1 00:00:13,760 --> 00:00:16,000 Speaker 1: I'm Caroline Hyder Bloomberg's world. I got us in New 2 00:00:16,079 --> 00:00:18,840 Speaker 1: York and I med Ludlow in San Francisco. This is 3 00:00:18,840 --> 00:00:23,400 Speaker 1: Bloomberg Technology. Artificial intelligence still driving markets, carro over earnings 4 00:00:23,640 --> 00:00:26,000 Speaker 1: front and center. Yeah, let's get straight to it. As 5 00:00:26,040 --> 00:00:28,840 Speaker 1: the plunge is clear, with Lift after hours, the ride 6 00:00:28,840 --> 00:00:32,520 Speaker 1: sharing company falling after evidence it's losing share to Uber, 7 00:00:32,720 --> 00:00:36,199 Speaker 1: a weak profit in sales, outlook and social media in 8 00:00:36,200 --> 00:00:39,760 Speaker 1: the spotlight on Capitol Hill, but former Twitter executives are 9 00:00:39,760 --> 00:00:43,720 Speaker 1: telling lawmakers to hold off on regulating online content. Will 10 00:00:43,720 --> 00:00:46,720 Speaker 1: bring you the y plus the latest details on Disney 11 00:00:46,760 --> 00:00:50,760 Speaker 1: as activist investor Nelson Peltz stands down on his proxy fight. 12 00:00:51,159 --> 00:00:53,720 Speaker 1: But is the battle over all that so much more 13 00:00:53,720 --> 00:00:56,160 Speaker 1: coming up? We dig in first and foremost to those 14 00:00:56,200 --> 00:00:59,400 Speaker 1: markets that once again swoon the first two day lows 15 00:00:59,440 --> 00:01:01,640 Speaker 1: we've seen since December, the worst two days, sal off 16 00:01:01,640 --> 00:01:03,480 Speaker 1: about two points of the course of two days, and 17 00:01:03,480 --> 00:01:05,920 Speaker 1: then AzaC of by another percentage point on the day. 18 00:01:06,040 --> 00:01:08,880 Speaker 1: We're worried as again on the macro, on the federal reserve, 19 00:01:08,920 --> 00:01:11,119 Speaker 1: on interest rates going higher. That's why we see well 20 00:01:11,200 --> 00:01:14,440 Speaker 1: overall concerned anxiety as evidence in the vix. The volatility 21 00:01:14,520 --> 00:01:16,560 Speaker 1: index picks up to a twenty handle. The ten year 22 00:01:16,600 --> 00:01:19,840 Speaker 1: yields of boring costs they rise. No wander stocks full. 23 00:01:19,880 --> 00:01:21,679 Speaker 1: Let's switch it on because I want to show also 24 00:01:21,760 --> 00:01:23,880 Speaker 1: this worry about the canary in the cold mine. That 25 00:01:24,040 --> 00:01:27,640 Speaker 1: is well, the retail investor, they're getting bullish, the first 26 00:01:27,640 --> 00:01:30,880 Speaker 1: time we've seen that since April. Many say, oh, we're 27 00:01:30,880 --> 00:01:33,800 Speaker 1: now late to the party. Had Yeah, it's interesting. So 28 00:01:33,840 --> 00:01:37,479 Speaker 1: many stories for individual stocks as well. Alphabet down another 29 00:01:37,520 --> 00:01:40,880 Speaker 1: four point four percent this Thursday or two day drop, 30 00:01:41,000 --> 00:01:43,320 Speaker 1: the biggest two day drops since March, as we continue 31 00:01:43,360 --> 00:01:46,320 Speaker 1: to have worries about their barred AI search. Disney is 32 00:01:46,319 --> 00:01:48,160 Speaker 1: so interesting. We're gonna get into it later in the show. 33 00:01:48,320 --> 00:01:51,400 Speaker 1: But it was up significantly, ending up lower one point 34 00:01:51,480 --> 00:01:54,559 Speaker 1: three percent. We'll get into Tiger's success story so far 35 00:01:54,840 --> 00:01:57,680 Speaker 1: at the entertainment company. Global Foundries is an't to deal 36 00:01:57,720 --> 00:02:01,200 Speaker 1: with GM to supply semi conductors your Homemaker, boosting that 37 00:02:01,240 --> 00:02:03,840 Speaker 1: stock up three and a half percent, and continued momentum 38 00:02:04,040 --> 00:02:06,240 Speaker 1: in Tesla. But right now it is all about earnings. 39 00:02:06,280 --> 00:02:09,200 Speaker 1: Let's get straight to PayPal actually giving a pretty tepid 40 00:02:09,240 --> 00:02:13,120 Speaker 1: forecast in terms of dollar value of bookings or transactions 41 00:02:13,120 --> 00:02:16,480 Speaker 1: through their platform. But crucially CEO Dan Shaman, he is 42 00:02:16,520 --> 00:02:19,240 Speaker 1: going to step down and retire at year end. That 43 00:02:19,320 --> 00:02:21,840 Speaker 1: as we see sales growth slowing and Lift, oh my 44 00:02:21,960 --> 00:02:25,959 Speaker 1: goodness down after hours. Really, what the market seeson on 45 00:02:26,360 --> 00:02:29,520 Speaker 1: is the fiscal first quarter forecast for ebit dar adjusted 46 00:02:29,520 --> 00:02:32,960 Speaker 1: basis five million to fifteen million. The street was looking 47 00:02:32,960 --> 00:02:35,560 Speaker 1: for a forecast of around eighty four million. So that 48 00:02:35,680 --> 00:02:38,280 Speaker 1: is a significant miss on expectations. Let's get more and 49 00:02:38,320 --> 00:02:41,280 Speaker 1: bringing row Hit called Carnie, an analyst at rough m 50 00:02:41,480 --> 00:02:43,640 Speaker 1: K M row Hit, you have a whole rating on 51 00:02:43,720 --> 00:02:48,359 Speaker 1: Lift twenty dollar price target. What's your reaction to the numbers? Um? 52 00:02:48,560 --> 00:02:51,079 Speaker 1: This is this feels like a big recent quarter, one 53 00:02:51,080 --> 00:02:54,880 Speaker 1: more recent quarter from coming from left. There is more 54 00:02:54,919 --> 00:02:58,680 Speaker 1: evidence that they're probably losing market share to uber Um. 55 00:02:58,760 --> 00:03:02,920 Speaker 1: They're landing on the recovery from West coast exposure, and 56 00:03:03,000 --> 00:03:05,600 Speaker 1: on top of it, there are kind of execution issues 57 00:03:05,639 --> 00:03:10,800 Speaker 1: that they have their own insidence kind of way of 58 00:03:10,800 --> 00:03:14,000 Speaker 1: doing things, which which is probably placerbating how things are 59 00:03:14,040 --> 00:03:17,760 Speaker 1: being reported. Here. Hey, right here, Dara Kostrasha, here the 60 00:03:17,840 --> 00:03:21,040 Speaker 1: uber sere It's hold Bloomberg twenty four hours ago that 61 00:03:21,160 --> 00:03:24,320 Speaker 1: he thinks Uber is taking market share from Left. Do 62 00:03:24,360 --> 00:03:27,960 Speaker 1: you see the numbers as evidence of that? Absolutely over 63 00:03:28,000 --> 00:03:31,240 Speaker 1: the last three quarters when we look at the mobility trends, 64 00:03:31,360 --> 00:03:34,960 Speaker 1: but Uber is showing on a sequential growth, although the 65 00:03:35,440 --> 00:03:39,040 Speaker 1: disclosures across both companies are highly inconsistent. So it's not 66 00:03:39,120 --> 00:03:42,320 Speaker 1: apples to apples, it's probably apples to pineapples. But having 67 00:03:42,360 --> 00:03:44,840 Speaker 1: said that, I think just the growth rate that these 68 00:03:44,840 --> 00:03:47,600 Speaker 1: companies are putting up are diverging in a way that 69 00:03:48,360 --> 00:03:51,520 Speaker 1: they weren't a while back. So I feel Uber is 70 00:03:51,640 --> 00:03:55,480 Speaker 1: definitely gaining market share and probably that share gain is 71 00:03:55,520 --> 00:03:57,920 Speaker 1: accelerating as we speak. So what do you want to 72 00:03:57,920 --> 00:04:02,320 Speaker 1: hear from Left leadership right now? As it I think 73 00:04:02,800 --> 00:04:05,480 Speaker 1: the most important thing here is what is the path 74 00:04:05,560 --> 00:04:09,720 Speaker 1: to sustainable cash flow generation UM? The company did put 75 00:04:09,720 --> 00:04:14,280 Speaker 1: out UM target with regards to how high of a 76 00:04:14,320 --> 00:04:17,480 Speaker 1: cash flow generation that they can have. I feel given 77 00:04:17,520 --> 00:04:20,920 Speaker 1: the given the guidance that they have of software revenues 78 00:04:21,240 --> 00:04:24,920 Speaker 1: and much software bit da, I feel they just need 79 00:04:24,960 --> 00:04:28,120 Speaker 1: to provide some confidence to the investors that look, this 80 00:04:28,200 --> 00:04:30,800 Speaker 1: is what these are the steps we can take to 81 00:04:31,200 --> 00:04:34,480 Speaker 1: get to a point that we can generate incremental cash 82 00:04:34,680 --> 00:04:38,560 Speaker 1: and then we can be UM investing in investing for growth. 83 00:04:38,600 --> 00:04:42,560 Speaker 1: I feel that confidence is completely lost after looking at 84 00:04:42,560 --> 00:04:45,560 Speaker 1: their numbers today. There is definitely some noise and confusion, 85 00:04:45,680 --> 00:04:48,240 Speaker 1: But I feel that's what we need to hear when 86 00:04:48,240 --> 00:04:51,080 Speaker 1: that confidence is lost. Do you have to change the ratings? 