WEBVTT - Arm Readies its IPO, Threads Goes on the Web 0:00:01.520 --> 0:00:05.160 From Mahart where Innovation of Money and Power Collie in 0:00:05.280 --> 0:00:06.800 Silicon Valley, NBN. 0:00:07.120 --> 0:00:11.160 This is Bloomberg Technology with Caroline Hyde and Ed Ludlow. 0:00:25.360 --> 0:00:27.560 I'm Caroline Heidel, Bloomberg's world headquarters in New York and 0:00:27.640 --> 0:00:30.760 Ludlow He's off This is Bloomberg Technology coming up. Aren't 0:00:30.760 --> 0:00:33.440 prepares to file for its IPO as soon as today 0:00:33.760 --> 0:00:35.440 and what could be one of the biggest tech listings 0:00:35.440 --> 0:00:38.000 ever on a US exchange. We will bring you the details. 0:00:38.280 --> 0:00:40.760 Plus we'll sit down with venture capitalist and entrepreneur keithra 0:00:40.840 --> 0:00:44.000 Boy to discuss how his company opens stores, helping small 0:00:44.000 --> 0:00:47.720 businesses grow amid a pretty competitive e commerce landscape, and 0:00:47.760 --> 0:00:51.360 Meta plans to launch a web version of its microbloggerging 0:00:51.560 --> 0:00:55.240 app Threads early this week. We understand the newest challenge 0:00:55.320 --> 0:00:57.360 is going to be taking on competitor x. I have 0:00:57.680 --> 0:00:59.720 all of that and so much more throughout the appt 0:00:59.720 --> 0:01:02.400 first with Sticking on Chips is sticking this time on 0:01:02.440 --> 0:01:05.280 the designer of Chips expected to Cools to file paperwork 0:01:05.560 --> 0:01:07.920 as seems today for its initial public offering, which is 0:01:07.959 --> 0:01:10.280 expected to be the biggest of the year, most certainly 0:01:10.680 --> 0:01:13.120 with US for the latest muggs Leanna Baker, who I 0:01:13.160 --> 0:01:15.800 think perhaps doesn't have as RESTful weekends as she is 0:01:15.880 --> 0:01:19.600 used to recently. So when we're looking towards these numbers, 0:01:19.600 --> 0:01:22.160 how much clarity will we get on the actual amount 0:01:22.160 --> 0:01:24.280 of the soft Bank is going to be selling here 0:01:24.520 --> 0:01:25.560 and what valuation? 0:01:26.080 --> 0:01:28.320 Those are all great questions. We're not actually going to 0:01:28.360 --> 0:01:31.120 get those answers in the filing today. There's going to 0:01:31.160 --> 0:01:34.400 be a lot of blank spots. For example, how much 0:01:34.400 --> 0:01:36.840 are they trying to raise. We've reported it could be 0:01:36.880 --> 0:01:40.000 somewhere around eight to ten billion, but we've also having 0:01:40.040 --> 0:01:42.680 a story today that it could now be lower than 0:01:42.720 --> 0:01:45.440 that because soft Bank is not selling as much as 0:01:45.480 --> 0:01:49.040 they had originally liked. There was an insider transaction we've 0:01:49.040 --> 0:01:51.520 reported on where the Vision Fund, which owns twenty five 0:01:51.560 --> 0:01:54.480 percent of ARM, sold their stake back to SoftBank. 0:01:54.520 --> 0:01:56.920 So the Vision Fund is no longer a seller in 0:01:56.960 --> 0:01:58.320 this deal. So it's a little. 0:01:58.120 --> 0:02:00.480 Complicated, but it does seem like they don't need as 0:02:00.560 --> 0:02:03.440 much proceeds as before, so that's something we'll be trying 0:02:03.440 --> 0:02:06.160 to figure out when the filing finally hits today. 0:02:06.240 --> 0:02:08.160 What was interesting is a Vision Fund sort a bit 0:02:08.160 --> 0:02:10.560 of an uplift Suddenly to the evaluation, what was it about? 0:02:10.600 --> 0:02:13.680 Sixty four sixty four billion, which is an interesting number 0:02:13.800 --> 0:02:16.720 because they bought that stake for around thirty two billions, 0:02:16.760 --> 0:02:19.440 So the Vision Fund has doubled their money. So that's 0:02:19.480 --> 0:02:23.200 great for their LP, Saudi Arabia, et cetera, whoever is 0:02:23.240 --> 0:02:25.560 involved in the Vision Fund. But what does that mean 0:02:25.600 --> 0:02:28.200 for arms valuation? Because to me it would seem to 0:02:28.240 --> 0:02:31.000 be that they now need to get above sixty four 0:02:31.000 --> 0:02:34.800 billion as a value, although that's just an insider mark 0:02:34.919 --> 0:02:35.240 on it. 0:02:35.360 --> 0:02:37.400 So there's really going to be a lot of questions. 