Speaker 1: From Marhart where Innovation, Money and power Collie in Silicon
Speaker 1: Vallet NBN. This is Bloomberg Technology with Caroline Hyde and
Speaker 1: Ed Loudlove.
Speaker 2: I'm Caroline Heine Bluemerg's world headquarters in New York, and.
Speaker 3: I'm Ed Lovelow here in San Francisco. This is Blueberg Technology.
Speaker 4: Ed.
Speaker 2: It is a huge day for big tech, earning Spotify
Speaker 2: already out the gate. We've got Alphabet, Microsoft reporting after
Speaker 2: the bell with AdSpend AI search engine details front of
Speaker 2: mind for investors.
Speaker 3: Then the European Union says nineteen major online platforms and
Speaker 3: search engines will be subject to extra scrutiny under its
Speaker 3: new content moderation rules, including a plan to conduct a
Speaker 3: live stress test at Twitter.
Speaker 2: And that's talking of at Twitter. The app Blue Sky.
Speaker 2: It's about by Jack Dorsey. It's emerging as possible alternative
Speaker 2: to Twitter. What makes it different from the competitors. We'll
Speaker 2: dig into that moment, but first let's check in on
Speaker 2: those markets. Because once again we are worried about recessionary risks,
Speaker 2: we are worried about the macro environment. We are therefore
Speaker 2: selling off on the Nastak more than a percentage point
Speaker 2: lower worse than some of the other key benchmarks as
Speaker 2: we see some of the data, whether it be about
Speaker 2: consumer confidence, whether it be about housing prices, just showing
Speaker 2: some slowing in this US economy. Tenure yield therefore a
Speaker 2: flight to safety six basis points, seven basis points. Hays
Speaker 2: call it on the downside of the tenure below that
Speaker 2: two hundred day moving average. Meanwhile, we're not only risk
Speaker 2: averse in the US, we're also risk averse for a
Speaker 2: six straight day in terms of your US traded Chinese names.
Speaker 2: Why this has a lot to do with geopolitics, said,
Speaker 2: and the worry that we're going to limit US investment
Speaker 2: in those Chinese names. And look what's happening in the
Speaker 2: world of crypto, another bit of a bell weather in
Speaker 2: terms of risk sentiment. It's back to being a risk
Speaker 2: asset and we're down by a half a percentage point.
Speaker 3: Yeah, earnings the main driver for me on the micro picture.
Speaker 3: I'm taking a night at GM right. They've raised guidance
Speaker 3: for twenty three, but there's a lot of analyst concern
Speaker 3: about how thin margin's going to be as they shift
Speaker 3: to EV A bit of a public service announcement, they're
Speaker 3: retiring the Chevy Bolt production will end on that model
Speaker 3: this year, which is an interesting moment of Eve history.
Speaker 3: First Republic also interesting because, as we've been talking about
Speaker 3: for weeks, so much of our audience were depositors at
Speaker 3: First Republic, and that's where the concern is, deposit outflow.
Speaker 3: I are you and I are going to talk about
Speaker 3: that later in the program. Look at how severe the
Speaker 3: drop is. A restructuring is on the cards. Strategic obsens
Speaker 3: that's the downside. For the upside, we are looking at
Speaker 3: Spotify out the gate with earnings this Monday, subscribers on
Speaker 3: the paid side rising fifteen percent, hiundred and twelve million.
Speaker 3: On the monthly active users, We've actually breached that five
Speaker 3: hundred million mark, five hundred and fifteen million monthly active
Speaker 3: users and narrower than expected loss. There's still questions around
Speaker 3: profitability long term, but then you look at their outlook
Speaker 3: for the second quarter revenue growth, subscriber growth, monthly active
Speaker 3: user growth, and that's what investors like to hear.
Speaker 2: Karen, Yeah, all good signs, but let's dig in on
Speaker 2: whether that path to profitability is getting any closer. Spotify
Speaker 2: I focus with Sandy Shamah's Third Bridge Senior analyst. So
Speaker 2: you're reading the positive in terms of the tea.
Speaker 5: Leaves here, Yeah, absolutely, Carol and at Pleasure Pleasure beyond.
Speaker 5: So first off, straight off the bat, pretty good, a
Speaker 5: good performance across the board, and we saw fourteen percent
Speaker 5: revenue growth, we saw consistent grasp offit margins, and yes
Speaker 5: EPIT prafitability was down as well, but again this is
Speaker 5: sort of in liner what we've expected. But I think
Speaker 5: a big thing over here is that, you know, when
Speaker 5: it comes to Spotify across the entire board, they've been
Speaker 5: focusing so much in what they show to investors, which
Speaker 5: is subscriber growth, and again that shows in the ways
Speaker 5: in which they've reported their numbers across But what retail
Speaker 5: and institutional investors really seemed to be focused on, a
Speaker 5: world really focused on in twenty twenty two was that
Speaker 5: path to profitability. What that's led to is sort of
Speaker 5: a mismatch or inability to come up with a unified,
Speaker 5: coherent equity story for the business, and that perhaps has
Speaker 5: been responsible for what some could argue to be a
Speaker 5: relative under performance for a company of this scale. So, yes,
Speaker 5: we're seeing positives across the board, but the experts we've
Speaker 5: interviewed at Third Bridge. It really appears as if the
Speaker 5: longer term sustainable profitability might be something the company can
Speaker 5: hit right now, it's maybe a story mode about market
Speaker 5: shared attention and market share gains as a whole.
