 322 00:17:06,440 --> 00:17:08,359 Speaker 3: the auto perspective for a moment as well, being most 323 00:17:08,400 --> 00:17:11,960 Speaker 3: Gabrielle coomfolos with us and Gabby. What's what's so interesting 324 00:17:12,080 --> 00:17:14,560 Speaker 3: is I immediately think of Tesla in all of this 325 00:17:14,680 --> 00:17:18,080 Speaker 3: ev race and of course doesn't work with unionized workers. 326 00:17:18,160 --> 00:17:20,639 Speaker 3: So how much is this going to be affecting basically 327 00:17:20,640 --> 00:17:25,080 Speaker 3: the competition against Tesla of this moment, If Ford, if Stilantis, 328 00:17:25,280 --> 00:17:28,399 Speaker 3: if GM are affected by such strikes. 329 00:17:28,320 --> 00:17:30,880 Speaker 11: Yeah, you know, I think it does make it even 330 00:17:30,960 --> 00:17:34,600 Speaker 11: harder for the Detroit three to compete with Tesla, at 331 00:17:34,680 --> 00:17:38,600 Speaker 11: least in this moment, because you know, they are plowing 332 00:17:38,680 --> 00:17:41,880 Speaker 11: all those record profits and you know these record car 333 00:17:42,240 --> 00:17:45,040 Speaker 11: car prices we've been paying, they've been putting that money 334 00:17:45,320 --> 00:17:50,240 Speaker 11: into battery plants, into designing new electric vehicles. So but 335 00:17:50,359 --> 00:17:52,040 Speaker 11: they have a long way to go to catch up 336 00:17:52,040 --> 00:17:54,639 Speaker 11: with Tesla. Tesla has a ten year head start. And 337 00:17:54,720 --> 00:17:56,600 Speaker 11: let's not forget about even though we don't see a 338 00:17:56,600 --> 00:17:59,280 Speaker 11: lot of Chinese automakers here in the US, they are 339 00:17:59,560 --> 00:18:01,520 Speaker 11: you know, not on the door around the world, So 340 00:18:01,560 --> 00:18:05,919 Speaker 11: they are under a lot of pressure, and you know, 341 00:18:06,200 --> 00:18:09,439 Speaker 11: it's attention because I think what the problem is that 342 00:18:09,480 --> 00:18:11,840 Speaker 11: the automakers for the last ten years have kind of 343 00:18:12,080 --> 00:18:14,479 Speaker 11: you know, after two thousand and eight, they kind of 344 00:18:14,640 --> 00:18:16,880 Speaker 11: that was it. They got the monkey off their back. 345 00:18:16,920 --> 00:18:19,440 Speaker 11: You know, they had mass they really you know, at 346 00:18:19,440 --> 00:18:21,879 Speaker 11: the bargaining table in two thousand and seven or at a 347 00:18:21,920 --> 00:18:26,560 Speaker 11: financial crisis, the workers really sacrificed a lot, and I 348 00:18:26,560 --> 00:18:28,320 Speaker 11: think the automakers kind of thought that was the end 349 00:18:28,359 --> 00:18:30,320 Speaker 11: of the story and we're moving on now. And I 350 00:18:30,320 --> 00:18:33,680 Speaker 11: think what Sean Fayn the UAW is doing is showing them, hey, 351 00:18:33,720 --> 00:18:36,080 Speaker 11: not so fast, you're not we're not going to agree 352 00:18:36,200 --> 00:18:38,880 Speaker 11: that this you know now or and over man, that's 353 00:18:39,000 --> 00:18:39,680 Speaker 11: what's happening. 354 00:18:40,160 --> 00:18:43,159 Speaker 3: A new tactic at work, new leader to carry a 355 00:18:43,160 --> 00:18:44,920 Speaker 3: couple of absolutely brilliant to talk to you. Thank you 356 00:18:45,040 --> 00:18:47,679 Speaker 3: very much. Indeed, we're going to do a hard pivot 357 00:18:47,680 --> 00:18:49,919 Speaker 3: now we're going to return back to a conversation that 358 00:18:50,040 --> 00:18:54,560 Speaker 3: is much more about tech, but actually largely maybe about regulation, 359 00:18:54,600 --> 00:18:57,760 Speaker 3: about an administration, and it's desired to be adopting blockchain 360 00:18:57,880 --> 00:18:59,800 Speaker 3: companies in particular. We just want to be talking to 361 00:18:59,800 --> 00:19:03,040 Speaker 3: the chain firm Figure, in the latest fintech company actually 362 00:19:03,119 --> 00:19:05,840 Speaker 3: to withdraw its application for a bank charter, a move 363 00:19:05,920 --> 00:19:08,960 Speaker 3: made after years of waiting for answers from US financial 364 00:19:08,960 --> 00:19:11,760 Speaker 3: regulators joining us. I'm very peace to welcome Mike Cagney, 365 00:19:11,760 --> 00:19:14,119 Speaker 3: here's the former CEO of SOFI, co founder of Figure, 366 00:19:14,400 --> 00:19:17,840 Speaker 3: which uses blockchain to build financial products such as loan origination, 367 00:19:17,920 --> 00:19:20,600 Speaker 3: for example. But also very pleased to welcome Shananali Bessett 368 00:19:20,640 --> 00:19:23,200 Speaker 3: to the shows. Help bring about this interview, and I think, 369 00:19:23,520 --> 00:19:26,440 Speaker 3: first and foremost a great article that you've helped pen 370 00:19:27,000 --> 00:19:29,720 Speaker 3: in other media. At the moment, Mike just talking about 371 00:19:29,760 --> 00:19:33,119 Speaker 3: the decision making process of not becoming a bank, and 372 00:19:33,240 --> 00:19:35,159 Speaker 3: it is in large part because of regulators. 373 00:19:35,840 --> 00:19:38,840 Speaker 12: Well, it's really around the state of regulation with blockchain, 374 00:19:39,040 --> 00:19:41,439 Speaker 12: and the Figure is a Blochain holding company. We have 375 00:19:41,440 --> 00:19:44,360 Speaker 12: two Blochain centric businesses one and lending one in markets 376 00:19:44,560 --> 00:19:47,359 Speaker 12: and we have over two hundred state licenses. So you 377 00:19:47,359 --> 00:19:49,480 Speaker 12: can see the appeal of having a national charter and 378 00:19:49,560 --> 00:19:51,359 Speaker 12: not having to deal with the overhead of two hundred 379 00:19:51,359 --> 00:19:54,440 Speaker 12: state licenses. Also the ability to have liabilities to fund 380 00:19:54,440 --> 00:19:57,280 Speaker 12: the assets that you generate. But Figure fundamentally is a 381 00:19:57,280 --> 00:19:59,720 Speaker 12: market's business and are lending business is more of a 382 00:19:59,760 --> 00:20:02,399 Speaker 12: means to an end to build that marketplace out, and 383 00:20:02,440 --> 00:20:05,520 Speaker 12: we felt without clear identification of