0:02:37.520 --> 0:02:40.400 How do you value this company? How's it valued against 0:02:40.440 --> 0:02:43.880 its peers. We've already reported on some of the financials 0:02:44.360 --> 0:02:47.640 the revenue Tiltal revenue is down one percent last year, 0:02:48.080 --> 0:02:50.480 but there's going to be more to uncover and unpack. 0:02:50.520 --> 0:02:51.120 In the filing. 0:02:51.200 --> 0:02:53.440 We'll see more on margins and other things we haven't 0:02:53.440 --> 0:02:54.000 reported yet. 0:02:54.040 --> 0:02:55.480 And let's get to the nitty gritty O of the 0:02:55.480 --> 0:02:58.480 business model, because this is a company that helps basically 0:02:59.440 --> 0:03:01.840 define a blueprint for a chip then be able to 0:03:01.880 --> 0:03:04.520 really understand how it's the most productive it can be. 0:03:04.880 --> 0:03:07.799 It is so wedded to the mobile phone industry, and 0:03:07.840 --> 0:03:10.120 of course that's one that's been slowing. So how is 0:03:10.160 --> 0:03:12.320 this company trying to set itself up for success? 0:03:12.400 --> 0:03:14.680 So it's right that mobile and ARM. 0:03:14.760 --> 0:03:17.880 It's ubiquitous in mobile, but Rene has the CEO, has 0:03:17.880 --> 0:03:20.079 been trying to diversify ARM away from mobile and some 0:03:20.200 --> 0:03:23.880 more lucrative areas like the data center PC's servers. 0:03:24.240 --> 0:03:24.799 So we'll be. 0:03:24.840 --> 0:03:28.320 Trying to see how that's going, what the progress is. Remember, 0:03:28.360 --> 0:03:31.000 an IPO filing is also backward looking, so it won't 0:03:31.000 --> 0:03:31.919 have forecasts. 0:03:31.960 --> 0:03:32.880 So there's going. 0:03:32.880 --> 0:03:35.320 To be a lot that we see in this filing, 0:03:35.320 --> 0:03:37.840 but we won't know, you know how what the future 0:03:37.840 --> 0:03:41.240 holds for ARM. But we'll be trying to figure that out. 0:03:41.280 --> 0:03:43.120 And can you try and get into the head a 0:03:43.160 --> 0:03:47.080 little bit of Masayoshi's son here as to what SoftBank 0:03:47.240 --> 0:03:49.360 would hold back a little bit for. Is it because 0:03:49.400 --> 0:03:52.160 they think they could get better valuations they sold stakes later. 0:03:52.280 --> 0:03:54.160 They therefore want to hold back in terms of putting 0:03:54.160 --> 0:03:57.600 it all into the market, which is still a testing market. 0:03:57.800 --> 0:03:59.240 To be polite, at the moment. 0:03:59.160 --> 0:04:01.560 We've reported that soft Bank would look to float about 0:04:01.560 --> 0:04:03.680 ten percent of the company, So by holding on to 0:04:03.840 --> 0:04:06.800 ninety percent of ARM, that would indicate they're still bullish 0:04:06.880 --> 0:04:09.440 on the future. They're not ready to part ways. They 0:04:09.480 --> 0:04:12.480 have owned it since twenty sixteen. They do need a 0:04:12.520 --> 0:04:14.720 win after a lot of their failed bets on STARTUS, 0:04:14.720 --> 0:04:16.600 but they're not willing to just you know, get rid 0:04:16.600 --> 0:04:19.320 of this. Although they did try to sell to Nvidia, 0:04:19.720 --> 0:04:22.240 that deal was scuppered last. 0:04:22.080 --> 0:04:24.839 Year the regulators a headache for many. We thank you 0:04:24.880 --> 0:04:26.840 so much, Anabaka. I mean, of course going to be 0:04:26.920 --> 0:04:28.800 all over this throughout the week when it comes to 0:04:28.920 --> 0:04:31.360 arms IPO, but let's get you an update of really 0:04:31.360 --> 0:04:33.200 what this says about the border IPO market in the 0:04:33.200 --> 0:04:35.360 world of tech piller hazards with us some place of 0:04:35.360 --> 0:04:37.320 say co found of equities, then it's a marketplace for 0:04:37.360 --> 0:04:40.479 accessing pre IPO equity. Now, Phil, I don't think I 0:04:40.480 --> 0:04:43.440 can access our equity here because I'm sure there haven't 0:04:43.440 --> 0:04:45.760 been that many secretary market sales going on at the moment, 0:04:45.760 --> 0:04:48.400 apart from seft Bank buying back from the Vision Fund. 0:04:48.400 --> 0:04:52.200 But ultimately, what has desire been like to be buying 0:04:52.240 --> 0:04:55.120 company equity at this moment in the private market. 