Speaker 3: So right now, market share, mark share. Let's talk about
Speaker 3: technology as well.
Speaker 4: Though.
Speaker 3: What I find is so interesting is there's a lot
Speaker 3: of option out there. We were talking on this program
Speaker 3: about Apple, for example, raising services prices with Apple Music.
Speaker 3: Spotify is growing its subscriber base. Why is it podcasts?
Speaker 3: Is it the music library? There must be a reason
Speaker 3: that they're continuing this growth narrative at least.
Speaker 5: No absolutely, So you know, I'll probably try and split
Speaker 5: that down into two components. That becomes a bit more
Speaker 5: clear so we can see the emerging picture. Let's move
Speaker 5: in to the developed markets first and look at the
Speaker 5: premium subscribers that first off Spotify. The one thing that's
Speaker 5: been able to do in a fantastic way is have
Speaker 5: very strong brand equity across the board. It's got a
Speaker 5: powerful first mover advantage and it's also developed. It's also
Speaker 5: been so ingrained into how consumers tend to user product
Speaker 5: that Spotify. For a lot of people becomes the go
Speaker 5: to that they end up using. It's easier for them
Speaker 5: to acquire those customers and have them on. So in
Speaker 5: the premium of the space, you know, they're doing quite
Speaker 5: well over there as opposed to other players who will
Speaker 5: ruddle in the market. But if you're looking at it
Speaker 5: from the perspective of emerging markets, you know, some of
Speaker 5: the interviews we have done where we've looked at Spotify
Speaker 5: in the Middle East and North Africa and India, Latin America. Again,
Speaker 5: they spoke about that Latin American performances earnings. They are
Speaker 5: going very aggressive in terms of their marketing spend over there.
Speaker 5: We'll talk about that praft ability consideration, but Spotify appeers
Speaker 5: to have realized that longer term. Again, longer term, yes,
Speaker 5: if they're able to craft these developed markets, that's how
Speaker 5: they're going to be able to get that praftability and scale.
Speaker 3: Hey, Caroline, the big theme of this earning season is
Speaker 3: artificial intelligence. When I open Spotify, the platform knows what
Speaker 3: I want. It's red hot chili peppers every time. But
Speaker 3: what's the really clearly when it comes to Spotify is
Speaker 3: the big question.
Speaker 2: Yeah, and really the investments is making in technology and
Speaker 2: that actually remember the AIDJ that we got to play
Speaker 2: with a little bit earlier in the quarter ed and
Speaker 2: suddenly to your point, therefore are they making the rights
Speaker 2: investments because many felt that they were having to dial
Speaker 2: back some of that spending, particularly in this overall focus
Speaker 2: of podcasts. But they're still having to spend to deliver
Speaker 2: us the content we want in the right time.
Speaker 5: Absolutely, and so here's a big theme, right. I think
Speaker 5: Daniel lact came out in twenty twenty two and he
Speaker 5: mentioned that we're going to see reduce spending at that
Speaker 5: particular time. The experts we have interviewing across the board
Speaker 5: the reader has been that this is not necessarily going
Speaker 5: to be the case. If you look at the ad
Speaker 5: supported dear first off, you know, in terms of just
Speaker 5: that ability to give the targeted advertisements, Spotify hasn't been
Speaker 5: able to crack that just yet. It's sort of more
Speaker 5: over the counter, so to speak. So it really needs
Speaker 5: to invest further in terms of the ad dech there.
Speaker 5: On top of that, we saw them go ahead with
Speaker 5: more podcast acquisitions and again with more acquisitions in terms
Speaker 5: of the tech there, it really needs to build out
Speaker 5: a more sophisticated targeted meaningful system to do this. So
Speaker 5: again more spending in that element, but it is spending
Speaker 5: in the right direction. But again spending is required onto
Speaker 5: the flip side, moving into the audiobooks that I'm a
Speaker 5: fantastic decision across the board, but right is evident that
Speaker 5: the company still needs to spend over there. So sort
Speaker 5: of the twenty twenty two narrative that we are going
Speaker 5: to slow down in terms of our investments is not
Speaker 5: ideally going to play out over the course of the
Speaker 5: next year a year and a half while they buff
Speaker 5: up that technology throw an AI into the mixtup now
Speaker 5: being an increased focus on that.
Speaker 3: Sandy Shama fir Bridge senior analysts, like many Cara one
Speaker 3: of those that says profitability will come with scale, kind
Speaker 3: of this catch twenty two situation.
