WEBVTT - Bloomberg Businessweek Weekend - September 12th, 2025 0:00:00.320 --> 0:00:07.240 Bloomberg Audio Studios, Podcasts, radio News. 0:00:08.640 --> 0:00:13.000 This is Bloomberg Business Week Daily reporting from the magazine 0:00:13.000 --> 0:00:17.599 that helps global leaders stay ahead with insight on the people, companies, 0:00:17.640 --> 0:00:22.520 and trends shaping today's complex economy. Plus global business, finance 0:00:22.560 --> 0:00:25.880 and tech news as it happens. The Bloomberg Business Week 0:00:25.960 --> 0:00:31.320 Daily Podcast with Carol Masser and Tim Steneveek on Bloomberg Radio. 0:00:32.040 --> 0:00:35.040 Hi, everyone, welcome to the Bloomberg Business Week Weekend podcast. 0:00:35.400 --> 0:00:38.480 Our backdrop this week highlights from the annual future Proof 0:00:38.520 --> 0:00:41.960 Festival in Huntington Beach, California, a gathering of the wealth 0:00:42.000 --> 0:00:46.400 management ecosystem, some three thousand financial advisors, wealth management execs, 0:00:46.400 --> 0:00:49.680 and limited partners more than five thousand attendees in all, 0:00:49.800 --> 0:00:54.280 representing an anticipated twenty trillion dollars in assets under management, 0:00:54.360 --> 0:00:55.080 a lot of money. 0:00:55.360 --> 0:00:58.120 All of this happening against a background of records on 0:00:58.200 --> 0:01:03.720 Wall Street, tighter, Tariff's geopolitical tensions, global governments undergoing leadership changes, 0:01:03.760 --> 0:01:06.560 and more. Of course, investors also getting ready for this 0:01:06.560 --> 0:01:09.480 week's meeting of the Federal Reserve and expected rate cut. 0:01:09.560 --> 0:01:11.520 All right, so the next two hours are going to 0:01:11.520 --> 0:01:15.520 include our conversations from future Proof, including one with Sarah Levy, 0:01:15.840 --> 0:01:19.919 CEO of Betterment Advisor Solutions, on serving the advisor community 0:01:19.959 --> 0:01:23.399 and kind of tim shedding to some extent just the 0:01:23.520 --> 0:01:25.080 roboadvisor image. 0:01:25.160 --> 0:01:27.320 Yeah, I was surprised to hear her say how much 0:01:27.440 --> 0:01:29.520 she's trying to move away from that, because I still 0:01:29.520 --> 0:01:32.199 think of Betterment as like a competitor to Wealth Run 0:01:32.520 --> 0:01:35.600 or Schwab Intelligent Portfolio. Those robo advisors that are like 0:01:35.640 --> 0:01:37.440 set it and forget it. They're trying to move away 0:01:37.440 --> 0:01:37.759 from that. 0:01:37.800 --> 0:01:40.800 They definitely are. We also heard from JP Morgan's Pria 0:01:40.920 --> 0:01:43.720 Misra on could it be one and done for the FED? 0:01:43.959 --> 0:01:45.920 What was the term she used for that cut? The 0:01:46.040 --> 0:01:47.280 cautionary cut. 0:01:47.319 --> 0:01:49.720 Something like that, right, an insurance cut. 0:01:49.720 --> 0:01:51.040 In assurance cut, That's what it is. 0:01:51.520 --> 0:01:53.720 Just do it just in case things are coming undone. 0:01:53.760 --> 0:01:56.800 We'll also hear from Masters in Business host Barry Ridholtz 0:01:57.080 --> 0:02:01.279 about FED independence and black rocks, Jamie Majerra on bringing 0:02:01.320 --> 0:02:05.640 private credit to the retirement class, also a psychologist take 0:02:05.720 --> 0:02:08.799 on investing some numbers too to back it all up. 0:02:08.680 --> 0:02:11.240 Get to put emotions to the side. First up, we 0:02:11.280 --> 0:02:13.440 start with the event itself and what future Proof is 0:02:13.560 --> 0:02:16.440 all about. Matt Middleton is the creator and CEO. 0:02:16.919 --> 0:02:19.600 We all grow up my personal experience into the into 0:02:19.639 --> 0:02:23.919 the industry of its conformity. Right, it's you know, talk 0:02:24.000 --> 0:02:26.200 this way, walk this way, dressed like this, act that way. 0:02:26.200 --> 0:02:27.320 If you want to get in that room, this is 0:02:27.400 --> 0:02:30.200 what you have to be. And really, what we're representing 0:02:30.240 --> 0:02:33.120 here is a shift, right, It's a it's a mindset shift, 0:02:33.120 --> 0:02:35.720 it's a generational shift. And what we're seeing is that 0:02:35.800 --> 0:02:40.239 people with real buying power, real influence and assets want 0:02:40.240 --> 0:02:42.840 to actually break up of the status quo. And this 0:02:42.919 --> 0:02:45.840 is a represent a representation of that new industry which 0:02:45.880 --> 0:02:47.320 is not just casual attire. 