WEBVTT - Daybreak Weekend: Netflix Earnings, Davos Preview, China Data 0:00:00.240 --> 0:00:07.720 Bloomberg Audio Studios, Podcasts, radio News. 0:00:10.880 --> 0:00:13.800 This is Bloomberg Daybreak Weekend, our global look at the 0:00:13.840 --> 0:00:16.440 top stories in the coming week from our Daybreak anchors 0:00:16.560 --> 0:00:19.320 all around the world. Straight Ahead on the program, we'll 0:00:19.320 --> 0:00:22.960 look to earnings from streaming and chip giants Netflix and Intel. 0:00:23.079 --> 0:00:24.960 I'm Nathan Hager in Washington. 0:00:25.040 --> 0:00:27.400 I'm Caroline hepkehim in London, where we're looking at the 0:00:27.480 --> 0:00:30.640 annual gathering of the Powerful, the rich, and the famous. 0:00:30.640 --> 0:00:34.040 In Davos, Switzerland, I'm Doug Prisner, looking at how Beijing 0:00:34.159 --> 0:00:36.920 will report the performance of the Chinese economy. 0:00:38.360 --> 0:00:42.360 That's all straight ahead on Bloomberg Daybreak Weekend on Bloomberg 0:00:42.400 --> 0:00:46.120 eleven three year, New York, Bloomberg ninety nine to one, Washington, DC, 0:00:46.640 --> 0:00:51.760 Bloomberg ninety two nine, Boston, DAB Digital Radio, London, Sirius 0:00:51.920 --> 0:00:55.400 XM one twenty one, and around the world on Bloomberg Radio, 0:00:55.480 --> 0:00:57.640 dot Com and the Bloomberg Business App. 0:01:02.720 --> 0:01:05.440 Good day to you. I'm Nathan Hager. Investors will be 0:01:05.480 --> 0:01:09.240 watching earnings from Intel and Netflix this week for signals 0:01:09.280 --> 0:01:12.840 on two very different corners of the tech landscape. Well 0:01:12.880 --> 0:01:15.920 here from Netflix first on Tuesday, man for more and 0:01:15.959 --> 0:01:18.759 what to expect from the streaming giant. I'm joined now 0:01:18.760 --> 0:01:23.440 by Bloomberg Intelligence Senior media analyst Githa Ranganathan and Geitha. 0:01:23.600 --> 0:01:26.400 I feel like there's been so much talk about Netflix's 0:01:26.520 --> 0:01:29.119 bidding war for Warner Brothers Discovery that it's been kind 0:01:29.120 --> 0:01:31.600 of easy to lose sight of the fundamental. So this 0:01:31.640 --> 0:01:33.720 will be kind of refreshing. What are you expecting. 0:01:34.319 --> 0:01:37.080 Yeah, I'm really hoping we get a rispite from this 0:01:37.200 --> 0:01:39.880 three ring circus, Nathan. I mean, it's been going on 0:01:39.959 --> 0:01:43.800 for quite a while now. I hope the focus really 0:01:43.880 --> 0:01:46.160 turns and this is a distraction, you know, from this 0:01:46.280 --> 0:01:50.280 whole drama that we've seen. But fundamentals wise, you're absolutely right. 0:01:50.560 --> 0:01:54.160 The company has never been in a stronger situation. We 0:01:54.240 --> 0:01:58.400 think they will absolutely deliver on their revenue growth expectations 0:01:58.400 --> 0:02:03.880 of about seventeen percent, strong operating margin, strong free cash flow. 0:02:03.880 --> 0:02:07.240 They're expecting about nine billion dollars for the full year. 0:02:07.800 --> 0:02:10.600 And really, I mean many many times, Nathan, the company 0:02:10.680 --> 0:02:13.440 has said that, you know, twenty twenty five as well 0:02:13.520 --> 0:02:17.160 as the fourth quarter. The slate really is absolutely a 0:02:17.200 --> 0:02:20.720 blockbuster slate. I mean, you think about it, stranger things, 0:02:21.200 --> 0:02:25.040 you know, the finale, you had so many other titles. 0:02:25.080 --> 0:02:27.520 I mean, whether you're thinking about Knives Out or Emily 0:02:27.560 --> 0:02:31.520 in Paris or you know, My Secret Santa or Frankenstein, 0:02:31.639 --> 0:02:33.600 nobody wants this. I mean, the list just goes on 0:02:33.760 --> 0:02:37.400 and on. But I think more importantly, Nathan, I mean, 0:02:37.760 --> 0:02:40.280 it was really their sports strategy. So if you look 0:02:40.320 --> 0:02:44.600 at the Lions Vikings game on Christmas date, that was 0:02:45.160 --> 0:02:50.000 the most streamed NFL game in US history, So really 0:02:50.040 --> 0:02:53.520 a huge achievement and kind of really speaks to you know, 0:02:53.560 --> 0:02:55.680 what Netflix has been able to