87 00:04:51,120 --> 00:04:52,920 Speaker 1: You have to change the whole positions. You have to 88 00:04:53,000 --> 00:04:55,320 Speaker 1: change the price target that is now well off that 89 00:04:55,360 --> 00:04:59,560 Speaker 1: twenty large you currently have at the momentum. Again, what 90 00:04:59,600 --> 00:05:03,200 Speaker 1: I would say is everybody on the street will revisit 91 00:05:03,880 --> 00:05:07,159 Speaker 1: their financial models after earnings, so we are in the 92 00:05:07,160 --> 00:05:10,760 Speaker 1: process of doing that. And ANU here from more from us. 93 00:05:11,960 --> 00:05:15,080 Speaker 1: Right here, we asked our audience on Twitter, does Lift 94 00:05:15,240 --> 00:05:17,960 Speaker 1: need to go outside of his existing lane move into 95 00:05:18,040 --> 00:05:22,240 Speaker 1: other areas to stay relevant? These are the conclusions of 96 00:05:22,320 --> 00:05:25,039 Speaker 1: respondents saying, no, stay in your lane. I ask you 97 00:05:25,080 --> 00:05:27,719 Speaker 1: the same question to Lift need to move into delivery 98 00:05:29,240 --> 00:05:31,520 Speaker 1: UM That is going to be a very very expensive 99 00:05:31,839 --> 00:05:35,440 Speaker 1: value proposition right now. I think staying in their own lane, 100 00:05:35,960 --> 00:05:39,960 Speaker 1: UM focusing on mobility and focusing on profitability. I think 101 00:05:40,000 --> 00:05:43,320 Speaker 1: that's that's what is UH something that they need to 102 00:05:44,000 --> 00:05:49,520 Speaker 1: focus on even more. UM that's expanding into lateral markets 103 00:05:49,640 --> 00:05:51,200 Speaker 1: is just going to be more expensive. That is just 104 00:05:51,240 --> 00:05:54,440 Speaker 1: going to push the cash flow generation point much more 105 00:05:54,560 --> 00:05:57,440 Speaker 1: further down the road, and that's going to be hurtful 106 00:05:57,480 --> 00:06:01,120 Speaker 1: to the stock even more. Right here, industry colleagues Tom 107 00:06:01,160 --> 00:06:03,520 Speaker 1: Why at d A. Davidson told us twenty four hours 108 00:06:03,520 --> 00:06:07,120 Speaker 1: ago that the advantage Lift has is its brand. It's 109 00:06:07,320 --> 00:06:10,400 Speaker 1: it's resonance with gen Z. Can it leverage that to 110 00:06:10,560 --> 00:06:14,520 Speaker 1: fight back against you that So far we are finding 111 00:06:14,640 --> 00:06:18,200 Speaker 1: very limited evidence of the fact that they are able 112 00:06:18,240 --> 00:06:22,120 Speaker 1: to leverage that brand. Yes, there is definitely a certain 113 00:06:22,640 --> 00:06:26,760 Speaker 1: cohort of the population that prefers left over Uber, but 114 00:06:26,839 --> 00:06:30,120 Speaker 1: I think at the end of the day, right sharing 115 00:06:30,279 --> 00:06:34,160 Speaker 1: has has very limited amount of loyalty. To some extent, 116 00:06:35,320 --> 00:06:39,400 Speaker 1: both companies are trying to build loyalty around their subscription plans. 117 00:06:39,400 --> 00:06:43,479 Speaker 1: But this is a very very price sensitive product. So 118 00:06:43,520 --> 00:06:49,560 Speaker 1: I feel, regardless of affinity with a certain cohort off consumers, 119 00:06:49,880 --> 00:06:53,960 Speaker 1: that affinity may not linger if the company has to 120 00:06:54,200 --> 00:06:58,479 Speaker 1: change their value proposition increased prices. And at the same time, 121 00:06:58,800 --> 00:07:01,520 Speaker 1: Uber is improved in the marketplace at a much more 122 00:07:01,640 --> 00:07:05,839 Speaker 1: rapid clip, so they have market care to hold onto. Yeah, 123 00:07:05,920 --> 00:07:09,640 Speaker 1: I mean many, I mean include myself. I love using 124 00:07:09,760 --> 00:07:12,920 Speaker 1: the lift bikes, but they need some investment here in 125 00:07:12,960 --> 00:07:15,360 Speaker 1: New York. There's been a lot of handwringing about it. 126 00:07:15,880 --> 00:07:18,400 Speaker 1: I'm interested. Therefore, as we point ourselves forwards, do you 127 00:07:18,440 --> 00:07:21,280 Speaker 1: feel frustrated with management that they didn't guide you to 128 00:07:21,360 --> 00:07:23,840 Speaker 1: this sort of a slow down earlier? When you see 129 00:07:23,880 --> 00:07:27,920 Speaker 1: such a share price hit UM, it's it's hard to 130 00:07:29,000 --> 00:07:32,480 Speaker 1: hard to have that level of visibility nowadays. Again, there 131 00:07:32,520 --> 00:07:35,840 Speaker 1: are a lot of macro factors. There are micro factors 132 00:07:35,920 --> 00:07:39,200 Speaker 1: industry trends that make it even harder for management teams 133 00:07:39,200 --> 00:07:44,320 Speaker 1: to UM to have that level of visibility under normal circumstances. 134 00:07:44,360 --> 00:07:46,880 Speaker 1: This there is there is nothing called as normal from 135 00:07:46,880 --> 00:07:51,320 Speaker 1: a UM from a visibility standpoint nowadays, there are kind 136 00:07:51,320 --> 00:07:55,720 Speaker 1: of driver trends, there is gas prices that are reopening, 137 00:07:55,760 --> 00:07:59,600 Speaker 1: travel trends. Just the externalities just complicate their lives. But 138 00:08:00,000 --> 00:08:03,400 Speaker 1: having said that, a little bit of consistency of our 139 00:08:03,440 --> 00:08:08,360 Speaker 1: predictability in UM in fundamentals is something that any investors appreciates. 140 00:08:09,080 --> 00:08:12,160 Speaker 1: It may be lawer, but still that's consistency is what 141 00:08:12,520 --> 00:08:15,240 Speaker 1: we're looking for. Well, we love your consistency on the 142 00:08:15,240 --> 00:08:18,080 Speaker 1: show and coming on giving your viewpoint ahead of reworking 143 00:08:18,120 --> 00:08:19,840 Speaker 1: some of those models will let you get back to it. 144 00:08:20,040 --> 00:08:22,240 Speaker 1: Our head kill Kany, We thank him a roth M 145 00:08:22,320 --> 00:08:34,440 Speaker 1: k M. China's spy balloons onboard or antennae and solar panels, 146 00:08:34,520 --> 00:08:38,920 Speaker 1: so the US says it could collect US electronic communications. 147 00:08:39,360 --> 00:08:43,240 Speaker 1: In short, this is no ordinary weather research balloon, as 148 00:08:43,320 --> 00:08:46,640 Speaker 1: China is trying to claim. Overall. The US also thinks 149 00:08:46,679 --> 00:08:49,760 Speaker 1: it's managed to identify which company makes these spy balloons 150 00:08:49,840 --> 00:08:53,360 Speaker 1: and says they have direct relationships with the Chinese military. 151 00:08:53,800 --> 00:08:56,600 Speaker 1: The Binn administration could therefore be forced to take yet 152 00:08:56,720 --> 00:09:01,480 Speaker 1: further harsher steps of US technology export to China. They 153 00:09:01,480 --> 00:09:03,439 Speaker 1: don't want the sort of thing getting in the hands 154 00:09:03,480 --> 00:09:06,199 Speaker 1: of the Chinese military and security agencies to be used 155 00:09:06,240 --> 00:09:08,920 Speaker 1: against them. And in fact, the whole saga has completely 156 00:09:08,920 --> 00:09:11,840 Speaker 1: consumed Washington and indeed the rest of the United States. 157 00:09:12,040 --> 00:09:15,640 Speaker 1: We've just seen a resolution passed by Congress condemning the 158 00:09:15,640 --> 00:09:18,000 Speaker 1: actions of China and saying that it was in brazen 159 00:09:18,120 --> 00:09:21,839 Speaker 1: violation of the US sovereignty. They want more information from 160 00:09:21,880 --> 00:09:27,800 Speaker 1: the White House and if really tensions weren't enough between 161 00:09:27,840 --> 00:09:30,800 Speaker 1: China and the US already, particularly from a business perspective, 162 00:09:30,880 --> 00:09:33,319 Speaker 1: right right, Yeah, I think what's so astonishing about the 163 00:09:33,360 --> 00:09:36,439 Speaker 1: reporting is the US making the case this is part 164 00:09:36,440 --> 00:09:39,120 Speaker 1: of a program of espionage and led espionage. We cover 165 00:09:39,240 --> 00:09:41,480 Speaker 1: tech on the show. We haven't quite gone there yet 166 00:09:41,480 --> 00:09:44,120 Speaker 1: on the tech used for spying. And it's an astonishing 167 00:09:44,120 --> 00:09:47,880 Speaker 1: picture they've painted about what's not just one isolated incident. Yeah, 168 00:09:47,920 --> 00:09:50,600 Speaker 1: and that's whether or not this was made in China 169 00:09:50,679 --> 00:09:54,400 Speaker 1: technology or whether it was Western made. And they're in 170 00:09:54,679 --> 00:09:56,480 Speaker 1: lies some of the tension that's just going to be 171 00:09:56,640 --> 00:09:59,360 Speaker 1: I'm sure talked around around again over in Capitol Hill 172 00:09:59,440 --> 00:10:02,480 Speaker 1: and right here, all right, exactly so, and I want 173 00:10:02,480 --> 00:10:04,720 Speaker 1: to stay with Washington actually for a second. The idea 174 00:10:04,760 --> 00:10:08,440 Speaker 1: of oversight, the idea of lawmaking, because former Twitter officials 175 00:10:08,760 --> 00:10:12,120 Speaker 1: testified on Wednesday and basically told lawmakers that they should 176 00:10:12,160 --> 00:10:16,400 Speaker 1: hold off on regulating online content until they better understand 177 00:10:16,640 --> 00:10:20,360 Speaker 1: how social media companies work, telling lawmakers you don't quite 178 00:10:20,360 --> 00:10:22,200 Speaker 1: get it yet, let's bring in Kurt Wagner for more. 179 00:10:22,200 --> 00:10:24,680 Speaker 1: I mean, is that the idea they're saying, actually, you, 180 00:10:25,080 --> 00:10:28,920 Speaker 1: the oversight bodies, should actually have a deeper understanding of 181 00:10:28,920 --> 00:10:32,320 Speaker 1: how we actually work before you go jumping into regulating. Yeah, 182 00:10:32,360 --> 00:10:35,440 Speaker 1: and remember we have been having this conversation for years now, right, 183 00:10:35,480 --> 00:10:38,280 Speaker 1: We've been talking about it with Facebook, with YouTube, with Twitter. 