Speaker 6: Anyway, today we're going to get.
Speaker 3: Results from Microsoft and Alphabet after the bell. For that,
Speaker 3: we bring in Bloomberg into intelligence senior analysts and rag
Speaker 3: Rana and rag let's start with Microsoft. What is it
Speaker 3: that you want to see from this company? What is
Speaker 3: it that's going to bring you some potential outside surprise.
Speaker 7: So I would say the comments would be most critical
Speaker 7: because you know so far we have seen a downward
Speaker 7: trajectory in cloud sales, infrastructure sales PC. I mean throughout
Speaker 7: the tire ecosystem. You know, we are looking at slow
Speaker 7: down and demand. You know, any comments about even stabilization
Speaker 7: would I think be welcomed by investors.
Speaker 2: What's interesting, Ana Argus, We've almost moved away from fundamentals
Speaker 2: with Microsoft a little bit. It's caught up been the
Speaker 2: hypeer AI. How much do you want to hear about
Speaker 2: future revenue addition from this investment or are you looking
Speaker 2: more than in the here and now it's not really prevalent.
Speaker 7: See if they give a guideline that, you know, they
Speaker 7: should start seeing some kind of a revenue upside maybe next.
Speaker 2: Quarter or the quarter after that, people will like that.
Speaker 7: But frankly speaking, this is so much in the test
Speaker 7: phase right now that the addition to cloud revenue or
Speaker 7: other areas, it's going to be a while before we
Speaker 7: see that. So I think the big growth factor or
Speaker 7: the big factor today is where is enterprise tex spending
Speaker 7: and what should we expect over the next couple of quarters.
Speaker 3: If we're going to try and read across the entirety
Speaker 3: of learning season, what I take away from your preview
Speaker 3: decks is the bread and butter businesses are under the spotlight.
Speaker 3: What we want to see is some of the other
Speaker 3: sides of their business perform. You take Google as an
Speaker 3: example search we're worried cloud could be a boost.
Speaker 6: Yeah.
Speaker 7: See for Google, for example, the cloud business is small
Speaker 7: but growing very well. I mean, I think this is
Speaker 7: an area where they have differentiated compared to rivals, and
Speaker 7: I think you know they have their space in the
Speaker 7: top vendors. I mean, Amazon's never going to lose their
Speaker 7: top spot in our view, Microsoft's going to remain the
Speaker 7: number two player there, but Google is going to be
Speaker 7: a very strong number three contender for cloud infrastructure services,
Speaker 7: and I think they have done a good job about it.
Speaker 2: Overall. How is the market positioned for these numbers, do
Speaker 2: you think? I mean, have we ridden on hype for
Speaker 2: both names, and we're worried that overall we could see
Speaker 2: a knee jerk reactions we tend to in after hours,
Speaker 2: but then we start to drift through and really decide
Speaker 2: where the growth potential is for these names.
Speaker 7: I think the guidances obviously is the biggest key at
Speaker 7: this point, because the numbers are going to be what
Speaker 7: they have, and the guidance comes on the call, and
Speaker 7: the question over THEATA is we are all expecting numbers
Speaker 7: or guidance to be slightly down compared to what people
Speaker 7: are expecting. But if it's really bad, then I think
Speaker 7: it's going to be a bad day tomorrow. If they
Speaker 7: go out and say, you know, we have seen some
Speaker 7: stabilization in new growth, and then you know it's going
Speaker 7: to be the exact opposite of that.
Speaker 2: I'll see, of course, ed how cost cutting comes into
Speaker 2: all of that as well.
Speaker 3: Yeah, we will do in Gosh, what a busy we've
Speaker 3: got ahead of us. Bloom meg Instelligences, Anna rag Rana,
Speaker 3: thank you.
Speaker 2: Now some nineteen major online platforms and search engines, including YouTube, Facebook, Instagram, Twitter, Well,
Speaker 2: they're going to be subject to extra scrutiny and potential
Speaker 2: fines under new content moderation rules set by the European Union.
Speaker 2: Bloomeg's Amy Tonson joins us. Now just update us on
Speaker 2: will remind us what is the Digital Services Act?
Speaker 6: Sure?
Speaker 8: Yeah, the Digital Services Acts get rolled out by the
Speaker 8: European Commission last year and it's all about raining in
Speaker 8: what big tech companies can do with your data. So
Speaker 8: it includes things like bands on serving ads to minors,
Speaker 8: bands on serving ads based on what the Commission calls
Speaker 8: sensitive personal characteristics like sexual orientation. It's got rules about
Speaker 8: combating this info. It's got additional reporting requirements and transparency
Speaker 8: requirements that these guys are going to have to follow.
Speaker 3: Hey, Amy, there's nineteen companies technology names potentially impacted, some
Speaker 3: more than others. Which are those names caught by these
Speaker 3: rules and sort of the strengthening of the rules.
Speaker 2: Yeah, it's nobody.
Speaker 8: Who'd surprise you. I think it's anybody with more than
Speaker 8: forty five million monthly.