0:02:47.360 --> 0:02:49.680 Obviously, we're here on and we feel a. 0:02:49.639 --> 0:02:51.560 Little dressed up here, I said earlier. The only one 0:02:51.560 --> 0:02:52.400 you're wearing a suit. 0:02:52.480 --> 0:02:54.040 I know this first timer. That's why. 0:02:54.440 --> 0:02:57.200 That's if you can tell who the first tree. 0:02:57.639 --> 0:03:00.480 But but it is, it's it's mostly about the experience 0:03:00.520 --> 0:03:03.840 here and people connecting. And the industry is better when 0:03:03.840 --> 0:03:07.000 we all connect versus siloing out. And so our hope 0:03:07.040 --> 0:03:09.480 is here is not just to define it as wealth management, 0:03:09.560 --> 0:03:11.680 not to define it as ask management or fintech. It's 0:03:11.720 --> 0:03:15.240 to bring everyone together from all job levels across all 0:03:15.280 --> 0:03:17.680 functions and give them the tools that they have to 0:03:17.720 --> 0:03:20.280 meet a network to see how to build a better business. 0:03:20.360 --> 0:03:22.760 One thing that I noticed about this conference that I've 0:03:22.840 --> 0:03:26.640 never seen before is for a small fee, you can 0:03:26.680 --> 0:03:29.919 bring your partner, meaning your husband, your wife, your boyfriend, 0:03:29.919 --> 0:03:33.080 your girlfriend, your significant other. I've never seen that before. 0:03:33.120 --> 0:03:34.360 What's the thinking behind us? 0:03:34.960 --> 0:03:37.320 Well, personally, obviously I'm an entrepreneur, and you know, I 0:03:37.360 --> 0:03:39.080 always laugh when I have these conversations. 0:03:39.120 --> 0:03:40.920 Everyone's like, what's the vision? What do you do this? 0:03:41.040 --> 0:03:43.200 You know, how do you manage it? You're acquired this business, 0:03:43.240 --> 0:03:44.280 and it's like. 0:03:44.800 --> 0:03:46.640 My co founder is my wife, right at the end 0:03:46.640 --> 0:03:48.280 of the day, it's it's who you have at home, 0:03:48.400 --> 0:03:50.680 to people that are on that journey with you that 0:03:50.760 --> 0:03:53.080 kind of wear all of that. And so part of 0:03:53.120 --> 0:03:56.200 that view is one we're in this beautiful setting, right, 0:03:56.200 --> 0:03:58.480 it should feel like a destination and a vacation to 0:03:58.520 --> 0:04:00.960 some sorts, but also it's a lot until you get 0:04:00.960 --> 0:04:03.400 your spouses to experience what the industry is like, meet 0:04:03.400 --> 0:04:05.760 your clients, meet your partners, and again, I think if 0:04:05.800 --> 0:04:08.400 they are more exposed to it, they'll understand it more. 0:04:08.440 --> 0:04:10.360 And that's a representation of what we're trying to do here, 0:04:10.400 --> 0:04:12.320 which is, if we could get this event to a 0:04:12.360 --> 0:04:15.320 large enough scale and get national attention with the help 0:04:15.320 --> 0:04:17.359 of you all, well maybe some people on the you know, 0:04:17.400 --> 0:04:19.240 the general public will start to look at it and say, oh, 0:04:19.320 --> 0:04:22.160 what is this? Right, They'll scroll through Instagram and it's like, oh, 0:04:22.160 --> 0:04:23.760 I see Coachila and my friends and this is very 0:04:23.960 --> 0:04:26.280 it's a cultural movement. And then the next scroll they're 0:04:26.279 --> 0:04:27.560 scrolling and they're seeing future. 0:04:27.320 --> 0:04:28.320 People like, oh, this is great. 