what we could and 384 00:20:05,520 --> 00:20:07,919 Speaker 12: couldn't do as a bank, it didn't make sense for 385 00:20:08,000 --> 00:20:09,880 Speaker 12: us to move forward. There were other reasons as well, 386 00:20:09,920 --> 00:20:11,240 Speaker 12: but that was the key one. 387 00:20:11,280 --> 00:20:13,000 Speaker 13: I'm curious what you think this means about the future 388 00:20:13,000 --> 00:20:16,080 Speaker 13: of financial technology. Your alma mater so far is really 389 00:20:16,160 --> 00:20:18,560 Speaker 13: leaning into the idea of being a bigger and bigger bank. 390 00:20:18,720 --> 00:20:21,119 Speaker 13: You have the regional banking system that may not be 391 00:20:21,280 --> 00:20:24,200 Speaker 13: the ultimate form of capital for people like you moving forward, 392 00:20:24,560 --> 00:20:26,960 Speaker 13: So what role do the upstarts start to play. 393 00:20:27,400 --> 00:20:29,560 Speaker 12: So I think you're in a macro trend right now 394 00:20:29,640 --> 00:20:32,280 Speaker 12: where the banks are contracting credit and that would be 395 00:20:32,320 --> 00:20:34,840 Speaker 12: exacerbated in the basal three M game went through that 396 00:20:34,840 --> 00:20:37,000 Speaker 12: that's unlikely to happen at least you know, with the 397 00:20:37,040 --> 00:20:40,200 Speaker 12: current regulatory or the legislative position. But you're in a 398 00:20:40,240 --> 00:20:42,920 Speaker 12: situation you're aspected where banks are pulling back. You're also 399 00:20:42,960 --> 00:20:45,880 Speaker 12: in a situation where the asset liability ratio, where banks 400 00:20:45,880 --> 00:20:48,360 Speaker 12: traditionally have at least over the last several years, especially 401 00:20:48,359 --> 00:20:51,480 Speaker 12: through COVID, have had massive amounts of excess liabilities and 402 00:20:51,520 --> 00:20:54,080 Speaker 12: had to deploy that into assets that's now flipped. Those 403 00:20:54,119 --> 00:20:57,359 Speaker 12: banks are now liability constrained, they're having to sell those assets. 404 00:20:57,800 --> 00:21:00,280 Speaker 12: And so I think systemically, over the next five years 405 00:21:00,280 --> 00:21:02,480 Speaker 12: you're going to have a situation where non bank lenders 406 00:21:02,480 --> 00:21:04,400 Speaker 12: are going to be able to lean in and participate 407 00:21:04,920 --> 00:21:08,119 Speaker 12: access wholesale capital markets in a way that the banks 408 00:21:08,119 --> 00:21:10,040 Speaker 12: are going to not be able to do. So they're 409 00:21:10,080 --> 00:21:11,000 Speaker 12: going to fill that gap. 410 00:21:11,280 --> 00:21:13,199 Speaker 13: It's also we'd be remiss not to talk about this 411 00:21:13,280 --> 00:21:15,680 Speaker 13: idea of it being a humongous week in the IPO 412 00:21:15,760 --> 00:21:19,000 Speaker 13: market after such a massive drought. We've reported that your 413 00:21:19,080 --> 00:21:21,280 Speaker 13: lending business you're considering. 414 00:21:20,760 --> 00:21:21,600 Speaker 6: An IPO for. 415 00:21:22,320 --> 00:21:24,840 Speaker 13: How has this week changed your calculus about how you're 416 00:21:24,840 --> 00:21:26,280 Speaker 13: thinking about speaking to investors? 417 00:21:26,600 --> 00:21:29,320 Speaker 12: Sure, I think rather than talking to the IPO per se, 418 00:21:29,320 --> 00:21:32,280 Speaker 12: I'd say that the lending business itself is a mature business. 419 00:21:32,280 --> 00:21:35,040 Speaker 12: Although it's still doubling every year, it's a profitable business, 420 00:21:35,119 --> 00:21:38,320 Speaker 12: and it's really found an interesting opportunity in terms of 421 00:21:38,400 --> 00:21:41,760 Speaker 12: lending technology. But what it is, again is ultimately a 422 00:21:41,760 --> 00:21:45,000 Speaker 12: marketplace business. And so when you think about what that 423 00:21:45,119 --> 00:21:47,199 Speaker 12: vertical really looks like, it's not so much that it 424 00:21:47,240 --> 00:21:50,240 Speaker 12: looks like an upstart or a sofar with multi product solution. 425 00:21:50,840 --> 00:21:53,240 Speaker 12: It actually looks a lot more like ice. And that's 426 00:21:53,320 --> 00:21:55,399 Speaker 12: ultimately the objective we're trying to go to is to 427 00:21:55,440 --> 00:21:58,560 Speaker 12: stand up private capital markets to take advantage of this 428 00:21:58,640 --> 00:22:01,800 Speaker 12: contraction that's happening in the banking system. And we think 429 00:22:01,800 --> 00:22:03,159 Speaker 12: there's a great opportunity to do that. 430 00:22:03,920 --> 00:22:07,040 Speaker 3: When you're thinking about being that marketplace, when you're thinking 431 00:22:07,040 --> 00:22:12,639 Speaker 3: about intertwining trad fi with qrypto and blockchain technology, how 432 00:22:12,720 --> 00:22:14,879 Speaker 3: much institutional buyd have you had of your product, of 433 00:22:14,880 --> 00:22:16,359 Speaker 3: your offerings, of the way in which you want to 434 00:22:16,400 --> 00:22:16,920 Speaker 3: be servicing. 435 00:22:17,200 --> 00:22:20,120 Speaker 12: Sure. So we've done over fifteen billion dollars of transactions 436 00:22:20,160 --> 00:22:24,560 Speaker 12: on blockchains with banks, with institutions, and right now we're 437 00:22:24,560 --> 00:22:26,640 Speaker 12: in the middle of a transaction with two very large 438 00:22:26,640 --> 00:22:29,440 Speaker 12: private equity firms where we're issuing an asset backed security, 439 00:22:29,480 --> 00:22:32,320 Speaker 12: a triple A rated asset back security Native two blockchain, 440 00:22:32,400 --> 00:22:34,639 Speaker 12: so it won't be on DTC, it'll actually be trading 441 00:22:34,680 --> 00:22:36,960 Speaker 12: on the blockchain. And this is the beginning of what 442 00:22:37,000 --> 00:22:38,720 Speaker 12: I think is going to be a systemic trend. I 443 00:22:38,760 --> 00:22:40,760 Speaker 12: think by the middle of next year, we'll have tens 444 00:22:40,760 --> 00:22:43,399 Speaker 12: of billions of dollars of native assets on chain in 445 00:22:43,440 --> 00:22:47,320 Speaker 12: a true marketplace being developed out serial entrepreneur. 