0:04:56.360 --> 0:04:57.400 Yeah, it's a great question. 0:04:57.520 --> 0:05:00.560 You know, we've seen historically that trans actions on the 0:05:00.600 --> 0:05:03.760 secondary market very much coincide what we see in the 0:05:03.760 --> 0:05:06.479 IPO market, and so what that means is that over 0:05:06.480 --> 0:05:07.880 the last year and a half things have been a 0:05:07.880 --> 0:05:11.400 little bit slower. However, we have similar optimism kind of 0:05:11.440 --> 0:05:13.719 posts this RM IPO that a number of other. 0:05:13.600 --> 0:05:14.920 Companies will test the market. 0:05:15.320 --> 0:05:17.680 But it's worth kind of saying that ARM is not 0:05:17.800 --> 0:05:20.560 your classic venture backed company, going back to the or 0:05:20.600 --> 0:05:22.520 company of the market. ARM is a company that was 0:05:22.520 --> 0:05:25.320 public up until twenty sixteen, so investors are very familiar. 0:05:25.360 --> 0:05:27.720 It's a very different kind of beast than you might 0:05:27.760 --> 0:05:29.400 have a venture backed company coming out. 0:05:29.640 --> 0:05:31.920 Yeah, well said one that I'm sure many are at 0:05:31.960 --> 0:05:34.760 and prior analyst in the UK is rubbing their hands 0:05:34.800 --> 0:05:37.039 and the beginning to get back into the financials of 0:05:37.040 --> 0:05:40.400 this business. Phil, I'm interested for what we're hoping for 0:05:40.440 --> 0:05:44.240 if this IPO goes well, go successfully. Who's there standing by? 0:05:44.320 --> 0:05:46.760 We know Instacrat for example, eyeing the market as soon 0:05:46.800 --> 0:05:47.919 as September for example. 0:05:49.080 --> 0:05:51.800 Yeah, Unfortunately, I can't give specific names given that we 0:05:51.839 --> 0:05:53.560 work with a lot of the companies that are hopefully 0:05:53.600 --> 0:05:55.200 going to be coming public soon. 0:05:55.279 --> 0:05:58.080 But I'd say that what investors will be looking at 0:05:58.160 --> 0:05:58.919 is how successful. 0:05:58.960 --> 0:06:01.279 Is this IPO and say September, does that mean we 0:06:01.320 --> 0:06:03.599 have enough time to get our affairs in order and 0:06:03.640 --> 0:06:06.360 maybe lifts before the end of the year. Historically these 0:06:06.400 --> 0:06:09.159 two weeks leading up to Labor Day have been incredibly quiet. 0:06:09.200 --> 0:06:11.760 I'm sure there's a lot of very frustrated investment bankers 0:06:11.760 --> 0:06:13.960 all across the world galvanting and finding their way back 0:06:14.000 --> 0:06:15.120 to New York or London. 0:06:14.920 --> 0:06:17.720 Wherever to work on this. So I would imagine if 0:06:17.760 --> 0:06:19.000 we do actually see. 0:06:18.800 --> 0:06:21.919 A couple venture back tech IPOs, we'll see rumors of 0:06:21.960 --> 0:06:25.520 filing and paperwork between now and Labor Day, because that's 0:06:25.560 --> 0:06:27.600 the only way these companies are going to have are 0:06:27.640 --> 0:06:29.760 going to be ready enough to actually list and start 0:06:29.760 --> 0:06:33.360 trading by say October November, before you get to the 0:06:33.440 --> 0:06:35.880 next quiet season, which is in December, and. 0:06:36.240 --> 0:06:38.880 It's leading the tea leaves. There have been a couple 0:06:38.880 --> 0:06:42.560 of relatively successful initial public offerings. Just remind us of 0:06:42.720 --> 0:06:46.200 who's come and tapped and what the signal is there 0:06:46.240 --> 0:06:47.320 for for the rest of the market. 