1 00:00:03,480 --> 00:00:06,760 Speaker 1: From the heart of where innovation, money and power CALLI 2 00:00:07,600 --> 00:00:12,119 Speaker 1: in Silicon Valley and beyond. This is Bloomberg Technology with 3 00:00:12,200 --> 00:00:28,000 Speaker 1: Emily Jay. I'm Caroline Hyde in New York in for 4 00:00:28,080 --> 00:00:30,680 Speaker 1: Emily Chang, and this is Bloomberg Technology coming up in 5 00:00:30,680 --> 00:00:33,760 Speaker 1: the next hour. Jumping's power grabs over in Beijing, but 6 00:00:33,760 --> 00:00:36,239 Speaker 1: it led to a historic route in tech stox globally, 7 00:00:36,400 --> 00:00:38,400 Speaker 1: equities had their worst day in Hong Kong, for example, 8 00:00:38,440 --> 00:00:41,840 Speaker 1: since two thousand and eight financial crisis. How will tech 9 00:00:41,960 --> 00:00:46,519 Speaker 1: navigate this new era? Plus a huge earnings week? Alphabet, Amazon, Apple, 10 00:00:46,640 --> 00:00:49,360 Speaker 1: matter to name, but a few will break down what 11 00:00:49,479 --> 00:00:53,840 Speaker 1: to expect and after Washington's moved to reclassify gig workers, 12 00:00:53,880 --> 00:00:57,200 Speaker 1: what happens to Uber to Go Pass. Of course, the 13 00:00:57,200 --> 00:00:59,760 Speaker 1: Silicon Valley, we dive into the fifteen billion dollar delivery 14 00:01:00,040 --> 00:01:03,240 Speaker 1: arcket that's on the brink. We'll get into all of 15 00:01:03,240 --> 00:01:05,120 Speaker 1: those stories in a moment, but first let's get you 16 00:01:05,200 --> 00:01:08,080 Speaker 1: up to speed with the relationship going forward between US 17 00:01:08,240 --> 00:01:10,039 Speaker 1: China what it means to some of those companies that 18 00:01:10,080 --> 00:01:12,160 Speaker 1: try to cross that rubicon. Let's talk about it all 19 00:01:12,200 --> 00:01:14,760 Speaker 1: now on the impact of the changes in China and 20 00:01:14,800 --> 00:01:17,040 Speaker 1: particularly let's look at the chip sector, and with one 21 00:01:17,080 --> 00:01:19,880 Speaker 1: at Debbie Wu Broomberg's who's usually based in Taipei. We 22 00:01:19,920 --> 00:01:22,240 Speaker 1: are so thankful that's just right now in the United 23 00:01:22,319 --> 00:01:24,920 Speaker 1: States and your expertise here, Debbie, at this moment with 24 00:01:25,200 --> 00:01:28,320 Speaker 1: companies such as TSMC trying to navigate this new world 25 00:01:28,440 --> 00:01:31,680 Speaker 1: order of the relationship that is disintegrating between China and 26 00:01:31,720 --> 00:01:35,520 Speaker 1: the United States, and and an international investor that worries 27 00:01:35,800 --> 00:01:38,920 Speaker 1: what on earth this new consolidation of power means for 28 00:01:39,000 --> 00:01:41,240 Speaker 1: companies trying to work their way around just talk us, 29 00:01:41,240 --> 00:01:43,880 Speaker 1: for example, through your breaking news story you had over 30 00:01:43,880 --> 00:01:47,160 Speaker 1: the weekend of what TSMC is trying to do. So 31 00:01:48,080 --> 00:01:51,120 Speaker 1: we have seen that needs said that for US export 32 00:01:51,120 --> 00:01:54,840 Speaker 1: control rules have impact not just on American firms but 33 00:01:54,920 --> 00:01:59,920 Speaker 1: also well foreign companies that have business relationship with China's 34 00:02:00,040 --> 00:02:03,520 Speaker 1: of what we reported over the weekend is that t 35 00:02:03,720 --> 00:02:07,200 Speaker 1: s m C has stopped production for this Chinese AI chip. 36 00:02:07,280 --> 00:02:12,359 Speaker 1: Stop bearing because based on public domain information that Bearings 37 00:02:12,400 --> 00:02:16,560 Speaker 1: products actually outperform and medias A one hundred chips which 38 00:02:16,560 --> 00:02:19,560 Speaker 1: is now banned for the Chinese market. So it's really 39 00:02:19,600 --> 00:02:23,080 Speaker 1: interesting to see that the foreign companies now I also 40 00:02:23,160 --> 00:02:26,720 Speaker 1: have to follow the US rules like they did back 41 00:02:26,919 --> 00:02:30,520 Speaker 1: a couple of years ago when the US blacklisted Huawei. 42 00:02:30,840 --> 00:02:33,160 Speaker 1: So a lot of companies are kind of their business 43 00:02:33,160 --> 00:02:37,040 Speaker 1: ties with UH Huawei. And then what's happening now is 44 00:02:37,080 --> 00:02:41,920 Speaker 1: also UH companies are sort of tightening China's access to 45 00:02:42,040 --> 00:02:45,320 Speaker 1: layer technologies or their products. And we have seen all 46 00:02:45,360 --> 00:02:49,919 Speaker 1: the Dutch equipment supplier SML also told it's US based 47 00:02:49,960 --> 00:02:55,119 Speaker 1: staff to UH hold their services to Chinese customers due 48 00:02:55,160 --> 00:02:59,600 Speaker 1: to a listen new US regulations restricting US persons from 49 00:03:00,000 --> 00:03:05,119 Speaker 1: open without China's chip industry. Given the news that uphended 50 00:03:05,160 --> 00:03:08,519 Speaker 1: the market, that this consolidation of power in China, that's 51 00:03:08,600 --> 00:03:12,960 Speaker 1: focus on well perhaps moving away from such growth tech names, 52 00:03:13,000 --> 00:03:14,919 Speaker 1: the fact that we saw Ali Baba for so much, 53 00:03:14,960 --> 00:03:16,640 Speaker 1: But what does that mean for the chip sector? Do 54 00:03:16,639 --> 00:03:21,480 Speaker 1: you think, Debbie at the moment, So, following the US 55 00:03:21,480 --> 00:03:24,840 Speaker 1: announcement of this new set of rules, chip stocks have 56 00:03:25,120 --> 00:03:29,639 Speaker 1: plummeted and we have seen the Fildelphia Stock Exchange Semiconductor 57 00:03:29,720 --> 00:03:32,639 Speaker 1: index fallen up more than four the percent this year, 58 00:03:32,720 --> 00:03:35,119 Speaker 1: partly due to of the new curves and partly due 59 00:03:35,160 --> 00:03:38,880 Speaker 1: to the growing head winds in the chip sector. So 60 00:03:38,960 --> 00:03:41,600 Speaker 1: I mean it is going to be quite challenging for 61 00:03:41,680 --> 00:03:46,920 Speaker 1: the chip companies to navigate this UH growing up, weakening 62 00:03:46,960 --> 00:03:52,560 Speaker 1: demand amid high inflat high inflation environment and also potential 63 00:03:52,640 --> 00:03:56,200 Speaker 1: recessions UH and also given the reflections for their business 64 00:03:56,280 --> 00:03:58,720 Speaker 1: in China, I think it's going to be quite challenging. 65 00:03:58,800 --> 00:04:02,600 Speaker 1: So we're here more about this ub with Texas Instruments 66 00:04:02,600 --> 00:04:06,080 Speaker 1: and Intel giving their are earnings and also forecast later 67 00:04:06,200 --> 00:04:10,720 Speaker 1: this week and therefore going forward. Are people starting to 68 00:04:10,760 --> 00:04:14,280 Speaker 1: say to you these negative headwinds, whether it be a 69 00:04:14,320 --> 00:04:18,880 Speaker 1: relationship and more difficult business being done with China, whether 70 00:04:18,920 --> 00:04:21,080 Speaker 1: it's the curbs of the US put in, whether or 71 00:04:21,120 --> 00:04:24,200 Speaker 1: not it's just a slowing fundamental story that's happening in 72 00:04:24,279 --> 00:04:26,960 Speaker 1: terms of where we are in the chip cycle. People 73 00:04:26,960 --> 00:04:28,880 Speaker 1: started to say that this is priced in some way 74 00:04:29,000 --> 00:04:33,280 Speaker 1: or not yet I think it's a really sort of 75 00:04:33,279 --> 00:04:37,520 Speaker 1: like a conversions so for these different sect these elements, 76 00:04:37,520 --> 00:04:39,880 Speaker 1: so it's hard to say that, Okay, so the chip 77 00:04:40,320 --> 00:04:44,039 Speaker 1: chips company, chips companies are taking a bigger here from 78 00:04:44,520 --> 00:04:47,800 Speaker 1: certain things, but it's more like these are UH, different 79 00:04:48,080 --> 00:04:51,520 Speaker 1: elements are putting up growing pressure on the earnings and 80 00:04:51,600 --> 00:04:55,440 Speaker 1: themselves of chip companies around the world. Yeah, we keep 81 00:04:55,440 --> 00:04:57,160 Speaker 1: a close eye on this week. Of course, the Texas 82 00:04:57,160 --> 00:05:01,120 Speaker 1: instruments and Intel w we thank you for your expertise them. Meanwhile, 83 00:05:01,160 --> 00:05:03,600 Speaker 1: turning to some of the changes and the look ahead 84 00:05:03,600 --> 00:05:06,400 Speaker 1: to one key play, Apple's got its earnings, but it 85 00:05:06,400 --> 00:05:09,000 Speaker 1: has some interesting news and who helped write that was 86 00:05:09,080 --> 00:05:12,880 Speaker 1: one Mark? Mark talk to us about, well, the inflation 87 00:05:12,920 --> 00:05:16,479 Speaker 1: that maybe Apple is serving us up at the moment. Yeah, 88 00:05:16,560 --> 00:05:19,400 Speaker 1: So a few Apple services, actually their main ones, all 89 00:05:19,440 --> 00:05:22,279 Speaker 1: got price hikes this morning. So Apple TV Plus that 90 00:05:22,279 --> 00:05:26,000 Speaker 1: we talked about often, Apple Music, and Apple One subscription bundles, 91 00:05:26,000 --> 00:05:28,760 Speaker 1: where TV Plus and Apple Music are obviously at the 92 00:05:28,839 --> 00:05:32,240 Speaker 1: forefront of their streaming packages, right. So Apple Music is 93 00:05:32,279 --> 00:05:34,600 Speaker 1: moving from ten dollars per month in the US to 94 00:05:34,760 --> 00:05:37,359 Speaker 1: eleven dollars per months, so at ten percent price increase, 95 00:05:37,680 --> 00:05:40,400 Speaker 1: Apple TV Plus moving from five dollars a month