0:04:28.320 --> 0:04:31.080 What is a wealth management conference? This is interesting? What 0:04:31.160 --> 0:04:33.920 is wealth management? And we could expose them to more 0:04:33.960 --> 0:04:35.800 of it? And so it's a little bit of one. 0:04:35.839 --> 0:04:37.920 We want to make a family oriented and the other 0:04:37.960 --> 0:04:39.640 side of it is we want to change the narrative 0:04:39.640 --> 0:04:40.760 and the optics of our industry. 0:04:40.800 --> 0:04:42.280 But do you also think about I thought I read 0:04:42.320 --> 0:04:43.880 somewhere too that you want to kind of cap how 0:04:43.880 --> 0:04:45.800 many people are here, because we've certainly been to lots 0:04:45.800 --> 0:04:48.400 of conferences where it just goes like thousands and thousands 0:04:48.400 --> 0:04:50.520 and thousands of people and tons and tons of booths 0:04:50.560 --> 0:04:52.880 and it's almost overwhelming, and I'm not quite sure what 0:04:52.880 --> 0:04:53.480 the takeaway is. 0:04:53.560 --> 0:04:55.919 Yeah, So it's two parts, right, One is, yes, that 0:04:56.000 --> 0:04:56.280 is true. 0:04:56.320 --> 0:04:58.320 When you get a large crowd, the word that always 0:04:58.320 --> 0:05:00.600 comes out as boondoggle, right, and you have no people 0:05:00.640 --> 0:05:03.320 get lost, you're drinking from a viro hose. We use 0:05:03.400 --> 0:05:06.160 proprietary event technology so break through what you see this 0:05:06.200 --> 0:05:10.040 big ten here to allow people to connect in meaningful ways. 0:05:10.120 --> 0:05:12.640 And the goal there is you go into the event, 0:05:12.760 --> 0:05:15.200 So three weeks before the event, you basically are making 0:05:15.240 --> 0:05:17.719 connections and guaranteeing certain meetings. So you have one to 0:05:17.720 --> 0:05:19.920 one meetings, you have roundtable discussions, you have all these 0:05:19.920 --> 0:05:22.680 different booth activities. These are all pre scheduled, so it's 0:05:22.680 --> 0:05:26.880 not serendipity happen. So you could create a large scale experience, 0:05:27.000 --> 0:05:30.600 multi thousand person experience, and create a unique agenda and 0:05:30.640 --> 0:05:33.839 a unique networking plan for one specific role or person. 0:05:34.120 --> 0:05:36.239 And that's the benefit of what we do. The second 0:05:36.320 --> 0:05:38.240 side to that is we do want to cap this 0:05:38.400 --> 0:05:41.160 because there's a magic size here, and we believe that's 0:05:41.200 --> 0:05:44.200 around five thousand people. One. We're in four hotels in 0:05:44.240 --> 0:05:47.000 Huntington Beach, we have ten hotels in Newport Beach. People 0:05:47.040 --> 0:05:49.599 staying in Irvine, there's people staying forty minutes away. So 0:05:49.680 --> 0:05:52.040 at some point even if we can't control it. Their 0:05:52.080 --> 0:05:54.200 experience is going to be different than everyone here, and 0:05:54.240 --> 0:05:56.719 so we decided that there's a limit to what we 0:05:56.720 --> 0:05:57.280 want to do here. 0:05:57.640 --> 0:06:01.440 I did see this idea of you know, growth and 0:06:01.480 --> 0:06:04.160 bringing people. I did notice that pretty much everything is branded, 0:06:04.160 --> 0:06:08.000 they're sponsors everywhere. From the perspective ABYSS as a business 0:06:08.600 --> 0:06:11.120 in terms of revenue, is your biggest revenue source still 0:06:11.160 --> 0:06:12.560 tickets or is it sponsorships? 0:06:12.560 --> 0:06:15.080 Now it's it's always sponsorships. 0:06:15.200 --> 0:06:17.040 So how much bigger is that than tickets? 0:06:17.320 --> 0:06:21.480 It's probably seventy thirty ratio. 