0:06:48.320 --> 0:06:50.400 Sure, I mean, in the last two years, it's been 0:06:50.560 --> 0:06:53.279 incredibly quiet of a tech front, apart from probably just 0:06:53.320 --> 0:06:55.800 some spinouts. You know, we saw Kenview come out from 0:06:56.680 --> 0:07:00.480 Johnson Johnson, So we've seen some spinouts. Work is going 0:07:00.480 --> 0:07:03.040 to be closer to tech, right, you know. I think 0:07:03.040 --> 0:07:05.160 a fun fact is that Arn't was actually started by 0:07:05.160 --> 0:07:07.520 a three million dollar investment from Apple, so it has 0:07:07.560 --> 0:07:12.040 silicon value roots. And so I think it also serves 0:07:12.040 --> 0:07:14.080 as a bit of a bell weather for how much 0:07:14.120 --> 0:07:16.800 do people really think AI is worth and how valuable 0:07:16.880 --> 0:07:19.120 is it to the people selling the picks and shovels 0:07:19.280 --> 0:07:22.360 and videos certainly indicated that it's worth a lot, but 0:07:22.520 --> 0:07:24.480 arm will be yet another bell weather and kind of 0:07:24.480 --> 0:07:26.720 indicate if there are other companies that are building on 0:07:26.760 --> 0:07:30.040 top of this new AI foundation, they can perform well 0:07:30.120 --> 0:07:32.559 in this market as well, because we honestly haven't seen 0:07:33.000 --> 0:07:37.000 a large tech IPO in the last say two plus years, 0:07:37.040 --> 0:07:39.320 and you know, we had kind of this BAC pocalypse 0:07:39.360 --> 0:07:41.720 that happened in twenty twenty one two twenty two, and 0:07:41.760 --> 0:07:44.560 so that's not really available anymore. Growth fundings are down, 0:07:44.800 --> 0:07:46.360 so I know that there's a lot of investors and 0:07:46.400 --> 0:07:48.800 a lot of founders and CEOs that are eager to 0:07:48.840 --> 0:07:51.120 see if this is a new channel for fundraising. 0:07:51.480 --> 0:07:54.120 How frustrating has it been for those that need a 0:07:54.240 --> 0:07:57.640 liquidity event right now who are working at some of 0:07:57.680 --> 0:08:01.040 these startups and you know, need to manage their life, 0:08:01.120 --> 0:08:03.000 need to buy a home, need to put kids through school. 0:08:04.040 --> 0:08:06.240 Yeah, sometimes it's even worse and they're no longer working 0:08:06.240 --> 0:08:08.160 at the company because they've been asked politely to no 0:08:08.240 --> 0:08:11.240 longer come to the company, and that's even more frustrating. 0:08:11.280 --> 0:08:12.360 You've got this combination of. 0:08:12.320 --> 0:08:14.720 Layoffs and at equities, and we hear a lot about 0:08:15.440 --> 0:08:19.160 employees current and former, desperately looking for liquidity. And I 0:08:19.160 --> 0:08:22.040 think the most proactive founders that we've talked to equities 0:08:22.040 --> 0:08:24.320 and are ones that are talking to their companies and 0:08:24.320 --> 0:08:28.200 their shareholders about ways to address liquidity through maybe tender 0:08:28.240 --> 0:08:30.840 offers or future IPOs. But it's something we hear about 0:08:30.840 --> 0:08:33.880 a lot. There's still a disconnect on what management thinks 0:08:34.160 --> 0:08:36.720 is not really an issue, and how employees are asking 0:08:36.800 --> 0:08:39.120 all the time for places like equities and can we 0:08:39.160 --> 0:08:39.679 sell shares? 0:08:39.720 --> 0:08:40.840 I have downt painents on a house. 0:08:40.920 --> 0:08:43.240 Interest rates have gotten higher, and so I think there's 0:08:43.240 --> 0:08:46.760 a bit of a kind of a boiling sensation happening 0:08:46.760 --> 0:08:51.319 amongst co founders or sorry amoungst employees and optimistic that 0:08:51.360 --> 0:08:53.200 we'll see a bit of that release valve in the 0:08:53.200 --> 0:08:55.880 IPO market, which will find its way down into the 0:08:55.920 --> 0:08:57.000 pre IPO markets as well. 0:08:57.240 --> 0:09:00.520 I mean, you're all about access to add ups to 0:09:00.559 --> 0:09:04.360 private companies with accredited investors. What about sort of the 0:09:04.400 --> 0:09:06.840 global nature of that investor. Now we are in a 0:09:06.880 --> 0:09:10.839 time of geopolitical tension, to put it mildly, between the 0:09:10.960 --> 0:09:13.000 US and China. How much do you think when these 0:09:13.040 --> 0:09:15.400 companies are coming to market, we will see a global 0:09:15.520 --> 0:09:19.720 abound interest in buying US companies or indeed UK companies 0:09:19.800 --> 0:09:20.240 such as. 0:09:20.120 --> 0:09:23.840 O't absolutely, We've actually seen it already. So we've worked 0:09:23.880 --> 0:09:28.480 with individual investors and investment on the equities and platform from. 0:09:28.400 --> 0:09:29.439 Ninety plus countries. 