to 96 00:05:40,560 --> 00:05:43,159 Speaker 1: seven dollars a month, and the Apple One bundles those 97 00:05:43,200 --> 00:05:46,200 Speaker 1: are rising between two and three dollars depending on what 98 00:05:46,320 --> 00:05:49,240 Speaker 1: packages you get, so in the mid teens, up to 99 00:05:49,320 --> 00:05:51,719 Speaker 1: thirty three dollars for that highest end package we can 100 00:05:51,839 --> 00:05:54,960 Speaker 1: get gaming and news and whatnot. Apple saying this has 101 00:05:55,000 --> 00:05:58,159 Speaker 1: to do with higher costs for licensing related to music, 102 00:05:58,480 --> 00:06:00,960 Speaker 1: and then the TV plus front. An Apple TV Plus 103 00:06:01,040 --> 00:06:05,039 Speaker 1: launched in the company correctly says that there were basically 104 00:06:05,720 --> 00:06:08,400 Speaker 1: no shows are very few shows at the get go 105 00:06:08,839 --> 00:06:12,040 Speaker 1: now TV plus has dozens of shows. Still no back catalog, 106 00:06:12,279 --> 00:06:14,240 Speaker 1: but certainly you're getting more bang for your buck now 107 00:06:14,279 --> 00:06:16,880 Speaker 1: than you did before, which means they're now raising those 108 00:06:16,880 --> 00:06:19,239 Speaker 1: prices and we saw the impact. Don't say the stock 109 00:06:19,240 --> 00:06:22,280 Speaker 1: of Spotify w many now preempting they might pass on 110 00:06:22,360 --> 00:06:24,719 Speaker 1: some of their prices to the consumer as well. Talk 111 00:06:24,760 --> 00:06:27,159 Speaker 1: to us about more what we expect from Apple's numbers 112 00:06:27,200 --> 00:06:30,240 Speaker 1: as well out late this week. Of course, most valuable company, 113 00:06:30,279 --> 00:06:34,200 Speaker 1: it's important to us. Yes, So analysts sticking to services 114 00:06:34,279 --> 00:06:36,520 Speaker 1: believe that Apple is going to come in almost to 115 00:06:36,600 --> 00:06:40,200 Speaker 1: twenty billion dollars right. Wouldn't be an all time record, right, 116 00:06:40,320 --> 00:06:43,039 Speaker 1: but would be fairly significant for a fourth quarter. That's 117 00:06:43,040 --> 00:06:46,919 Speaker 1: for services specifically. In terms of overall, we're talking about 118 00:06:46,960 --> 00:06:50,560 Speaker 1: between the mid eighty billions to low ninety billions. Those 119 00:06:50,560 --> 00:06:53,480 Speaker 1: are the estimates I've seen between about five and eight 120 00:06:53,480 --> 00:06:56,120 Speaker 1: percent year of your growth. Now, that growth is not 121 00:06:56,160 --> 00:06:57,880 Speaker 1: going to be as significant as the year of year 122 00:06:57,920 --> 00:07:00,480 Speaker 1: growth you saw a year ago. In the fourth quarter 123 00:07:01,520 --> 00:07:05,359 Speaker 1: that was about year over year growth. Obviously that was 124 00:07:05,400 --> 00:07:09,200 Speaker 1: COVID induced more iPad and Mac purchases, but any growth 125 00:07:09,240 --> 00:07:12,080 Speaker 1: given the current conditions of the economy is a pretty 126 00:07:12,080 --> 00:07:14,520 Speaker 1: good thing for Apple at this point. One major thing 127 00:07:14,560 --> 00:07:16,880 Speaker 1: you can probably attribute to that, however, is the iPhone 128 00:07:16,920 --> 00:07:19,360 Speaker 1: four Team Pro and Pro Max line that you're showing 129 00:07:19,440 --> 00:07:22,640 Speaker 1: right now on TV. Those phones have done especially well 130 00:07:22,720 --> 00:07:24,640 Speaker 1: with some of the new features like the better camera, 131 00:07:25,040 --> 00:07:28,200 Speaker 1: satellite features, the dynamic island in the screen. People have 132 00:07:28,200 --> 00:07:30,600 Speaker 1: been buying those up. And Apple got an extra week 133 00:07:30,640 --> 00:07:33,320 Speaker 1: of sales for that device because they released it one 134 00:07:33,360 --> 00:07:36,240 Speaker 1: week earlier than they historically do for new iPhones. So 135 00:07:36,280 --> 00:07:37,760 Speaker 1: that's where you're going to see the growth from this 136 00:07:37,840 --> 00:07:40,680 Speaker 1: quarter of a seasonality issue. In these endings, we thank 137 00:07:40,760 --> 00:07:50,560 Speaker 1: you Mortgum, and let's talk about some of the dry 138 00:07:50,600 --> 00:07:53,000 Speaker 1: powder that Andrews and Harrow. It's has a lot of 139 00:07:53,160 --> 00:07:55,920 Speaker 1: and it's putting it to work, betting on a key 140 00:07:55,960 --> 00:07:59,560 Speaker 1: platform that's meant to perhaps allow founders in particular to 141 00:07:59,600 --> 00:08:04,360 Speaker 1: access private markets more diversification. The coterie, which let's uses 142 00:08:04,400 --> 00:08:07,520 Speaker 1: invest in funds and include companies like SpaceX or Stripe 143 00:08:07,760 --> 00:08:10,560 Speaker 1: just landed forty million dollars in funding round led by 144 00:08:10,640 --> 00:08:12,880 Speaker 1: A sixty and Z. Here to discuss it is the 145 00:08:12,920 --> 00:08:16,200 Speaker 1: Coachy CEO and co founder Ethan Ago. All Right, we 146 00:08:16,720 --> 00:08:19,480 Speaker 1: wanted a little bit first and foremost remind people of 147 00:08:19,600 --> 00:08:22,920 Speaker 1: your story why the Coachery was born, and it was 148 00:08:22,960 --> 00:08:25,240 Speaker 1: through frustrations that you found as a founder. Right. Yeah, 149 00:08:25,280 --> 00:08:27,440 Speaker 1: So I was the founder of a company called Active 150 00:08:27,480 --> 00:08:30,360 Speaker 1: before this. We were growing. We did about a hundred 151 00:08:30,360 --> 00:08:32,880 Speaker 1: million of revenue, and I turned off my salary and 152 00:08:32,920 --> 00:08:34,920 Speaker 1: I went to apply for a mortgage and the guy 153 00:08:34,960 --> 00:08:36,840 Speaker 1: says to me, we can't give you a mortgage. You 154 00:08:36,880 --> 00:08:39,439 Speaker 1: don't have a salary. And you know, I realized it's 155 00:08:39,480 --> 00:08:41,880 Speaker 1: kind of silly, because most of the people that I 156 00:08:41,920 --> 00:08:44,079 Speaker 1: know make a lot more money from their assets or 157 00:08:44,120 --> 00:08:46,040 Speaker 1: their equity than they do from their salary, probably a 158 00:08:46,040 --> 00:08:48,000 Speaker 1: lot of the people that watch your show. And so 159 00:08:48,040 --> 00:08:50,959 Speaker 1: there's clearly a disconnect that's emerged between the way that 160 00:08:51,640 --> 00:08:54,760 Speaker 1: the legacy financial guys think about risk and think about 161 00:08:54,840 --> 00:08:57,680 Speaker 1: asked allocation and the way that me and everyone that 162 00:08:57,720 --> 00:08:59,920 Speaker 1: I know thinks about it. Because most of us make 163 00:09:00,080 --> 00:09:03,000 Speaker 1: most of our money from carry or equity than we 164 00:09:03,040 --> 00:09:05,800 Speaker 1: do from salary, and so we realize there's an opportunity 165 00:09:05,840 --> 00:09:09,160 Speaker 1: to build financial products targeted towards people who make more 166 00:09:09,200 --> 00:09:11,920 Speaker 1: money from assets than they do from their salary. So 167 00:09:11,960 --> 00:09:13,920 Speaker 1: you're looking at an individual in a different way, at 168 00:09:13,920 --> 00:09:15,720 Speaker 1: their own credit risk. But then you're looking at that 169 00:09:15,760 --> 00:09:18,960 Speaker 1: individual and being like, I know you need diversification in 170 00:09:18,960 --> 00:09:21,040 Speaker 1: your life as well. Well. If you think about a founder, 171 00:09:21,120 --> 00:09:25,040 Speaker 1: most of their wealth is concentrated in one specific, highly 172 00:09:25,120 --> 00:09:27,960 Speaker 1: liquid asset, and anybody will tell you that's not a 173 00:09:28,000 --> 00:09:30,439 Speaker 1: great way to manage your risk. So what we do 174 00:09:30,520 --> 00:09:32,920 Speaker 1: is we provide access to invest in some of the 175 00:09:32,920 --> 00:09:35,800 Speaker 1: best fund managers in the world, like Injuries and Horowitz, 176 00:09:36,120 --> 00:09:39,600 Speaker 1: like Initialized, and it allows a founder to diversify their 177 00:09:39,679 --> 00:09:43,600 Speaker 1: risk away from just their own company. We also provide liquidity. 178 00:09:43,640 --> 00:09:46,280 Speaker 1: We also provide a state planning. We're looking at all 179 00:09:46,280 --> 00:09:49,160 Speaker 1: the different areas that founders need help in and where 180 00:09:49,160 --> 00:09:52,120 Speaker 1: we feel like the banks have dropped the ball, and 181 00:09:52,160 --> 00:09:55,800 Speaker 1: we're building products designed to help founders alleviate some of 182 00:09:55,840 --> 00:09:58,480 Speaker 1: that mental pain that they have to experience when they 183 00:09:58,480 --> 00:10:01,560 Speaker 1: try to deal with the legacy institution. Dare I say, 184 00:10:01,720 --> 00:10:04,560 Speaker 1: at this moment where you're a one is a founder? 185 00:10:05,520 --> 00:10:09,240 Speaker 1: Do they want to be doubling down in still private 186 00:10:09,280 --> 00:10:13,000 Speaker 1: companies given valuations are indeed under pressure. Yeah, so, um, 187 00:10:13,160 --> 00:10:16,240 Speaker 1: it's key that their portfolio, Well, my opinion is that 188 00:10:16,360 --> 00:10:18,560 Speaker 1: their portfolio is not just going to be privates, right, 189 00:10:18,559 --> 00:10:20,559 Speaker 1: They're going to have a four oh one K, they're 190 00:10:20,600 --> 00:10:23,239 Speaker 1: going to have public, They're going to have probably some crypto. 