184 00:10:38,920 --> 00:10:43,040 Speaker 1: There is a big misunderstanding, I would say, among lawmakers 185 00:10:43,080 --> 00:10:45,920 Speaker 1: as to, uh, you know what section through two thirty 186 00:10:46,440 --> 00:10:49,720 Speaker 1: does for companies and in some cases sort of the 187 00:10:49,760 --> 00:10:52,480 Speaker 1: difference between that and the First Amendment, right and what 188 00:10:52,559 --> 00:10:55,080 Speaker 1: companies are required by law to do and not. And 189 00:10:55,160 --> 00:10:58,200 Speaker 1: so I think there's this feeling that everyone Democrats and 190 00:10:58,240 --> 00:11:01,200 Speaker 1: Republicans are kind of rushing for order to change this. 191 00:11:01,360 --> 00:11:02,920 Speaker 1: They think it's not working how it is, and they 192 00:11:02,920 --> 00:11:04,800 Speaker 1: all want to change it, but that they don't necessarily 193 00:11:04,840 --> 00:11:06,480 Speaker 1: have a grasp on how it should be changed. Let's 194 00:11:06,480 --> 00:11:08,520 Speaker 1: look at it from the company's perspective. You've been very 195 00:11:08,559 --> 00:11:10,800 Speaker 1: busy for a year or so covering Twitter, but you 196 00:11:10,840 --> 00:11:14,400 Speaker 1: do cover social media broadly. How important is Section to 197 00:11:14,600 --> 00:11:18,120 Speaker 1: thirty from the company's perspective, It's incredibly important. It's it's 198 00:11:18,160 --> 00:11:21,440 Speaker 1: probably the most important kind of legal protection that they have, 199 00:11:21,640 --> 00:11:24,160 Speaker 1: right because in general, what this means is that they 200 00:11:24,200 --> 00:11:27,800 Speaker 1: can't be legally liable when some of their users post things. Right, 201 00:11:27,840 --> 00:11:30,559 Speaker 1: so long as they're taking down things like child pornography 202 00:11:30,720 --> 00:11:33,600 Speaker 1: or terrorists content or other things, you know, they're not 203 00:11:33,640 --> 00:11:36,800 Speaker 1: going to be legally held when you know you d 204 00:11:37,280 --> 00:11:39,280 Speaker 1: or Nie Kurt comes and says something that might get 205 00:11:39,280 --> 00:11:41,840 Speaker 1: them into trouble, and so um. You know, they've said 206 00:11:41,840 --> 00:11:44,920 Speaker 1: that if these are protections are repealed, it will actually 207 00:11:44,960 --> 00:11:46,560 Speaker 1: be worse because they'll have to take down a lot 208 00:11:46,600 --> 00:11:51,120 Speaker 1: more stuff to protect their own back many that much 209 00:11:51,120 --> 00:11:53,319 Speaker 1: of that is sort of looking at fact checking, their 210 00:11:53,360 --> 00:11:56,000 Speaker 1: own fact checkers and how you protect that. Interesting me 211 00:11:56,080 --> 00:11:59,160 Speaker 1: over in Europe, Twitter has also caught the eye of 212 00:11:59,200 --> 00:12:01,640 Speaker 1: the regulators because they're worried that there's just not enough 213 00:12:01,679 --> 00:12:05,280 Speaker 1: power in place, enough commitment to empowering fact checkers. They're 214 00:12:05,280 --> 00:12:09,000 Speaker 1: they're worried about disinformation in particular. Right, Yeah, well, Carolina, 215 00:12:09,040 --> 00:12:11,200 Speaker 1: what's interesting as we're seeing this not just in the EU, 216 00:12:11,280 --> 00:12:13,640 Speaker 1: but kind of in general, that regulators are really taking 217 00:12:13,679 --> 00:12:15,760 Speaker 1: a tough look at Twitter because they've just lost so 218 00:12:15,800 --> 00:12:18,679 Speaker 1: many people. There's a lot of skepticism that they can 219 00:12:18,720 --> 00:12:20,440 Speaker 1: continue to do the kinds of things they need to 220 00:12:20,440 --> 00:12:23,320 Speaker 1: do from a privacy or in this case, fact checking standpoint. 221 00:12:23,360 --> 00:12:25,160 Speaker 1: As you mentioned the EU, you know, a bunch of 222 00:12:25,160 --> 00:12:27,839 Speaker 1: tech companies are supposed to hand over sort of their 223 00:12:27,880 --> 00:12:32,360 Speaker 1: plans for misinformation. Twitter's was inadequate, and so you know, 224 00:12:32,440 --> 00:12:35,000 Speaker 1: again there's there's a concern that because Ellen came in 225 00:12:35,040 --> 00:12:37,800 Speaker 1: and just fired so many people with institutional knowledge of 226 00:12:37,800 --> 00:12:40,800 Speaker 1: the company, that they just are having enough troubles keeping 227 00:12:40,800 --> 00:12:43,200 Speaker 1: the site up. They're not necessarily able to do the 228 00:12:43,240 --> 00:12:45,840 Speaker 1: other things that the regulators expect them to do. And 229 00:12:45,880 --> 00:12:48,120 Speaker 1: I just want to take a bit of a pivot cut. 230 00:12:48,280 --> 00:12:52,240 Speaker 1: And it's an emotive subject Turkey at the moment, the 231 00:12:52,320 --> 00:12:55,760 Speaker 1: need for social media, the need for sharing of information. 232 00:12:55,840 --> 00:12:57,960 Speaker 1: But Twitter itself was down at one point. Can you 233 00:12:57,960 --> 00:13:01,000 Speaker 1: talk us through anything you know on that front. Yeah, 234 00:13:01,040 --> 00:13:03,000 Speaker 1: I mean there's still a lot that is unknown. But 235 00:13:03,040 --> 00:13:05,160 Speaker 1: the timing was, of course terrible. Right. We saw that 236 00:13:05,240 --> 00:13:08,600 Speaker 1: Twitter was down earlier this week, right when a lot 237 00:13:08,640 --> 00:13:12,160 Speaker 1: of the safety groups were trying to organize on Twitter, 238 00:13:12,240 --> 00:13:15,760 Speaker 1: when it was being used for important and critical information sharing. 239 00:13:15,840 --> 00:13:17,960 Speaker 1: You know, we saw Elon Musk, you know who's now 240 00:13:18,040 --> 00:13:20,320 Speaker 1: running Twitter, of course say that. Um, you know, they 241 00:13:20,360 --> 00:13:22,120 Speaker 1: got word from the government that that was going to 242 00:13:22,160 --> 00:13:25,400 Speaker 1: be reinstated, and I believe it has been. But again, 243 00:13:25,600 --> 00:13:28,640 Speaker 1: the timing was terrible. Um, it's always bad when something 244 00:13:28,679 --> 00:13:30,720 Speaker 1: like that happens, but in the wake of a natural 245 00:13:30,760 --> 00:13:33,400 Speaker 1: disaster like that. Um it just really you know, put 246 00:13:33,440 --> 00:13:37,079 Speaker 1: Twitter once again in the lime light. There, well said 247 00:13:37,240 --> 00:13:39,920 Speaker 1: cut Wag. Now, we thank you so much for the 248 00:13:40,000 --> 00:13:42,320 Speaker 1: latest in terms of the business. What is facing let's 249 00:13:42,320 --> 00:13:45,400 Speaker 1: talk about well, the pressure from a regulatory perspective and 250 00:13:45,440 --> 00:13:48,520 Speaker 1: perhaps the lack of investors now able to push for 251 00:13:48,559 --> 00:13:52,480 Speaker 1: that too. A junior capital is no, well, it's a 252 00:13:52,480 --> 00:13:55,240 Speaker 1: real expert in this field. In fact, the managing partner 253 00:13:55,280 --> 00:13:58,240 Speaker 1: and former Twitter activists investor joined us. Now Natasha Lamb 254 00:13:58,520 --> 00:14:01,600 Speaker 1: for more on this. And you know you are of 255 00:14:01,640 --> 00:14:05,160 Speaker 1: course deeply knowledgeable on when it was a publicly traded 256 00:14:05,200 --> 00:14:08,640 Speaker 1: company and the pressure you could exert it no longer is. 257 00:14:09,080 --> 00:14:12,280 Speaker 1: And how difficult does that therefore mean in terms of 258 00:14:12,320 --> 00:14:15,880 Speaker 1: making change and making sure that the right regulation and 259 00:14:15,920 --> 00:14:21,239 Speaker 1: the right compliance is in place. Oh, I think unfortunately 260 00:14:21,240 --> 00:14:24,480 Speaker 1: we've just frozen on, Natasha. But let's talk about this, said, 261 00:14:24,480 --> 00:14:27,240 Speaker 1: because I think where our junior capital had found it was. 262 00:14:27,440 --> 00:14:29,480 Speaker 1: I think she's back, Natasha. We can go to you. 263 00:14:30,000 --> 00:14:32,640 Speaker 1: The fact that you no longer can exert pressure from 264 00:14:32,680 --> 00:14:37,080 Speaker 1: a publicly traded an investor perspective, But what pressure can 265 00:14:37,080 --> 00:14:40,600 Speaker 1: regulators now wield on something like Twitter? I mean I 266 00:14:40,600 --> 00:14:44,320 Speaker 1: think that's that's the crux of it that you know, 267 00:14:44,440 --> 00:14:47,840 Speaker 1: decide the fact that investors for the last six years 268 00:14:47,880 --> 00:14:51,920 Speaker 1: have been asking companies to clean up their act have 269 00:14:52,080 --> 00:14:56,480 Speaker 1: had some success in getting transparency. UM, it's clear that 270 00:14:56,520 --> 00:14:59,320 Speaker 1: the companies are not doing enough. Twitter is not doing enough. 271 00:14:59,760 --> 00:15:02,600 Speaker 1: It's now private, and it brings up a host of 272 00:15:02,720 --> 00:15:06,240 Speaker 1: concerns as to whom Twitter is accountable to, other than 273 00:15:06,320 --> 00:15:09,440 Speaker 1: Elon musk UM. So now with Twitter no longer a 274 00:15:09,480 --> 00:15:14,440 Speaker 1: public company, no longer having that level of accountability to investors, 275 00:15:14,600 --> 00:15:17,320 Speaker 1: it's going to have to be accountable to regulators because 276 00:15:17,720 --> 00:15:21,240 Speaker 1: you know, time just keeps going by and nothing, uh, 277 00:15:21,320 --> 00:15:25,360 Speaker 1: nothing's happened. There is not UM a level of standard 278 00:15:25,520 --> 00:15:28,960 Speaker 1: here that is preventing some of the harm that's being done. 279 00:15:29,040 --> 00:15:31,640 Speaker 1: And recently you've seen action on a number of fronts. 