0:09:29.600 --> 0:09:32.680 Obviously there's a large concentration amongst the US and the UK, 0:09:34.080 --> 0:09:36.319 but we're eager to see that more and more US 0:09:36.400 --> 0:09:40.079 companies are breaking through and working on really hard technology problems. 0:09:40.160 --> 0:09:42.520 I think what's really exciting what we've seen in the 0:09:42.600 --> 0:09:44.840 last eighteen twenty four months is kind of the emergence 0:09:44.880 --> 0:09:49.400 of hard tech, deep tech, really difficult problems that companies 0:09:49.400 --> 0:09:52.000 are trying to solve, and that's really peaked the curiosity 0:09:52.000 --> 0:09:54.160 of people around the world that we've seen so We 0:09:54.200 --> 0:09:57.040 continue to see investor interests for US based companies in 0:09:57.320 --> 0:10:00.320 cybersecurity and AI in particular, those are probably the most 0:10:00.360 --> 0:10:04.240 common themes, which is unsurprising given the aforementioned geopolitical risks. 0:10:04.320 --> 0:10:06.600 So we're excited to see that that trend can continue. 0:10:06.600 --> 0:10:08.480 But ultimately, yes, our goal is to kind of bring 0:10:08.480 --> 0:10:11.960 this market opportunity to not just the wealthier the one percent, 0:10:12.040 --> 0:10:13.720 but everyone else that wants. 0:10:13.600 --> 0:10:14.120 To be included. 0:10:14.520 --> 0:10:16.800 Well, thanks so much for giving us your expertise today. 0:10:16.840 --> 0:10:20.240 Phil has that it's course co founder of equity Zen. Meanwhile, 0:10:20.440 --> 0:10:22.360 when we want to talk about something else that's affecting 0:10:22.640 --> 0:10:25.320 potentially and a load of tech entrepreneurs and builders at 0:10:25.360 --> 0:10:28.400 the moment. But following Tropical Storm Hillary, it's a weather event. 0:10:28.559 --> 0:10:32.480 It's pummeling California, flooding rains today, disrupting flights, knocking out 0:10:32.520 --> 0:10:35.120 power in fact across parts of the state, now across 0:10:35.120 --> 0:10:38.720 the southwest region. The ongoing and historic amount of rainfall. 0:10:38.800 --> 0:10:42.400 We understand it's expected to cause life threatening to catastrophic 0:10:42.440 --> 0:10:45.599 floods along with landslides mudslides so well, according to the 0:10:45.679 --> 0:10:48.880 National Hurricane Center. We'll continue to monitor storm for you 0:10:49.080 --> 0:11:01.319 and bring you updates from New York. This is Brittemberg Technology. 0:11:03.679 --> 0:11:06.120 Let's talk China for a moment. Search engine provide a 0:11:06.160 --> 0:11:08.560 by Do. It's set to report second quarter earnings tomorrow. 0:11:08.559 --> 0:11:11.280 The sluggish Chinese economy and for some setbacks from a 0:11:11.400 --> 0:11:14.480 key segment of its business. It calls brokeers to lower 0:11:14.480 --> 0:11:17.160 their earnings expectations to this particular company. For more, that's 0:11:17.200 --> 0:11:19.800 bringing blue eggs Isabelle, who's going to be analyzing and 0:11:19.880 --> 0:11:22.080 keeping a breasts of what's gonna happen with Bardo And 0:11:22.360 --> 0:11:24.280 I mean it's had a big run out. What do 0:11:24.280 --> 0:11:26.560 we expect in terms of numbers? So a couple of things. 