achieve. So I think 0:02:55.800 --> 0:02:57.760 there's obviously going to be a lot of attention on 0:02:57.840 --> 0:03:00.160 all of those metrics, how that kind of plays out 0:03:00.200 --> 0:03:02.880 into advertising, which is a big focus for them. But 0:03:02.960 --> 0:03:06.200 I think still, you know, this overhang from the Warner 0:03:06.280 --> 0:03:08.520 drama is not going away anytime soon. 0:03:08.680 --> 0:03:11.640 In full disclosure, I too watch Stranger Things five and 0:03:11.680 --> 0:03:14.560 the Knives Out sequel. But when you think about that 0:03:14.680 --> 0:03:17.480 content slate and what I would have to think is 0:03:17.600 --> 0:03:21.560 a strategy for even more content to come into this year, 0:03:22.000 --> 0:03:24.600 doesn't it raise the question about what the strategy is 0:03:24.639 --> 0:03:28.239 for Netflix to buy Warner Brothers Discovery. Does it need 0:03:28.400 --> 0:03:29.760 that Warner Brothers ip. 0:03:30.440 --> 0:03:33.680 So that has really been the head scratcher, right, People 0:03:33.840 --> 0:03:36.720 really kind of wondering is Netflix just playing the long 0:03:36.760 --> 0:03:38.920 game here? Do they just want to beef up their 0:03:38.960 --> 0:03:44.040 content portfolio, make more of an defensive play for Warner, 0:03:44.120 --> 0:03:47.240 keep it out of everybody else's hands, or are they 0:03:47.440 --> 0:03:50.840 really seeing some kind of slow down in their own 0:03:50.960 --> 0:03:53.400 core engagement? And I mean, this is what has kind 0:03:53.440 --> 0:03:56.560 of fueled so much of concern here, because you know, 0:03:56.600 --> 0:03:59.720 people really wondering why they're going after the Warner portfolio. 0:03:59.760 --> 0:04:02.400 Is it because we're seeing, you know, some kind of 0:04:02.400 --> 0:04:05.560 a slow down and engagement metrics. I don't necessarily think 0:04:05.600 --> 0:04:08.040 that will be the case. But regardless of how this 0:04:08.080 --> 0:04:11.560 whole drama plays out, we know that fundamentals will continue 0:04:11.560 --> 0:04:13.800 to be very strong. They have, you know, their own 0:04:13.880 --> 0:04:18.000 original titles, even without Warner, have really performed very very well. 0:04:18.080 --> 0:04:21.359 We've seen over the past, you know, so many years. 0:04:21.520 --> 0:04:24.599 But I do think that Netflix is prepping for the future, Nathan, 0:04:24.680 --> 0:04:26.880 as we kind of look at AI and how AI 0:04:27.000 --> 0:04:30.600 can democratize content, I think it really becomes key for 0:04:30.800 --> 0:04:34.080 many of these big streamers to have access to more 0:04:34.560 --> 0:04:37.920 top tier franchises and properties, and really Warner brings them 0:04:38.720 --> 0:04:41.800 a huge treasure trobe of titles that they can mine 0:04:42.680 --> 0:04:43.920 very nicely into the future. 0:04:44.000 --> 0:04:45.880 We'll talk a little bit more about what's driving your 0:04:45.960 --> 0:04:50.160 view that Netflix still has that engagement compared to some 0:04:50.200 --> 0:04:52.200 of its competitors as well. What are some of the 0:04:52.240 --> 0:04:54.520 metrics you're looking at now that they don't break out, 0:04:54.880 --> 0:04:56.960 you know, subscriber accounts anymore. 0:04:57.320 --> 0:05:02.160 Yeah, absolutely, so. You know, they do disclose a periodically, 0:05:02.960 --> 0:05:05.640 you know, a report called what we watched, and they 0:05:05.680 --> 0:05:08.159 released this every six months, and we do get some 0:05:08.360 --> 0:05:11.560 insight into really one of the biggest titles on Netflix, 0:05:11.880 --> 0:05:15.400 how many minutes are spent watching those titles, And on 0:05:15.480 --> 0:05:18.440 average you'll see that a Netflix member spends about two 0:05:18.480 --> 0:05:21.000 to two and a half hours per day engaging with 0:05:21.120 --> 0:05:24.760 their content, which is really a staggering number. And then 0:05:24.800 --> 0:05:26.480 if you just kind of put that in the context 0:05:26.560 --> 0:05:28.800 of all of the streaming players, they're way ahead of 0:05:28.880 --> 0:05:31.800 most of their rivals, but they constantly bring up