Speaker 2: Active users in Europe. So it's all the big guys.
Speaker 8: It's a number of Google's platforms, it's Metas platforms, Facebook
Speaker 8: and Instagram, it's Snapchat, it's TikTok, it's Amazon, it's Apple,
Speaker 8: a lot of the big international tech companies.
Speaker 2: So getting getting caught up in this, and that's what
Speaker 2: it was meant for.
Speaker 8: Really.
Speaker 3: Yeah, and the penalties for some of those names potentially
Speaker 3: quite severe as a proportion of global revenue. Thanks to
Speaker 3: Bloomberg's Amy Thompson, who's leading our tech coverage in the
Speaker 3: Emia region. Now, speaking of Twitter, some Twitter users are
Speaker 3: growing weary of using the platform. Since Elon Musk's takeover,
Speaker 3: others are turning to Blue Sky as a possible alternative.
Speaker 3: That's if you can make it off the waitlist is
Speaker 3: account Saisia Counts joins Us, Bloomberg News, Social Media Report Asia.
Speaker 6: What is Blue Sky? Where's this come from?
Speaker 9: Yeah, it's a Twitter alternative. As you mentioned, right, in
Speaker 9: the wake of Elon muss taking over Twitter, a lot
Speaker 9: of people have not been happy with the platform, whether
Speaker 9: it's from a colientent moderation perspective, all the changes of verification,
Speaker 9: and so blue Sky is another alternative. It looks very
Speaker 9: similar to Twitter if you see it, and it's got
Speaker 9: the backing of Jack Dorsey, who obviously was really involved
Speaker 9: with Twitter from the early days, and so that's giving
Speaker 9: people some confidence to want to try out the platform.
Speaker 2: Yeah, what is it about? Quarter of a million iPhone
Speaker 2: downloads so far? I mean, nowhere near Twitter's overall use case.
Speaker 2: But Ayisha, how is it distinct not only from Twitter,
Speaker 2: but distinct from other competitors out there? I'm thinking of Masteredon,
Speaker 2: which also wants to be some sort of decentralized social platform.
Speaker 9: I mean that's the challenge, right, is how do you differentiate.
Speaker 9: A lot of them are very very similar to Twitter.
Speaker 9: They're going to look very similar on the feed right now.
Speaker 9: Blue Sky has a waitlist, so in some ways they're
Speaker 9: trying to control how many people can be on the platform.
Speaker 9: You mentioned trying to have sort of a decentralized open protocol.
Speaker 9: If you think about massed on, they have different servers,
Speaker 9: so you have to be on a server to follow someone,
Speaker 9: and so that gets a little bit more complicated. Blue
Speaker 9: Sky's a little bit more straightforward in terms of onboarding,
Speaker 9: but it's really going to be that's going to be
Speaker 9: the question moving forward. How do they differentiate when they're
Speaker 9: all very similar.
Speaker 6: I mean, Caro, they look identical to me. I don't
Speaker 6: know about you.
Speaker 3: Like Paragagrowell, for example, is believed to have gone to
Speaker 3: Blue Sky. People have been sharing screenshots of his profile
Speaker 3: on Twitter, but when you're scrolling through, it just looks
Speaker 3: like Twitter.
Speaker 2: Yeah, but maybe that's not surprising given it was basically
Speaker 2: born out of Twitter, right as I mean, its history
Speaker 2: is that it was backed in many ways and sort
Speaker 2: of a startup within the company.
Speaker 9: Right, So it's not super surprising. And you see the
Speaker 9: same thing with other alternatives. There's an alternative called T
Speaker 9: two that was created by former Twitter employees. Like all
Speaker 9: of them are sort of playing off of what Twitter
Speaker 9: did because it was successful at what it did. The
Speaker 9: question will be will they be able to really convince
Speaker 9: users to come on in a massive way As you
Speaker 9: mentioned right, two hundred and twenty five thousand or so downloads,
Speaker 9: and you think about Twitter which has five hundre million
Speaker 9: monthly active users according to US, So it's going to
Speaker 9: really be a challenge to scale. I think that's what
Speaker 9: we're going to see over the coming months and years.
Speaker 3: I think it's important nations go back to the two
Speaker 3: big changes of the Twitter platform recently, which is subscribers
Speaker 3: and also verification. Just remind us what the latest on
Speaker 3: both those fronts are.
Speaker 9: Yes, So if you think about verification, you have to
Speaker 9: sign up for Twitter Blue, which costs about eight dollars
Speaker 9: per month, have a display name, a photo, and a number,
Speaker 9: and then you get your blue check mark. Obviously, that's
Speaker 9: been really challenging because you have established organizations from news
Speaker 9: institutions to political figures, to athletes and celebrities that lost
Speaker 9: their legacy checkmerks. So it's not about being notable anymore.