446 00:22:47,680 --> 00:22:50,479 Speaker 3: Nice having a talking about your latest one and indeed 447 00:22:50,840 --> 00:22:53,159 Speaker 3: well the views towards maybe even a public listing in 448 00:22:53,160 --> 00:22:54,679 Speaker 3: the next year or so. Mike, great to have you 449 00:22:54,720 --> 00:22:57,119 Speaker 3: in the show. Thank you, Mike Cagney. Of course we 450 00:22:57,119 --> 00:22:59,879 Speaker 3: want to thank Shnanibasset as well for that conversation with Figure. 451 00:23:08,040 --> 00:23:10,480 Speaker 3: Welcome back to roomback Technology and Caroline had in New York. 452 00:23:10,520 --> 00:23:12,960 Speaker 3: But now let's pivot into the world of where private 453 00:23:12,960 --> 00:23:15,080 Speaker 3: money is flowing at the moment, and is it tackling 454 00:23:15,359 --> 00:23:18,640 Speaker 3: climate Climate tech investments may be dipping actually this year, 455 00:23:18,680 --> 00:23:21,680 Speaker 3: but Galvanized Climate Solutions still managed to close its first 456 00:23:21,760 --> 00:23:24,520 Speaker 3: venture and growth equity fund over one billion dollars. Let's 457 00:23:24,520 --> 00:23:27,640 Speaker 3: bringing Code executive chair Tomstire for more and how you're 458 00:23:27,640 --> 00:23:30,760 Speaker 3: going to be deploying this capital. This is about startups, 459 00:23:30,760 --> 00:23:33,320 Speaker 3: but with real world implications right here, right now. 460 00:23:33,280 --> 00:23:39,040 Speaker 14: Tom, Absolutely, Caroline, I mean we are the need to 461 00:23:39,160 --> 00:23:43,000 Speaker 14: solve the climate crisis is an immense tailwind for investment. 462 00:23:43,840 --> 00:23:47,520 Speaker 14: So these companies can take advantage of an absolute necessity 463 00:23:48,280 --> 00:23:50,920 Speaker 14: to solve a multitude of problems in terms of the 464 00:23:50,960 --> 00:23:55,240 Speaker 14: waves we generate, use energy, and build huge profitable companies 465 00:23:55,280 --> 00:23:58,080 Speaker 14: as a result, so that in fact, solving a huge 466 00:23:58,119 --> 00:24:02,000 Speaker 14: crisis is what is built for to serve the needs 467 00:24:02,040 --> 00:24:02,520 Speaker 14: of society. 468 00:24:02,560 --> 00:24:03,720 Speaker 2: And that's exactly what we're trying to do. 469 00:24:04,040 --> 00:24:06,280 Speaker 3: And how will was the appetite to want to come 470 00:24:06,359 --> 00:24:08,600 Speaker 3: and invest behind this at the moment when we have 471 00:24:08,800 --> 00:24:11,919 Speaker 3: seen valuations hit, we have seen a pull away from 472 00:24:12,040 --> 00:24:14,520 Speaker 3: risk taking and particularly venture having a tough time of it. 473 00:24:16,520 --> 00:24:19,000 Speaker 14: Well, I think that there are a lot of people 474 00:24:19,280 --> 00:24:22,879 Speaker 14: in the world of professional investing who are just getting 475 00:24:23,160 --> 00:24:27,159 Speaker 14: educated about the need to invest in climate response and 476 00:24:27,280 --> 00:24:31,000 Speaker 14: let me say this, Caroline. You know, in investing, when 477 00:24:31,080 --> 00:24:34,120 Speaker 14: it's hard to get money and when valuations are coming down, 478 00:24:34,440 --> 00:24:36,200 Speaker 14: that's a great time to have money. 479 00:24:36,880 --> 00:24:39,360 Speaker 2: And you know, so it's you shouldn't feel the head. 480 00:24:39,440 --> 00:24:41,600 Speaker 14: For us, we think of that as this is a 481 00:24:41,720 --> 00:24:46,119 Speaker 14: huge generational opportunity in general and very specifically, this is 482 00:24:46,160 --> 00:24:48,359 Speaker 14: a good time to have money and to be looking 483 00:24:48,400 --> 00:24:50,920 Speaker 14: at investments and to be, you know, looking five to 484 00:24:51,040 --> 00:24:51,680 Speaker 14: ten years at. 485 00:24:51,880 --> 00:24:54,639 Speaker 3: What's't been so interesting is who you've been working with. 486 00:24:55,040 --> 00:24:57,919 Speaker 3: You set up with Katie Hall, of course deeply experienced 487 00:24:58,000 --> 00:25:00,639 Speaker 3: way in which of managing money and cross asset perspective, 488 00:25:00,960 --> 00:25:04,280 Speaker 3: but you've brought on some well, some real experience here 489 00:25:04,320 --> 00:25:06,920 Speaker 3: when it comes to this particular fund. How are you 490 00:25:07,000 --> 00:25:09,840 Speaker 3: thinking of intertwining it with Galvanized more broadly, because you 491 00:25:09,920 --> 00:25:12,119 Speaker 3: do have a cross asset perspective. You're not only in 492 00:25:12,240 --> 00:25:14,680 Speaker 3: bench capital and growth equity, but you're in real estate 493 00:25:14,680 --> 00:25:15,680 Speaker 3: and you're in public equities. 494 00:25:16,920 --> 00:25:22,240 Speaker 14: Absolutely, I mean Galvanized the company is very specifically trying 495 00:25:22,320 --> 00:25:26,639 Speaker 14: to take a multi strategy approach and investing behind the 496 00:25:26,800 --> 00:25:31,840 Speaker 14: need to solve climate in a very variety of investment areas, 497 00:25:32,040 --> 00:25:36,240 Speaker 14: but specifically this fund innovation and expansion. We were lucky 498 00:25:36,320 --> 00:25:40,639 Speaker 14: enough to get three partners to lead it, very Maxwell, 499 00:25:40,960 --> 00:25:45,679 Speaker 14: Cliff Ryan, and Sloni Multani, who have long professional expertise, 500 00:25:45,840 --> 00:25:51,040 Speaker 14: great track records, but also great experience and great knowledge 501 00:25:51,359 --> 00:25:55,720 Speaker 14: about the climate space specifically. That's very unusual, and as 502 00:25:55,760 --> 00:25:59,600 Speaker 14: somebody who started a number of investment activities and investment 503 00:25:59,640 --> 00:26:02,280 Speaker 14: business says, you really don't have anything unless you have 504 00:26:02,320 --> 00:26:05,520 Speaker 14: great partners to lead it. So anytime you're talking about 505 00:26:05,560 --> 00:26:11,280 Speaker 14: a specific investment effort, you have to start with great people. 506 00:26:11,359 --> 00:26:14,480 Speaker 2: With experience, great track roads, and knowledge of the place. 