this 0:05:31.920 --> 0:05:36.760 comparison with YouTube, whom they actually trail, and so their 0:05:36.800 --> 0:05:39.479 whole argument has been, you know, we really need to 0:05:39.560 --> 0:05:43.600 catch up to YouTube, and that threat only gets bigger, 0:05:43.680 --> 0:05:47.600 I think with you know, the advent of AI and 0:05:47.720 --> 0:05:50.719 people like wanting to create more content, more user generated 0:05:50.720 --> 0:05:53.880 content with all of these AI tools like Sora, and 0:05:53.960 --> 0:05:57.240 so while Netflix really is in a strong and you know, 0:05:57.279 --> 0:06:01.040 an enviable position, they always kind of have to watch 0:06:01.080 --> 0:06:01.839 over their shoulder. 0:06:01.880 --> 0:06:06.160 I would say, so given that position, should subscribers be 0:06:06.279 --> 0:06:09.240 on the lookout for things like higher rates? We keep 0:06:09.279 --> 0:06:11.719 seeing those creep up here and there as well. 0:06:12.320 --> 0:06:16.600 Yes, they definitely have pricing power. We've kind of seen 0:06:16.600 --> 0:06:20.640 a steady cadence of price increases every twelve to eighteen months. 0:06:20.800 --> 0:06:24.720 So I absolutely think that a price increase is you know, 0:06:24.760 --> 0:06:27.920 on the books sometime in twenty twenty six, and that's 0:06:27.960 --> 0:06:29.680 just kind of become the name of the game here 0:06:29.720 --> 0:06:31.960 in streaming. We've seen all of these streaming services, I mean, 0:06:31.960 --> 0:06:35.159 whether it's Netflix, Disney Plus, HBO Max, all of them, 0:06:35.440 --> 0:06:39.359 you know, really kind of using that pricing lever as 0:06:39.839 --> 0:06:42.479 you know, the subscriber number does it become is not 0:06:42.600 --> 0:06:45.520 important anymore and it's really more our pooh and pricing 0:06:45.600 --> 0:06:48.320 power and revenue growth. So all of the streamers are 0:06:48.400 --> 0:06:50.679 kind of flexing their muscle when it comes to pricing. 0:06:51.040 --> 0:06:52.760 All right, Well, we're going to be focused on the 0:06:52.760 --> 0:06:55.960 fundamentals in just the next few days when Netflix opens 0:06:55.960 --> 0:06:58.000 those fourth quarter books. Thank you for this, Keith the 0:06:58.080 --> 0:07:00.360 Great having you on with us. That's Keith the wrong nothing, 0:07:00.760 --> 0:07:04.880 senior US media analysts for Bloomberg Intelligence. Now let's turn 0:07:04.960 --> 0:07:08.640 to Intel, the biggest maker of personal computer processors, opens 0:07:08.680 --> 0:07:13.080 its fourth quarterbooks on Thursday. Is the turnaround intact? Let's 0:07:13.080 --> 0:07:17.160 bring in Bloomberg Technology reporter Ian King for insights on that. 0:07:17.920 --> 0:07:18.160 Ian. 0:07:18.200 --> 0:07:20.320 We know the US government is working on building a 0:07:20.360 --> 0:07:22.840 ten percent stake in Intel, so it's sure to be 0:07:23.000 --> 0:07:26.840 watching these earnings. What should we expect from the chip maker? 0:07:27.720 --> 0:07:29.600 Yeah, I mean this company has very much had a 0:07:29.760 --> 0:07:34.400 transitional point last year. You mentioned obviously the government investment 0:07:34.960 --> 0:07:37.520 was also an investment by Nvidia and also an investment 0:07:37.560 --> 0:07:40.520 by SoftBank. What those did was really shore up the 0:07:40.560 --> 0:07:43.720 balance sheet. So on that side of the house, kind 0:07:43.760 --> 0:07:47.800 of task completed. Things are better than they were. There's 0:07:47.840 --> 0:07:51.000 no kind of existential risk, at least in people's minds 0:07:51.040 --> 0:07:54.040 for the time being. But what we're really looking at 0:07:54.040 --> 0:07:57.680 now is the operational side. You're a chip company. You 0:07:57.720 --> 0:07:59.800 have to sell more chips. You have to sell more chips, 0:08:00.080 --> 0:08:01.920 cost more money and get more profit. 