280 00:15:31,920 --> 00:15:35,960 Speaker 1: We saw President Biden call for bipartisan regulation of social 281 00:15:36,000 --> 00:15:38,520 Speaker 1: media companies. Just like last night at the sort of 282 00:15:38,760 --> 00:15:42,240 Speaker 1: Union UM, this month's expected Twitter will have to think 283 00:15:42,720 --> 00:15:47,280 Speaker 1: the strictest content rules UM in the European Union because 284 00:15:47,320 --> 00:15:51,520 Speaker 1: of the number of large active users that it has UM. 285 00:15:51,600 --> 00:15:56,400 Speaker 1: And we're seeing cases go before the Supreme Court UM, 286 00:15:56,520 --> 00:15:59,760 Speaker 1: who's hearing cases this month on weather. Social media companies 287 00:16:00,000 --> 00:16:03,360 Speaker 1: it or being one of them, are responsible for propagating 288 00:16:03,600 --> 00:16:06,720 Speaker 1: growist content and attached on delights to have you on 289 00:16:06,760 --> 00:16:09,280 Speaker 1: the program. You've been coming on for a very long time, 290 00:16:09,320 --> 00:16:12,880 Speaker 1: and respectfully, I feel a sense of deja vu. UM. 291 00:16:13,080 --> 00:16:15,800 Speaker 1: My question is, you know, when are these things that 292 00:16:15,840 --> 00:16:19,600 Speaker 1: you're going you're calling for going to happen. I'm not 293 00:16:19,640 --> 00:16:23,160 Speaker 1: sure what's changed now from say two or four years ago. 294 00:16:24,720 --> 00:16:28,000 Speaker 1: I mean, I think it's a really fair question. And 295 00:16:28,120 --> 00:16:31,560 Speaker 1: you know, obviously investors were not able to exert enough 296 00:16:31,600 --> 00:16:34,200 Speaker 1: pressure for the companies to clean up their act on 297 00:16:34,240 --> 00:16:37,720 Speaker 1: their own UM, and so regulations seems to be kind 298 00:16:37,720 --> 00:16:43,000 Speaker 1: of the last ditch effort UM. And you know, I 299 00:16:43,000 --> 00:16:45,440 Speaker 1: if you look at you know, section to thirty, which 300 00:16:45,560 --> 00:16:50,160 Speaker 1: the previous gentleman was speaking about, UM to protect these 301 00:16:50,160 --> 00:16:54,200 Speaker 1: companies against legal liability. But it's clear the policy needs 302 00:16:54,240 --> 00:16:59,000 Speaker 1: to evolve because of the level of harm that's being done. 303 00:16:59,320 --> 00:17:02,720 Speaker 1: Look at a lects, look at genocide that's happened, UM, 304 00:17:02,840 --> 00:17:07,280 Speaker 1: public health crime, the government insurrection, UM. These they are 305 00:17:07,320 --> 00:17:11,720 Speaker 1: all issues that ride to a level that government regulation 306 00:17:11,840 --> 00:17:14,520 Speaker 1: is needed. And we know how difficult it is in 307 00:17:14,600 --> 00:17:19,320 Speaker 1: this country to get bipartisan support. Um, but really that's 308 00:17:19,400 --> 00:17:23,879 Speaker 1: what's needed, Natasha, dig in there, because this is so nuanced. 309 00:17:23,920 --> 00:17:28,000 Speaker 1: This argument you want it to evolve is the regulation. 310 00:17:28,040 --> 00:17:31,760 Speaker 1: Do you have confidence that the regulators get the need 311 00:17:31,840 --> 00:17:35,800 Speaker 1: to protect certain elements, perhaps that companies might argue for 312 00:17:35,880 --> 00:17:39,320 Speaker 1: their own self moderation so that to thirty can evolve 313 00:17:39,440 --> 00:17:42,200 Speaker 1: in the right ways. Do you think Yeah? I mean, 314 00:17:42,240 --> 00:17:46,760 Speaker 1: I think it's a fair point. Policymakers are policymakers, and um, 315 00:17:46,800 --> 00:17:50,600 Speaker 1: you know they're they're not tech experts, and this space 316 00:17:50,720 --> 00:17:54,520 Speaker 1: has evolved so much over the last decade that regulators 317 00:17:54,520 --> 00:17:57,359 Speaker 1: are looking to catch up that that I think is 318 00:17:57,359 --> 00:18:02,240 Speaker 1: why it's Oh, dear, we've just had another technical glitch. 319 00:18:02,600 --> 00:18:07,119 Speaker 1: Are you still there, Natasha? I think we might have 320 00:18:07,160 --> 00:18:09,439 Speaker 1: lost her carrow, which is a shame, because you know, 321 00:18:10,280 --> 00:18:15,639 Speaker 1: her point is something has to happen, and she's signing 322 00:18:15,640 --> 00:18:18,959 Speaker 1: the recent references of President Biden addressing this last night. 323 00:18:19,040 --> 00:18:20,119 Speaker 1: The point I was trying to make to her is 324 00:18:20,280 --> 00:18:23,840 Speaker 1: we've heard President Biden say that before in previous speeches. 325 00:18:23,880 --> 00:18:27,119 Speaker 1: It's sort of not new territory. What I would have 326 00:18:27,160 --> 00:18:29,840 Speaker 1: asked her is just because Twitter is now private, and 327 00:18:29,920 --> 00:18:32,280 Speaker 1: just because it's owned by Elon Musk. Does that add 328 00:18:32,280 --> 00:18:35,080 Speaker 1: more impetus or more energy from lawmakers to do something 329 00:18:35,160 --> 00:18:37,800 Speaker 1: or regulate to do something. It's hard to say yeah. 330 00:18:37,840 --> 00:18:41,160 Speaker 1: And in many ways Europe is worried by the fact 331 00:18:41,160 --> 00:18:43,800 Speaker 1: that this is now a privately held company. They've been 332 00:18:43,840 --> 00:18:46,320 Speaker 1: flagging ever since he took the company private, that they 333 00:18:46,359 --> 00:18:48,720 Speaker 1: want to see the right commitments put in place to 334 00:18:48,760 --> 00:18:51,320 Speaker 1: tackle things and disinformation. I hate to set as a 335 00:18:51,359 --> 00:18:54,040 Speaker 1: brit but time and time again it feels like Europe 336 00:18:54,080 --> 00:18:56,720 Speaker 1: needs the charge. And actually, you know, the Britain doesn't 337 00:18:56,720 --> 00:18:58,840 Speaker 1: have much to do with some of the European regulation 338 00:18:58,880 --> 00:19:02,399 Speaker 1: that's now coming into place. But ultimately Europe does seem 339 00:19:02,440 --> 00:19:04,840 Speaker 1: to be able to get the right regulation in place 340 00:19:04,840 --> 00:19:07,000 Speaker 1: in many ways, or at least drive it forward, and 341 00:19:07,040 --> 00:19:09,920 Speaker 1: it often leaves the US playing catch up in some way. Well, 342 00:19:09,920 --> 00:19:12,520 Speaker 1: what is it that the said Ellen Musk in Twitter 343 00:19:12,520 --> 00:19:14,760 Speaker 1: will fly by our rules? Which I thought was a 344 00:19:14,840 --> 00:19:17,920 Speaker 1: very quick and witty poke, and we know that Elon 345 00:19:18,000 --> 00:19:20,520 Speaker 1: Muster has been talking to Europe. It's one will continue 346 00:19:20,560 --> 00:19:24,040 Speaker 1: to track now coming up. Unfortunately, more job cuts underway, 347 00:19:24,040 --> 00:19:27,320 Speaker 1: with Delivery slashing nine percent of its staff. Will get 348 00:19:27,320 --> 00:19:29,840 Speaker 1: more of the details in Talking Tech. That's next Curac 349 00:19:30,080 --> 00:19:32,120 Speaker 1: And let's a quick look at another after ours, Mover, 350 00:19:32,200 --> 00:19:34,600 Speaker 1: because there have been plenty after this, earnings coming thick 351 00:19:34,640 --> 00:19:36,920 Speaker 1: and fast. Actually Experience managing to bounce off of its loans. 352 00:19:36,960 --> 00:19:39,520 Speaker 1: We're currently off by only two percent now had some 353 00:19:39,680 --> 00:19:41,760 Speaker 1: more than sem percent at one point. All of this 354 00:19:42,000 --> 00:19:45,399 Speaker 1: regarding the online travel agency, Yes they missed estimates in 355 00:19:45,480 --> 00:19:47,399 Speaker 1: terms of the holiday sales, but all that to do 356 00:19:47,440 --> 00:19:50,720 Speaker 1: with weather. So some analysts out there saying, look, actually 357 00:19:51,000 --> 00:19:53,879 Speaker 1: this was a miss, but there were temporary reasons behind 358 00:19:53,880 --> 00:19:57,280 Speaker 1: it related to some poor weather, and demand remains robust. 359 00:19:58,080 --> 00:20:00,600 Speaker 1: Well to come in terms of the earnings front, visa 360 00:20:00,640 --> 00:20:25,879 Speaker 1: bloom time Now for Talking Tech. First up, Apple hiring 361 00:20:25,920 --> 00:20:30,040 Speaker 1: its first Chief People Officer and removing HR responsibilities from 362 00:20:30,040 --> 00:20:33,200 Speaker 1: its head of retail, overhauling the way the company hires 363 00:20:33,200 --> 00:20:35,960 Speaker 1: and supports employees. In a memo to employees, Tim Cook 364 00:20:35,960 --> 00:20:39,479 Speaker 1: announced Carol Surface will assume the role and said quote 365 00:20:39,600 --> 00:20:43,359 Speaker 1: she brings an incredible depth of experience. Microsoft will begin 366 00:20:43,480 --> 00:20:46,560 Speaker 1: color coding employees expense reports as part of a new 367 00:20:46,600 --> 00:20:49,680 Speaker 1: agreement with American Express. This comes as the tech giant 368 00:20:49,680 --> 00:20:53,520 Speaker 1: already announced its slashing thousands of jobs The company will 369 00:20:53,560 --> 00:20:58,160 Speaker 1: integrate the technology into its internal expense system later this year, 370 00:20:58,200 --> 00:21:01,199 Speaker 1: with employees uploading photo is of receipts, which will be 371 00:21:01,240 --> 00:21:05,160 Speaker 1: coded as green if automatic approval is recommended, yellow if 372 00:21:05,200 --> 00:21:07,720 Speaker 1: it needs another look, or red Caroline if it should 373 00:21:07,760 --> 00:21:12,760 Speaker 1: be denied. And Delivery a latest company, unfortunately to announce 374 00:21:12,840 --> 00:21:16,359 Speaker 1: job cuts. The food delivery business will slash three fifty jobs, 375 00:21:16,359 --> 00:21:19,080 Speaker 1: focusing of course on profits and a way to deal 376 00:21:19,160 --> 00:21:22,360 Speaker 1: with what is difficult consumer environments right now. CEO Will 377 00:21:22,359 --> 00:21:24,760 Speaker 1: Shoe said the cuts will effect roles at all levels, 378 00:21:24,800 --> 00:21:29,440 Speaker 1: although some employees will be really deployed. Caroline certainly company 379 00:21:29,480 --> 00:21:32,520 Speaker 1: that has been used a lot in London over the years, 380 00:21:32,720 --> 00:21:43,159 Speaker 1: and I know we are going to take a really 381 00:21:43,240 --> 00:21:47,240 Speaker 1: hard look at the cost for everything that we make, 382 00:21:48,040 --> 00:21:53,160 Speaker 1: both across television and film, because things in a very 383 00:21:53,200 --> 00:21:57,440 Speaker 1: competitive