507 00:26:15,000 --> 00:26:17,679 Speaker 3: I mean you speak to your background having led parrel 508 00:26:17,720 --> 00:26:20,159 Speaker 3: and capital management, hedge fund owner in San Francisco, but 509 00:26:20,240 --> 00:26:23,840 Speaker 3: then you pivoted more mission driven and indeed more political 510 00:26:23,960 --> 00:26:26,240 Speaker 3: in the way in which you've navigated these waters. I'm 511 00:26:26,240 --> 00:26:28,960 Speaker 3: interested when you're thinking about galvanizing a youth voter in 512 00:26:29,000 --> 00:26:32,160 Speaker 3: this moment, when we're looking at strikes within the UAW, 513 00:26:32,400 --> 00:26:35,000 Speaker 3: when you're thinking of a president has to navigate a 514 00:26:35,080 --> 00:26:38,960 Speaker 3: desire for an auto industry that needs to pivot into 515 00:26:39,040 --> 00:26:43,240 Speaker 3: a more responsible climate focused to gender, but at the 516 00:26:43,320 --> 00:26:46,600 Speaker 3: same time needs to share profits with its workers. How 517 00:26:46,600 --> 00:26:48,960 Speaker 3: are you seeing the administration navigate the need for climate 518 00:26:49,000 --> 00:26:49,640 Speaker 3: solutions too. 519 00:26:51,200 --> 00:26:55,240 Speaker 14: Look, I think the Biden administration has done a fantastic 520 00:26:55,400 --> 00:26:59,320 Speaker 14: job actually of trying to address our climate crisis in 521 00:26:59,480 --> 00:27:03,480 Speaker 14: a sense, sable and economically sensitive way. And I think 522 00:27:03,560 --> 00:27:06,480 Speaker 14: that one thing Caroline to remember, and the reason really 523 00:27:07,000 --> 00:27:09,960 Speaker 14: that all of us, Katie and the three people running 524 00:27:09,960 --> 00:27:11,840 Speaker 14: this fund and everybody else in Galvinize is doing it, 525 00:27:11,960 --> 00:27:14,280 Speaker 14: is we believe that we're going to win in the marketplace. 526 00:27:14,600 --> 00:27:17,520 Speaker 2: We believe this is a generational investment opportunity. 527 00:27:17,840 --> 00:27:20,480 Speaker 14: And then in fact, the way that capitalism is going 528 00:27:20,560 --> 00:27:25,840 Speaker 14: to solve this crisis is by producing cheaper, better, faster, 529 00:27:26,359 --> 00:27:29,639 Speaker 14: and cleaner solutions. And so when we think about what 530 00:27:29,720 --> 00:27:33,200 Speaker 14: the Biden administration is doing hand in hand with the 531 00:27:33,280 --> 00:27:36,800 Speaker 14: private sector, it's really to come up with new technologies, 532 00:27:36,960 --> 00:27:39,760 Speaker 14: new solutions that are better for consumers, so that it's 533 00:27:39,800 --> 00:27:43,520 Speaker 14: not a question of asking people to sacrifice. It's a 534 00:27:43,600 --> 00:27:46,879 Speaker 14: question of asking people to make sensible, smart decisions on 535 00:27:47,000 --> 00:27:49,280 Speaker 14: their own behalf. That's how it's supposed to work, and 536 00:27:49,359 --> 00:27:50,200 Speaker 14: that's what we're driving for. 537 00:27:50,640 --> 00:27:52,520 Speaker 3: So let's go back to the capitalism and the money 538 00:27:52,560 --> 00:27:55,280 Speaker 3: being deployed. You've already invested in eleven companies. Now, I 539 00:27:55,359 --> 00:27:57,240 Speaker 3: know you're not managing this exact fund. You've just talked 540 00:27:57,240 --> 00:28:00,639 Speaker 3: about the three experience people that you've got very Maxwell 541 00:28:00,680 --> 00:28:02,680 Speaker 3: for example. But talk about some of the companies that 542 00:28:02,720 --> 00:28:05,280 Speaker 3: you are choosing to back and why when I'm looking 543 00:28:05,359 --> 00:28:09,000 Speaker 3: at the routing company, when looking at regrow Pulsora, what 544 00:28:09,080 --> 00:28:09,919 Speaker 3: are they doing differently? 545 00:28:10,840 --> 00:28:14,159 Speaker 14: Look in every one of these companies, they're coming up 546 00:28:14,920 --> 00:28:18,720 Speaker 14: with a need to solve an existing problem with a 547 00:28:18,800 --> 00:28:23,480 Speaker 14: new technology, with progressive new ideas in ways that people 548 00:28:23,480 --> 00:28:25,600 Speaker 14: are going to spend money, and they're going to drive 549 00:28:25,840 --> 00:28:29,480 Speaker 14: revenue in a way that produces a large company that's 550 00:28:29,520 --> 00:28:31,480 Speaker 14: going to grow really fast. That's what we're looking for, 551 00:28:31,920 --> 00:28:35,600 Speaker 14: early stage companies that can grow and scale. And if 552 00:28:35,640 --> 00:28:39,400 Speaker 14: you're going to address a global problem, which is our 553 00:28:39,440 --> 00:28:42,680 Speaker 14: climate crisis, that means by definition, you have to have 554 00:28:43,160 --> 00:28:46,320 Speaker 14: a significant, important company that's going to be very valuable. 555 00:28:46,720 --> 00:28:48,920 Speaker 14: So when we look at any one of those eleven companies, 556 00:28:49,200 --> 00:28:53,360 Speaker 14: we're looking at a huge existing problem that is going 557 00:28:53,440 --> 00:28:56,880 Speaker 14: to create huge companies. And the question is can you 558 00:28:57,600 --> 00:29:00,440 Speaker 14: figure out which ones are the great companies? Can you 559 00:29:00,600 --> 00:29:03,360 Speaker 14: have them want, can you be the best partner for them, 560 00:29:03,720 --> 00:29:07,080 Speaker 14: and can you help them scale and grow in such 561 00:29:07,080 --> 00:29:09,960 Speaker 14: a way that you create real returns for your investors 562 00:29:10,200 --> 00:29:12,640 Speaker 14: and have measurable impact. That's what we're trying to do 563 00:29:12,720 --> 00:29:15,800 Speaker 14: in this fund. That's what those three professionals have a 564 00:29:15,920 --> 00:29:19,240 Speaker 14: history of doing and a specific long knowledge of this 565 00:29:19,480 --> 00:29:21,840 Speaker 14: area in terms of how we're going to solve these 566 00:29:21,880 --> 00:29:22,560 Speaker 14: different problems. 