0:08:02.680 --> 0:08:06.400 Now to that point. Where do things stand for Intel 0:08:06.680 --> 0:08:11.040 right now? Getting that operational side in a turnaround in 0:08:11.080 --> 0:08:13.440 the short term, Yeah, I mean we're. 0:08:13.280 --> 0:08:16.160 In the very early stages of that. At the beginning 0:08:16.200 --> 0:08:20.000 of this year, Intel was at the CES conference in 0:08:20.080 --> 0:08:23.400 Las Vegas and they unveiled a new range of chips 0:08:23.880 --> 0:08:27.240 based on a new production technology, and what they said was, look, 0:08:27.360 --> 0:08:30.040 this gets us back in the game. This makes us 0:08:30.240 --> 0:08:33.560 competitive again, and this is very much, you know, the 0:08:33.640 --> 0:08:36.880 proof point that our technology is irrelevant in this industry. Again, 0:08:37.200 --> 0:08:39.679 obviously we're only a couple of weeks away from that, 0:08:39.880 --> 0:08:42.400 so you know, too early to see whether they're selling 0:08:42.520 --> 0:08:46.080 like hotcakes or whether you know, that's hype from the company. 0:08:46.120 --> 0:08:49.480 But obviously the company's forecast this quarter will be really 0:08:49.520 --> 0:08:51.600 important as a guide to their confidence in that. 0:08:51.880 --> 0:08:54.480 Talk a little bit more about what the CEO had 0:08:54.480 --> 0:08:57.440 to say about those new chips and how they stack 0:08:57.559 --> 0:09:00.760 up to some of the competition around, you know, names 0:09:00.800 --> 0:09:02.959 that we're familiar with, like Nvidia, like AMD. 0:09:03.880 --> 0:09:06.880 Yeah, I mean we're talking about PC processes at this point. 0:09:06.960 --> 0:09:10.640 So that's a high volume market for Intel. So that's 0:09:10.679 --> 0:09:15.000 important in terms of cash flows, that's important in terms 0:09:15.080 --> 0:09:18.800 of filling those factories, but it's not the sort of 0:09:18.840 --> 0:09:22.280 down of profitability, you know that the core profitability that'll 0:09:22.320 --> 0:09:24.880 come later when we see what it's doing in serverships. 0:09:25.440 --> 0:09:28.000 What the company has said is, look, hey, this new 0:09:28.120 --> 0:09:31.040 range really kind of repairs the issues of the last 0:09:31.080 --> 0:09:33.959 couple of ranges of chips that we've had out there. 0:09:34.000 --> 0:09:37.400 You know, it's the most power efficient and they're good 0:09:37.400 --> 0:09:40.560 at performance as well, so that that really helps position 0:09:40.640 --> 0:09:43.400 as well against our competitors. And you know, they're talking 0:09:43.440 --> 0:09:46.200 about their confidence again, and that's really been the first 0:09:46.240 --> 0:09:48.520 time in a long time that we've seen Intel really 0:09:48.600 --> 0:09:50.920 kind of beat their fist against their chest and say, hey, 0:09:51.000 --> 0:09:51.800 look at our chips. 0:09:52.960 --> 0:09:57.040 Do those chips the cost of putting them together? Does 0:09:57.080 --> 0:10:00.880 that pose a potential risk for Intel go going forward? 0:10:01.240 --> 0:10:04.640 Well, the risk is how many they can sell. They've 0:10:04.679 --> 0:10:08.800 already built, you know, a brand new factory Fab fifty 0:10:08.800 --> 0:10:11.240 two in Arizona. They're trying to convert some of their 0:10:11.280 --> 0:10:15.960 other production lines over to this new production technique. That 0:10:16.080 --> 0:10:18.440 shift and that cost makes sense if you sell a 0:10:18.440 --> 0:10:21.000 lot of these things. If you don't, then that's where 0:10:21.000 --> 0:10:21.679 the problem is. 0:10:22.120 --> 0:10:23.760 There's got to be a lot of focus as well, 0:10:23.800 --> 0:10:27.079 like you mentioned about the foundry plans for Intel. Given 0:10:27.120 --> 0:10:31.880 the US governments focus on boosting that business with its stake, 0:10:32.000 --> 0:10:35.280 what kind of color could we expect around you know, 0:10:35.360 --> 0:10:39.640 Intel's factory plans, you know, boosting manufacturing in the United States. 0:10:40.600 --> 0:10:43.839 If you if you own Intel stock, and as taxpayers 0:10:43.840 --> 0:10:46.920 in the US we do. All you care about is 0:10:47.480 --> 0:10:50.320 Intel going out on stage somewhere or in some forum 0:10:50.400 --> 0:10:52.800 and saying, hey, this is a big customer we have 0:10:53.000 --> 0:10:55.640 other than ourselves. You know, in video is going to 0:10:55.720 --> 0:10:58.120 use our plans. Amb is going to use our plans. 