191 00:10:23,320 --> 00:10:25,600 Speaker 1: Our pitch is not that we're trying to provide advice 192 00:10:25,640 --> 00:10:28,439 Speaker 1: as to how you construct your portfolio. Our pitches that 193 00:10:28,480 --> 00:10:30,720 Speaker 1: if you want access to some of the best privates 194 00:10:30,760 --> 00:10:33,079 Speaker 1: or some of the best managers, this is the place 195 00:10:33,120 --> 00:10:36,160 Speaker 1: to get it, and you can really invest in Injuriesent 196 00:10:36,200 --> 00:10:38,640 Speaker 1: Horowitz or some of these other funds managers that we 197 00:10:38,720 --> 00:10:41,600 Speaker 1: have prior to the Coterie coming around, And so we're 198 00:10:41,600 --> 00:10:44,320 Speaker 1: there as an access play as opposed to an advice player. 199 00:10:44,559 --> 00:10:50,000 Speaker 1: How deep does this sort of democratization go because you're 200 00:10:50,280 --> 00:10:55,040 Speaker 1: focusing on a very specific sphere of investing. Yeah, today 201 00:10:55,080 --> 00:10:57,439 Speaker 1: we target people with one to fifty million of oursets 202 00:10:57,480 --> 00:11:00,520 Speaker 1: And what about Therefore, when you're looking at well alk 203 00:11:00,640 --> 00:11:02,720 Speaker 1: is getting into the space of wanting to make venture 204 00:11:03,080 --> 00:11:05,800 Speaker 1: investing more accessible to those who only have five dollars 205 00:11:05,800 --> 00:11:07,720 Speaker 1: who wants in a credited investor are you looking at 206 00:11:07,720 --> 00:11:10,400 Speaker 1: democratization to that level or are you still very specific? 207 00:11:10,480 --> 00:11:13,600 Speaker 1: You know, we're focused on a specific band, but more importantly, 208 00:11:13,600 --> 00:11:17,480 Speaker 1: we're focused on a specific type of person. So um, honestly, 209 00:11:17,480 --> 00:11:19,760 Speaker 1: the band is less important. It's more about how you 210 00:11:19,800 --> 00:11:22,080 Speaker 1: make your money and what your ambitions are for the future. 211 00:11:22,400 --> 00:11:24,679 Speaker 1: I think if you can get access through I think 212 00:11:24,720 --> 00:11:26,679 Speaker 1: our arts partnership was with Titan, I think you can 213 00:11:26,720 --> 00:11:29,040 Speaker 1: get access to them, that's excellent. But we're looking more 214 00:11:29,080 --> 00:11:31,600 Speaker 1: at someone who has a comprehensive set of needs. They 215 00:11:31,600 --> 00:11:34,640 Speaker 1: want diversification, they need liquidity because of all their assets 216 00:11:34,679 --> 00:11:36,559 Speaker 1: are tied up in an in liquid asset. They need 217 00:11:36,600 --> 00:11:39,040 Speaker 1: tax planning because they're sitting on an asset that has 218 00:11:39,040 --> 00:11:42,000 Speaker 1: potentially a thousand x appreciation and they haven't done any 219 00:11:42,040 --> 00:11:44,440 Speaker 1: of their state planning. Those are the kinds of needs 220 00:11:44,480 --> 00:11:46,680 Speaker 1: that we solve as opposed to someone who's looking to, 221 00:11:47,120 --> 00:11:49,280 Speaker 1: you know, dip their toe into venture for the first time. 222 00:11:49,600 --> 00:11:54,000 Speaker 1: A huge check to be written for a total addressable market, 223 00:11:54,080 --> 00:11:57,080 Speaker 1: that is what is it? Yeah, so talk to how 224 00:11:57,120 --> 00:11:59,080 Speaker 1: how big is that? Because I'm thinking, well, this is 225 00:11:59,280 --> 00:12:03,880 Speaker 1: a pretty un nique, relatively privileged part of society we 226 00:12:03,960 --> 00:12:07,280 Speaker 1: have in the in America, there's twenty five million millionaires, 227 00:12:07,320 --> 00:12:10,079 Speaker 1: about three million of them are under the age of 228 00:12:10,120 --> 00:12:13,400 Speaker 1: forty five, and we go after people to forty five 229 00:12:13,440 --> 00:12:16,120 Speaker 1: one to fifty million of assets, and so the end 230 00:12:16,280 --> 00:12:18,080 Speaker 1: of people we're talking about as a couple million people 231 00:12:18,120 --> 00:12:20,400 Speaker 1: in the United States. But the most important thing is 232 00:12:20,440 --> 00:12:23,800 Speaker 1: that the lifetime value of these people is extraordinarily high. Right, 233 00:12:23,840 --> 00:12:26,080 Speaker 1: So we're not building Bank of America. We're never gonna 234 00:12:26,080 --> 00:12:28,080 Speaker 1: have a hundred and fifty million customers. That's not the 235 00:12:28,080 --> 00:12:30,760 Speaker 1: game we're playing. We're going after a very specific demo 236 00:12:31,000 --> 00:12:33,599 Speaker 1: and offering them very specific solutions that are going to 237 00:12:33,679 --> 00:12:35,679 Speaker 1: make their lives easier. And if we're right, and if 238 00:12:35,720 --> 00:12:37,240 Speaker 1: we do a good job, they're going to stick with 239 00:12:37,320 --> 00:12:40,520 Speaker 1: us for decades. We're trying to build decades long relationships 240 00:12:40,520 --> 00:12:44,040 Speaker 1: with our customers which will generate hopefully lots of lifetime 241 00:12:44,080 --> 00:12:46,440 Speaker 1: value for them and for us. Because so at what 242 00:12:46,480 --> 00:12:49,520 Speaker 1: point do you not how do you stop people checking 243 00:12:49,520 --> 00:12:52,400 Speaker 1: out and having the family office or starting to move 244 00:12:52,400 --> 00:12:55,040 Speaker 1: on to a different level of private wealth manager that 245 00:12:55,200 --> 00:12:57,000 Speaker 1: I think it really depends on what they need. So 246 00:12:57,040 --> 00:12:59,600 Speaker 1: if they like a family office, which provides a lot 247 00:12:59,600 --> 00:13:02,760 Speaker 1: of things, we don't by all means, go use the 248 00:13:02,800 --> 00:13:06,480 Speaker 1: family office. We're looking for people who are struggling with 249 00:13:06,520 --> 00:13:09,240 Speaker 1: the solutions that are currently available to them relative to 250 00:13:09,240 --> 00:13:12,000 Speaker 1: what they want. And so if you're looking for access, 251 00:13:12,040 --> 00:13:14,280 Speaker 1: if you're someone who likes to do your own investing 252 00:13:14,360 --> 00:13:17,200 Speaker 1: or likes to think about solutions yourself, as opposed to 253 00:13:17,200 --> 00:13:19,000 Speaker 1: someone who likes to give it to a family office 254 00:13:19,040 --> 00:13:20,880 Speaker 1: and say, you know, I want someone else to manage it, 255 00:13:21,000 --> 00:13:23,079 Speaker 1: there's nothing wrong with that. That's just not the space 256 00:13:23,120 --> 00:13:25,760 Speaker 1: that we're in. So if you choose to graduate there, 257 00:13:25,760 --> 00:13:28,040 Speaker 1: by all means go ahead. This of course is a 258 00:13:28,040 --> 00:13:31,840 Speaker 1: long term bet and new out building a business for decades, 259 00:13:31,960 --> 00:13:35,079 Speaker 1: not a year. But how has the fundraising process been 260 00:13:35,280 --> 00:13:39,000 Speaker 1: or how has your current outlook had to just cool 261 00:13:39,040 --> 00:13:41,840 Speaker 1: down a little bit as the market cools down. Yeah. Look, 262 00:13:42,240 --> 00:13:43,840 Speaker 1: first of all, this is my second time around, and 263 00:13:43,880 --> 00:13:46,400 Speaker 1: it's a lot easier to start a company and raise 264 00:13:46,440 --> 00:13:48,720 Speaker 1: money the second time around. I also have two phenomenal 265 00:13:48,760 --> 00:13:50,719 Speaker 1: co founders, both of whom this is their second and 266 00:13:50,760 --> 00:13:53,480 Speaker 1: third time around. So I think, what what do we say? 267 00:13:53,559 --> 00:13:57,120 Speaker 1: Is um, the market is still open, there's still dry 268 00:13:57,120 --> 00:13:59,560 Speaker 1: padder to be allocated, the best funds are still investing. 269 00:13:59,800 --> 00:14:01,840 Speaker 1: You just have to make sure that your story and 270 00:14:01,840 --> 00:14:04,840 Speaker 1: your substance is tight. And what we found is, you know, 271 00:14:04,920 --> 00:14:06,680 Speaker 1: some of the stories that were perhaps a little bit 272 00:14:06,760 --> 00:14:08,800 Speaker 1: lighter that we're getting funded twelve months ago, maybe are 273 00:14:08,840 --> 00:14:11,240 Speaker 1: not getting funded today. But the ones that still have 274 00:14:11,280 --> 00:14:13,280 Speaker 1: a lot of gravy tasks behind them are going to 275 00:14:13,360 --> 00:14:16,079 Speaker 1: get funded. And in a way they're actually more attractive 276 00:14:16,160 --> 00:14:19,760 Speaker 1: because that powder needs to get invested somewhere, and you know, 277 00:14:19,840 --> 00:14:21,640 Speaker 1: they can't be sitting on the sideline, so they need 278 00:14:21,640 --> 00:14:23,760 Speaker 1: to allocate that powder into really good companies. And I 279 00:14:23,800 --> 00:14:25,520 Speaker 1: think you've seen, you know, today and even in the 280 00:14:25,560 --> 00:14:27,480 Speaker 1: last couple of weeks, the market's picking up and a 281 00:14:27,480 --> 00:14:30,960 Speaker 1: lot of companies are raising reasonably large rounds Ethan, great 282 00:14:30,960 --> 00:14:32,840 Speaker 1: house and time with you, Thanks for your time, Thanks 283 00:14:32,880 --> 00:14:35,080 Speaker 1: for coming on of course the COACHERI, CEO and co 284 00:14:35,160 --> 00:14:38,680 Speaker 1: founder Ethan. I meanwhile coming up, what is the bar 285 00:14:39,000 --> 00:14:41,400 Speaker 1: for tech runnings this week? How low has it gone? 286 00:14:41,440 --> 00:14:43,920 Speaker 