0:06:22.560 --> 0:06:25.000 We also monetize all these different connection points, so again 0:06:25.080 --> 0:06:27.120 using the technology, right, a lot of these meetings that 0:06:27.120 --> 0:06:28.479 you see, there's somewhere peer to peer. 0:06:28.720 --> 0:06:29.640 Others are you know. 0:06:29.600 --> 0:06:33.240 Buyer seller, and so there's different ways to monetize events 0:06:33.240 --> 0:06:35.520 that we've kind of broken one. It's a different format 0:06:35.920 --> 0:06:38.599 right too. It's the technology allows us to do things 0:06:38.600 --> 0:06:43.160 differently than most other events. But yeah, the idea here 0:06:43.320 --> 0:06:46.680 is like events should be about the community and shouldn't 0:06:46.720 --> 0:06:49.080 just treat the attendees as a product, which is unfortunately 0:06:49.160 --> 0:06:50.880 how it typically happens when you have these booths and 0:06:50.880 --> 0:06:52.960 everyone's trying to pitch and Wheel and so you see 0:06:53.000 --> 0:06:54.640 people that you see a lot of the big brands 0:06:54.640 --> 0:06:56.080 that you see at other events, but they're showing up 0:06:56.080 --> 0:06:58.800 differently here and it's meaningful. They get better ROI and 0:06:58.839 --> 0:06:59.520 the attendees have. 0:06:59.480 --> 0:07:02.680 Better experience our thanks to Matt Middleton, founder and CEO 0:07:02.920 --> 0:07:03.760 of future Proof. 0:07:03.880 --> 0:07:06.719 Also joining us at Futureproof in Huntington Beach this past 0:07:06.720 --> 0:07:10.760 week Sarah kirshbaum Levy. She's the CEO of Betterment, formerly 0:07:10.880 --> 0:07:13.040 chief operating officer at Nickelodeon. 0:07:13.240 --> 0:07:16.240 We didn't talk SpongeBob, maybe we will next time, but 0:07:16.280 --> 0:07:18.679 we did talk a lot about Betterment's robo advisor tool 0:07:19.400 --> 0:07:22.000 and how they're trying to move away from that as 0:07:22.000 --> 0:07:22.600 an image. 0:07:22.720 --> 0:07:24.840 So we're now fifteen years old, we have a million 0:07:24.880 --> 0:07:28.800 customers and we have sixty three billion in assets center management, 0:07:28.880 --> 0:07:32.360 and the Advisor Solutions product is we are an all 0:07:32.400 --> 0:07:34.720 in one custodian for the modern Ria. 0:07:35.120 --> 0:07:35.960 So what does that mean. 0:07:36.280 --> 0:07:39.960 It means we're custody, we're portfolio management, and we have 0:07:40.000 --> 0:07:41.280 an integrated billing solution. 0:07:41.840 --> 0:07:44.080 Do those things work in conflict with one another in 0:07:44.080 --> 0:07:46.800 the sense of like, Okay, well you're offering this this 0:07:46.920 --> 0:07:52.040 robo advisor service. People who use that wouldn't necessarily have advisors. 0:07:52.280 --> 0:07:55.880 So I've tried to shed that those robo roots. I 0:07:55.920 --> 0:07:59.880 think they actually are incredibly aligned. And when we first start, 0:08:00.040 --> 0:08:01.960 well when the business first started, it predates me because 0:08:01.960 --> 0:08:04.400 I've been here about five years, but fifteen years ago 0:08:04.480 --> 0:08:05.840 I think there was a fear. 0:08:05.600 --> 0:08:07.320 Of that from the advisor community. 0:08:07.560 --> 0:08:10.000 But the reality is what we did as a business 0:08:10.080 --> 0:08:12.880 is we use technology to lower the barrier to entry 0:08:12.920 --> 0:08:17.680 for young investors. Right, so, clients that advisors wouldn't want 0:08:17.720 --> 0:08:19.920 to spend time with because they didn't have enough assets 0:08:20.000 --> 0:08:23.560 under management to really you know, be worth their time. Honestly, 0:08:24.120 --> 0:08:25.240 the technology could do it. 0:08:25.280 --> 0:08:26.280 And what we've done. 0:08:26.360 --> 0:08:30.680 Is we've basically started folks on their investing journey in 0:08:31.160 --> 0:08:35.120 you know, started folks with good habits, right diversification, low cost, 0:08:35.600 --> 0:08:38.080 low taxes, like that's really what you want to do 0:08:38.200 --> 0:08:42.200 early on, not day trading. And those folks grow into 0:08:42.280 --> 0:08:45.600 really really great advised clients, and we have an ability to, basically, 0:08:45.640 --> 0:08:49.040 as they grow with us, bring them on to the advisors. 