0:10:58.640 --> 0:11:02.479 That has not happened yet, and you know, the prospects 0:11:02.480 --> 0:11:04.880 for that at the moment are kind of murky. We 0:11:04.960 --> 0:11:07.800 don't know. It's difficult for Intel to sort of do 0:11:07.840 --> 0:11:10.120 that because you don't want to be talking about what 0:11:10.200 --> 0:11:14.600 your customers are up to. But frankly, the eighteen A node, 0:11:14.679 --> 0:11:16.920 the one that these new chips are built on, that 0:11:17.040 --> 0:11:20.360 node has not delivered on the promises of external customers 0:11:20.360 --> 0:11:23.640 that we got from previous management. And it might be 0:11:23.800 --> 0:11:26.320 that the next node is so called fourteen A, which 0:11:26.360 --> 0:11:28.240 is going to come in the next couple of years, 0:11:28.520 --> 0:11:30.360 that might be the one where we start to see 0:11:30.360 --> 0:11:33.480 external customers, so probably a longer term story. 0:11:33.520 --> 0:11:36.080 There are you seeing just reading the tea leaves of 0:11:36.200 --> 0:11:39.079 much interest at least in the short term from potential 0:11:39.120 --> 0:11:42.000 customers for Intel in some of these chips and the 0:11:42.000 --> 0:11:42.840 foundery business. 0:11:44.200 --> 0:11:46.439 If you're one of those companies I just mentioned, you're 0:11:46.480 --> 0:11:48.360 going to look at Intel. Of course you are. We're 0:11:48.360 --> 0:11:51.960 in a world where we should have capacity, where TSMC 0:11:52.400 --> 0:11:55.400 is basically filling all of the others it possibly can, 0:11:55.480 --> 0:11:58.880 and is likely getting more than it can fill. So 0:11:59.000 --> 0:12:01.000 of course you're going to look at Intel, but you're 0:12:01.000 --> 0:12:03.960 also going to look at Samsung. Samsung is arguably a 0:12:04.000 --> 0:12:07.720 more established kind of second source to TSMC in the 0:12:07.720 --> 0:12:11.040 so called boundary world. So yeah, everybody's gonna look. But 0:12:11.240 --> 0:12:14.960 Intel has to prove that this technology it has is 0:12:15.240 --> 0:12:18.920 a good enough to compete with TSMC and be offers 0:12:18.920 --> 0:12:21.920 an advantage because it costs money to switch over as well. 0:12:22.080 --> 0:12:24.480 Appreciate this. Ian, thanks for coming on with us ahead 0:12:24.480 --> 0:12:29.240 of Intel's earnings. That's Ian King, technology reporter for Bloomberg News, 0:12:29.360 --> 0:12:32.000 and coming up on Bloomberg Daybreak weekend, we'll look ahead 0:12:32.040 --> 0:12:34.920 to the annual gathering of the rich, famous and powerful 0:12:35.200 --> 0:12:50.559 in Davos I'm Nathan Hager, and this is Bloomberg. This 0:12:50.640 --> 0:12:53.720 is Bloomberg Daybreak, Weekend, our global book ahead, the top 0:12:53.760 --> 0:12:56.680 stories for investors in the coming week. I'm Nathan Hager 0:12:56.720 --> 0:12:59.199 in Washington. Up Later in the program will turn to 0:12:59.320 --> 0:13:02.040 China and look at whether economic expansion there met the 0:13:02.040 --> 0:13:05.800 government's target. But first, the international business'll eite to send 0:13:05.800 --> 0:13:09.439 on Switzerland next week for the World Economic Forum in Davos. 0:13:09.720 --> 0:13:14.400 The annual gathering is traditionally about multilateral goals promoting peace, prosperity, 0:13:14.440 --> 0:13:17.600 and social progress, but this year has begun with fundamental 0:13:17.679 --> 0:13:21.280 questions about international law, America's role in the global order, 0:13:21.400 --> 0:13:23.800 and if global business is on the same page on 0:13:23.920 --> 0:13:27.760 issues like diversity, climate change, and politics. For more, let's 0:13:27.760 --> 0:13:29.959 head to London and check in with Bloomberg Daybreak. You're 0:13:29.960 --> 0:13:32.200 a banker, Caroline Hepger Nathan. 0:13:32.280 --> 0:13:35.840 The organization that Ron's Davos has set its theme for 0:13:35.920 --> 0:13:40.079 this year as a spirit of dialogue, with world leaders 0:13:40.080 --> 0:13:43.800 including US President Donald Trump set to attend. Who're quite 0:13:43.840 --> 0:13:47.520 curious to know what conversations they will be having. It's 0:13:47.640 --> 0:13:51.360 Trump's first in person appearance at Davos in six years. 