567 00:29:22,760 --> 00:29:26,320 Speaker 3: And what about companies that are sizable already in the 568 00:29:26,360 --> 00:29:29,320 Speaker 3: public sector that maybe you could invest in as you 569 00:29:29,360 --> 00:29:33,880 Speaker 3: go for public equities to responding to basically, well, California 570 00:29:34,000 --> 00:29:38,080 Speaker 3: where you sit, maybe the EU taking desire for more regulation, 571 00:29:38,200 --> 00:29:42,880 Speaker 3: but more transparency, but maybe broader US being slower than 572 00:29:42,880 --> 00:29:45,280 Speaker 3: the rest of the EU. How do you see compliance 573 00:29:45,320 --> 00:29:47,040 Speaker 3: affecting bigger companies going forward? 574 00:29:48,080 --> 00:29:52,120 Speaker 14: Well, I think that this has always been solving this 575 00:29:52,240 --> 00:29:55,040 Speaker 14: problem has always been a question of a public private partnership. 576 00:29:55,520 --> 00:29:59,480 Speaker 14: And if you look at the Inflation Reduction Act, which 577 00:29:59,720 --> 00:30:02,400 Speaker 14: was by the Biden administration last year, in which I 578 00:30:02,440 --> 00:30:04,880 Speaker 14: think is having a huge impact, that's really a question 579 00:30:04,960 --> 00:30:06,880 Speaker 14: of saying to people, we're going to give you a 580 00:30:07,000 --> 00:30:09,720 Speaker 14: carrot to get this done faster. We're going to help 581 00:30:09,800 --> 00:30:11,920 Speaker 14: you get it done. If you look at what the 582 00:30:12,040 --> 00:30:15,720 Speaker 14: EU is doing, by and large, they're more going towards 583 00:30:15,840 --> 00:30:18,840 Speaker 14: policies and rules that insists that you get it done. 584 00:30:19,480 --> 00:30:22,080 Speaker 14: In each case, what we're really trying to do is 585 00:30:22,320 --> 00:30:25,800 Speaker 14: accelerate the move, to make it possible for people to 586 00:30:26,000 --> 00:30:31,080 Speaker 14: invest more successfully, move faster and bigger because the crisis 587 00:30:31,200 --> 00:30:33,560 Speaker 14: is very much at hand. And last thing I'd like 588 00:30:33,600 --> 00:30:37,080 Speaker 14: to say, Caroline is when you look at transparency, when 589 00:30:37,160 --> 00:30:40,360 Speaker 14: we start to get real information. You know, the old 590 00:30:40,440 --> 00:30:42,800 Speaker 14: saying is if you can't measure it, you can't manage it. 591 00:30:43,280 --> 00:30:48,000 Speaker 14: We're seeing a demand for transparency about who is creating 592 00:30:48,360 --> 00:30:51,040 Speaker 14: the real emissions because once we have that, the managers 593 00:30:51,080 --> 00:30:54,360 Speaker 14: can solve it. And really companies can look and say, okay, 594 00:30:54,440 --> 00:30:56,960 Speaker 14: we absolutely have to get that down. 595 00:30:57,200 --> 00:30:58,600 Speaker 2: How can we do it? And that's why they're going 596 00:30:58,640 --> 00:30:59,680 Speaker 2: to look to those kinds of companies. 597 00:31:00,960 --> 00:31:03,480 Speaker 3: Tom screat to have some time in the Tomstyre Galvanized 598 00:31:03,480 --> 00:31:07,760 Speaker 3: Climate Solutions Co Executive Chair on the latest funding one billion. 599 00:31:16,920 --> 00:31:19,200 Speaker 3: It's today's VC spotlight moment and we're going to be 600 00:31:19,280 --> 00:31:22,240 Speaker 3: talking about Moto. It's a Brazilian motorcycle rental company, but 601 00:31:22,320 --> 00:31:24,719 Speaker 3: actually more than that, it's last mile delivery marketplace as well. 602 00:31:24,720 --> 00:31:27,960 Speaker 3: It's just announced a fifty million dollar series c CO 603 00:31:28,120 --> 00:31:31,200 Speaker 3: led by QD Investors and also Bicycle Capital, New Benu 604 00:31:31,280 --> 00:31:33,880 Speaker 3: firm by form A soft Bak executive Marsda Clari and 605 00:31:34,080 --> 00:31:36,760 Speaker 3: of course Shunietta. And please to say that joining us 606 00:31:36,840 --> 00:31:40,200 Speaker 3: now is Shoeieta as well as motor Ceo Roomen's Ruins 607 00:31:40,320 --> 00:31:42,600 Speaker 3: Zenlato coming all the way from Brazil, and we thank 608 00:31:42,640 --> 00:31:45,360 Speaker 3: you very much, gentlemen, both of you coming in from Miami, 609 00:31:45,440 --> 00:31:48,360 Speaker 3: Brazil to talk about the global VC opportunity here and 610 00:31:48,480 --> 00:31:52,320 Speaker 3: just paint the picture with men's about exactly what Motu 611 00:31:52,520 --> 00:31:55,440 Speaker 3: is doing, how it's disrupting because it's not just a 612 00:31:55,520 --> 00:31:57,000 Speaker 3: cleaner way of doing motorcycles. 613 00:31:57,960 --> 00:31:58,160 Speaker 14: Yeah. 614 00:31:58,320 --> 00:32:02,440 Speaker 15: Actually, the problem we're trying to solve there is high 615 00:32:02,520 --> 00:32:06,680 Speaker 15: unemployment in Brazil in Latin and people don't have access. 616 00:32:06,400 --> 00:32:07,200 Speaker 2: To credit either. 617 00:32:07,600 --> 00:32:11,760 Speaker 15: So we are providing them too to work by ranting 618 00:32:11,840 --> 00:32:17,680 Speaker 15: motorcycles out to people without any requirements of credit. And 619 00:32:17,840 --> 00:32:22,520 Speaker 15: we started about three years ago and just fifty bikes. 620 00:32:22,840 --> 00:32:26,480 Speaker 15: In the first year, we deployed one thousand motorcycles and 621 00:32:26,600 --> 00:32:29,920 Speaker 15: now we are deploying one thousand every ten days. Very 622 00:32:29,920 --> 00:32:30,600 Speaker 15: excited to be here. 623 00:32:30,880 --> 00:32:33,080 Speaker 3: You're looking across Brazil, across Mexico, I mean that must 624 00:32:33,080 --> 00:32:35,600 Speaker 3: be water your attention the growth, But is it also 625 00:32:35,680 --> 00:32:38,160 Speaker 3: the opportunity issue here in terms of it being more 626 00:32:38,160 --> 00:32:41,440 Speaker 3: about delivery as well and engagement on the population. 627 00:32:42,000 --> 00:32:43,800 Speaker 5: Yeah, there are two things that got us really excited. 628 00:32:43,840 --> 00:32:46,920 Speaker 5: First is the metrics. The numbers always speak for themselves, 629 00:32:47,200 --> 00:32:50,000 Speaker 5: and Moto has incredible numbers. They're growing over three hundred percent. 