world have just simply gotten more expensive. And that's 384 00:21:57,480 --> 00:22:02,480 Speaker 1: something that is already under right here, I'll come back 385 00:22:02,520 --> 00:22:04,959 Speaker 1: to Bloomberg Technology. I'm Caroline had in New York and 386 00:22:05,240 --> 00:22:08,600 Speaker 1: well Disney CEO Bob Biger. They're speaking on the company's 387 00:22:08,640 --> 00:22:11,440 Speaker 1: earnings call that was about twenty four hours ago. Ed 388 00:22:11,800 --> 00:22:14,520 Speaker 1: what a lot has changed in those twenty four hours, 389 00:22:14,520 --> 00:22:17,800 Speaker 1: it feels like, yeah, it's all about restructuring. And you know, 390 00:22:17,880 --> 00:22:21,840 Speaker 1: the bigger news probably that Peltz has pulled back this 391 00:22:21,960 --> 00:22:25,840 Speaker 1: activist investors stepping away from ambition to take a board seat, 392 00:22:25,880 --> 00:22:28,520 Speaker 1: push for change at Disney, because change is what we've got. 393 00:22:28,520 --> 00:22:30,920 Speaker 1: The statements short and sweet. The proxy fight is over. 394 00:22:31,280 --> 00:22:34,120 Speaker 1: This is a win for all shareholders. And the question 395 00:22:34,160 --> 00:22:36,480 Speaker 1: we've been asking for twenty four hours or so is 396 00:22:36,520 --> 00:22:39,600 Speaker 1: what placated Pelts. I've got this terminal chart that kind 397 00:22:39,600 --> 00:22:42,000 Speaker 1: of tells the story and the challenge for Eiger. They're 398 00:22:42,000 --> 00:22:45,280 Speaker 1: targeting five point five billion dollars of cost savings. Right, 399 00:22:45,480 --> 00:22:48,120 Speaker 1: you look at the white line, which is the top line, 400 00:22:48,200 --> 00:22:51,919 Speaker 1: essentially revenues at record levels but sales slowing. Then you 401 00:22:52,000 --> 00:22:54,360 Speaker 1: go down to their income and operating profit or net 402 00:22:54,359 --> 00:22:57,560 Speaker 1: profit down the bottom were still at half where we 403 00:22:57,560 --> 00:23:00,359 Speaker 1: were from the pandemic peak. And that's really SEMs to 404 00:23:00,400 --> 00:23:03,720 Speaker 1: be what is going off to and it also seems 405 00:23:03,720 --> 00:23:06,280 Speaker 1: to be enough to cheer investors. So let's get more 406 00:23:06,280 --> 00:23:08,760 Speaker 1: in that and bring in Bloomberg's entertainment editor out in 407 00:23:08,800 --> 00:23:11,800 Speaker 1: our l A, Chris Palm Mary. Same question to you, Chris, 408 00:23:12,200 --> 00:23:17,119 Speaker 1: what placated Pelts. Well, you could see a lot of 409 00:23:17,160 --> 00:23:20,760 Speaker 1: reasons for this, you know, despite his reputation Try and 410 00:23:20,880 --> 00:23:23,639 Speaker 1: Partners since it's founding in two thousand five. They know 411 00:23:23,840 --> 00:23:26,959 Speaker 1: this was only their fourth proxy fight out of thirty 412 00:23:27,000 --> 00:23:29,760 Speaker 1: times they've engaged these companies that you know, this isn't 413 00:23:29,800 --> 00:23:31,840 Speaker 1: something they really want to do. They preferred to sort 414 00:23:31,840 --> 00:23:35,960 Speaker 1: of negotiate an appearance on the board. And uh, it's expensive. 415 00:23:36,000 --> 00:23:38,520 Speaker 1: And I think they've spent twenty five million fighting Procter 416 00:23:38,600 --> 00:23:41,800 Speaker 1: and Gamble proxy fight. So that's number one. Number two 417 00:23:41,880 --> 00:23:44,960 Speaker 1: is Eiger addressed a lot of the things that Nelson 418 00:23:44,960 --> 00:23:47,800 Speaker 1: Peltz was complaining about on the call yesterday. Cost Cutting 419 00:23:48,040 --> 00:23:51,880 Speaker 1: said the board would consider reinstating the divid end. Already, 420 00:23:51,960 --> 00:23:54,520 Speaker 1: the stocks up quite a bit this year since Nelson 421 00:23:54,520 --> 00:23:56,960 Speaker 1: Peltz started buying, so he's sitting on an ice game. 422 00:23:57,400 --> 00:23:59,680 Speaker 1: So I think all of those factors and just maybe 423 00:23:59,680 --> 00:24:01,879 Speaker 1: the fear of losing if if it came down to 424 00:24:01,960 --> 00:24:06,720 Speaker 1: that in a vote Naple made him rethink interesting talk 425 00:24:06,800 --> 00:24:11,600 Speaker 1: to us. Therefore, also the enthusiasm perhaps being served up 426 00:24:11,680 --> 00:24:16,520 Speaker 1: around the restructuring Ultimately previous activist investors. I'm thinking of 427 00:24:16,600 --> 00:24:19,040 Speaker 1: Dan loeb Wold want to see the spinoff of ESPN. 428 00:24:19,760 --> 00:24:22,840 Speaker 1: A lot of talk around that after this restructuring, the 429 00:24:22,840 --> 00:24:25,280 Speaker 1: fact that it's now stand alone, But actually we all 430 00:24:25,280 --> 00:24:30,040 Speaker 1: started talking about Hunu as well after today, right, I mean, 431 00:24:30,320 --> 00:24:33,200 Speaker 1: so Bob Iger said on a call yesterday that yeah, 432 00:24:33,240 --> 00:24:36,560 Speaker 1: they are for the first time really spelling out exactly 433 00:24:36,600 --> 00:24:39,959 Speaker 1: how much money ESPN makes, which you could see as 434 00:24:39,960 --> 00:24:41,800 Speaker 1: a signis im prepping it first spin off, But he 435 00:24:41,840 --> 00:24:44,720 Speaker 1: said that's not why they're doing it, but certainly it 436 00:24:44,920 --> 00:24:47,439 Speaker 1: is going to allow investors to take a look at 437 00:24:47,480 --> 00:24:49,040 Speaker 1: that piece of the business in a way that they 438 00:24:49,040 --> 00:24:53,600 Speaker 1: haven't before. And and so on Hulu, he said this 439 00:24:53,640 --> 00:24:56,720 Speaker 1: morning that, um, you know, he said he has a 440 00:24:56,800 --> 00:24:58,960 Speaker 1: deal to buy the other third of it from Comcast 441 00:24:59,080 --> 00:25:02,639 Speaker 1: next year, but the price is not there's a floor price, 442 00:25:02,680 --> 00:25:06,480 Speaker 1: but not a specific price, and so both Comcasts and 443 00:25:06,520 --> 00:25:09,280 Speaker 1: he said, oh, you know, we're interested. You know, maybe 444 00:25:09,359 --> 00:25:10,840 Speaker 1: we're not. I mean, I think there's a bit of 445 00:25:10,840 --> 00:25:13,960 Speaker 1: game dismanship going on here. I think ultimately Bob Iger 446 00:25:14,000 --> 00:25:16,200 Speaker 1: would like to own the rest of Hulu and incorporated 447 00:25:16,200 --> 00:25:19,640 Speaker 1: in the rest of Disney streaming businesses. What else would 448 00:25:19,680 --> 00:25:21,920 Speaker 1: Bob blake in terms of how long he's going to 449 00:25:22,000 --> 00:25:25,359 Speaker 1: be there for example, Well, of course, you know, the 450 00:25:25,400 --> 00:25:27,760 Speaker 1: perennial issue is who's going to replace him, and he's 451 00:25:27,880 --> 00:25:29,600 Speaker 1: he said he's going to stick around for just two 452 00:25:29,640 --> 00:25:33,840 Speaker 1: more years. Big you know announcements today in terms of 453 00:25:33,880 --> 00:25:37,760 Speaker 1: the people running the major businesses. Uh and so, um, 454 00:25:37,800 --> 00:25:39,440 Speaker 1: you know that's going to be a focus of him 455 00:25:39,480 --> 00:25:42,119 Speaker 1: and Mark Parker, the new chairman who takes over in April. 456 00:25:42,640 --> 00:25:45,360 Speaker 1: Uh and uh, but you know, I think Bob fundamentally 457 00:25:45,400 --> 00:25:48,320 Speaker 1: he'll say this, Uh, it really cares about the creative. 458 00:25:48,359 --> 00:25:52,000 Speaker 1: And he's admitted that animation and Disney needs a little work. 459 00:25:52,080 --> 00:25:55,439 Speaker 1: He said, they've you know, produced a little too much content. Uh. 460 00:25:55,480 --> 00:25:57,639 Speaker 1: You know, Disney has always been kind of about you 461 00:25:57,720 --> 00:26:01,000 Speaker 1: know a few big great movies and not you know, 462 00:26:01,119 --> 00:26:06,240 Speaker 1: everything everywhere, uh to quote another film. So so I 463 00:26:06,240 --> 00:26:09,120 Speaker 1: think creative is going to be a big focus. Hey, Chris, 464 00:26:09,160 --> 00:26:11,879 Speaker 1: let's go about to basics to finish. What does the 465 00:26:11,920 --> 00:26:15,480 Speaker 1: new look Disney look like? The three parts that it's 466 00:26:15,520 --> 00:26:21,000 Speaker 1: being reformed into. Well, you're seeing the merger definitively of 467 00:26:21,119 --> 00:26:25,760 Speaker 1: movies and TV there's basically one division and and streaming. 468 00:26:26,000 --> 00:26:30,480 Speaker 1: So so that's all becoming just basic general entertainment and 469 00:26:30,560 --> 00:26:35,920 Speaker 1: family content than a separate sports streaming business and TV business, 470 00:26:36,280 --> 00:26:38,119 Speaker 1: and then of course the parks and the cruise ships 471 00:26:38,119 --> 00:26:40,720 Speaker 1: and the consumer products. So it's it's pretty clearly defined. 