0:13:51.840 --> 0:13:55.479 Last year in a virtual address, the US president criticized 0:13:55.640 --> 0:13:59.760 the Paris Climate Accord and promised to unlock the liquid 0:13:59.800 --> 0:14:04.959 gold of fossil fuels. As well as his geopolitical interventions 0:14:05.000 --> 0:14:08.800 in the Middle East, Venezuela, and Greenland, Trump has also 0:14:08.880 --> 0:14:13.000 shown his administration is prompt to impose its demands on 0:14:13.080 --> 0:14:18.440 global businesses, from reassuring to pricing executive pay and shareholder 0:14:18.520 --> 0:14:22.840 dividends across a wide array of sectors. What message will 0:14:22.880 --> 0:14:26.760 he world leaders and the leading light of global business 0:14:27.080 --> 0:14:30.760 be bringing to this international forum. Joining me now is 0:14:30.800 --> 0:14:33.680 our editor at large, Francine Laqua, who will be leading 0:14:33.680 --> 0:14:38.120 Bloomberg's coverage at Davos as every year. Francine, of course, 0:14:38.520 --> 0:14:41.000 what do you think are the big questions that you're 0:14:41.040 --> 0:14:44.520 going to be asking this year at Davos? Not asking 0:14:44.560 --> 0:14:48.440 you to reveal your trade secrets, but give us an insight. 0:14:48.880 --> 0:14:51.400 I mean, there's this idea girling that twenty twenty five 0:14:51.680 --> 0:14:54.600 was really the year where Prisoner Trump shaped his agenda 0:14:54.640 --> 0:14:58.040 about how he sees the world economic times trade, and 0:14:58.080 --> 0:14:59.920 I think we're trying to find out whether twenty twenty 0:15:00.120 --> 0:15:04.360 six is maybe the year where countries or companies push back. Now, 0:15:04.560 --> 0:15:07.280 we definitely started you know, the first couple of weeks 0:15:07.280 --> 0:15:10.560 of this year with a terrific news flow, much much 0:15:10.640 --> 0:15:14.440 newsflow that we weren't expecting. And look, it's going to be, 0:15:14.560 --> 0:15:17.320 you know, part of the Donald Trump Show. He shows 0:15:17.400 --> 0:15:20.160 up in Davols. It's the third time that he arrives. 0:15:20.240 --> 0:15:23.600 We believe that he'll be there towards the middle of 0:15:23.640 --> 0:15:26.520 the week. In his first appearance in twenty eighteen, I 0:15:26.600 --> 0:15:29.240 remember it like it was yesterday. He delivered a surprisingly 0:15:29.280 --> 0:15:32.800 opened armed message declaring that America First does not mean 0:15:32.920 --> 0:15:36.960 America alone. Then he was pretty defiant in twenty twenty 0:15:37.000 --> 0:15:40.080 as his impeachment trial was getting underway in Washington. And 0:15:40.120 --> 0:15:42.680 then last year, this was like two days after he 0:15:42.720 --> 0:15:46.640 got inaugurated. After shortly after being reelected, he delivered a 0:15:46.680 --> 0:15:50.040 speech at the Annual Meeting via video, and there he 0:15:50.080 --> 0:15:53.240 focused on oil prices, interest rates, in European regulations. So 0:15:53.280 --> 0:15:55.480 a lot of the questions will really be trying to 0:15:55.480 --> 0:15:58.840 figure out how to deal with the President of the US, 0:15:58.960 --> 0:16:01.720 how to deal with the administray if there's tariffs and trade. 0:16:02.320 --> 0:16:05.200 And then there's more like the softball questions, you know 0:16:05.400 --> 0:16:09.240 about the spurt of dialogue, how can we invest in people. 0:16:09.320 --> 0:16:13.400 Some of the conferences were probably or some of the 0:16:13.480 --> 0:16:16.160 panels were probably distilled just to make sure that they 0:16:16.200 --> 0:16:20.080 would appeal to the Trump administration. But you have great speakers, 0:16:20.120 --> 0:16:21.800 you have Jamie Diamond, you have all of Wall Street 0:16:21.840 --> 0:16:23.680 showing up. But it's a little bit of a mix 0:16:23.720 --> 0:16:25.360 and match. I mean, you want to know what you 0:16:25.400 --> 0:16:27.840 know President Trump does and what AI becomes in terms 0:16:27.840 --> 0:16:29.600 of valuation and impact on the economy. 