630 00:32:50,480 --> 00:32:53,200 Speaker 5: They're not just gross profit profitable, They're not just keep 631 00:32:53,240 --> 00:32:55,880 Speaker 5: it that profitable. They're net income profitable, which is very 632 00:32:55,960 --> 00:32:58,480 Speaker 5: rare for a startup, and they're very capital efficient. So 633 00:32:58,600 --> 00:33:01,200 Speaker 5: that caught our attention. But then the opportunity is huge. 634 00:33:01,520 --> 00:33:04,880 Speaker 5: Brazil is dominated in the motorcycle industry by one company, Honda, 635 00:33:05,000 --> 00:33:07,239 Speaker 5: that has seventy percent of the market, and it's right 636 00:33:07,360 --> 00:33:09,400 Speaker 5: for someone to come in and offer something different. So 637 00:33:09,480 --> 00:33:11,320 Speaker 5: you put those together and you have the chance to 638 00:33:11,360 --> 00:33:13,640 Speaker 5: create something really big and meaningful. And then you just 639 00:33:13,720 --> 00:33:15,800 Speaker 5: export that playbook to Mexico and do the same thing. 640 00:33:16,360 --> 00:33:18,680 Speaker 3: Do you export it to elsewhere? You've just raised money? 641 00:33:19,000 --> 00:33:21,760 Speaker 3: Is the idea about geographical reach? Is it more about 642 00:33:21,840 --> 00:33:25,160 Speaker 3: building up the engineering, the talent. How do you deploy money? 643 00:33:25,680 --> 00:33:29,520 Speaker 15: We are focusing on Brazil and Mexico. Now our growth 644 00:33:29,600 --> 00:33:33,320 Speaker 15: from the assets comes from debt investors. So the way 645 00:33:33,400 --> 00:33:36,760 Speaker 15: we were able to build a profitable company with very 646 00:33:36,800 --> 00:33:40,440 Speaker 15: good economics is a very safe investment for debt investors 647 00:33:40,480 --> 00:33:43,440 Speaker 15: as well the capital markets. And the money now is 648 00:33:43,680 --> 00:33:46,720 Speaker 15: just to bring global talents for the company. We got 649 00:33:47,200 --> 00:33:50,560 Speaker 15: huge companies like New Buying, GMPEZ and Brazil that we're 650 00:33:50,600 --> 00:33:53,640 Speaker 15: able to bring top talents and we want. 651 00:33:53,600 --> 00:33:54,560 Speaker 2: To do the same. 652 00:33:55,200 --> 00:33:57,680 Speaker 3: It's interesting that you went for equity financing that you 653 00:33:57,800 --> 00:33:59,880 Speaker 3: have taken debt financing in the past. Is that something 654 00:34:00,160 --> 00:34:01,080 Speaker 3: analyze and look to. 655 00:34:01,680 --> 00:34:05,240 Speaker 15: We we are all about doing that. We raised more 656 00:34:05,320 --> 00:34:08,760 Speaker 15: than seventy million dollars in that so far. One hundred 657 00:34:08,800 --> 00:34:13,360 Speaker 15: percent of our capects is done with the keptal markets 658 00:34:13,400 --> 00:34:13,839 Speaker 15: with debts. 659 00:34:14,640 --> 00:34:18,200 Speaker 3: Sure, in this moment when you're looking at writing these 660 00:34:18,239 --> 00:34:21,080 Speaker 3: sorts of checks and seeing this sort of growth, how 661 00:34:21,560 --> 00:34:25,080 Speaker 3: competitive is it? And I mean there's Tiger Globals on 662 00:34:25,120 --> 00:34:27,040 Speaker 3: this round as well, there's plenty of other big name 663 00:34:27,120 --> 00:34:29,720 Speaker 3: vcs and I'm interested as to what valuations you're currently 664 00:34:29,760 --> 00:34:31,920 Speaker 3: looking at and how you're talking amongst other bench partner. 665 00:34:32,000 --> 00:34:34,400 Speaker 5: Yeah, the growth equity market globally has been a bit 666 00:34:34,440 --> 00:34:37,520 Speaker 5: of a comma. I'd say the patient's toes are twitching, 667 00:34:38,320 --> 00:34:40,799 Speaker 5: so opportunities are starting to come up, but it's only 668 00:34:40,880 --> 00:34:44,360 Speaker 5: the ones with really exceptional numbers that are getting people's attention, 669 00:34:44,440 --> 00:34:46,800 Speaker 5: and those are getting people's attention. We're co leading this 670 00:34:46,960 --> 00:34:49,759 Speaker 5: with QD, which is a from a respect we've worked 671 00:34:49,760 --> 00:34:53,320 Speaker 5: with before. The existing investors are all investing, so a 672 00:34:53,360 --> 00:34:56,600 Speaker 5: company like Moto will never struggle to attract capital. The 673 00:34:56,719 --> 00:34:59,759 Speaker 5: valuations are much more reasonable, though, so nobody is over 674 00:35:00,400 --> 00:35:02,160 Speaker 5: when it comes to the number that they want, and 675 00:35:02,239 --> 00:35:04,320 Speaker 5: I think that's healthy for everybody. It's healthy for the company. 676 00:35:04,760 --> 00:35:06,759 Speaker 5: The other thing that's different is the time that these 677 00:35:06,840 --> 00:35:08,920 Speaker 5: deals are taken to get done is slower, and that's 678 00:35:08,960 --> 00:35:11,000 Speaker 5: also good for everybody. The companies get a chance to 679 00:35:11,000 --> 00:35:13,920 Speaker 5: have investors really digin, give them some feedback. Investors get 680 00:35:14,000 --> 00:35:16,120 Speaker 5: much more comfortable with the companies. So I'd say we're 681 00:35:16,200 --> 00:35:18,799 Speaker 5: entering a fairly healthy moment in the market. But only 682 00:35:18,880 --> 00:35:20,239 Speaker 5: the best companies are able to. 683 00:35:20,239 --> 00:35:22,760 Speaker 3: Attract capital right now, and you do your due diligence. 684 00:35:22,800 --> 00:35:25,840 Speaker 3: You also look at the landscape of Latin America, the 685 00:35:25,920 --> 00:35:28,319 Speaker 3: countries you know and how to invest in, so well, 686 00:35:28,440 --> 00:35:31,600 Speaker 3: how does that regulatory landscape look for a company such 687 00:35:31,640 --> 00:35:34,080 Speaker 3: as Moto. How do you look at other players in 688 00:35:34,120 --> 00:35:34,520 Speaker 3: this space. 689 00:35:34,640 --> 00:35:37,560 Speaker 5: Yeah, the nice thing about tech in Latin America in 690 00:35:37,640 --> 00:35:41,759 Speaker 5: Brazil is it's inclusive. The government is very supportive. It 691 00:35:41,760 --> 00:35:44,080 Speaker 5: doesn't matter if it's the right or the left. The 692 00:35:44,160 --> 00:35:46,839 Speaker 5: tech opportunities about bringing more people into the economy. They're 693 00:35:46,880 --> 00:35:50,840 Speaker 5: so deeply underserved, consumers and businesses both so deeply underserved. 