1: Well to the point? Rod Erickson and BBC is up next. 287 00:14:44,400 --> 00:14:58,240 Speaker 1: This is back. This week is going to be busy, Apple, Alphabet, Amazon, Meta, Twitter, 288 00:14:58,680 --> 00:15:02,240 Speaker 1: huge week for tech things springing obviously Capital markets Internet 289 00:15:02,280 --> 00:15:06,080 Speaker 1: equity analyst Brad ericson Brad, Wow, I mean the bell 290 00:15:06,160 --> 00:15:09,080 Speaker 1: Weather almost could have been Snap. How much you're reading 291 00:15:09,280 --> 00:15:12,000 Speaker 1: the concerns about the advertising spend from Snap as a 292 00:15:12,040 --> 00:15:14,120 Speaker 1: read across to some of the key players like a 293 00:15:14,160 --> 00:15:17,480 Speaker 1: meta for example, Yeah, nice to be here, thanks for 294 00:15:17,480 --> 00:15:20,720 Speaker 1: having me. So yeah, that's that's always the tough part. 295 00:15:20,800 --> 00:15:24,120 Speaker 1: Snap leads us off right in earning season, and I 296 00:15:24,160 --> 00:15:26,160 Speaker 1: think the last few quarters it's safe to say they 297 00:15:26,160 --> 00:15:30,000 Speaker 1: are not a bell Weather, um, so we're and frankly, 298 00:15:30,000 --> 00:15:32,200 Speaker 1: when you think about the stocks and how they traded 299 00:15:32,240 --> 00:15:35,480 Speaker 1: on Friday, right, so I think Snap closed down for 300 00:15:35,560 --> 00:15:38,680 Speaker 1: the day clearly if you look at sucks like alphabet 301 00:15:38,760 --> 00:15:41,320 Speaker 1: like Meta and the direction that those traded, I think 302 00:15:41,400 --> 00:15:44,640 Speaker 1: I think investors are are not inferring Snap as that 303 00:15:44,760 --> 00:15:47,400 Speaker 1: sort of canary in the coal mine at this point. 304 00:15:47,560 --> 00:15:50,400 Speaker 1: So okay, so let's dig it on Meta. For example, 305 00:15:50,920 --> 00:15:56,480 Speaker 1: are you anticipating decent advertising commitment deefcent marketing spend still 306 00:15:56,560 --> 00:15:59,400 Speaker 1: going through their platforms? Are you worrying about what the 307 00:15:59,440 --> 00:16:03,880 Speaker 1: Apple out where them has done to them? Again? Um? Yeah, 308 00:16:03,920 --> 00:16:05,720 Speaker 1: So a couple puts in takes and we just put 309 00:16:05,760 --> 00:16:07,600 Speaker 1: out a report on this where we had talked to 310 00:16:08,560 --> 00:16:12,440 Speaker 1: almost twenty five small and medium sized business ad agencies. 311 00:16:12,480 --> 00:16:14,880 Speaker 1: In the last few weeks, what we sort of heard 312 00:16:15,000 --> 00:16:17,640 Speaker 1: was that, you know, number one, in terms of overall spend, 313 00:16:17,920 --> 00:16:20,280 Speaker 1: things actually got a little bit better through the quarter. 314 00:16:20,400 --> 00:16:23,080 Speaker 1: I think between things like lower fuel prices and maybe 315 00:16:23,160 --> 00:16:27,120 Speaker 1: some consumer package goods becoming more available um from an 316 00:16:27,120 --> 00:16:30,520 Speaker 1: inventory perspective, and then lower shipping and freight costs. I 317 00:16:30,600 --> 00:16:32,760 Speaker 1: think actually that may have actually freed up a little 318 00:16:32,800 --> 00:16:35,920 Speaker 1: bit of budget on the advertiser front. So overall we 319 00:16:35,920 --> 00:16:39,280 Speaker 1: actually heard things directionally got a little bit better on 320 00:16:39,320 --> 00:16:43,880 Speaker 1: the algorithm front. Uh. Also on the positive side for Meta, 321 00:16:44,000 --> 00:16:46,880 Speaker 1: we heard sort of what we'd called green shoots of 322 00:16:47,200 --> 00:16:51,440 Speaker 1: positive development around the targeting algorithm and campaign performance. We 323 00:16:51,440 --> 00:16:53,640 Speaker 1: were very careful to say though that we do think 324 00:16:53,640 --> 00:16:57,360 Speaker 1: it's very early. We don't see this necessarily impacting revenue. 325 00:16:57,720 --> 00:16:59,960 Speaker 1: Uh certainly not in Q three, and it it probably 326 00:17:00,200 --> 00:17:03,080 Speaker 1: is minimal and que for but it was encouraging when 327 00:17:03,080 --> 00:17:05,879 Speaker 1: you think about Meta trying to restore some that signal 328 00:17:05,960 --> 00:17:08,520 Speaker 1: they last from Apple, we do think that sets up 329 00:17:08,520 --> 00:17:11,119 Speaker 1: as a potential till and in twenty three. Okay, that 330 00:17:11,240 --> 00:17:14,320 Speaker 1: nicely drives us onto the Apple conversation because interesting that 331 00:17:14,320 --> 00:17:18,640 Speaker 1: they're raising prices in services, were expecting a strong set 332 00:17:18,680 --> 00:17:21,040 Speaker 1: of data coming from the services part of the business. 333 00:17:21,119 --> 00:17:25,080 Speaker 1: Where are you looking for Apple's growth trajectory? So I 334 00:17:25,119 --> 00:17:27,960 Speaker 1: hate to be a big disappointment, but actually don't cover Apple, 335 00:17:28,040 --> 00:17:32,600 Speaker 1: so I can't speak to the apologies. What do you 336 00:17:32,600 --> 00:17:35,720 Speaker 1: make the therefore of the rad across? Therefore, what about 337 00:17:35,720 --> 00:17:37,680 Speaker 1: some of the other social media because Apple is having 338 00:17:37,760 --> 00:17:39,720 Speaker 1: such a knock on effect, not just on Snap, not 339 00:17:39,840 --> 00:17:42,760 Speaker 1: just on Meta, but other players within the field. Let's 340 00:17:42,800 --> 00:17:44,960 Speaker 1: talk a little bit more about the strength of social 341 00:17:44,960 --> 00:17:47,680 Speaker 1: media in general. And I do believe that you cover Twitter. 342 00:17:47,760 --> 00:17:50,439 Speaker 1: Are we expecting anything particularly from their earnings there in 343 00:17:50,520 --> 00:17:52,800 Speaker 1: terms of advertising commitment or is this just a more 344 00:17:52,880 --> 00:17:56,240 Speaker 1: look ahead to what happens if the business is born. Yeah, 345 00:17:56,280 --> 00:17:58,879 Speaker 1: so I think broadly for the social media companies, and 346 00:17:59,119 --> 00:18:02,000 Speaker 1: we've heard this consider instantly in our advertising channel work 347 00:18:02,000 --> 00:18:04,920 Speaker 1: over last year. The Apple signal, I hate to sound 348 00:18:04,920 --> 00:18:07,560 Speaker 1: so absolute, but the Apple signal is never coming back. 349 00:18:07,680 --> 00:18:11,240 Speaker 1: This is never going to change now. The way when 350 00:18:11,240 --> 00:18:13,959 Speaker 1: we talk about the potential to restore signal, we're not 351 00:18:14,040 --> 00:18:16,199 Speaker 1: saying doing it in the old fashioned way the way 352 00:18:16,240 --> 00:18:19,000 Speaker 1: they used to do it. They're trying new first and 353 00:18:19,119 --> 00:18:22,440 Speaker 1: third party alternatives, and so I think whether it's pinterest 354 00:18:23,080 --> 00:18:25,639 Speaker 1: or um or any of the other social media certainly 355 00:18:25,680 --> 00:18:28,119 Speaker 1: YouTube we lump into there as well, and obviously you 356 00:18:28,160 --> 00:18:30,920 Speaker 1: have to talk about TikTok these days. I think all 357 00:18:30,960 --> 00:18:34,120 Speaker 1: of those companies are looking for any sort of way, 358 00:18:34,200 --> 00:18:36,880 Speaker 1: be at a first party solution, third party to try 359 00:18:36,960 --> 00:18:39,520 Speaker 1: and restore that signal, and we do expect it to 360 00:18:39,560 --> 00:18:42,639 Speaker 1: get marginally better over time. I think the issue is 361 00:18:42,680 --> 00:18:45,800 Speaker 1: it's just going really slow here and we're still we're 362 00:18:45,800 --> 00:18:49,679 Speaker 1: now through that period lapping when Apple started, still not 363 00:18:49,880 --> 00:18:52,880 Speaker 1: going that much improvement. What about I mean, you have 364 00:18:52,960 --> 00:18:56,600 Speaker 1: Amazon at an outperform I believe, Brad. What about the 365 00:18:56,680 --> 00:19:00,119 Speaker 1: advertising impact is that becoming any sort of residents at 366 00:19:00,200 --> 00:19:03,960 Speaker 1: Verrir strength? Oh? Absolutely. I think you know, when you 367 00:19:04,000 --> 00:19:05,879 Speaker 1: think about just going back to the Apple thing, that 368 00:19:06,000 --> 00:19:10,240 Speaker 1: the segment of the economy that that really affected was 369 00:19:10,400 --> 00:19:14,399 Speaker 1: small and medium sized businesses and e commerce vendors, and 370 00:19:14,440 --> 00:19:17,880 Speaker 1: so when you figure those guys frequently also sell on Amazon, 371 00:19:17,960 --> 00:19:20,679 Speaker 1: that's been a huge source of strength. And we've actually 372 00:19:20,680 --> 00:19:23,240 Speaker 1: talked to some of those aggregators and there's a lot 373 00:19:23,280 --> 00:19:26,560 Speaker 1: of profit margin that those companies do make they're actually 374 00:19:26,680 --> 00:19:30,520 Speaker 1: nicely profitable businesses, surprisingly profitable, and so they do have 375 00:19:30,760 --> 00:19:33,680 Speaker 1: margin to be able to spend on advertising on Amazon. 