0:08:49.160 --> 0:08:53.000 How is technology and changing demographics really impacting you guys. 0:08:53.240 --> 0:08:55.120 Well, technologies at the heart of what we do. I 0:08:55.120 --> 0:08:58.520 think fundamentally, we are a technology solution. We're a fintech 0:08:58.559 --> 0:08:59.959 company that is. 0:09:00.080 --> 0:09:02.480 But changing technology and AI and all that, like, yeah, 0:09:02.559 --> 0:09:03.600 that's makes soot. 0:09:03.920 --> 0:09:07.280 It's it's interesting because AI has come on the scene 0:09:07.440 --> 0:09:10.440 faster than anything we've ever seen. We just released a 0:09:10.559 --> 0:09:14.120 survey asking advisors how they're using a IAI Are they 0:09:14.200 --> 0:09:17.240 worried about AI? And they're sort of a paradox in there, 0:09:17.320 --> 0:09:20.120 which is yes and yes, which is they're all using it, 0:09:20.280 --> 0:09:22.960 and they're also all terrified that their clients are going 0:09:23.040 --> 0:09:24.640 to use it and that they're going to be replaced. 0:09:24.640 --> 0:09:25.160 Are right? 0:09:26.080 --> 0:09:27.600 I think they're right to some extent. 0:09:27.920 --> 0:09:30.880 We saw actually an incredible shift in just one year. 0:09:31.360 --> 0:09:36.280 The source of advice that that young clients are seeking 0:09:36.760 --> 0:09:39.200 was via social media and is now AI within the 0:09:39.240 --> 0:09:41.720 course of just a year, which amazing, And so I think, yes, 0:09:41.760 --> 0:09:43.640 they're right to be, you know, to be worried. But 0:09:43.720 --> 0:09:45.520 at the end of the day, an advisor relationship is 0:09:45.559 --> 0:09:48.080 a human relationship and it's a relationship and that's the 0:09:48.120 --> 0:09:51.360 important word. And I think technology can really supercharge that. 0:09:51.679 --> 0:09:54.480 So the smart advisors are saying, how do I embrace 0:09:54.520 --> 0:09:57.360 it and how do I have it make me better, stronger, faster, 0:09:57.640 --> 0:09:58.040 one other. 0:09:58.440 --> 0:10:00.360 Uh, there's the survey is huge in One of the 0:10:00.360 --> 0:10:03.560 results that struck me was the optimism that the arias 0:10:03.640 --> 0:10:06.600 right now are feeling about the economy. We've spoken about 0:10:06.600 --> 0:10:08.199 this over the last two hours. Here. There seems to 0:10:08.200 --> 0:10:09.839 be an opt optimism here. I don't know if it's 0:10:09.840 --> 0:10:12.600 the sun shining and the waves crashing right there that's 0:10:12.679 --> 0:10:15.400 leading to that enable the people playing pickleball and surfing 0:10:15.440 --> 0:10:18.640 over there, but there's a lot that we talk about 0:10:18.640 --> 0:10:22.120 each and every day that seems to be stressing people out. 0:10:22.880 --> 0:10:24.199 Rias are pretty optimistic. 0:10:24.320 --> 0:10:26.360 Well, I think a lot of it is time horizon. 0:10:26.440 --> 0:10:28.160 I mean when we think about even when we look 0:10:28.160 --> 0:10:30.640 at the different groups of rias, when you think about 0:10:30.679 --> 0:10:33.960 the different generations, right, the younger generations have a really 0:10:33.960 --> 0:10:37.320 long time horizon, and so they're thinking about retirement. 0:10:37.640 --> 0:10:37.720 Right. 0:10:37.800 --> 0:10:39.520 There's a lot of times to plan for your future. 0:10:39.559 --> 0:10:42.320 So some of the volatility that we're experiencing now and 0:10:42.360 --> 0:10:43.880 some of the you know what's going to happen in 0:10:43.920 --> 0:10:45.920 the economy in the next twenty four months, these are 0:10:45.960 --> 0:10:49.000 investing journeys and rias are thinking about a much longer 0:10:49.040 --> 0:10:52.000 time horizon, and so I think they're clients who are 0:10:52.000 --> 0:10:54.960 most worried are the ones who are in retirement, entering retirement. 0:10:55.000 --> 0:10:56.560 You know what's going to happen to my nest egg. 0:10:56.880 --> 0:10:59.439 But a lot of the clients we serve, we're more 0:10:59.440 --> 0:11:02.839 a segmentation play for the big arias who put their 0:11:02.880 --> 0:11:05.520 next generation clients with us, Ones who want a more 0:11:05.520 --> 0:11:09.520 delightful user experience, ones who maybe don't want to talk 0:11:09.559 --> 0:11:11.520 to the advisor quite as much, they'd like to do 0:11:11.559 --> 0:11:15.920 a little more self service. That's really the customer we serve. Ultimately, 0:11:16.920 --> 0:11:18.160 What in terms of types. 