694 00:35:51,239 --> 00:35:53,520 Speaker 5: So in the US we tend to think of technology 695 00:35:53,600 --> 00:35:57,200 Speaker 5: AI is the latest boogeyman as a threat to livelihoods. 696 00:35:57,760 --> 00:36:01,520 Speaker 5: In Brazil, technology is often a key that unlocks livelihoods, 697 00:36:01,800 --> 00:36:04,000 Speaker 5: and that's a fundamental difference, and so the governments get 698 00:36:04,160 --> 00:36:06,719 Speaker 5: very behind that kind of idea. It's what makes tech 699 00:36:06,760 --> 00:36:10,520 Speaker 5: in emerging markets so attractive. It's inclusive, it's not disruptive, 700 00:36:11,200 --> 00:36:14,239 Speaker 5: and that tailwind helps all kinds of companies, especially like 701 00:36:14,320 --> 00:36:17,520 Speaker 5: more Too, that are so obviously bringing opportunity to people. 702 00:36:18,760 --> 00:36:21,560 Speaker 3: What you've done is you're saying you're able to provide 703 00:36:21,640 --> 00:36:24,920 Speaker 3: these motorcycles, this way of making money to do deliveries 704 00:36:25,000 --> 00:36:28,360 Speaker 3: to people who have either bad credit no credit. But 705 00:36:28,400 --> 00:36:31,320 Speaker 3: you must be using technology to understand what the risks 706 00:36:31,360 --> 00:36:33,080 Speaker 3: are there. How have you managed to build out a 707 00:36:33,160 --> 00:36:36,200 Speaker 3: credit company, an insurance company, a maintenance company out of 708 00:36:36,440 --> 00:36:38,200 Speaker 3: basically a motorcycle company. 709 00:36:38,920 --> 00:36:40,919 Speaker 15: Basically, we know that we need to be the best 710 00:36:41,000 --> 00:36:44,440 Speaker 15: option for people every day, so we use technology and 711 00:36:44,560 --> 00:36:49,359 Speaker 15: everything and to do a no touch experience. In our 712 00:36:49,520 --> 00:36:53,920 Speaker 15: team also have these through Gallety mentality to do more 713 00:36:53,960 --> 00:36:57,560 Speaker 15: and less. So this is how we were able to 714 00:36:57,880 --> 00:37:02,000 Speaker 15: build such a good economy net income company in these 715 00:37:02,040 --> 00:37:05,040 Speaker 15: three years. I believe that very few companies got to 716 00:37:05,480 --> 00:37:11,520 Speaker 15: really net profit company. And we are all about serving 717 00:37:11,600 --> 00:37:14,319 Speaker 15: people and if we need to help them, we need 718 00:37:14,440 --> 00:37:18,359 Speaker 15: to do a product that's cheap and better than they 719 00:37:18,440 --> 00:37:19,719 Speaker 15: have their own motorcycles. 720 00:37:20,960 --> 00:37:26,560 Speaker 3: Many would think Brazil political instability at times, economic instability 721 00:37:26,600 --> 00:37:29,360 Speaker 3: at times. How do you push away from that narrative? 722 00:37:29,440 --> 00:37:32,880 Speaker 3: How do you ensure that big, great successful businesses can 723 00:37:32,920 --> 00:37:35,400 Speaker 3: be built out in emerging markets in the Latin America. 724 00:37:36,040 --> 00:37:40,000 Speaker 15: We are really a social business. We are pushing to 725 00:37:40,239 --> 00:37:44,239 Speaker 15: help people and be a way of Latin to make 726 00:37:44,280 --> 00:37:49,239 Speaker 15: a better place to people drive and people have an 727 00:37:49,320 --> 00:37:54,160 Speaker 15: opportunity to work. And doesn't matter who is the governing place, 728 00:37:54,760 --> 00:37:56,439 Speaker 15: we are there to be part of the good. 729 00:37:57,440 --> 00:38:01,200 Speaker 3: Sure, you and Macello have really shone a light on 730 00:38:01,280 --> 00:38:03,680 Speaker 3: Latin America. That's what Bicycle Ventures is all about, and 731 00:38:03,760 --> 00:38:06,279 Speaker 3: the idea that people aren't seeing the opportunities, but are 732 00:38:06,360 --> 00:38:09,480 Speaker 3: people seeing them more? When you're having Qued alongside you, 733 00:38:09,560 --> 00:38:13,600 Speaker 3: when you're seeing repeat investors in the space, is that 734 00:38:14,000 --> 00:38:15,600 Speaker 3: starting to grow in consensus? 735 00:38:15,800 --> 00:38:16,200 Speaker 12: Not really. 736 00:38:16,600 --> 00:38:20,120 Speaker 5: Quid are unique. They've been in Latin America on the 737 00:38:20,200 --> 00:38:22,320 Speaker 5: ground for quite a while, which is unusual for a 738 00:38:22,360 --> 00:38:24,560 Speaker 5: global firm. We respect them for doing that. They have 739 00:38:24,640 --> 00:38:27,239 Speaker 5: people in some power or people in Mexico City, so 740 00:38:27,360 --> 00:38:29,799 Speaker 5: they see what we see, which is markets that are 741 00:38:30,280 --> 00:38:34,080 Speaker 5: ignored by global capital markets. They're side notes compared to 742 00:38:34,400 --> 00:38:37,640 Speaker 5: the US and China, maybe even Europe. But the opportunity 743 00:38:37,719 --> 00:38:40,520 Speaker 5: is much bigger than the capital available. So our fundamental 744 00:38:40,640 --> 00:38:42,919 Speaker 5: view is there's just a dislocation of the market. People 745 00:38:43,040 --> 00:38:46,479 Speaker 5: don't have the appetite or the patients to look past 746 00:38:46,480 --> 00:38:50,440 Speaker 5: to the headlines that you just called out, political instability, crime, 747 00:38:51,440 --> 00:38:54,560 Speaker 5: inflation and see the opportunities beneath. But if you look, 748 00:38:54,600 --> 00:38:58,320 Speaker 5: they're great opportunities. So New Bank is the latest stunning example, 749 00:38:58,440 --> 00:39:01,240 Speaker 5: probably the most valuable digital bank in the world, forty 750 00:39:01,280 --> 00:39:04,200 Speaker 5: billion dollar market cap. There are many other companies coming 751 00:39:04,239 --> 00:39:05,799 Speaker 5: that will go public in the next couple of years. 