472 00:26:40,760 --> 00:26:43,439 Speaker 1: I think, um, you know, maybe some people would like 473 00:26:43,480 --> 00:26:46,840 Speaker 1: to see more. You know, the film businesses exists separately, 474 00:26:46,960 --> 00:26:49,960 Speaker 1: but you know that's the direction it's going now. You know, 475 00:26:50,000 --> 00:26:54,080 Speaker 1: theaters are less important than streaming. Chris pal marry and 476 00:26:54,160 --> 00:26:56,440 Speaker 1: has been a busy twenty four hours for you as well. 477 00:26:56,480 --> 00:26:58,399 Speaker 1: We thank you so much for bringing us up to 478 00:26:58,440 --> 00:27:01,280 Speaker 1: speed with the audience and the outs of Disney versus 479 00:27:01,320 --> 00:27:04,159 Speaker 1: no longer Pelts it would feel like I meanwhile, another 480 00:27:04,200 --> 00:27:06,200 Speaker 1: story that we continue to watch. It's been busy in 481 00:27:06,240 --> 00:27:08,720 Speaker 1: crypto crack and will pay thirty million dollars to settle 482 00:27:08,800 --> 00:27:12,200 Speaker 1: SEC allegations that it broke US rules with its crypto 483 00:27:12,200 --> 00:27:15,080 Speaker 1: asset staking products and it will discontinue them in the 484 00:27:15,160 --> 00:27:17,679 Speaker 1: United States as part of the agreement with the regulator 485 00:27:18,040 --> 00:27:19,800 Speaker 1: to break it all down. As she always does so well, 486 00:27:19,800 --> 00:27:22,520 Speaker 1: bloom Berg's Snelly Bassett is here with more And was 487 00:27:22,560 --> 00:27:25,639 Speaker 1: this ultimately a surprise for you? I don't think it was. However, 488 00:27:25,680 --> 00:27:27,760 Speaker 1: it is a really really big deal. We knew that 489 00:27:27,880 --> 00:27:30,360 Speaker 1: staking was one of the things that the SEC would 490 00:27:30,440 --> 00:27:33,440 Speaker 1: ultimately look out when they looked at the broader crypto ecosystem, 491 00:27:33,720 --> 00:27:35,600 Speaker 1: but in all the things that they were looking at, 492 00:27:35,600 --> 00:27:38,480 Speaker 1: when you think about other forms of tokenization and f 493 00:27:38,560 --> 00:27:41,080 Speaker 1: t s, the fact that steaking has really made its 494 00:27:41,080 --> 00:27:43,240 Speaker 1: way up on the list of things a SEC is 495 00:27:43,240 --> 00:27:46,439 Speaker 1: looking at is a surprise. Now, the thirty million dollars, 496 00:27:46,440 --> 00:27:48,639 Speaker 1: it's not a it's not a small sum, but it's not, 497 00:27:48,840 --> 00:27:51,440 Speaker 1: you know, a sum that would really break the bank 498 00:27:51,440 --> 00:27:55,120 Speaker 1: here for many of these companies. But it's about future activity. 499 00:27:55,240 --> 00:27:59,160 Speaker 1: You had this thread yesterday from the CEO of coin 500 00:27:59,240 --> 00:28:01,639 Speaker 1: base on Twitter. Are really talking about how staking is 501 00:28:01,680 --> 00:28:06,880 Speaker 1: such an important innovation for crypto, allowing scalability, increased security, 502 00:28:07,000 --> 00:28:09,760 Speaker 1: reduced carbon footprints for the industry, and you saw that 503 00:28:09,800 --> 00:28:11,600 Speaker 1: as a lot of the rationale for the reason of 504 00:28:11,600 --> 00:28:13,720 Speaker 1: the theory, I'm really moving to the proof of steak 505 00:28:13,840 --> 00:28:16,200 Speaker 1: model to begin with. So this is a big deal 506 00:28:16,240 --> 00:28:17,560 Speaker 1: for a theory m it's a big deal for the 507 00:28:17,560 --> 00:28:20,600 Speaker 1: exchanges that have been offering staking as a service. Coin Based, 508 00:28:20,600 --> 00:28:23,919 Speaker 1: by the way, the shares were down more than on 509 00:28:23,960 --> 00:28:26,720 Speaker 1: the day because of how much they've been moving to 510 00:28:26,880 --> 00:28:30,760 Speaker 1: these services for clients. In the most recent quarter they 511 00:28:30,800 --> 00:28:34,480 Speaker 1: had talked about how investing in Staking as a service 512 00:28:34,600 --> 00:28:39,800 Speaker 1: had been really benefiting them since and when users moved 513 00:28:39,840 --> 00:28:43,920 Speaker 1: from trading to non trading transactions like staking, it really 514 00:28:43,920 --> 00:28:47,040 Speaker 1: helped boost their subscription and services revenues. So let's see 515 00:28:47,080 --> 00:28:48,040 Speaker 1: what they have to say at the end of the 516 00:28:48,120 --> 00:28:50,720 Speaker 1: month when they report earnings, because as a public company 517 00:28:50,760 --> 00:28:54,640 Speaker 1: you see it most directly in results like that for 518 00:28:54,760 --> 00:28:56,920 Speaker 1: full disclosure of my husband's a senior manager over it 519 00:28:57,280 --> 00:29:00,840 Speaker 1: coin base, But ultimately with how big a deal is 520 00:29:00,840 --> 00:29:04,400 Speaker 1: staking for the ecosystem more generally? And and does this 521 00:29:04,600 --> 00:29:06,600 Speaker 1: signal that the SEC could get his head around it 522 00:29:06,680 --> 00:29:10,040 Speaker 1: in a different format and just cracking wasn't there in 523 00:29:10,080 --> 00:29:12,400 Speaker 1: the right way at the right means or is this 524 00:29:12,480 --> 00:29:14,880 Speaker 1: sort of dead in the water as many would fear now. 525 00:29:15,120 --> 00:29:18,360 Speaker 1: Listen the statement from the SEC chair Gary Gansler in 526 00:29:18,440 --> 00:29:22,920 Speaker 1: this Krakens settlement, if you will, had a very broad statement. 527 00:29:23,000 --> 00:29:25,240 Speaker 1: It was whether it's staking as a service, lending or 528 00:29:25,320 --> 00:29:29,080 Speaker 1: other means, crypto untermediaries and they're offering investment contracts in 529 00:29:29,200 --> 00:29:32,640 Speaker 1: exchange for investors token need to provide proper disclosures and 530 00:29:32,640 --> 00:29:35,720 Speaker 1: safeguards required by our securities law. So he's bringing in 531 00:29:35,840 --> 00:29:39,680 Speaker 1: the staking business under the securities umbrella. Remember, hester Parse, 532 00:29:39,720 --> 00:29:42,800 Speaker 1: a commissioner, had also said that she really disputes what 533 00:29:42,880 --> 00:29:46,280 Speaker 1: happened here today because there should have been better guidelines 534 00:29:46,320 --> 00:29:49,000 Speaker 1: from the beginning, and by the way that has been 535 00:29:49,080 --> 00:29:54,480 Speaker 1: the industry kind of exactly set the guidelines first and 536 00:29:54,520 --> 00:29:56,920 Speaker 1: then let us follow them, rather than finding us for 537 00:29:57,000 --> 00:30:00,959 Speaker 1: not following guidelines that we have not set. Excuse me 538 00:30:01,000 --> 00:30:04,080 Speaker 1: if I'm like going outside of your field au pur view, 539 00:30:04,080 --> 00:30:06,400 Speaker 1: but I feel like you cover it all. What are 540 00:30:06,400 --> 00:30:09,440 Speaker 1: the rest of the world thinking about staking? Ultimately? You know, 541 00:30:09,560 --> 00:30:11,920 Speaker 1: I think if you're an individual investor and you are 542 00:30:11,960 --> 00:30:14,600 Speaker 1: into crypto and want to be more engaged, it is 543 00:30:14,680 --> 00:30:18,600 Speaker 1: a kind of difficult calculation here because moving from mining 544 00:30:18,640 --> 00:30:21,680 Speaker 1: to staking. In theory, staking should have been allowing more 545 00:30:21,800 --> 00:30:25,040 Speaker 1: people to get in at scale, especially if you work 546 00:30:25,080 --> 00:30:28,760 Speaker 1: through a service like coin base or crack in or 547 00:30:28,800 --> 00:30:31,320 Speaker 1: some of these other services that allow staking at scale 548 00:30:31,360 --> 00:30:35,640 Speaker 1: for a more wide range of investors. In f t X, well, 549 00:30:35,680 --> 00:30:37,360 Speaker 1: that's the thing. So we were talking about this in 550 00:30:37,400 --> 00:30:40,440 Speaker 1: the commercial break and interestingly, according to my sources, f 551 00:30:40,560 --> 00:30:44,120 Speaker 1: t X in the US as they were considering the 552 00:30:44,240 --> 00:30:47,000 Speaker 1: businesses when they were still, you know, a proper business 553 00:30:47,000 --> 00:30:50,800 Speaker 1: before the bankruptcy and before these allegations, they had not 554 00:30:50,920 --> 00:30:53,840 Speaker 1: offered staking from my knowledge, because they were worried about 555 00:30:53,920 --> 00:30:56,240 Speaker 1: the SEC coming down on it. So it's hard to 556 00:30:56,240 --> 00:30:59,200 Speaker 1: say that the industry didn't know that this was going 557 00:30:59,240 --> 00:31:01,880 Speaker 1: to be an issue at some point, and now it 558 00:31:01,920 --> 00:31:04,080 Speaker 1: clearly is. Joan Ai Bassak, we thank you so much. 559 00:31:04,120 --> 00:31:06,440 Speaker 1: I mean, what have you got some more? Yeah, I'm 560 00:31:06,480 --> 00:31:08,760 Speaker 1: really looking forward to what's next. Two billion dollar loan 561 00:31:08,840 --> 00:31:12,000 Speaker 1: commitment from the White House to produce a million evs 562 00:31:12,040 --> 00:31:14,720 Speaker 1: a year. Redwood Materials CEO and of course one of 563 00:31:14,760 --> 00:31:17,760 Speaker 1: Tesla's co founders, JB. Struggle, joins us next for more 564 00:31:17,800 --> 00:31:20,160 Speaker 1: on that loan, which was the same program, by the way, Carrol, 565 00:31:20,400 --> 00:31:24,800 Speaker 1: that helped launch Tesla all those year years ago. Look, 566 00:31:24,840 --> 00:31:27,360 Speaker 1: we've got to get back to lift declines accelerating in 567 00:31:27,440 --> 00:31:31,200 Speaker 1: after hours towards the thirty percent mark and deeper at 568 00:31:31,240 --> 00:31:34,960 Speaker 1: some point, headlines crossing from the cool lift cut prices 569 00:31:34,960 --> 00:31:37,760 Speaker 1: for rides in January to quote remain competitive, They're going 570 00:31:37,800 --> 00:31:41,880 Speaker 1: to go deep into cock cut costs. Cuts. They're going 571 00:31:41,920 --> 00:31:45,560 Speaker 1: to reduce stock based compensation. This does not look good, Caroline, 572 00:31:45,560 --> 00:31:48,640 Speaker 1: and clearly the share reaction after ours speaks to that. 573 00:31:48,680 --> 00:32:09,960 Speaker 1: We'll keep tracking more details. This is Bloomberg America's battery 574 00:32:09,960 --> 00:32:13,120 Speaker 1: supply chains getting a bit of a jump start. Redwood Materials, 575 00:32:13,120 --> 00:32:16,680 Speaker 1: which was created by Tesla co founder JB. Strawbile, received 576 00:32:16,720 --> 00:32:20,240 Speaker 1: a two billion dollar lone commitment from the Biden administration 577 00:32:20,480 --> 00:32:24,240 Speaker 1: to build enough critical battery components to produce a million 578 00:32:24,520 --> 00:32:26,920 Speaker 1: e vis a year. I'm pleased to say that JB. 579 00:32:27,040 --> 00:32:30,520 Speaker 1: Strawble joins us now. JB. We were talking in the 580 00:32:30,760 --> 00:32:34,360 Speaker 1: preamble about how back in the day Tesla went through 581 00:32:34,440 --> 00:32:36,560 Speaker 1: down a similar path. But this is a fair chunk 582 00:32:36,600 --> 00:32:39,800 Speaker 1: of change. More, my colleagues have written so much, including 583 00:32:39,840 --> 00:32:43,120 Speaker 1: Gabby Coppler, about the supply chain emphasis here in the 584 00:32:43,200 --> 00:32:45,440 Speaker 1: United States. What are you going to do with two 585 00:32:45,480 --> 00:32:47,840 Speaker 1: billion dollars? Give me the gritty details of what that 586 00:32:47,880 --> 00:32:52,120 Speaker 1: does for Redwood Materials. Well, this, this is a huge 587 00:32:52,120 --> 00:32:55,400 Speaker 1: word of confidence, I'd say, into the American supply chain 588 00:32:55,480 --> 00:32:58,920 Speaker 1: and building the supply chain here, expanding the capacity of 589 00:32:58,960 --> 00:33:02,400 Speaker 1: it here. You know, it is a very capital intensive industry. 