0:11:17.960 --> 0:11:20.200 Of investment, Sarah, do you find that those on the 0:11:20.200 --> 0:11:22.440 platform are increasingly want to know about. I feel like 0:11:22.600 --> 0:11:25.880 for years all we talked about was crypto. I'm just 0:11:25.960 --> 0:11:28.640 curious what it is that people are like, wait, I 0:11:28.679 --> 0:11:31.000 want to be able to do this on your platform. 0:11:31.080 --> 0:11:34.960 Well, so our platform started as really a great ETF 0:11:35.080 --> 0:11:37.640 solution on the theory that you know, ETFs is where 0:11:37.679 --> 0:11:40.640 the average investor should be, and we actually attracted rias 0:11:40.760 --> 0:11:44.280 who were primarily building ETF portfolios and as an RIA, 0:11:44.360 --> 0:11:47.560 you can build custom portfolios on our platform. There's also 0:11:47.600 --> 0:11:52.280 model portfolios available. We read more recently introduced mutual funds 0:11:52.320 --> 0:11:56.640 and then last up single stocks. We are actually complementing 0:11:56.679 --> 0:12:00.200 that with some self directed and advisor directed investing, which 0:12:00.200 --> 0:12:03.080 is coming imminently because I think the biggest change we've 0:12:03.080 --> 0:12:05.760 seen is there used to be clients either who want 0:12:05.760 --> 0:12:07.880 a self direct or who want a set it and 0:12:07.920 --> 0:12:10.360 forget it managed portfolio, and now what we're seeing is 0:12:10.360 --> 0:12:12.679 that there's much more of a blending, which is people 0:12:12.679 --> 0:12:14.679 want a little bit of agency with some part of 0:12:14.720 --> 0:12:17.760 their wealth, and then they want some of it in diversified, 0:12:17.920 --> 0:12:20.040 long term, globally diversified position. 0:12:20.160 --> 0:12:21.520 So wait, where does the crypto fit in? 0:12:22.520 --> 0:12:24.720 Well, we you know, interestingly, in twenty twenty one, we 0:12:24.720 --> 0:12:27.960 actually bought a small crypto company and we did diversified 0:12:27.960 --> 0:12:31.000 crypto portfolios and what we found is that the advisors 0:12:31.000 --> 0:12:33.120 shied away from it on the on the advisor solution 0:12:33.280 --> 0:12:37.080 side and on the retail side. Our audience wanted bitcoin 0:12:37.080 --> 0:12:39.240 and ethereum, but didn't want much else. A lot of 0:12:39.240 --> 0:12:41.120 it was and maybe that speaks to who our customer 0:12:41.160 --> 0:12:41.800 segment is. 0:12:41.840 --> 0:12:42.440 More than anything. 0:12:42.520 --> 0:12:45.760 We're not a gamified crowd right where we really do 0:12:45.840 --> 0:12:48.280 attract the long term mindset investor. 0:12:48.520 --> 0:12:51.520 That was Sarah kirschbaumd Levy, CEO of Betterman joining us 0:12:51.600 --> 0:12:53.079 on site at future Proof. 0:12:53.320 --> 0:12:56.040 Coming up, He's an Apple bull and now he's sharing 0:12:56.080 --> 0:12:59.600 a company hoarding a sam Altman linked cryptocurrency. 0:13:00.040 --> 0:13:02.800 We're talking about Dan Ives. He's Next is our coverage 0:13:02.800 --> 0:13:06.119 from future Proof twenty twenty five in Huntington Beach, California. Continues, 0:13:06.480 --> 0:13:07.559 This is Bloomberg. 0:13:12.640 --> 0:13:16.600 You're listening to the Bloomberg Business Weekdaily Podcast. Catch us 0:13:16.720 --> 0:13:20.160 live weekday afternoons from two to five pm Eastern Listen 0:13:20.200 --> 0:13:23.760 on Apple CarPlay and Android Auto with the Bloomberg Business app, 0:13:23.920 --> 0:13:25.720 or watch us live on YouTube. 