Speaker 9: So that's one huge change. Part of that is subscribing
Speaker 9: to Twitter Blue. But then there's also a new feature
Speaker 9: release where you can actually subscribe to an individual person
Speaker 9: and get access to additional content. There's been a ton
Speaker 9: of changes on the platform. But what's the challenge. It's
Speaker 9: really hard to tell which accounts are authentic or are not,
Speaker 9: and so that's really been one of the main sticking points.
Speaker 2: As Disney will attest earlier this week, Asia counts. Thank
Speaker 2: you so much, brilliant reporting as always. Meanwhile, coming up,
Speaker 2: there's another win for Apple in the fight over its
Speaker 2: app store policies. We'll dig in from New York, San Francisco.
Speaker 2: This is Blomberg.
Speaker 6: Time for Wall Street Beat Karen.
Speaker 3: Today we're focusing on First Republic Bank, actually San Francisco,
Speaker 3: California based bank after the collapse of Silicon Valley Bank.
Speaker 3: Were that that chart says it all. They've reported earnings.
Speaker 3: Depositive flight is a huge concern. The shares down ninety
Speaker 3: percent year to date now, and their strategic options is
Speaker 3: the word that they're using.
Speaker 2: I mean, there is the year to stay chart that's
Speaker 2: just so painful. I mean, all of this, the fact
Speaker 2: that they missed the analyst expectations for consumer deposits. They
Speaker 2: plunged forty one percent worse than expected, even after the
Speaker 2: rescue attempts. Are the big banks here in the US
Speaker 2: they lent them thirty billion of their own cash deposited.
Speaker 2: That so really the fact that we're hearing that they're
Speaker 2: going to have to cut people, it doesn't seem to
Speaker 2: put an end to its own what seemed to be
Speaker 2: quite idiosyncratic issues now ed for.
Speaker 3: That bank, particularly an injection of capital, but it was
Speaker 3: supposed to be an injection of confidence. And as it
Speaker 3: relates to our audience, venture capitalists startups were banking with
Speaker 3: First Republic. But last night on Twitter, just so many
Speaker 3: people talking about how did we get here? How did
Speaker 3: it get even worse?
Speaker 2: Yeah, and the fact that they so focused on big
Speaker 2: mortgages to big wealthy people. And yes, they moved elsewhere.
Speaker 2: Let's talk about something else, moving away from the world
Speaker 2: of well Wall Street to the world of key tech,
Speaker 2: which is Apple. And in fact we're talking legal here.
Speaker 2: It's just one and appeals court ruling upholding its app
Speaker 2: storece policies, and then a trust challenge that the course
Speaker 2: was brought by Epic games. Remember the maker of Fortnite
Speaker 2: tes bring in Blueberg's intelligence is Jennifer Ree, who, Well,
Speaker 2: it had already sort of self imposed some changes here,
Speaker 2: been trying to see these headwinds coming on it. But
Speaker 2: the fact that the courts sort of upheld its side
Speaker 2: of the story we surprised.
Speaker 10: You know, not too surprised, somewhat, I think, you know,
Speaker 10: I heard the argument on appeal, and it was really
Speaker 10: hard to call what the justices we're going to do
Speaker 10: because the lower court opinion was somewhat controversial, well thought out,
Speaker 10: but somewhat controversial. When you had this three panel, the judges,
Speaker 10: three of them, and you need two out of one
Speaker 10: out of the three to vote. One spoke a lot,
Speaker 10: seemed to be for Apple, one spoke a lot seemed
Speaker 10: to be epic, and the third one didn't say a word.
Speaker 10: So it was a little bit hard to predict, you know.
Speaker 10: But at the end of the day, they basically pretty
Speaker 10: much affirmed everything that the lower court had done. They
Speaker 10: disagreed with some things, but they said where they disagreed
Speaker 10: it was harmless, meaning even if the judge had done
Speaker 10: it differently, it still would have come out the same.
Speaker 10: The ultimate outcome so it doesn't really matter and they
Speaker 10: don't have to go back to her, and they sent
Speaker 10: it back to her on just a little issue of
Speaker 10: whether or not Epic has to pay some of Apple's
Speaker 10: legal bills, just a very minor thing, really not the
Speaker 10: main aspect of this litigation. But for the most part
Speaker 10: it holds, and Apple's walled garden still survives.
Speaker 3: So jen Apple came out after this decision and said
Speaker 3: it was a resounding victory. I think they literally used
Speaker 3: those words because nine out of the ten claims were
Speaker 3: settled in their favor.
Speaker 6: But to the point you just made, one was not
Speaker 6: Can you explain that to us?
Speaker 3: Was there any positive that Epic in particular could take away?
Speaker 10: You know, the most interesting thing is that the one
Speaker 10: claim that was against Apple wasn't really something Epic asked for.