752 00:39:05,840 --> 00:39:08,759 Speaker 5: That'll keep proving that Latin America can create a lot 753 00:39:08,760 --> 00:39:11,520 Speaker 5: of equity value. And we like the situation where people 754 00:39:11,560 --> 00:39:14,080 Speaker 5: are not paying as much attention because it's better for us. 755 00:39:14,239 --> 00:39:16,640 Speaker 3: M hmmm when you're doing a due diligence. It's great 756 00:39:16,680 --> 00:39:20,080 Speaker 3: to have some time with you Moto for CEO. Rubin's Senlato, 757 00:39:20,120 --> 00:39:22,440 Speaker 3: who I say, flying out for this and we appreciate 758 00:39:22,520 --> 00:39:24,759 Speaker 3: it very much, just for this back to yeah, yeah, 759 00:39:25,040 --> 00:39:26,920 Speaker 3: lovely to have you over here to fly back to 760 00:39:26,960 --> 00:39:29,200 Speaker 3: Brazil and Juniata is always flying in from Miami. 761 00:39:29,280 --> 00:39:30,160 Speaker 2: We really appreciate it. 762 00:39:30,200 --> 00:39:32,640 Speaker 3: Meanwhile, coming up, look, initial talk to the sale of 763 00:39:32,680 --> 00:39:36,040 Speaker 3: Disney's ABC are getting up. We'll have all the details next. 764 00:39:36,600 --> 00:39:49,040 Speaker 3: There's some blue meg technology here is what has been 765 00:39:49,080 --> 00:39:52,359 Speaker 3: going viral. Disney holding initial talks. We understand about selling 766 00:39:52,400 --> 00:39:56,480 Speaker 3: it's ABC network and TV stations to local broadcaster next Star. 767 00:39:56,760 --> 00:39:59,360 Speaker 3: That's according to sources. But then media mogul Byron Allen, 768 00:39:59,600 --> 00:40:02,560 Speaker 3: who are a string of TV outlets Weather Channel as well, 769 00:40:02,680 --> 00:40:06,120 Speaker 3: also has discussions with Disney. We understand about acquisition of 770 00:40:06,160 --> 00:40:09,520 Speaker 3: the network and his stations. It's all according to sources 771 00:40:09,560 --> 00:40:12,000 Speaker 3: familiar with the matter, let's get more familiar with it, 772 00:40:12,040 --> 00:40:13,880 Speaker 3: because Disney is saying in a statement that the company 773 00:40:13,920 --> 00:40:16,640 Speaker 3: still has made no decision with respect to the divestshire 774 00:40:16,840 --> 00:40:19,880 Speaker 3: of ABC or any other property. Next TI meanwhile declined 775 00:40:19,880 --> 00:40:22,799 Speaker 3: to comment. Let's bring in Chris Palmery, who's been really 776 00:40:22,880 --> 00:40:26,000 Speaker 3: managing to cut through what feels like sometimes noise in 777 00:40:26,040 --> 00:40:28,320 Speaker 3: the media industry. But the noise had always been for 778 00:40:28,360 --> 00:40:30,760 Speaker 3: a little while that maybe this would be an asset 779 00:40:30,840 --> 00:40:31,880 Speaker 3: for Disney to dispose of. 780 00:40:33,960 --> 00:40:36,040 Speaker 7: Right well, if you remember, this started in July when 781 00:40:36,120 --> 00:40:39,480 Speaker 7: Bob Iger said that, you know, maybe these traditional channels 782 00:40:39,520 --> 00:40:42,200 Speaker 7: were no longer core to the business, and that's set 783 00:40:42,280 --> 00:40:45,440 Speaker 7: off a frenzy of people looking at the assets who 784 00:40:45,719 --> 00:40:48,560 Speaker 7: might be interested. And I think that the fact that 785 00:40:48,600 --> 00:40:52,120 Speaker 7: there hadn't been any progress really since then got people thinking, well, 786 00:40:52,160 --> 00:40:55,319 Speaker 7: maybe we can start a fire here. If you read 787 00:40:55,400 --> 00:40:58,960 Speaker 7: the public comments that next our executives have given, they said, hey, 788 00:40:59,080 --> 00:41:02,280 Speaker 7: you know, we're interest, did Disney, But you know, what's 789 00:41:02,400 --> 00:41:05,160 Speaker 7: the real terms here? Because there are a lot of 790 00:41:05,280 --> 00:41:09,560 Speaker 7: complications with buying a network like ABC, for example, you know, 791 00:41:09,640 --> 00:41:13,239 Speaker 7: how do you handle the sports that ESPN sometimes simulcasts 792 00:41:13,320 --> 00:41:17,600 Speaker 7: on ABC, or all the shows that presumably Disney would still. 793 00:41:17,440 --> 00:41:21,160 Speaker 2: Own that air on the networks. So there's a lot 794 00:41:21,200 --> 00:41:21,600 Speaker 2: of questions. 795 00:41:21,680 --> 00:41:23,640 Speaker 7: But I think we're starting to see people starting to 796 00:41:23,760 --> 00:41:26,240 Speaker 7: raise their hand and say, yes, I might be interested 797 00:41:26,280 --> 00:41:28,680 Speaker 7: in this, and it puts a little pressure on Bob Iger. 798 00:41:28,480 --> 00:41:29,000 Speaker 9: To do something. 799 00:41:29,680 --> 00:41:31,880 Speaker 3: What about at this moment when he's also trying to 800 00:41:31,960 --> 00:41:35,840 Speaker 3: navigate strikes, right to strikes, Act to strikes? How is 801 00:41:35,920 --> 00:41:37,640 Speaker 3: that sort of conversation progressing? 802 00:41:39,680 --> 00:41:39,879 Speaker 2: Well? 803 00:41:40,280 --> 00:41:44,120 Speaker 7: Again, it's part of this all you know situation in 804 00:41:44,239 --> 00:41:49,320 Speaker 7: media today where everyone knows it's shifting towards streaming, but 805 00:41:49,400 --> 00:41:52,800 Speaker 7: the streaming business isn't profitable and there are issues with labor, 806 00:41:52,880 --> 00:41:56,400 Speaker 7: there's issues with how do you produce the content, and 807 00:41:57,040 --> 00:42:01,239 Speaker 7: the traditional TV networks are losing viewers and so that's 808 00:42:01,480 --> 00:42:04,239 Speaker 7: that's a long term drag on the business. So do 809 00:42:04,360 --> 00:42:06,680 Speaker 7: you keep them because they're making money now and you 810 00:42:06,800 --> 00:42:09,719 Speaker 7: can sort of run shows across the different platforms, or 811 00:42:09,760 --> 00:42:12,399 Speaker 7: do you sell and cash out? And that's uh, that's 812 00:42:12,440 --> 00:42:15,319 Speaker 7: what the Disney management and lots of other managements are 813 00:42:15,320 --> 00:42:17,120 Speaker 7: wrestling in the media in business with right now. 814 00:42:17,640 --> 00:42:20,040 Speaker 3: We'll see how those conversations progress next week. Chris Palm, 815 00:42:20,080 --> 00:42:22,200 Speaker 3: Mary we thank you. Meanwhile, that does it for this 816 00:42:22,400 --> 00:42:25,719 Speaker 3: edition of Bloomberg Technology. Don't forget about our podcast. This 817 00:42:25,880 --> 00:42:26,920 Speaker 3: is Bloomberg Technology. 818 00:42:27,280 --> 00:42:27,560 Speaker 2: CEE S.