0:13:26.360 --> 0:13:28.720 We continue with highlights from our coverage this past week 0:13:28.720 --> 0:13:31.559 in the future Proof Festival from Huntington Beach, California. And 0:13:31.600 --> 0:13:33.680 I gotta say, I know we said it a lot 0:13:33.720 --> 0:13:35.920 on air, but man, it was so nice doing a 0:13:35.960 --> 0:13:39.240 financial conference on the beach. We could see the ocean, 0:13:39.400 --> 0:13:42.600 the wind blowing. It definitely had a different feel. 0:13:42.760 --> 0:13:44.679 Yeah, you and I go to a lot of conferences. 0:13:44.760 --> 0:13:48.160 Most of those, if not all, are actually indoors. I mean, 0:13:48.200 --> 0:13:50.840 even something like the Milkin Institute Global Conference, which is 0:13:50.880 --> 0:13:54.400 in Beverly Hills, another part of the country right there, 0:13:54.440 --> 0:13:57.800 just north of Huntington Beach that actually has perfect weather 0:13:58.000 --> 0:14:01.560 year round, so they could do it outside. But there's 0:14:01.559 --> 0:14:04.880 something unique about having a festival that is literally on 0:14:04.960 --> 0:14:07.680 a parking lot next to the beach. You're in the 0:14:07.720 --> 0:14:08.560 sand for some of it. 0:14:08.800 --> 0:14:10.640 Yeah, no, you absolutely are. It would be really funny 0:14:10.640 --> 0:14:12.440 because I was walking and I was like emptying my shoes. 0:14:12.480 --> 0:14:13.960 Once I got home, I'm like, oh, a little sand 0:14:13.960 --> 0:14:17.000 in there. It's a casual feel, and there's people running 0:14:17.040 --> 0:14:19.480 into each other. They're dressed casually. I mean you even 0:14:19.640 --> 0:14:21.640 wore shorts and flip flops. 0:14:21.320 --> 0:14:21.960 The second day. 0:14:22.080 --> 0:14:24.120 The second day, the second day on air, I mean, 0:14:25.200 --> 0:14:27.800 but it's just there is and it's about setting up 0:14:27.840 --> 0:14:33.880 meetings and conversations. I mean, there were rias right that said, listen, 0:14:33.960 --> 0:14:36.920 this is the only investment financial conference I go to. 0:14:37.080 --> 0:14:38.720 This is the one that really makes sense for me. 0:14:38.760 --> 0:14:40.800 And I thought that was really kind of telling, considering 0:14:41.040 --> 0:14:42.480 there are many many out there. 0:14:42.600 --> 0:14:45.680 The tone also very bullish from really pretty much everyone 0:14:45.720 --> 0:14:48.520 we spoke to, and I'm wondering to what extent that's 0:14:48.640 --> 0:14:52.600 because financial advisors are inherently optimistic. They kind of need 0:14:52.640 --> 0:14:55.200 to be that way for clients who call when they're 0:14:55.200 --> 0:14:58.680 nervous and sort of calm them, or because the festival 0:14:58.760 --> 0:15:01.720 vibe was like that, or if they're actually feeling like, Okay, 0:15:02.080 --> 0:15:04.520 we're not so concerned about the impact of tariffs. We 0:15:04.520 --> 0:15:06.560 think the FED is moving in the right direction, and 0:15:06.800 --> 0:15:08.560 even though we're starting to see some cracks in the 0:15:08.640 --> 0:15:11.320 labor market and the economy, things are pretty good still. 0:15:11.480 --> 0:15:13.240 I think it's interesting that you said that, because I 0:15:13.280 --> 0:15:16.440 did still hear the word uncertainty used an awful lot, 0:15:16.480 --> 0:15:19.240 and I was kind of maybe surprised by that because 0:15:19.280 --> 0:15:21.720 there are some things that we know. We've had a 0:15:21.760 --> 0:15:25.840 massive spending and tax package passed by the President, We've 0:15:25.840 --> 0:15:28.920 had some other moves. We've seen tariffs already set for 0:15:28.960 --> 0:15:31.240 a lot of countries, so we know we're in a 0:15:31.320 --> 0:15:33.840 higher tariff environment. So I think it's kind of interesting 0:15:33.840 --> 0:15:35.400 that there are some things that have been set and 0:15:35.480 --> 0:15:39.960 yet many still said there's uncertainty out there about kind 0:15:40.000 --> 0:15:41.560 of what comes next, and not. 0:15:41.560 --> 0:15:44.920 The uncertainty around what SPF to use thirty or or twenty. 0:15:45.040 --> 0:15:46.640 When you're out there on that, I can't believe. 0:15:46.440 --> 0:15:47.040 You went there. 