0:16:30.520 --> 0:16:35.160 Interesting. So then who are you hoping most to speak to, 0:16:35.160 --> 0:16:38.080 to hear from, because it really is is everyone. It's 0:16:38.120 --> 0:16:41.280 those global world leaders, business leaders who are going to 0:16:41.320 --> 0:16:41.720 be there. 0:16:42.160 --> 0:16:44.240 So I think this year is a little bit different 0:16:44.280 --> 0:16:46.880 again because it'll be really interesting to hear a reaction, 0:16:47.560 --> 0:16:52.040 right to see if there's anyone that speaks up against 0:16:52.320 --> 0:16:54.800 some of the things that the Trump administration are putting 0:16:54.840 --> 0:16:59.360 in place. We'll have good conversations on inflation. And I 0:16:59.480 --> 0:17:03.800 keep on getting reminded that why inflation hasn't really taken 0:17:03.840 --> 0:17:07.080 off is because when President Trump, on Liberation Day last 0:17:07.160 --> 0:17:10.760 year put these tariffs, the rest of the world stayed quiet. 0:17:11.680 --> 0:17:14.240 This year could be different. I don't know whether Davos 0:17:14.320 --> 0:17:17.080 is the right time. We also really want to know 0:17:17.160 --> 0:17:20.160 what is and will be in President Trump's speech. Does 0:17:20.200 --> 0:17:23.760 he go after Europe? We know that he's been talking 0:17:23.800 --> 0:17:26.760 about financials and the fact that, for example, he wants 0:17:26.760 --> 0:17:29.720 to go after some of the private equity because domestically 0:17:29.920 --> 0:17:33.959 has this huge, huge concern about affordability. So does that 0:17:34.000 --> 0:17:36.320 spill over into the messaging for the rest of the world. 0:17:36.680 --> 0:17:39.199 I mean, I can rememberly maybe two three big policy 0:17:39.240 --> 0:17:42.160 speeches this year when you know, it wasn't even the president, 0:17:42.160 --> 0:17:44.440 it was the Vice president's and people around him came 0:17:44.480 --> 0:17:48.200 to Europe. Frankly, it was shocking, right we had JD. 0:17:48.320 --> 0:17:51.600 Vans and the people in the room were wondering whether 0:17:51.640 --> 0:17:53.680 it was still an ally or not, whether the US 0:17:53.960 --> 0:17:56.840 was And so I'm looking for tone. And then on 0:17:56.880 --> 0:17:58.720 the back of that, you know what some of the 0:17:58.720 --> 0:18:02.920 big Titans think that means for their business and world economy. 0:18:04.119 --> 0:18:07.320 WEF which is the organization obviously behind Devils in their 0:18:07.359 --> 0:18:11.000 mission statement, had to thumb through the book to find it. 0:18:11.640 --> 0:18:14.879 Improving the state of the world that is part of 0:18:14.920 --> 0:18:18.800 their mission statement, the emphasis being on dialogue, on collaboration, 0:18:18.960 --> 0:18:22.240 on cooperation, and as you've very much alluded to, President 0:18:22.800 --> 0:18:26.119 Trump being there in many ways the kind of aggressive 0:18:26.119 --> 0:18:30.240 expansionist America first policies of really a kind of direct 0:18:30.600 --> 0:18:35.280 in direct conflict with that aim, So it could get uncomfortable. 0:18:35.600 --> 0:18:38.919 It probably will get uncomfortable at times unless everybody plays 0:18:38.920 --> 0:18:42.399 ball and you know, tries to say that they get along. 0:18:43.200 --> 0:18:45.919 The WEFT mission statement is always a little bit complicated 0:18:45.920 --> 0:18:48.040 because they try and invite bigs head of state that 0:18:48.080 --> 0:18:51.359 can be controversial. You know, there was a Chinese president 0:18:51.400 --> 0:18:54.720 a couple of years ago. We've had other presidents that 0:18:55.000 --> 0:18:58.520 were they had to make sure that they felt welcome 0:18:58.560 --> 0:19:01.960 most the same time not being seen as a pushover. 