590 00:33:02,440 --> 00:33:05,880 Speaker 1: And you know, even though this is a vast amount, 591 00:33:05,920 --> 00:33:09,040 Speaker 1: a large sum of money. Um, this is not funding 592 00:33:09,040 --> 00:33:11,160 Speaker 1: the entire project. You know, we have to match that 593 00:33:11,200 --> 00:33:14,600 Speaker 1: project with private capital, private equity that that we raise 594 00:33:14,680 --> 00:33:18,240 Speaker 1: and invest. And you know, even even with this large 595 00:33:18,240 --> 00:33:20,760 Speaker 1: of a project, you know, we're still only meeting a 596 00:33:20,800 --> 00:33:24,920 Speaker 1: relatively small percentage of the overall US demand for battery materials. 597 00:33:25,360 --> 00:33:28,760 Speaker 1: So it is, uh, is quite phenomenal. How much growth 598 00:33:28,800 --> 00:33:31,160 Speaker 1: has to happen into the future and how much investment 599 00:33:31,160 --> 00:33:33,960 Speaker 1: has to happen JB. You alluded to it. So I'll 600 00:33:34,000 --> 00:33:36,680 Speaker 1: go there, two billion dollars a lot of money. But 601 00:33:36,720 --> 00:33:39,280 Speaker 1: will you have to raise more funds and how will 602 00:33:39,280 --> 00:33:42,800 Speaker 1: you go about doing that? We we have raised a 603 00:33:42,800 --> 00:33:45,120 Speaker 1: lot of private funding in the past through the history 604 00:33:45,120 --> 00:33:48,360 Speaker 1: of our company, and uh we'll continue to. Um, you 605 00:33:48,400 --> 00:33:50,760 Speaker 1: know it. It does make it easier as we see 606 00:33:50,760 --> 00:33:53,560 Speaker 1: the strong support and these strong indications of support from 607 00:33:53,560 --> 00:33:56,720 Speaker 1: the federal government. Really for the first time in this sector. 608 00:33:56,760 --> 00:33:59,440 Speaker 1: I mean this, this is the very first federal funding 609 00:33:59,440 --> 00:34:03,480 Speaker 1: that we've seieved of any sort, and I believe some 610 00:34:03,560 --> 00:34:05,960 Speaker 1: of the first federal funding that's that's going into the 611 00:34:05,960 --> 00:34:09,160 Speaker 1: battery supply chain at this magnitude. So while we will 612 00:34:09,239 --> 00:34:12,880 Speaker 1: raise additional private capital and you know, continue doing that 613 00:34:13,360 --> 00:34:17,120 Speaker 1: in in in turn, um, you know, it'll it'll match 614 00:34:17,160 --> 00:34:20,960 Speaker 1: with this and enjoying with federal loans as well. Talk 615 00:34:21,040 --> 00:34:24,239 Speaker 1: to us about the politicization to a certain extent of 616 00:34:24,280 --> 00:34:27,359 Speaker 1: the federal loans, but ultimately people worry about not just 617 00:34:27,880 --> 00:34:30,160 Speaker 1: how much due diligence has done in the companies that 618 00:34:30,520 --> 00:34:34,960 Speaker 1: ultimately get the funding. Previous issues have been in the 619 00:34:35,000 --> 00:34:38,640 Speaker 1: prior naughties. But talk to us about China as well. 620 00:34:38,800 --> 00:34:42,040 Speaker 1: Is there reality to some of the concerns, particularly by 621 00:34:42,080 --> 00:34:45,760 Speaker 1: the GOP, about that this gives in some way China 622 00:34:45,840 --> 00:34:51,719 Speaker 1: access to such money. Well, I can definitely say firsthand 623 00:34:51,719 --> 00:34:54,600 Speaker 1: that there's extensive diligence that goes into these programs. You know, 624 00:34:54,640 --> 00:34:57,920 Speaker 1: we've been working on this, this particular loan application for 625 00:34:58,040 --> 00:35:00,880 Speaker 1: well over a year, almost a year and a half, um, 626 00:35:00,960 --> 00:35:04,360 Speaker 1: you know, and going through multiple layers of diligence on finance, 627 00:35:04,400 --> 00:35:08,399 Speaker 1: on technology, on market uh and customer you know fit. 628 00:35:09,040 --> 00:35:12,480 Speaker 1: So I feel that there's quite a robust process that 629 00:35:12,520 --> 00:35:15,919 Speaker 1: the Department of Energy and the loan program has rolled 630 00:35:15,920 --> 00:35:19,280 Speaker 1: out for this, and it's been refined over many years. 631 00:35:19,320 --> 00:35:22,480 Speaker 1: As you've you've mentioned, um, you know, even more than 632 00:35:22,520 --> 00:35:25,399 Speaker 1: ten years ago, the same exact program UH was still 633 00:35:25,400 --> 00:35:30,280 Speaker 1: in existence and was making loans to companies that targeted specific, 634 00:35:30,480 --> 00:35:34,160 Speaker 1: very strategic areas for the country. Yeah, cylinder, of course 635 00:35:34,280 --> 00:35:37,120 Speaker 1: is kind of the prior concern that some have, But 636 00:35:37,280 --> 00:35:39,520 Speaker 1: give us the real concerns now in terms of a 637 00:35:39,600 --> 00:35:42,359 Speaker 1: focus on a supply chain that people want to bring 638 00:35:42,400 --> 00:35:44,839 Speaker 1: to the United States that you're trying to answer that 639 00:35:44,880 --> 00:35:48,160 Speaker 1: call of and ultimately whether we can rump up the 640 00:35:48,200 --> 00:35:51,080 Speaker 1: amount of evs made while cutting out China from the 641 00:35:51,120 --> 00:35:55,759 Speaker 1: supply chain. Well, I think it's going to be a transition. 642 00:35:56,320 --> 00:35:59,880 Speaker 1: And uh, you know, today the vast majority of the 643 00:36:00,000 --> 00:36:02,799 Speaker 1: mattery supply chain is imported from overseas, and much of 644 00:36:02,800 --> 00:36:06,200 Speaker 1: that from China. So I think, um, you know, the 645 00:36:06,320 --> 00:36:09,480 Speaker 1: key is to have is an organized transition and to 646 00:36:09,640 --> 00:36:13,200 Speaker 1: start investing today in building this capability. But we can't 647 00:36:13,200 --> 00:36:15,560 Speaker 1: turn it on overnight, even you know, with all of 648 00:36:15,600 --> 00:36:18,759 Speaker 1: the efforts we're doing and more, this will take you know, 649 00:36:18,800 --> 00:36:21,719 Speaker 1: several years, many years to to ramp and build that 650 00:36:22,520 --> 00:36:25,840 Speaker 1: that supply chain and capability here. Um, but this is 651 00:36:26,000 --> 00:36:29,560 Speaker 1: a huge economic incentive for the country. There are many, 652 00:36:29,560 --> 00:36:33,400 Speaker 1: many billions of dollars that would be exported overseas to 653 00:36:33,480 --> 00:36:36,680 Speaker 1: build the same supply chain. If we don't begin the 654 00:36:36,719 --> 00:36:40,520 Speaker 1: work now, JB. You tolkeds about many years of planning 655 00:36:40,719 --> 00:36:44,279 Speaker 1: marks the first we get master Plan part three from 656 00:36:44,320 --> 00:36:48,040 Speaker 1: your friend and former colleague Elon Masque actually is here 657 00:36:48,040 --> 00:36:52,960 Speaker 1: current colleague. Is Tesla a customer of Redwood Materials. Well, 658 00:36:53,000 --> 00:36:55,160 Speaker 1: we we don't have any partnership with Tusla that I 659 00:36:55,200 --> 00:36:57,640 Speaker 1: can talk about today. But um, but I would say, 660 00:36:57,680 --> 00:36:59,480 Speaker 1: you know, Ellen is very much a friend. I'm still 661 00:36:59,600 --> 00:37:03,160 Speaker 1: rooting work Tesla. Um. I think it's a fabulous company. 