0:15:48.200 --> 0:15:51.360 No, it's a really interesting environment. You're right, it's not 0:15:51.400 --> 0:15:52.960 like a lot of people were using the R word. 0:15:53.000 --> 0:15:55.640 They weren't talking about recession. But we are going in 0:15:55.640 --> 0:15:58.160 this interesting period with a FED meeting this coming week 0:15:58.200 --> 0:16:00.360 and a FED decision, and then we're in kind of 0:16:00.400 --> 0:16:02.560 a period where we won't hear from companies in terms 0:16:02.600 --> 0:16:04.720 of earnings, and that won't start till January. 0:16:04.840 --> 0:16:06.800 Well, one company that we did hear from this past 0:16:06.840 --> 0:16:09.480 week is Apple, the company holding its biggest product launch 0:16:09.480 --> 0:16:12.360 event of the year this past week, ushering in four 0:16:12.400 --> 0:16:16.640 new iPhone models, including its thinnest ever iPhone, an end 0:16:16.640 --> 0:16:19.720 to end refresh of its smart watch lineup, and updated 0:16:19.800 --> 0:16:22.760 air pods. Someone who watches the company very closely, as 0:16:22.760 --> 0:16:25.600 web Bush's global head of Technology Research, Dan ives Dan 0:16:25.680 --> 0:16:28.280 joined us from future Proof to talk Apple AI plus 0:16:28.360 --> 0:16:32.120 becoming chair of a crypto treasury company that had a 0:16:32.200 --> 0:16:34.960 really big day this past week. You and the team 0:16:34.960 --> 0:16:37.080 at webush has to make their three hundred and fifteen 0:16:37.120 --> 0:16:40.560 million folks out there who are ready to upgrade their iPhones. 0:16:40.640 --> 0:16:43.000 Is the seventeam gonna get them to upgrade? Look, I 0:16:43.000 --> 0:16:44.760 think it's going to move the needle. I mean, I 0:16:44.800 --> 0:16:48.200 think especially in China, there's definitely what I to pin 0:16:48.320 --> 0:16:51.840 up demand. I think street numbers continue to be pretty 0:16:52.040 --> 0:16:55.360 conservative to maybe low and that's a great setup. Look, 0:16:55.400 --> 0:16:57.240 the reality is that this is not going to be 0:16:57.320 --> 0:17:00.680 a super cycle. There's nothing here there makes you think 0:17:00.720 --> 0:17:03.560 that this is gonna be the game change that everyone's 0:17:03.560 --> 0:17:06.800 been waiting for. But I do believe given the install base, 0:17:07.080 --> 0:17:10.320 given some of the tweaks here, and ultimately on the 0:17:10.800 --> 0:17:13.200 on sort of the second half of this upgrade cycle, 0:17:13.280 --> 0:17:16.520 you will have an AI driven ecosystem. 0:17:16.560 --> 0:17:19.520 I believe it will be Google Gemini. This could be 0:17:19.560 --> 0:17:23.159 a sneaky upgrade cycle that I think surprises investors on 0:17:23.200 --> 0:17:26.760 the upside. What do you mean because right now, expectations 0:17:26.880 --> 0:17:30.480 New York City cab drivers barrish on Apple, and I 0:17:30.520 --> 0:17:32.880 think that what I like about the setup is it's 0:17:32.920 --> 0:17:34.600 all about it's kind of left behind. 0:17:34.600 --> 0:17:34.719 Now. 0:17:34.720 --> 0:17:37.679 A lot of that's been self inflicted because every Apple 0:17:37.760 --> 0:17:40.399 event feels like it's a I feel like Michael J. 0:17:40.520 --> 0:17:43.480 Fox and back to the future, you know. So there they. 0:17:43.359 --> 0:17:45.760 Continue to be left behind AI, but now with the 0:17:45.800 --> 0:17:49.760 Google DOJ issue in the rear view, they will double 0:17:49.840 --> 0:17:52.840 down ultimately that Gemini partnership. And when you look at 0:17:52.840 --> 0:17:56.760 the install base, I think that I think Street is 0:17:56.880 --> 0:18:00.920 underestimating what numbers look like for iPhone When you look 0:18:00.960 --> 0:18:04.399 out over the next six, nine, twelve months, and I 0:18:04.440 --> 0:18:07.560 think in big tech, I view Apple from a sentiment 0:18:07.640 --> 0:18:09.919 perspective relative to where I viewed Alphabet. 0:18:10.240 --> 0:18:12.440 Maybe about six months ago. 0:18:12.840 --> 0:18:15.439