0:11:26.559 --> 0:11:29.560 You're right, brokers have really lower to expectations. In fact, 0:11:29.559 --> 0:11:32.440 they expect a slowdown and that income growth. And this 0:11:32.520 --> 0:11:35.240 is a combination of many things. So in the beginning, 0:11:35.520 --> 0:11:38.600 Baydo was one of the first movers into the AI space, 0:11:38.640 --> 0:11:41.559 and first mover is important. It created a chat GPT 0:11:41.840 --> 0:11:45.400 like technology called erning Bot. But then disappointments are now 0:11:45.559 --> 0:11:48.560 slowly piling up on earning Bot. Main key reason is 0:11:48.640 --> 0:11:51.679 the lack of consumer consumption. I guess it's just getting 0:11:51.760 --> 0:11:54.000 it hard. It's finding it hard for people to use 0:11:54.120 --> 0:11:57.160 the machine and Because of that, analysts are saying, hmm, 0:11:57.200 --> 0:11:59.640 maybe this isn't as promising as we imagine, and there's 0:11:59.720 --> 0:12:03.040 slow really just lowering their expectations, and that's really what's 0:12:03.080 --> 0:12:05.520 weighing the stock lower. And if you look at it, 0:12:05.600 --> 0:12:08.600 options traders are also moving because they put call ratio, 0:12:09.000 --> 0:12:12.920 which is a sign of bearish sentiment, is rising this month, 0:12:13.000 --> 0:12:16.120 so people are kind of positioning against that tomorrow. So 0:12:16.800 --> 0:12:20.280 we'll see, but who knows, maybe earnings will surprise those exactly. 0:12:20.320 --> 0:12:24.319 I mean there have been nervous ahead of perhaps these 0:12:24.400 --> 0:12:26.880 numbers because actually there's been a normal profit to take 0:12:26.920 --> 0:12:28.440 off the table when it comes to party. It has 0:12:28.440 --> 0:12:30.360 outperformed some of it. So all the competitors, right, it 0:12:30.360 --> 0:12:30.960 definitely has. 0:12:31.000 --> 0:12:34.120 It's up around thirty thirteen percent year todate and it's 0:12:34.120 --> 0:12:36.440 the best performer to hang saying index which is down 0:12:36.520 --> 0:12:39.440 kind of three percent. But we must remember that Bido 0:12:39.440 --> 0:12:43.120 maybe a little bit ahead, but it's competitors. They're closely behind, 0:12:43.160 --> 0:12:46.320 from Pencent to Alibaba and both of them those giants 0:12:46.320 --> 0:12:49.839 are also now creating their own AI chat GPT like thing. 0:12:50.120 --> 0:12:51.880 I mean, yes, you're the first mover, but you have 0:12:51.960 --> 0:12:54.679 to maintain that because if a competitor is second or 0:12:54.760 --> 0:12:59.160 third leaves over you, then that's going to spell trouble 0:12:59.160 --> 0:13:02.120 for you. Are saying that the outlook remains cloudy at best. 0:13:02.120 --> 0:13:03.720 So it's actually not looking that good. 0:13:03.840 --> 0:13:05.480 I mean, it's such early days when it comes to 0:13:05.520 --> 0:13:08.200 generatorve ai and any of that becoming revenue injuicing. But 0:13:08.280 --> 0:13:10.880 what is revenue inducing for by Doo is well, local 0:13:10.960 --> 0:13:17.079 governments and the actual Chinese economy spending on AUR related products. 0:13:17.120 --> 0:13:20.080 At least, how have we seen that considering the macro economy. 0:13:20.160 --> 0:13:22.880 Okay, that's true, A is just one arm. They also 0:13:22.920 --> 0:13:24.840 have a cloud arm. But then overall it's just not 0:13:24.880 --> 0:13:27.439 looking good for China. We have consumers spending down, prices 0:13:27.480 --> 0:13:31.400 are down, the company's real estate sector is one of 0:13:31.440 --> 0:13:33.720 the biggest companies is on the cusp of a default. 0:13:33.880 --> 0:13:36.439 One in five young people there don't have jobs. It's 0:13:36.480 --> 0:13:39.240 just not really looking that good overall, and the big 0:13:39.480 --> 0:13:42.480 rebound that people were hoping to see just didn't pan out. 0:13:42.840 --> 0:13:44.640 A lot of analysts are saying that the five percent 0:13:44.679 --> 0:13:47.960 target that China is aiming for may not come true. 0:13:48.080 --> 0:13:50.240 But then, you know, you don't also want to be 0:13:50.720 --> 0:13:53.320 all this gloom and doom. Maybe too early, but for 0:13:53.360 --> 0:13:55.280 now it's not looking good to China. In effect, it's 0:13:55.280 --> 0:13:58.480 affecting its biggest sector, which is the tech sector. And 0:13:58.520 --> 0:14:01.040 because this sector is very dom stick and like you're 0:14:01.040 --> 0:14:04.160 in the US, a lot of international people use whatever 0:14:04.200 --> 0:14:07.240 products the Wall Street here a Silicon Valley makes, but 0:14:07.640 --> 0:14:09.040 it's not the same in China. A lot of the 0:14:09.040 --> 0:14:11.960 products there are really used by domestic. 