376 00:19:34,040 --> 00:19:37,080 Speaker 1: And we think Amazon is actually sort of working the 377 00:19:37,480 --> 00:19:41,440 Speaker 1: site to be able to to uh not require but 378 00:19:41,440 --> 00:19:43,280 Speaker 1: but in some ways sort of force a lot of 379 00:19:43,320 --> 00:19:47,199 Speaker 1: those third party vendors to advertise more in to become 380 00:19:47,240 --> 00:19:50,760 Speaker 1: discoverable on the site. So yeah, huge driver, very positive 381 00:19:50,760 --> 00:19:55,399 Speaker 1: for Amazon. Since those Apple changes hit, Amazon outperform, Meta outperform, 382 00:19:55,640 --> 00:19:58,919 Speaker 1: Alphabet outperform. We look ahead to how those earnings shape up. 383 00:19:58,960 --> 00:20:13,880 Speaker 1: Internet Equity analyst SABC Capital Markets Brad Erickson. Chinese presidence 384 00:20:13,880 --> 00:20:17,359 Speaker 1: Seizing Ping has unnailed the country's new leadership lineup, and 385 00:20:17,520 --> 00:20:22,480 Speaker 1: it twice a decade reshuffle. Powerful seven member polygara Standing 386 00:20:22,480 --> 00:20:26,440 Speaker 1: committee is led by Sea. The others include Shanghai chief 387 00:20:26,560 --> 00:20:32,359 Speaker 1: leads former anti grafzar Jola Ze, former party Secretary at 388 00:20:32,440 --> 00:20:37,560 Speaker 1: Chief walf Mee, Beijing Party secretary tight See, See's chief 389 00:20:37,600 --> 00:20:42,480 Speaker 1: of staff Dingo, and Guangdong leader Li Se. This final 390 00:20:42,560 --> 00:20:46,560 Speaker 1: lineup has been beyond many analysts most extreme predictions, as 391 00:20:46,600 --> 00:20:49,440 Speaker 1: it marks a clear break from the collective leadership model 392 00:20:49,520 --> 00:20:53,280 Speaker 1: that's underpinned China's rise It's also a historic moment because 393 00:20:53,320 --> 00:20:57,399 Speaker 1: it breaks so many norms, from term limits to early retirement, 394 00:20:57,720 --> 00:21:01,000 Speaker 1: to age norms, to female representation Asian as well as 395 00:21:01,000 --> 00:21:05,080 Speaker 1: the resume prerequisites. For example, Shanhaiji leaves Young, who is 396 00:21:05,160 --> 00:21:08,679 Speaker 1: likely to become China's next premier, does not have national 397 00:21:08,760 --> 00:21:12,480 Speaker 1: governance experience, and for the first time in a quarter century, 398 00:21:12,680 --> 00:21:15,399 Speaker 1: China won't have a woman sitting on its current twenty 399 00:21:15,440 --> 00:21:18,399 Speaker 1: four member poly bureau, marking a major step back in 400 00:21:18,480 --> 00:21:21,840 Speaker 1: gender representation. What these powerful men have in common is 401 00:21:21,840 --> 00:21:25,760 Speaker 1: that they've shown the utmost loyalty to see any signature policies. 402 00:21:26,200 --> 00:21:28,760 Speaker 1: Critics worried though, that the move could present new risk 403 00:21:28,960 --> 00:21:38,280 Speaker 1: for lack of opposing voices. Mh. This is Bloomberg technology. 404 00:21:38,440 --> 00:21:41,400 Speaker 1: That was a broad look at the changes in China. Now, 405 00:21:41,480 --> 00:21:44,800 Speaker 1: of course, the global ramifications went far and wide. Some 406 00:21:44,880 --> 00:21:47,320 Speaker 1: of the Chinese technology giants listed not only in Hong 407 00:21:47,400 --> 00:21:50,760 Speaker 1: Kong but in New York absolutely tanked. That's a technical term. 408 00:21:50,840 --> 00:21:53,800 Speaker 1: On Monday, after Presidency's in paying its power grab, as 409 00:21:53,840 --> 00:21:56,879 Speaker 1: it's being deemed the market meltdown followed a reshuffle in 410 00:21:56,960 --> 00:21:59,840 Speaker 1: Chinese running communist parties. We heard, but it means a 411 00:22:00,040 --> 00:22:04,040 Speaker 1: solidation of control by she and Ludlow right here to 412 00:22:04,080 --> 00:22:06,399 Speaker 1: talk about what were the moves that mattered to you 413 00:22:06,480 --> 00:22:08,840 Speaker 1: most dead right, But we talked about the size and 414 00:22:08,880 --> 00:22:11,920 Speaker 1: scope right The NASA Golden Dragon China Index biggest drop 415 00:22:11,920 --> 00:22:15,320 Speaker 1: on record, closes at the lowest level since the Hang 416 00:22:15,440 --> 00:22:18,840 Speaker 1: saying China Enterprises Index dropping by the most since two 417 00:22:18,840 --> 00:22:21,840 Speaker 1: thousand and eight, closes at lowest level since two thousand eight. 418 00:22:21,840 --> 00:22:24,080 Speaker 1: But really the stat that stood out to me was 419 00:22:24,160 --> 00:22:28,560 Speaker 1: this was the most severe, biggest drop in reaction to 420 00:22:28,640 --> 00:22:32,720 Speaker 1: a Communist Party congress going back to when the index 421 00:22:32,800 --> 00:22:35,879 Speaker 1: was first founded, right first conceived, and it gives you 422 00:22:35,920 --> 00:22:38,959 Speaker 1: a sense of the angst and concerned that investors had, 423 00:22:39,000 --> 00:22:42,920 Speaker 1: particularly about the technology sector under what a third term 424 00:22:43,000 --> 00:22:47,200 Speaker 1: g presidency looks like. Under what this administration with new 425 00:22:47,240 --> 00:22:52,239 Speaker 1: faces lacking economic experience, if not competants, looks like for 426 00:22:52,320 --> 00:22:54,960 Speaker 1: the technology sector. There's another angle to this too, coming 427 00:22:55,040 --> 00:22:57,160 Speaker 1: into my Bloomberg term. Or look at this chart, which 428 00:22:57,240 --> 00:23:00,760 Speaker 1: is the Hang saying China Enterprises Index at its lowest 429 00:23:00,840 --> 00:23:04,240 Speaker 1: level relative to the SMP five since two thousand and one. 430 00:23:04,280 --> 00:23:06,920 Speaker 1: There's a concern here about the value of the Czech 431 00:23:06,960 --> 00:23:09,560 Speaker 1: tech sector in China what jumps out of me as 432 00:23:09,560 --> 00:23:13,119 Speaker 1: well as the data around foreign investors selling out of 433 00:23:13,200 --> 00:23:16,440 Speaker 1: China assets. On Monday, around two point five billion dollars 434 00:23:16,480 --> 00:23:19,280 Speaker 1: of mainland shares via the trading links with Hong Kong 435 00:23:19,520 --> 00:23:22,480 Speaker 1: was sold Monday. That's another record going back to when 436 00:23:22,520 --> 00:23:25,879 Speaker 1: they first started tracking the data in two thousand and sixteen. 437 00:23:26,080 --> 00:23:29,119 Speaker 1: Foreign investors concerned. There's also tied together with what we 438 00:23:29,119 --> 00:23:33,159 Speaker 1: saw from Tesla cutting prices in China and now raising 439 00:23:33,240 --> 00:23:35,760 Speaker 1: questions about the demand in that country. But they also 440 00:23:35,760 --> 00:23:39,280 Speaker 1: announced that they would raise manufacturing and reading across the 441 00:23:39,359 --> 00:23:43,480 Speaker 1: analyst reaction, the expert reaction to this move by Jijing Ping. 442 00:23:43,880 --> 00:23:46,520 Speaker 1: One of the pretty firm reactions is that we will 443 00:23:46,600 --> 00:23:49,480 Speaker 1: not see an end to COVID zero and some of 444 00:23:49,520 --> 00:23:52,439 Speaker 1: the restrictions in that economy. That's a concern for Tesla 445 00:23:52,520 --> 00:23:56,040 Speaker 1: because most recently fifty output is coming from its plant 446 00:23:56,040 --> 00:23:58,399 Speaker 1: in Shanghai. How will they navigate that and what does 447 00:23:58,440 --> 00:24:01,000 Speaker 1: it mean for the strength of consumer in an economy 448 00:24:01,160 --> 00:24:04,560 Speaker 1: that's serving size of cracking shorter term concerns, longer term 449 00:24:04,600 --> 00:24:07,280 Speaker 1: concerns That Ludlowy does it all for us, We thank you. Meanwhile, 450 00:24:07,440 --> 00:24:10,240 Speaker 1: let's talk about well, what it means to be navigating 451 00:24:10,359 --> 00:24:13,840 Speaker 1: what are becoming less and less global stories in what 452 00:24:13,880 --> 00:24:16,840 Speaker 1: I'm meant to still be global markets, tensions, global advisors 453 00:24:16,880 --> 00:24:21,240 Speaker 1: all bright Stone Bridge Group principle Amy Selco is with us, Amy, 454 00:24:21,400 --> 00:24:24,720 Speaker 1: your perspective the biggest risk at the moment. We heard 455 00:24:24,840 --> 00:24:27,320 Speaker 1: a listening sort of laid out by ed there. But 456 00:24:27,720 --> 00:24:29,480 Speaker 1: is it short term in nature? Is it like a 457 00:24:29,480 --> 00:24:31,640 Speaker 1: COVID shutdown? Or is it more broad and long term 458 00:24:31,640 --> 00:24:36,480 Speaker 1: in nature? Now on the seizing pains next decade, Well, 459 00:24:36,560 --> 00:24:40,119 Speaker 1: I really appreciated hearing your colleagues talking about the meeting 460 00:24:40,280 --> 00:24:43,399 Speaker 1: in those terms, how the markets have reacted, and I 461 00:24:43,440 --> 00:24:46,200 Speaker 1: think what it's underscores is there's still a lot of 462 00:24:46,280 --> 00:24:49,359 Speaker 1: uncertainty coming out of this week long meeting while a 463 00:24:49,480 --> 00:24:53,600 Speaker 1: political leadership has been formed, And as your colleagues reference, 464 00:24:53,960 --> 00:24:57,280 Speaker 1: she Jimping really did stack the deck in ways that 465 00:24:57,359 --> 00:25:01,920 Speaker 1: analysts myself included did not foresee. We didn't think that 466 00:25:01,920 --> 00:25:05,560 Speaker 1: he would take out so many capable leaders who were 467 00:25:05,600 --> 00:25:10,240 Speaker 1: not at retirement age, particularly those with national experience overseeing 468 00:25:10,240 --> 00:25:14,880 Speaker 1: the economy. He did, um, but his new economic leadership 469 00:25:15,119 --> 00:25:18,720 Speaker 1: is not formed yet. We have to wait until next 470 00:25:18,720 --> 00:25:22,040 Speaker 1: spring for that and so for foreign investors, for those 471 00:25:22,080 --> 00:25:24,560 Speaker 1: of us who want to