662 00:37:03,200 --> 00:37:05,319 Speaker 1: And you know they've clearly been the leader in this 663 00:37:05,520 --> 00:37:10,400 Speaker 1: entire movement and really remains so. All right, J V. 664 00:37:10,480 --> 00:37:14,280 Speaker 1: Strawbol Redwoods material founder and CEO. When Tesla is officially 665 00:37:14,280 --> 00:37:16,759 Speaker 1: a customer, come back on the show with Caroline and 666 00:37:16,800 --> 00:37:28,839 Speaker 1: I and talk about how that's gonna work. Okay, fair enough. Now, 667 00:37:28,880 --> 00:37:31,960 Speaker 1: as the generative AI race heats up, we all talk 668 00:37:32,000 --> 00:37:35,080 Speaker 1: about it. The impact on a company share price something 669 00:37:35,120 --> 00:37:38,000 Speaker 1: to be pretty significant. Take Google for example, parent is 670 00:37:38,080 --> 00:37:41,359 Speaker 1: course Alphabet It's a hundred million dollars wiped from its 671 00:37:41,360 --> 00:37:45,680 Speaker 1: market capitalization after unveiling its barred AI technology that fas 672 00:37:45,760 --> 00:37:48,520 Speaker 1: questions over accuracy. That's far bigger than the two point 673 00:37:48,560 --> 00:37:52,719 Speaker 1: eight percent drop on the day after Alphabet's earnings missed estimates, 674 00:37:52,719 --> 00:37:56,239 Speaker 1: So clearly the impact there were seeing remarkable moves and 675 00:37:56,360 --> 00:37:58,560 Speaker 1: some of the AI link tickers and names that we've 676 00:37:58,560 --> 00:38:01,640 Speaker 1: seen C three aig Bear is another one. AI keep 677 00:38:01,640 --> 00:38:03,879 Speaker 1: a clean eye on these sorts of companies. But let's 678 00:38:03,880 --> 00:38:07,320 Speaker 1: stick with the overall artificial intelligence theme. Because Trip Actions, 679 00:38:07,360 --> 00:38:09,080 Speaker 1: as a name you used to know as a business 680 00:38:09,120 --> 00:38:11,959 Speaker 1: travel software startup, their plans to integrate open a eyes 681 00:38:12,080 --> 00:38:16,440 Speaker 1: chat chypt capabilities across its online platform, an effort aimed 682 00:38:16,480 --> 00:38:20,439 Speaker 1: at seizing market share by making expense reports easier to use. 683 00:38:20,880 --> 00:38:23,360 Speaker 1: That As part of a move, the company is also rebranding. 684 00:38:23,360 --> 00:38:26,680 Speaker 1: It's changing its name Navan, joining us now as Aerial 685 00:38:26,760 --> 00:38:31,719 Speaker 1: Cohen Navan, CEO co founder talk to us about the rebrand, 686 00:38:31,719 --> 00:38:33,920 Speaker 1: but ultimately talk to us about how important is for 687 00:38:34,040 --> 00:38:37,600 Speaker 1: B to B, for enterprise companies and software companies to 688 00:38:37,719 --> 00:38:41,520 Speaker 1: integrate chat chypt. What lift does it give your business? Yeah, 689 00:38:41,560 --> 00:38:43,920 Speaker 1: first of all, I'm very happy to be here and 690 00:38:44,239 --> 00:38:46,399 Speaker 1: share with you a new blend and now you're kind 691 00:38:46,400 --> 00:38:49,200 Speaker 1: of everything that we do, and it's all kind of 692 00:38:49,239 --> 00:38:53,040 Speaker 1: designed to support in one side the company and all 693 00:38:53,080 --> 00:38:57,040 Speaker 1: of the needs of the company policy, safety, saving costs, 694 00:38:57,120 --> 00:38:59,520 Speaker 1: which is very importantly in the recession, but on the 695 00:38:59,520 --> 00:39:02,640 Speaker 1: other s, supporting the employees, really making them out of 696 00:39:02,680 --> 00:39:07,120 Speaker 1: this journey and church AI is actually it was always 697 00:39:07,120 --> 00:39:10,319 Speaker 1: an integral part of our solution for seven years and 698 00:39:10,400 --> 00:39:13,400 Speaker 1: really making sure that the employees can book stuff super 699 00:39:13,480 --> 00:39:18,719 Speaker 1: super fast, expense things extremely fast. And the recent addition 700 00:39:18,840 --> 00:39:21,480 Speaker 1: takes it to the next level. UM I can give 701 00:39:21,520 --> 00:39:24,080 Speaker 1: you some examples of how much it is becoming more 702 00:39:24,120 --> 00:39:27,080 Speaker 1: and more powerful for our users and for everybody. I 703 00:39:27,080 --> 00:39:29,120 Speaker 1: promise we get to examples. I really want to know 704 00:39:29,160 --> 00:39:31,239 Speaker 1: what it's like doing a transaction with the open AI. 705 00:39:31,360 --> 00:39:34,400 Speaker 1: We talked about them every day. Closed profit business. Everyone 706 00:39:34,440 --> 00:39:37,080 Speaker 1: wants to get access to the underlying algorithms. You've had 707 00:39:37,120 --> 00:39:39,879 Speaker 1: access for a little while. Do they charge you a lot? 708 00:39:40,040 --> 00:39:42,560 Speaker 1: What's the business relationship? Was this the best deal you've 709 00:39:42,560 --> 00:39:44,799 Speaker 1: ever done in your career? No? Like now it's a 710 00:39:44,880 --> 00:39:47,680 Speaker 1: it's a it's actually services business, very very similar to 711 00:39:47,760 --> 00:39:50,320 Speaker 1: what you get with a WS and and the stuff 712 00:39:50,360 --> 00:39:53,200 Speaker 1: like that. But we're at the beginning, so we need 713 00:39:53,239 --> 00:39:57,839 Speaker 1: to see how the inputs and outputs of data will walk. 714 00:39:57,880 --> 00:39:59,640 Speaker 1: So we still don't know, and I think that they 715 00:39:59,760 --> 00:40:01,880 Speaker 1: still don't know. We're learning it together. Okay, so we 716 00:40:02,000 --> 00:40:05,279 Speaker 1: just write what you offer at the beginning of the segment. Respectfully. 717 00:40:05,520 --> 00:40:08,400 Speaker 1: You know it's a very business transactional, heavily service. But 718 00:40:08,480 --> 00:40:12,200 Speaker 1: how has the underlying tech improved your offering? So we 719 00:40:12,280 --> 00:40:14,839 Speaker 1: always had the chetbot that you can actually ask dead 720 00:40:14,840 --> 00:40:18,319 Speaker 1: boat to book your trip, your entire trip, if you'd 721 00:40:18,320 --> 00:40:21,640 Speaker 1: ask that before we integrated open ai. If you want 722 00:40:21,680 --> 00:40:24,919 Speaker 1: to book a hotel in in New York, you'll ask 723 00:40:24,960 --> 00:40:27,080 Speaker 1: the book the West Inn and it will ask you 724 00:40:27,400 --> 00:40:29,480 Speaker 1: why do you want me to book? Now it will 725 00:40:29,520 --> 00:40:31,759 Speaker 1: actually know the West Inn and it will ask you 726 00:40:31,800 --> 00:40:33,680 Speaker 1: in what dates do you want to book it? So 727 00:40:33,880 --> 00:40:36,520 Speaker 1: context matters a lot, and this is really what this 728 00:40:36,640 --> 00:40:41,120 Speaker 1: integration gives us. A lot of context ultimately does set 729 00:40:41,160 --> 00:40:43,880 Speaker 1: you apart from your competitors. How big a modes do 730 00:40:43,880 --> 00:40:47,520 Speaker 1: you think you can build by educrating chat GPT if 731 00:40:47,520 --> 00:40:53,600 Speaker 1: others can license this sort of productivity software and chat board. Yeah, 732 00:40:53,640 --> 00:40:56,120 Speaker 1: the first mode was actually to move business travel and 733 00:40:56,200 --> 00:40:59,800 Speaker 1: expense management to be an online process because I'll compere 734 00:40:59,840 --> 00:41:02,680 Speaker 1: it will basically you're still call an agent, right, and 735 00:41:02,880 --> 00:41:05,719 Speaker 1: we've moved it to online seven years ago and now 736 00:41:05,760 --> 00:41:07,919 Speaker 1: we are taking it to the next level by really 737 00:41:08,080 --> 00:41:12,680 Speaker 1: riding on the capabilities of online. What's the risk? What 738 00:41:12,800 --> 00:41:15,359 Speaker 1: happens if your chat box says something that is not 739 00:41:15,440 --> 00:41:18,680 Speaker 1: true or inaccurate, or causes a customer to do something 740 00:41:18,920 --> 00:41:20,719 Speaker 1: they didn't want to do. Yeah, we are playing a 741 00:41:20,719 --> 00:41:23,399 Speaker 1: lot with this and like any technology, it definitely has 742 00:41:23,480 --> 00:41:27,640 Speaker 1: its limitation. So we actually like anything that you implement, 743 00:41:28,320 --> 00:41:30,920 Speaker 1: we know its limitations. We know when we need to 744 00:41:30,960 --> 00:41:33,560 Speaker 1: kick off an agent, a re agent that will actually 745 00:41:33,560 --> 00:41:37,319 Speaker 1: intervene and do the right thing. There. Really interesting. Thank 746 00:41:37,400 --> 00:41:39,840 Speaker 1: you for sharing us the journey and also the rebrand 747 00:41:40,120 --> 00:41:44,120 Speaker 1: aerial Cohen Navan, CEO and co founder. Now that does 748 00:41:44,120 --> 00:41:46,239 Speaker 1: it for this edition of bloom Bag Technology, Do not 749 00:41:46,400 --> 00:41:49,080 Speaker 1: forget to tune in tomorrow. Bloomberg Technology has got a 750 00:41:49,080 --> 00:41:52,520 Speaker 1: special Twitter Spaces too, So before you get this joyous 751 00:41:52,520 --> 00:41:55,880 Speaker 1: show and they come and join us at twelve o'clock 752 00:41:55,960 --> 00:41:58,719 Speaker 1: New York time, it's nine am in your time for 753 00:41:58,800 --> 00:42:01,239 Speaker 1: Twitter Spaces conversation. Yeah, I'm going to do what I 754 00:42:01,280 --> 00:42:03,399 Speaker 1: do every week. We have a special guest and I'm 755 00:42:03,400 --> 00:42:04,840 Speaker 1: not going to tell you who it is, but I 756 00:42:04,880 --> 00:42:08,680 Speaker 1: will say, is this person's birthday. They've been on the 757 00:42:08,719 --> 00:42:11,319 Speaker 1: show this week and they've got a really important story 758 00:42:11,360 --> 00:42:13,720 Speaker 1: to talk about. Yeah, And there's also so many important 759 00:42:13,719 --> 00:42:16,400 Speaker 1: stories to get up close and personal with some of 760 00:42:16,440 --> 00:42:18,839 Speaker 1: our on the ground reporters. So we're going to have 761 00:42:18,920 --> 00:42:22,120 Speaker 1: the main key stories take away and just the inside 762 00:42:22,120 --> 00:42:25,160 Speaker 1: track on what these reporters are hearing, seeing, feeling, and 763 00:42:25,239 --> 00:42:27,759 Speaker 1: ultimately how they break the stories in. Yeah. And I 764 00:42:27,760 --> 00:42:29,560 Speaker 1: think what I'm most excited about is it's not just 765 00:42:29,640 --> 00:42:34,279 Speaker 1: earnings continuing to drive markets. Individual headlines and artificial intelligence 766 00:42:34,640 --> 00:42:37,040 Speaker 1: such a big part of that, CAAC. And what's important 767 00:42:37,080 --> 00:42:38,840 Speaker 1: is that this is a two way street. Get to 768 00:42:38,880 --> 00:42:41,839 Speaker 1: ask your questions directly within the Twitter spaces. Come join us. 769 00:42:42,000 --> 00:42:42,800 Speaker 1: This is Bloomberg