0:14:11.920 --> 0:14:14.520 I think, I mean really to the point that some 0:14:14.559 --> 0:14:17.840 of these GDP figures a city, for example, economists downgrading 0:14:17.840 --> 0:14:19.760 where they think overall China is going to go. Some 0:14:19.840 --> 0:14:21.800 analysts starting to figure that into bider and the rest 0:14:21.800 --> 0:14:24.600 of the tech sector. Brilliant to get Isabelle ahead of those, 0:14:24.640 --> 0:14:26.720 of course, keep an eye on how by do performs 0:14:26.760 --> 0:14:29.920 isabella LEI there. Meanwhile, let's stick with AI and chatbots, 0:14:30.000 --> 0:14:33.440 because well, neither who is line messaging app and search 0:14:33.440 --> 0:14:36.880 engine dominates Japan and South Korea's internet landscape. It's got 0:14:37.000 --> 0:14:39.440 a mail guess what its own answer to chatshetpt as 0:14:39.440 --> 0:14:42.360 it joins a race and is global to tap potentially 0:14:42.360 --> 0:14:45.480 transformative AI technology. Now, the company is expected to take 0:14:45.480 --> 0:14:48.480 the lid off several generative AI services. It's been working 0:14:48.480 --> 0:14:59.800 on latest and soon as this week. We understand time 0:14:59.840 --> 0:15:03.040 now for talking tech first up. After plunging following its 0:15:03.080 --> 0:15:06.080 earning support last week, addi End's most bearish analyst predicts 0:15:06.360 --> 0:15:08.640 even further declines that The City Group analyst said in 0:15:08.680 --> 0:15:11.400 a note he remained skeptical of adiends reaching its long 0:15:11.520 --> 0:15:15.720 term margin target, maintaining his Cell rating on the stock. Meanwhile, 0:15:15.800 --> 0:15:19.160 Broadcom's sixty one billion dollar takeover of VMware was cleared 0:15:19.160 --> 0:15:21.320 by the UK's anti trust watchdog, paving the wave for 0:15:21.400 --> 0:15:23.880 the one of the largest ever tech deals, and the 0:15:23.920 --> 0:15:27.040 CMA confirmed its provisional decision to clear the deal after 0:15:27.080 --> 0:15:30.080 finding that it wouldn't substantially reduce competition in the supply 0:15:30.160 --> 0:15:34.080 of key computer server products. Plus, let's talk about the 0:15:34.120 --> 0:15:36.720 Tesla data breach that was back in May. Impacted more 0:15:36.720 --> 0:15:40.520 than seventy five thousand people and included employee related records. Now, 0:15:40.560 --> 0:15:42.960 according to a notice posted by the Office of the 0:15:43.040 --> 0:15:47.080 main Attorney General, the breach was a result of insider wrongdoing. 0:15:47.480 --> 0:15:51.400 Tesla says two former employees shared information with a foreign 0:15:51.480 --> 0:15:54.040 media outlet. So let's get the details on that story. 0:15:54.080 --> 0:15:56.960 For most Anna Halla's with us and Dena I mean 0:15:57.000 --> 0:15:59.280 it was Hannelds. Black was a German publication that we 0:15:59.360 --> 0:16:03.080 understand got the information contacted Tesla. What do you think 0:16:03.080 --> 0:16:05.160 that was being shared here? Shared here by who? 0:16:05.920 --> 0:16:08.760 Well, it sounds like it was internal employee information, things 0:16:08.800 --> 0:16:12.600 like names, addresses, social Security numbers, and you know. The 0:16:12.680 --> 0:16:14.960 details that we learned on Friday are thanks to the 0:16:14.960 --> 0:16:16.720 fact that the state of Maine is one of the 0:16:16.720 --> 0:16:19.160 few states in the United States that kind of regularly 0:16:19.240 --> 0:16:26.320 posts data breach information. So Tesla is now informing former 0:16:26.440 --> 0:16:28.479 and current employees if they were impacted. 0:16:28.720 --> 0:16:30.920 Apparently nine of them live in the state of Maine. 