continue to see growth in 472 00:25:24,600 --> 00:25:27,640 Speaker 1: the China market of our operations, We're just not sure 473 00:25:27,680 --> 00:25:30,640 Speaker 1: what direction the Chinese government is going to be pushing 474 00:25:31,119 --> 00:25:35,680 Speaker 1: beyond very broad, broad stroke pronouncements at the Party Congress 475 00:25:35,960 --> 00:25:40,240 Speaker 1: that development remains important, not a focus on reform, but 476 00:25:40,359 --> 00:25:44,800 Speaker 1: a focus on growth. And you know, to be perfectly frankly, 477 00:25:45,000 --> 00:25:47,000 Speaker 1: if you've got the risk tolerance for it, you know, 478 00:25:47,160 --> 00:25:50,080 Speaker 1: Kalonovitch over at JP Morgan Key Strategist says saying this 479 00:25:50,160 --> 00:25:52,960 Speaker 1: is a buying opportunity in Chinese related text talks. But 480 00:25:53,400 --> 00:25:57,160 Speaker 1: from your perspective, is the narrative becoming less global? Are 481 00:25:57,200 --> 00:25:59,800 Speaker 1: we likely to see further tensions for example affecting a 482 00:25:59,840 --> 00:26:03,679 Speaker 1: chip sector where US and China relations are deltailing? La 483 00:26:05,160 --> 00:26:10,720 Speaker 1: Undoubtedly the long term prospects are for more risk, unfortunately, 484 00:26:11,040 --> 00:26:13,879 Speaker 1: But I think that's pretty uh pretty much true. For 485 00:26:14,040 --> 00:26:16,399 Speaker 1: one thing, we heard that from the Chinese government a 486 00:26:16,560 --> 00:26:19,800 Speaker 1: real focus over the past week was on the external 487 00:26:19,920 --> 00:26:23,840 Speaker 1: environment and it being very threatening and dangerous to China. 488 00:26:24,320 --> 00:26:26,919 Speaker 1: Not that the Chinese government was shoring up to do 489 00:26:27,000 --> 00:26:31,880 Speaker 1: anything aggressive in response, but it was notable that Shi 490 00:26:31,960 --> 00:26:36,080 Speaker 1: Jimpying other top leaders focused very much on security issues 491 00:26:36,480 --> 00:26:40,280 Speaker 1: and an unfriendly environment that China has to struggle against. 492 00:26:40,520 --> 00:26:43,159 Speaker 1: And so what that means for US, I think, is 493 00:26:43,160 --> 00:26:46,879 Speaker 1: that we're looking at prolonged tensions in US China relations, 494 00:26:47,280 --> 00:26:52,359 Speaker 1: prolonged self reliance pursuits within China and here in Washington, 495 00:26:52,600 --> 00:26:57,800 Speaker 1: of course, prolonged focus on China as a strategic competitor 496 00:26:57,880 --> 00:27:00,840 Speaker 1: of the United States. And so those technolo oology controls 497 00:27:00,840 --> 00:27:03,720 Speaker 1: that you were talking about absolutely are going to continue 498 00:27:03,760 --> 00:27:08,120 Speaker 1: to grow talking a competition. What's been interesting was today 499 00:27:08,560 --> 00:27:11,359 Speaker 1: rumors and I will call them rumors, swirled if at 500 00:27:11,359 --> 00:27:14,800 Speaker 1: one thirty pm New York time, in tandem, both meta 501 00:27:14,960 --> 00:27:18,800 Speaker 1: and snaps share prices suddenly took a leg lower. Many 502 00:27:18,880 --> 00:27:22,720 Speaker 1: were talking about ongoing narrative of whether TikTok, for example, 503 00:27:22,880 --> 00:27:24,760 Speaker 1: will be able to carry on in its current form 504 00:27:24,800 --> 00:27:27,200 Speaker 1: here in the United States. How much do you see 505 00:27:27,240 --> 00:27:30,520 Speaker 1: that becoming a continued political football between China and the US, 506 00:27:30,560 --> 00:27:32,919 Speaker 1: and whether or not it does remain having a presence 507 00:27:32,920 --> 00:27:35,720 Speaker 1: here for example, I think it is going to be 508 00:27:35,760 --> 00:27:40,520 Speaker 1: a challenge because data and particularly control of personal information 509 00:27:40,920 --> 00:27:45,360 Speaker 1: is arising. Concern in Washington about China's access to American 510 00:27:45,560 --> 00:27:50,240 Speaker 1: citizens data and in China about US companies having having 511 00:27:50,280 --> 00:27:54,760 Speaker 1: access to Chinese citizens data. It's considered a national security issue, 512 00:27:54,800 --> 00:27:57,200 Speaker 1: and so I do think that is going to continue 513 00:27:57,200 --> 00:28:00,119 Speaker 1: to grow as a problem. Of course, today we saw 514 00:28:00,160 --> 00:28:05,560 Speaker 1: that there were two indictments against Chinese Chinese spies who 515 00:28:05,640 --> 00:28:09,439 Speaker 1: were seeking to influence the investigation the Department of Justice 516 00:28:09,480 --> 00:28:14,800 Speaker 1: investigation against Huawei, and so again technology focused issues are 517 00:28:14,880 --> 00:28:18,960 Speaker 1: at the four of US China competition. That is going 518 00:28:19,000 --> 00:28:22,760 Speaker 1: to make it a challenging environment for companies in the 519 00:28:22,840 --> 00:28:26,480 Speaker 1: United States and in China to continue to be interdependent. 520 00:28:26,800 --> 00:28:29,320 Speaker 1: And then we have just a show of how the 521 00:28:29,600 --> 00:28:32,040 Speaker 1: share price did erode somewhat on Snap on the day, 522 00:28:32,080 --> 00:28:35,960 Speaker 1: just at about one thirty. I'm interested Amy on your perspective. 523 00:28:36,040 --> 00:28:38,160 Speaker 1: We've been talking about how this is impacting the investors. 524 00:28:38,160 --> 00:28:40,280 Speaker 1: Of course, as many of you as are talked to 525 00:28:40,360 --> 00:28:43,520 Speaker 1: us about a CEO of a business that has wanted 526 00:28:43,560 --> 00:28:46,440 Speaker 1: to peg themselves to the growth story that is China 527 00:28:46,640 --> 00:28:49,600 Speaker 1: that is now trying to understand whether that's something that 528 00:28:49,600 --> 00:28:52,920 Speaker 1: they already stick to. Well, I think coming out of 529 00:28:52,960 --> 00:28:55,280 Speaker 1: the Party Congress there are probably c e U s 530 00:28:55,400 --> 00:28:59,040 Speaker 1: and many boards that are saying what did we see here. 531 00:28:59,160 --> 00:29:03,760 Speaker 1: We saw continuation of a real focus on national security. 532 00:29:03,920 --> 00:29:09,480 Speaker 1: We saw some some norm busting behaviors of early retirements 533 00:29:09,520 --> 00:29:14,520 Speaker 1: of some very capable economic officials and some promotions of 534 00:29:14,520 --> 00:29:20,080 Speaker 1: officials that don't necessarily have a strong national economic background. 535 00:29:20,520 --> 00:29:24,280 Speaker 1: And so those are challenges when foreign CEOs are thinking 536 00:29:24,280 --> 00:29:27,520 Speaker 1: about the direction in which Chinese policymakers are going to 537 00:29:27,640 --> 00:29:31,640 Speaker 1: take China's economic development and the role of foreign investment 538 00:29:31,800 --> 00:29:35,400 Speaker 1: in the market. We just saw Q three numbers drop 539 00:29:35,480 --> 00:29:37,520 Speaker 1: on Monday. They were delayed, they were supposed to be 540 00:29:37,560 --> 00:29:40,360 Speaker 1: released out of China last week, was delayed until after 541 00:29:40,400 --> 00:29:43,920 Speaker 1: the Party Congress. And while there was some suggestion that 542 00:29:43,960 --> 00:29:46,760 Speaker 1: the numbers were a little bit better than we predicted, 543 00:29:47,120 --> 00:29:50,120 Speaker 1: certainly the export led growth is down and it's going 544 00:29:50,200 --> 00:29:53,320 Speaker 1: to continue to be down, and so within China, I 545 00:29:53,320 --> 00:29:56,280 Speaker 1: think there's going to be a focus on consumption led growth. 546 00:29:56,640 --> 00:30:00,320 Speaker 1: So for the clients I serve and other global companies 547 00:30:00,360 --> 00:30:03,440 Speaker 1: who are focused on the China consumption story, it will 548 00:30:03,520 --> 00:30:06,760 Speaker 1: remain important. But it does depend on the sector in 549 00:30:06,760 --> 00:30:11,840 Speaker 1: which you operate, because there is continued concerns engaging over 550 00:30:12,280 --> 00:30:15,880 Speaker 1: the kinds of activities foreign investors can can you know 551 00:30:16,240 --> 00:30:19,720 Speaker 1: it can do in the China market if there's an 552 00:30:19,760 --> 00:30:23,320 Speaker 1: overlay of national security concern. That was a key theme 553 00:30:23,440 --> 00:30:25,760 Speaker 1: coming out of the Party Congress, even though it was 554 00:30:25,840 --> 00:30:29,840 Speaker 1: not tied to foreign investment. That's what CEOs are looking at, 555 00:30:30,320 --> 00:30:33,840 Speaker 1: Amy Selca Principle over at Denton's Global Advice of old 556 00:30:33,840 --> 00:30:36,680 Speaker 1: bright Stone Bridge Group. We thank you so much for 557 00:30:36,760 --> 00:30:39,000 Speaker 1: keeping us on top of it. Or meanwhile, coming up, well, 558 00:30:39,000 --> 00:30:41,800 Speaker 1: the government's crypto crackdown here in the US, is it 559 00:30:41,880 --> 00:30:46,560 Speaker 1: scaring away potential investors or is it a complete opposite transparency. 