0:19:02.520 --> 0:19:05.760 But I think what the World Economic Forum is is 0:19:05.800 --> 0:19:09.280 a great platform right for again companies or heads of 0:19:09.320 --> 0:19:12.520 state to try and push their message. So we're expecting, 0:19:12.560 --> 0:19:15.720 for example, the UK Prime Minister with the Chancellor to 0:19:15.760 --> 0:19:18.399 try and push the UK in saying look, you know 0:19:18.680 --> 0:19:22.680 this is what we're planning on growth, maybe to put 0:19:22.760 --> 0:19:25.640 the direction in a better footing for the UK after 0:19:25.680 --> 0:19:27.280 some of the mishaps that we saw in the budget 0:19:27.320 --> 0:19:31.080 and non doms. So it is a platform where you 0:19:31.160 --> 0:19:35.119 speak to worldwide investors where it gets picked up. But 0:19:35.240 --> 0:19:38.000 a lot of the business goes outside of the World 0:19:38.119 --> 0:19:40.879 Economics Forum. Remit right, it's not in the Congress Center. 0:19:41.000 --> 0:19:43.119 So I guess what we'll see in the Congress Center 0:19:43.640 --> 0:19:46.359 apart from these big policies, speatures maybe a little bit softer, 0:19:47.119 --> 0:19:52.720 and then we're also expecting deals outside. It's quite a circus, yes, 0:19:53.080 --> 0:19:54.280 with a lot of snow this. 0:19:54.280 --> 0:19:57.879 Year, and of course with bag Devil's House, you know, 0:19:57.960 --> 0:20:00.600 with lots of lots of speakers who actually come and 0:20:00.640 --> 0:20:03.440 talk to you and all of our other reporters there. 0:20:04.359 --> 0:20:07.000 Stock markets also are at a high, so I mean 0:20:07.040 --> 0:20:09.280 it comes at a very interesting moment. Are your pit 0:20:09.359 --> 0:20:12.840 stalks of ton incredibly well? Lots of focus on defense 0:20:12.960 --> 0:20:16.879 stocks as well. Geopolitical risks are very high, stock markets 0:20:16.880 --> 0:20:19.720 are very high. So it's kind of quite an interesting moment, 0:20:19.760 --> 0:20:20.200 isn't it. 0:20:20.320 --> 0:20:23.119 Yeah, I'm excited about Bloomberg House because we have a 0:20:23.160 --> 0:20:27.639 lot of the AI tech giants, and so if you 0:20:27.720 --> 0:20:30.280 look at AI, I think there are three main questions 0:20:30.600 --> 0:20:33.399 which we'll try to address. Is first, you know, if 0:20:33.440 --> 0:20:38.000 you look at AGI artificial general intelligence, how far away 0:20:38.040 --> 0:20:40.000 are we from it? How do you actually define it? 0:20:40.040 --> 0:20:43.399 Because it changes depending on who you are. There's of 0:20:43.400 --> 0:20:47.800 course the question about valuations. So if you're a Google 0:20:48.080 --> 0:20:50.800 or an open AI will speak to actually a Daria 0:20:50.880 --> 0:20:53.680 Muday of open AI. I mean, the valuations of these 0:20:53.680 --> 0:20:58.480 companies that the IPO are, They're just massive, and so 0:20:58.520 --> 0:21:01.560 there's a real question on this is all expectations, but 0:21:01.640 --> 0:21:04.440 when do they actually start making money? When do they 0:21:04.480 --> 0:21:08.200 start showing in revenue? And then the other question, which 0:21:08.200 --> 0:21:10.760 I think really filters through the economy, which we haven't 0:21:10.760 --> 0:21:13.359 spent that much time on, is we're hearing the labor 0:21:13.400 --> 0:21:16.120 markets are fine, but I hear more and more chief 0:21:16.160 --> 0:21:18.800 executives saying, look, I'm going to hire a little bit 0:21:18.880 --> 0:21:22.879 less because I have to spend on AI, and AI 0:21:23.000 --> 0:21:26.800 gives me the promise of productivity. So actually trying to 0:21:26.880 --> 0:21:30.840 understand what this means, you know, in six months, ten months, 0:21:30.920 --> 0:21:33.679 but even then two three years for our economies and 0:21:33.760 --> 0:21:36.600 job displacements is something that we would like to put 0:21:36.600 --> 0:21:37.240 the focus on. 0:21:37.680 --> 0:21:40.960 Yeah, interesting, isn't it is that big debate about globalization 0:21:41.160 --> 0:21:44.879 is this and change the end of globalizations as trade 0:21:44.880 --> 0:21:48.240 to trade flows continue versus as you say that maybe 0:21:48.320 --> 0:21:52.199 domestic productivity push and gain from AI. I mean in 0:21:52.240 --> 0:21:55.640 the past, again you slightly alluded to it, but climate 0:21:55.720 --> 0:21:59.560 change and green finance have featured very heavily at divos. 0:22:00.000 --> 0:22:01.760 Do you think that still holds. 0:22:02.119 --> 0:22:05.240