0:16:31.000 --> 0:16:35.040 So the state of Maine got this notification, and they're 0:16:35.040 --> 0:16:37.760 saying that two former employees basically shared this data with 0:16:37.800 --> 0:16:41.840 handles Plot and that Tesla has taken legal action against them. 0:16:42.280 --> 0:16:42.960 The one thing that. 0:16:42.880 --> 0:16:45.840 I don't know is where exactly these former employees live. 0:16:45.960 --> 0:16:48.960 I'm assuming that it's in Europe. I'm guessing that it 0:16:49.000 --> 0:16:51.600 could be in Germany, given that handles Plot was the 0:16:52.240 --> 0:16:54.520 was a publication that originally got this information. But it 0:16:54.560 --> 0:16:57.400 does not appear that these folks are in the United States. 0:16:57.440 --> 0:16:59.560 I can't find any record of a lawsuit being filed 0:16:59.560 --> 0:17:02.320 here in the U. So in terms of next steps, 0:17:02.360 --> 0:17:05.200 we're just sort of wondering, well, okay, where is this lawsuit, 0:17:05.320 --> 0:17:07.439 who are the employees and is there any kind of 0:17:07.480 --> 0:17:11.560 EU gdpr sinction coming given. 0:17:11.280 --> 0:17:12.000 This data breach? 0:17:12.280 --> 0:17:16.399 Interesting? I mean, Tesla's said that they've cooperated with law enforcement, 0:17:16.480 --> 0:17:20.760 but is there any well ramification of what they should 0:17:20.760 --> 0:17:22.760 have been doing could have been doing, because when it's 0:17:22.840 --> 0:17:28.440 internal wrongdoing, that must be pretty hard to prevent, right, Well, 0:17:28.480 --> 0:17:29.280 it sounds. 0:17:29.000 --> 0:17:33.400 Like, you know, internal wrongdoing and two employees basically sharing 0:17:33.680 --> 0:17:37.320 employee data. So to be clear, no consumers were impacted 0:17:37.359 --> 0:17:39.199 by this that we know of. This really seems to 0:17:39.240 --> 0:17:43.360 be impacting Tesla employees. But why there were more controls 0:17:43.760 --> 0:17:46.920 how these internal employees had access to this database, I'm 0:17:46.920 --> 0:17:50.320 not entirely clear. And you know, the Tesla statement on 0:17:50.359 --> 0:17:53.640 this main website is pretty vague, like cooperating with law enforcement, 0:17:53.680 --> 0:17:56.040 but like which law enforcement? Like are we talking like 0:17:56.119 --> 0:18:00.119 the Dutch regulatory authorities, the EU Germany? Like It's that's 0:18:00.160 --> 0:18:02.920 that entirely clear where within Europe this is all happening. 0:18:03.560 --> 0:18:07.119 And Autopilot, the driver assistance product, that was something that 0:18:07.359 --> 0:18:09.479 seemed to be flagged in some of the data that 0:18:09.640 --> 0:18:11.639 was at least leaked to Handles Black. Why is that 0:18:11.680 --> 0:18:13.600 so important to Tesla? 0:18:13.800 --> 0:18:16.480 Well, autopilot is just a big part of Tesla's valuation, 0:18:16.680 --> 0:18:18.919 you know, Elon Musk himself has said that, you know, 0:18:18.960 --> 0:18:22.200 the promise of future self driving is like a big 0:18:22.240 --> 0:18:25.439 part of why investors believe in the company. And this 0:18:25.560 --> 0:18:28.520 data breach covered all kinds of things. What we learned 0:18:28.520 --> 0:18:31.680 on Friday is really more just about the employee information. 0:18:32.400 --> 0:18:35.199 But yeah, I mean autopilot is a fugiturist to investors 0:18:35.359 --> 0:18:39.040 and it's a big differentiator, right, Like you know, electric 0:18:39.119 --> 0:18:42.359 vehicles are now becoming more common, but Tesla's autopilot is 0:18:42.880 --> 0:18:45.840 something that Tesla still markets as being something that sets 0:18:45.840 --> 0:18:46.640 that apart from. 0:18:46.480 --> 0:18:50.480 Their evs one to watch considering also just how global 0:18:50.560 --> 0:18:52.800 teslra is and I know that that was something Handles 0:18:52.840 --> 0:18:55.880 Abount was shining light on the fact of access perhaps 0:18:56.240 --> 0:18:58.800 by China as well. Anaha, we thank you so much 0:18:58.920 --> 0:19:02.879 coming to us on that data breach, well the nuances 0:19:02.880 --> 0:19:13.680 within it. Welcome back to Blombo Technology. I'm Karen Hide 0:19:13.680 --> 0:19:16.440 in New York. What about payments, premissessing and the world 0:19:16.440 --> 0:19:18.960