560 00:30:46,840 --> 00:30:49,960 Speaker 1: We'll discuss that in our Crypto Report US. Next, this 561 00:30:50,080 --> 00:31:24,120 Speaker 1: is bring back time now for our crypto report. And 562 00:31:24,680 --> 00:31:27,360 Speaker 1: it seems like the recent attention on crypto by the 563 00:31:27,480 --> 00:31:31,240 Speaker 1: SEC and other watchdogs well actually proving to be pretty 564 00:31:31,240 --> 00:31:34,440 Speaker 1: good for the industry. That's bringing our crypto contributor Nale 565 00:31:34,520 --> 00:31:37,680 Speaker 1: Bassett for more on this. And you hear it from 566 00:31:37,720 --> 00:31:41,040 Speaker 1: many a player, maybe a CEO and executive saying we 567 00:31:41,240 --> 00:31:44,160 Speaker 1: bring on regulation, we want to therefore be deemed sort 568 00:31:44,160 --> 00:31:46,400 Speaker 1: of more legitimate. But our investors seeing it that way, 569 00:31:46,480 --> 00:31:48,600 Speaker 1: I think you have to break down what kind of investors. 570 00:31:48,640 --> 00:31:51,840 Speaker 1: First of all, six of those who are surveyed by Bloomberg, 571 00:31:51,840 --> 00:31:54,960 Speaker 1: this is more than five dred and sixty investors said yes. 572 00:31:55,360 --> 00:31:58,240 Speaker 1: And interestingly enough, if you look at the type of investors, 573 00:31:58,280 --> 00:32:00,640 Speaker 1: retail investors were saying so at a greater rate than 574 00:32:00,680 --> 00:32:03,240 Speaker 1: professional investors. And when you look at the crypto industry 575 00:32:03,280 --> 00:32:06,080 Speaker 1: at large, you are seeing a lot of divergence still 576 00:32:06,240 --> 00:32:08,160 Speaker 1: and the types of investors that are more likely to 577 00:32:08,160 --> 00:32:10,400 Speaker 1: buy crypto over the next twelve months. Off of the 578 00:32:10,400 --> 00:32:13,440 Speaker 1: back of that, for example, you're seeing more south side 579 00:32:13,440 --> 00:32:16,880 Speaker 1: traders say yes as opposed to those high level asset 580 00:32:16,920 --> 00:32:20,280 Speaker 1: allocators and executives saying yes. So you do have divergence 581 00:32:20,320 --> 00:32:23,840 Speaker 1: between the type of investor, but generally whether it's on 582 00:32:23,880 --> 00:32:26,880 Speaker 1: their own personal book or whether it's for their exactly, 583 00:32:26,960 --> 00:32:29,520 Speaker 1: I think there's a huge difference there on the volumes 584 00:32:29,560 --> 00:32:33,560 Speaker 1: you're buying at that level, right, But do say yes 585 00:32:33,600 --> 00:32:37,400 Speaker 1: that the regulatory clarity means a lot. Interestingly enough, um, 586 00:32:37,440 --> 00:32:40,160 Speaker 1: some of these investigations, as we know, are pretty nascent, 587 00:32:40,320 --> 00:32:42,960 Speaker 1: and the things that the SEC are looking at, whether 588 00:32:43,000 --> 00:32:44,840 Speaker 1: it's at n f T S and YUGA labs or 589 00:32:44,880 --> 00:32:47,800 Speaker 1: whether we're thinking about the way they're approaching three arrows capital, 590 00:32:47,840 --> 00:32:50,400 Speaker 1: which is a little further down the road in terms 591 00:32:50,480 --> 00:32:53,000 Speaker 1: of the hiccups we saw a lot earlier this year 592 00:32:53,040 --> 00:32:55,560 Speaker 1: that we're much more blatant and detrimental to the market. 593 00:32:55,800 --> 00:32:58,400 Speaker 1: That a little bit of regulation might have protected some 594 00:32:58,440 --> 00:33:02,280 Speaker 1: people against you cool some enchin well throughous capital was 595 00:33:02,320 --> 00:33:05,240 Speaker 1: a pretty you were very experienced in the space of 596 00:33:05,280 --> 00:33:07,520 Speaker 1: perhaps you were going into that area or indeed, if 597 00:33:07,560 --> 00:33:10,040 Speaker 1: you're buying n f T s, it's a different type 598 00:33:10,040 --> 00:33:13,120 Speaker 1: of usset class perhaps than bitcoin the o G. So 599 00:33:13,160 --> 00:33:16,080 Speaker 1: how are people feeling about just that as an area 600 00:33:16,160 --> 00:33:18,360 Speaker 1: to be going into the moment. One interesting about bitcoin 601 00:33:18,400 --> 00:33:21,200 Speaker 1: in particular is I think the difference that they these 602 00:33:21,240 --> 00:33:24,040 Speaker 1: investors have felt about the trading range. So when they 603 00:33:24,080 --> 00:33:26,480 Speaker 1: were asked in the summertime, they thought that bitcoin by 604 00:33:26,480 --> 00:33:29,160 Speaker 1: and large most investors had thought that bitcoin crashed down 605 00:33:29,200 --> 00:33:33,320 Speaker 1: to ten tho dollars. Now generally investors are feeling that 606 00:33:33,360 --> 00:33:36,880 Speaker 1: there's a range bound view here between seventeen thousand and 607 00:33:36,920 --> 00:33:40,000 Speaker 1: twenty five thousand until the end of this year, which 608 00:33:40,040 --> 00:33:41,840 Speaker 1: is a little bit brighter than the summer but still 609 00:33:41,920 --> 00:33:44,640 Speaker 1: range bound. I think that there's a lack of consensus 610 00:33:44,680 --> 00:33:48,480 Speaker 1: here about how much correlation there is also to other 611 00:33:48,680 --> 00:33:51,200 Speaker 1: assets I think that's very important because we do see 612 00:33:51,200 --> 00:33:57,480 Speaker 1: some professional actors seeing that correlation breakdown, but respondents think 613 00:33:57,560 --> 00:34:00,800 Speaker 1: that the correlation to tech stocks will a similar So 614 00:34:00,840 --> 00:34:04,200 Speaker 1: you see that interest rate worries still exist among investors. 615 00:34:04,240 --> 00:34:07,040 Speaker 1: So much for a diverse quite yet interesting. I just 616 00:34:07,080 --> 00:34:09,759 Speaker 1: want to deviceify the conversation a little bit because I'm 617 00:34:09,760 --> 00:34:13,480 Speaker 1: a brit sat here looking at the political extraordinary occurrence 618 00:34:13,520 --> 00:34:15,560 Speaker 1: is happening over the UK, and I remember, you know, 619 00:34:15,640 --> 00:34:18,600 Speaker 1: Richie Sunac, now Prime Minister, was at one point talking 620 00:34:18,600 --> 00:34:20,880 Speaker 1: about making the UK a crypto hub, making sure that 621 00:34:20,920 --> 00:34:23,680 Speaker 1: their regulation was ready for the space. What did that 622 00:34:23,719 --> 00:34:27,640 Speaker 1: news have for many a crypto investor today, Well, obviously 623 00:34:28,080 --> 00:34:31,239 Speaker 1: the crypto meme traders are blowing up about it. There's 624 00:34:31,239 --> 00:34:34,080 Speaker 1: a lot of great videos about Richie Sunac on Twitter 625 00:34:34,239 --> 00:34:37,120 Speaker 1: right now. But remember it was only April when he 626 00:34:37,200 --> 00:34:39,640 Speaker 1: said that he wanted to make the UK a crypto hub. 627 00:34:39,880 --> 00:34:43,240 Speaker 1: He really wanted to put more framework round stable coins 628 00:34:43,560 --> 00:34:46,359 Speaker 1: being recognized as a valid form of payment. One quick 629 00:34:46,360 --> 00:34:47,840 Speaker 1: thing I would say about this too is if you 630 00:34:47,880 --> 00:34:49,920 Speaker 1: look at the actions that have taken outside of that 631 00:34:50,320 --> 00:34:54,279 Speaker 1: takes CBDC Central Bank digital currencies for example, the UK 632 00:34:54,440 --> 00:34:58,120 Speaker 1: is still only one of forty six countries that are 633 00:34:58,160 --> 00:35:01,520 Speaker 1: still in research phase. There twenty six countries and development 634 00:35:01,680 --> 00:35:04,319 Speaker 1: there are fifteen and pilot programs. So if you look 635 00:35:04,360 --> 00:35:07,279 Speaker 1: at the CBDC world, when it comes to how fast 636 00:35:07,320 --> 00:35:11,279 Speaker 1: the UK is moving, it is less fast than for example, Australia, 637 00:35:11,640 --> 00:35:14,480 Speaker 1: but about the same as the United States. But he 638 00:35:14,680 --> 00:35:19,160 Speaker 1: is a crypto friendly executive, of course, crypto friendly now 639 00:35:19,200 --> 00:35:21,200 Speaker 1: Prime Minister who has a rather long to do list, 640 00:35:21,280 --> 00:35:23,920 Speaker 1: so he whether it ends up anywhere near the top, Shenale, 641 00:35:23,960 --> 00:35:25,560 Speaker 1: it's always great to have you on. Thank you, Shenali 642 00:35:25,560 --> 00:35:36,200 Speaker 1: Bastic courseor Crypto report. We're gonna have a deep dive 643 00:35:36,239 --> 00:35:38,480 Speaker 1: now on the gig economy, which has seen a pretty 644 00:35:38,560 --> 00:35:42,800 Speaker 1: rough transition from peak pandemic to a pretty difficult new normal, 645 00:35:43,080 --> 00:35:46,480 Speaker 1: shoppers going back to stores, inflation hurting everyone's wallets, and 646 00:35:46,520 --> 00:35:48,760 Speaker 1: the market value. Of course of door Dash is followed 647 00:35:48,800 --> 00:35:53,240 Speaker 1: by some This year, Uber thirty four, Instacot, after slashing 648 00:35:53,239 --> 00:35:55,600 Speaker 1: its valuation for a third time on the private markets, 649 00:35:55,680 --> 00:35:59,040 Speaker 1: keep on pushing towards an IPO amid pretty uncertain market conditions. 650 00:35:59,320 --> 00:36:01,560 Speaker 1: Let's talk about what's in store for these companies for 651 00:36:01,600 --> 00:36:05,000 Speaker 1: their workforce as well, for their regulation. Bradley Tusk, founder 652 00:36:05,160 --> 00:36:08,000 Speaker 1: CEO of Task Ventures, which takes a novel approach to 653 00:36:08,040 --> 00:36:10,160 Speaker 1: invest in. You really double down in areas that are 654 00:36:10,480 --> 00:36:13,120 Speaker 1: going through regulatory changes and hurdles, and you help with 655 00:36:13,160 --> 00:36:16,240 Speaker 1: your expertise to decide what's the best bet and not, Bradley, 656 00:36:16,400 --> 00:36:18,960 Speaker 1: at the moment the erosion of value in these sorts 657 00:36:19,000 --> 00:36:20,879 Speaker 1: of companies, and we see a deep dive going into 658 00:36:20,960 --> 00:36:24,240 Speaker 1: Go Puff for example on the terminal today. How difficult 659 00:36:24,320 --> 00:36:27,319 Speaker 1: is it with the changing of their how their view 660 00:36:27,480 --> 00:36:31,239 Speaker 1: workers are assessed. Yeah, look, it certainly doesn't help. So 661 00:36:31,360 --> 00:36:34,920 Speaker 1: right now you've got two different camps in a buyinary position. 