Speaker 10: So what that was was an abolition on what are
Speaker 10: called anti steering war, and these are rules Apple had
Speaker 10: imposed on developers that didn't allow developers within the apps
Speaker 10: in the app store to push consumers somewhere else outside
Speaker 10: of the app store, Let's say, to buy the app
Speaker 10: for less expensive price, or make in app purchases or
Speaker 10: less expensive expensive such as going to the developer's own
Speaker 10: website or app. What the court said is these don't
Speaker 10: violate antitrust rules, but they do violate a California's state
Speaker 10: law against unfair competition. So Apple, you have to let
Speaker 10: these developers steer users if developers choose to do so.
Speaker 10: And now was somewhat good for Epic and somewhat bad
Speaker 10: for Apple, though Apple was kind of already going in
Speaker 10: that direction.
Speaker 2: What's interesting and is all of this is y US focused.
Speaker 2: We're talking about state law, we're talking about federal law,
Speaker 2: but actually it's Europe in many ways that is changing
Speaker 2: the business model of Apple.
Speaker 3: I would feel, well, that's right, Jenn, because I think
Speaker 3: they're responding to the Digital Markets Acts requirement and they're
Speaker 3: basically opening the doors to outsiders in that market, right, and.
Speaker 10: We understand Apple's already working on that in Europe and
Speaker 10: they have to. I mean, this is going to go
Speaker 10: into effect in twenty twenty four. Apple's going to have
Speaker 10: to allow alternative app stores on iOS mobile devices, which
Speaker 10: is exactly what Epic was pushing for in the United States.
Speaker 10: And also there was some legislation that was pushing for
Speaker 10: the same thing in the US had traction last year
Speaker 10: you know, I'm not so sure it'll have traction going
Speaker 10: forward now that we have this divide in Congress, but
Speaker 10: we'll see, because maybe this court decision could sort of
Speaker 10: light some fires here in the United States, and maybe
Speaker 10: they'll push forward legislation that does the same thing the
Speaker 10: Digital Markets Act does.
Speaker 2: End of the day, Global Companies, Global floor restrictions. We
Speaker 2: thank you as always, Bloomberg Intelligence, Jennifer Regius, so on
Speaker 2: the money, then welcome back to Blouebad Technology. I'm Carolin
Speaker 2: hid in.
Speaker 6: New York and I made lot low in San Francisco.
Speaker 3: Caroline, that's going to check on the markets because I
Speaker 3: think earning season's main driver. Right look at then as
Speaker 3: that one hundred, we're off by a percentage point.
Speaker 6: Spotify is kind of bright spot.
Speaker 3: But actually across some of those indices, a lot of
Speaker 3: names are disappointed moving to the downside, underperformance and semiconductors,
Speaker 3: and you talked about it earlier, Caroline, And as that
Speaker 3: Golden Dragon Index, this basket of US listed Chinese tech
Speaker 3: companies down three percent. We're in a November low. We're
Speaker 3: down for a sixth consecutive session. There's not that much
Speaker 3: out there in way of headlines, but I think there's
Speaker 3: a lot of geopolitical risk being priced in here. You
Speaker 3: look at the ten year old, we're off seven basis
Speaker 3: points three point four percent. In terms of specific movers,
Speaker 3: we're looking at earning seasons the main driver here right now.
Speaker 3: You know, we're talking about expectations for investors that across
Speaker 3: the technology sector are kind of really focused on a
Speaker 3: drop in earnings year on year because of all the
Speaker 3: pain that we're going through right now in advertising, in
Speaker 3: a slow down in corporate spending. So that's where we'll
Speaker 3: check in over the next five days.
Speaker 2: Yeah, risk sentiment a bit low, but there are still
Speaker 2: deals being done maybe in the private market too. We're
Speaker 2: going to talk about just that z in here. It's
Speaker 2: an insurance data and technology firm backed by Eldridge Industries.
Speaker 2: It's just agreed ed to buy digital insurance marketplace policy Genius.
Speaker 2: The deal, which is actually first reported by Bloomberg, is
Speaker 2: now official as of today, So we thought we'd talk
Speaker 2: about it with the Zinny CEO, Michelle Trony for more
Speaker 2: alongside our very own Shnali Bassack, who as always brings
Speaker 2: us such great interviews and we thank her for it.
Speaker 2: Michelle nice British accent. We're about to hear from you.
Speaker 2: Tell us about what you're trying to do here sort
Speaker 2: of the consumer facing with the back end. What do
Speaker 2: you provide that's different in the market.
Speaker 1: Sure, thanks so much for having me. Yeah, so, Zinya
Speaker 1: is really all about giving access to consumers, making sure
Speaker 1: that they have education, that they have the right content,
Speaker 1: they understand what insurance policies are right for them, and
Speaker 1: then ensuring that the buying, the motion of buying, all
Speaker 1: the way through the life cycle of owning the policy
Speaker 1: and claim is a phenomenal experience end to end.
Speaker 3: Hey, Michelle, talk us through the logic behind Policy Genius.
Speaker 3: What was the motivator and also in this environment, was
Speaker 3: it hard to get done?
Speaker 1: Look, I think there's never a bad time to do
Speaker 1: There's never a bad time to do.
Speaker 6: A good deal.
Speaker 1: And you know, when we found Policy Genius, we felt
Speaker 1: like it would fit together super well for us and
Speaker 1: accelerate the journey that we're on. You know, they were
Speaker 1: some of the earliest insure tech pioneers. They built a
Speaker 1: phenomenal consumer facing marketplace, has great technology at the heart
Speaker 1: of it, goes everything from lead to fulfillment. We do
Speaker 1: everything from issuance to claim for policies. Bringing those two
Speaker 1: businesses together, we have a vision of open insurance, making
Speaker 1: sure that it can really transform the life cycle of insurance.
Speaker 1: We're a tech provider to carriers, We're a tech provider
Speaker 1: to distributors, and now we're a tech provider and a
Speaker 1: resource to consumers.
Speaker 11: Now I'm kind of curious to tap into your expertise
Speaker 11: here because you are using technology to really attack and
Speaker 11: problems here. You've seen in the insurance industry, but you've
Speaker 11: also been the CIO at UBS for five years, work
Speaker 11: there for twenty five years. You're still on the board
Speaker 11: of Deutsche Bank today, where you focus on technology. If
Speaker 11: you look across finance, where are some of the most
Speaker 11: compelling places that you can see technology being used to
Speaker 11: really reinvent the wheel?
Speaker 10: Here?
Speaker 1: Sure, so look, you know at Deutsche Bank, can at
Speaker 1: UBS and honestly across the whole insurance industry. Simplification is
Speaker 1: at the heart of everything that we're trying to do.
Speaker 1: These are old companies that have been around for decades.
Speaker 1: You know, I have a lot of empathy for that.
Speaker 1: I was a CIO for a long time, and you know,
Speaker 1: you've got a lot of siloed information, which makes it
Speaker 1: very difficult to give a phenomenal experience to your customers.
Speaker 1: You know, when you look at you know, people's balance sheets,
Speaker 1: Having great technology, having great data that sits you know,
Speaker 1: in immutable type of smart contract platforms like we're building
Speaker 1: it's in here, really gives you know, a different focus
Speaker 1: for the technology spend that you then do. So when
Speaker 1: you're if you're if you're on the cloud, if you've
Speaker 1: got you know, cloud native applications, you can really focus
Speaker 1: on things that differentiate your business and not on recon
Speaker 1: stiling things all the time.
Speaker 11: Why smart contracts, I mean, I'm curious because when people
Speaker 11: think about the new transformative technology, they more explicitly say
Speaker 11: blockchain or other kind of you know buzzwords terminal, yeah,
Speaker 11: exactly that have become popularizers over the last couple of years.
Speaker 1: You know, we have industries that are coming, you know,
Speaker 1: highly regulated right where data privacy is like at the
Speaker 1: heart of you know, whether people will trust you or not.
Speaker 1: And smart contract technically, smart contract can live on top
Speaker 1: of any type of technology, right we are building on
Speaker 1: top of distributed ledges. I think the banks are also
Speaker 1: doing the same kind of thing. What we're really talking
Speaker 1: about is an immutable data asset that then all the
Speaker 1: processes and the capabilities can come to that data as
Speaker 1: opposed to you know, you having to move data around
Speaker 1: an organization, which is very costly. So you know, macro
Speaker 1: trends move to the cloud, it's still massive. I've been
Speaker 1: hearing a lot of people saying, you know, that's slowing down,
Speaker 1: certainly not for the big, big financial institutions and insurance
Speaker 1: businesses that I work with. And obviously, you know, AI
Speaker 1: is becoming more and more you know, relevant, available and
Speaker 1: exciting for our industry.
Speaker 2: Okay, so let's go there to the next new bright
Speaker 2: thing of buzzwords. How are you thinking about it within sinnia.
Speaker 2: How you think about making sure that mL and AI
Speaker 2: is just an easy to access and building productivity for
Speaker 2: your companies exactly?
Speaker 1: Well, that's the word productivity, right, So we really see,
Speaker 1: you know, where the AI capabilities and generitive IAI right now,
Speaker 1: it's the start of this. It's about making us more productive,
Speaker 1: but getting insights quicker, getting insights the customers quicker, making
Speaker 1: everything flow better end to end, you know, and then
Speaker 1: as we get more comfortable with the privacy and you
Speaker 1: know the regulatory requirements, so we'll expose that through our
Speaker 1: client interfaces and just make the whole process more productive.
Speaker 3: Michelle, you're being nimble in the market with this deal.
Speaker 3: I think what both eyes this all together is that
Speaker 3: coming out of the SVB collapse, your industry kind of
Speaker 3: acknowledges that global finance needs to modernize, whether it's through
Speaker 3: AI or there's opportunity to move from sort of traditional
Speaker 3: banking to look at the offerings from fintech. Has that
Speaker 3: given you momentum your industry fintech more broadly.
Speaker 6: I think so.
Speaker 1: I think that people realize when you know, whether it's
Speaker 1: a regional banks or you know, any other part of
Speaker 1: the banking system that isn't operating in an efficient way,
Speaker 1: you know a lot of times behind the scene there
Speaker 1: that it's poor data, it's you know, too much technology.