662 00:36:35,120 --> 00:36:39,040 Speaker 1: So they're sharing economy companies all say, should all of 663 00:36:39,080 --> 00:36:42,600 Speaker 1: our workers become wtube We expect our our great expenses 664 00:36:42,640 --> 00:36:45,600 Speaker 1: to increase buyers much just twenty percent, so that they've 665 00:36:45,600 --> 00:36:47,480 Speaker 1: done a view that you know, in a business for 666 00:36:47,600 --> 00:36:52,279 Speaker 1: already tired margins, they really can't afford more cost. The 667 00:36:52,520 --> 00:36:56,680 Speaker 1: unions will say we believe that every single person in 668 00:36:56,719 --> 00:36:59,400 Speaker 1: the sharing economy has to be a W two employee. 669 00:36:59,800 --> 00:37:03,080 Speaker 1: The reason they say that is their main concerns, of 670 00:37:03,080 --> 00:37:06,919 Speaker 1: course members and union paying dues. You can't get dudes 671 00:37:06,960 --> 00:37:08,640 Speaker 1: from someone if they're not a member, and they can't 672 00:37:08,640 --> 00:37:10,920 Speaker 1: be a member if not a full time employee, So 673 00:37:10,960 --> 00:37:15,400 Speaker 1: you have each side kind of taking a fairly extreme position. UM. 674 00:37:15,719 --> 00:37:21,400 Speaker 1: The Biden administration has now outsided, not surprisingly with the unions. UM. 675 00:37:21,560 --> 00:37:23,759 Speaker 1: They issued a proposed rule at the Department of Labor 676 00:37:23,760 --> 00:37:26,680 Speaker 1: about a week and a half ago that effectively presumes 677 00:37:26,719 --> 00:37:30,040 Speaker 1: that everybody in the sharing economy is a full time 678 00:37:30,080 --> 00:37:33,399 Speaker 1: employee and not a to ninety nine. So that will 679 00:37:33,480 --> 00:37:36,000 Speaker 1: likely go into a factor if you're thinking about the 680 00:37:36,080 --> 00:37:40,439 Speaker 1: cost structure for door dash for left Uber potentially burned 681 00:37:40,480 --> 00:37:43,120 Speaker 1: into car wherever they go to public UM, I do 682 00:37:43,239 --> 00:37:48,200 Speaker 1: think you have to factor that in. However, UM, there 683 00:37:48,200 --> 00:37:51,160 Speaker 1: are some other mitigating pieces. Which is, first, if the 684 00:37:51,160 --> 00:37:54,960 Speaker 1: Republicans win the White House in four that rule likely 685 00:37:54,960 --> 00:37:57,880 Speaker 1: gets prescinded right away, so it's actual from amount of 686 00:37:57,880 --> 00:38:00,680 Speaker 1: time that it existed, so that we're sent it will 687 00:38:00,680 --> 00:38:04,840 Speaker 1: be pretty minimal. The impa actually pretty minimal. Also, you know, 688 00:38:05,000 --> 00:38:07,920 Speaker 1: the buying administrations, they're just picking politics as opposed to 689 00:38:07,960 --> 00:38:10,839 Speaker 1: the actual well being or desires of the workers. They're 690 00:38:10,880 --> 00:38:14,080 Speaker 1: gonna find that millions and millions of people who currently 691 00:38:14,120 --> 00:38:17,879 Speaker 1: work as independent contractors are there really resists becoming full 692 00:38:17,960 --> 00:38:20,239 Speaker 1: term employees and joining unions because they don't want to 693 00:38:20,480 --> 00:38:23,480 Speaker 1: write the While they may say, of course everyone wants 694 00:38:23,520 --> 00:38:24,880 Speaker 1: to be in the union, of course they wants to 695 00:38:24,880 --> 00:38:28,680 Speaker 1: be W two, all of the data of our shows 696 00:38:29,000 --> 00:38:31,960 Speaker 1: that people who are in the sharing economy really value 697 00:38:32,000 --> 00:38:34,640 Speaker 1: the flexibility that they have or setting their schedule's choosing 698 00:38:34,719 --> 00:38:36,800 Speaker 1: what kind of work they do when they work, and 699 00:38:36,960 --> 00:38:41,320 Speaker 1: so that has to get balanced against it. So, you know, 700 00:38:41,760 --> 00:38:44,719 Speaker 1: just to interject that rightly said, and I've heard the 701 00:38:44,760 --> 00:38:46,799 Speaker 1: lobby and go on. It's been going thick and fast 702 00:38:46,840 --> 00:38:48,680 Speaker 1: in the UK as well for many a company that 703 00:38:48,760 --> 00:38:50,640 Speaker 1: I covered over there as well. When you think about 704 00:38:50,960 --> 00:38:53,759 Speaker 1: delivery and they're like, from your perspective, is it a 705 00:38:53,920 --> 00:38:56,600 Speaker 1: useful use of resource of the companies you back that 706 00:38:56,719 --> 00:38:59,680 Speaker 1: they have to just lobby pay for lobbying in this way. Yeah, 707 00:39:00,440 --> 00:39:03,760 Speaker 1: unless the lobby expenses are greater than what you believe 708 00:39:03,880 --> 00:39:05,800 Speaker 1: the total increase and costs are going to be for 709 00:39:06,000 --> 00:39:09,200 Speaker 1: converting everyoneted W two, then yes it's a good expense. Right. 710 00:39:09,320 --> 00:39:13,600 Speaker 1: So if you're talking about a operating increase um, you're 711 00:39:13,600 --> 00:39:15,960 Speaker 1: a lot of expenses are I don't know, less than 712 00:39:16,000 --> 00:39:18,480 Speaker 1: more percent of that reality. So it's it's not that 713 00:39:19,560 --> 00:39:22,759 Speaker 1: it's it's not that material. Yeah, companies have to work 714 00:39:22,800 --> 00:39:24,960 Speaker 1: on this stuff for sure. Let's go through your list. Then, 715 00:39:25,040 --> 00:39:27,920 Speaker 1: as a VC at the moment in this landscape, how 716 00:39:28,080 --> 00:39:30,560 Speaker 1: high up does the regulatory concern come to you? Or 717 00:39:30,560 --> 00:39:33,200 Speaker 1: are you more likely just looking at the broad landscape 718 00:39:33,239 --> 00:39:35,160 Speaker 1: of tech investing right now and being like, oh boy, 719 00:39:35,320 --> 00:39:37,879 Speaker 1: that the tectonic plates have shifted a bit here, right. 720 00:39:38,080 --> 00:39:40,719 Speaker 1: It's a good question. So we're early stage investors see 721 00:39:40,760 --> 00:39:42,920 Speaker 1: in the series A, and we look for all the 722 00:39:43,000 --> 00:39:45,399 Speaker 1: same stuff as every early stage founder and every really 723 00:39:45,440 --> 00:39:50,200 Speaker 1: stage investors. So the founder, the tam, the underlying technology 724 00:39:50,239 --> 00:39:53,040 Speaker 1: and underlying idea all we use all stuff. Then at 725 00:39:53,080 --> 00:39:56,120 Speaker 1: touch fansures, we have two more questions. One is there 726 00:39:56,120 --> 00:39:59,320 Speaker 1: a gating regulatory issue or opportunity that if it war solved, 727 00:39:59,400 --> 00:40:02,640 Speaker 1: can really draw growth and evaluation. And if so, can 728 00:40:02,719 --> 00:40:05,120 Speaker 1: we help solve But when the answer is yet to both, 729 00:40:05,560 --> 00:40:08,600 Speaker 1: that didn't really make sense for us specifically to deploy capital. 730 00:40:08,680 --> 00:40:10,320 Speaker 1: So if you take the company that you just listed. 731 00:40:10,880 --> 00:40:13,480 Speaker 1: For FanDuel, we're in all the campaigns helped legalized daily 732 00:40:13,480 --> 00:40:17,480 Speaker 1: fantasy sports fatting. For Bird, we legalized electric students. For Lemonade, 733 00:40:17,480 --> 00:40:20,359 Speaker 1: we've got that their insurance licenses in every state. For Roman, 734 00:40:20,440 --> 00:40:25,320 Speaker 1: we help digitize legalize digital prescriptions. So for us specifically, 735 00:40:26,080 --> 00:40:28,759 Speaker 1: we need to see a significant regulatory issue for us 736 00:40:28,800 --> 00:40:32,560 Speaker 1: to invest in the first place. Typically, seeking those issues 737 00:40:32,600 --> 00:40:35,800 Speaker 1: come at the front end um, so that that attached 738 00:40:35,840 --> 00:40:38,840 Speaker 1: how we look at it. If we do our jobs properly, 739 00:40:39,360 --> 00:40:41,800 Speaker 1: later stage investors won't even have to think about this 740 00:40:41,880 --> 00:40:45,440 Speaker 1: all that much because we've already legalized the product, gotten 741 00:40:45,480 --> 00:40:48,560 Speaker 1: the license, whatever it is that the company needs. Riley, 742 00:40:48,760 --> 00:40:50,880 Speaker 1: we could talk to you for so much longer. We 743 00:40:51,000 --> 00:40:54,200 Speaker 1: thank you for giving you inside track on today. Bradley 744 00:40:54,280 --> 00:40:56,520 Speaker 1: Tusk always great to sit down and founder and CEO 745 00:40:56,680 --> 00:40:59,879 Speaker 1: of Tusk venches. Meanwhile, well that does it for this edition. 746 00:41:00,000 --> 00:41:02,799 Speaker 1: A bloom Beg Technology goes by so fast. Tuesday, We're 747 00:41:02,800 --> 00:41:05,600 Speaker 1: gonna have so far as Lizzie Young stop all things Earnings, 748 00:41:05,920 --> 00:41:08,359 Speaker 1: and do not forget to check out the podcast, where 749 00:41:08,400 --> 00:41:10,960 Speaker 1: we amalgamate some of the best parts of our conversations 750 00:41:11,520 --> 00:41:14,719 Speaker 1: in a really unique and easy to digest format. From 751 00:41:14,760 --> 00:41:17,280 Speaker 1: New York Wishing Well, there's a Broomberg