Speaker 1: You know, it's an environment with one of everything, and
Speaker 1: it makes it very difficult to kind of, you know,
Speaker 1: see the wood for the trees right. When you have
Speaker 1: like clean data, clean technology, you know, you can manage
Speaker 1: your balance sheet properly. You can see what your drivers
Speaker 1: have costs are, you can see what your margin is,
Speaker 1: and you understand the impact of the products that you're
Speaker 1: serving up delivered to your consumers. So, you know, I
Speaker 1: think it's behind a lot of that ed and I
Speaker 1: think it will give a lot more momentum to people
Speaker 1: really saying that we have to step back and actually
Speaker 1: create like the technology and the infrastructure for the future,
Speaker 1: not just kind of you know around the edges. And
Speaker 1: you know, insure tech is you know, well behind fintech.
Speaker 1: They're on their second innings now, and you know, and
Speaker 1: we're hoping to be some of the pioneers of the
Speaker 1: insure tech industry to do the same thing as.
Speaker 11: Someone who's seen very many cycles of this, what are
Speaker 11: the limitations particularly to AI in financial services.
Speaker 1: Look, I think it's all about privacy and security, right.
Speaker 1: It's you know, with everything that we do from a
Speaker 1: technology perspective, working with regulators to make sure we all
Speaker 1: are talking the same language people understand you know, what
Speaker 1: are we doing to secure data? You know, what are
Speaker 1: the risks that we're running, How can we recover you know,
Speaker 1: cyber threats and attacks, et cetera.
Speaker 6: All of those.
Speaker 1: Things are think is that we have to work you know,
Speaker 1: hand in hand, whether it's with regulators or honestly with
Speaker 1: shareholders or customers to make sure they're comfortable we're taking
Speaker 1: all the right steps that we can use these great
Speaker 1: technologies that improve service and capabilities, but don't you know,
Speaker 1: don't compromise their security or their privacy.
Speaker 6: Dinier CEO Michelle Troney.
Speaker 3: Great to have you add in New York and Bloomberg
Speaker 3: shn Ali Bassek, who Caroline continues to bring us conversations
Speaker 3: at the intersection of finance and technology.
Speaker 6: We love it.
Speaker 3: Right now, coming up, we're going to talk about the
Speaker 3: trends to watch in the venture capital world. Generative AI,
Speaker 3: creator economy. Guess who with carrot Light speeds Mike Minano.
Speaker 3: Time for the VC roundup. So I think with the
Speaker 3: new net zero emissions initiative for the first time, a
Speaker 3: group of twenty three VC firms are banding together to
Speaker 3: figure out how to decarbonize their portfolio. Through this Venture
Speaker 3: Climate Alliance, member firms pledged to cut or net zero
Speaker 3: out their own greenhouse gas missions by twenty thirty or earlier.
Speaker 3: And former Salesforce co CEO Keith Block is launching a
Speaker 3: venture capital firm, targeting four hundred million dollars for its
Speaker 3: first fund. Smith Point Capital will invest in enterprise software,
Speaker 3: particularly at the growth stage. Among those investing in the
Speaker 3: fund are Kranini, Melon and billionaire David Tepper.
Speaker 6: Caroline, I think we got some breaking use.
Speaker 2: First Republic came out with its earnings disappointing on deposit outflows.
Speaker 2: Now we understand it's weighing selling up from fifty billion
Speaker 2: to one hundred billion dollars in assets. We're talking here,
Speaker 2: long dated securities, we're talking mortgages.
Speaker 10: Ed.
Speaker 2: All of this is about an asset liability mismatch that
Speaker 2: for the overall First Republic, California based bank has at
Speaker 2: the moment, Maybe they sell those to US Bank said,
Speaker 2: maybe it's about incentivizing them to buy them above their
Speaker 2: market value. We know the impact that had on Silicon
Speaker 2: Valley Bank, the fact that we've seen price destruction in
Speaker 2: long dated bonds. So maybe you get a warrant preferred
Speaker 2: ex to do that. And all of this, of course, said,
Speaker 2: is about trying to stop being seized by the FDIC.
Speaker 3: Yeah, and I go back to what we discussed earlier
Speaker 3: in the show. When earnings hit last night, the seriousness
Speaker 3: of the situation of this bank. Everyone was discussing on
Speaker 3: Twitter because they couldn't believe after many of the larger
Speaker 3: industry peers stepped in, that we would find ourselves at
Speaker 3: this stage.
Speaker 2: Yeah, let's discuss all of this with a perfect voice,
Speaker 2: because well, it's been quite the time to be a VC.
Speaker 2: At the moment, it's time for VC Spotlight. Mike mcnano
Speaker 2: is with us. He's likes to be Adventures as partner
Speaker 2: last year, focusing on investing in generative AI and create
Speaker 2: a supply chain. Also, of course, you used to lead
Speaker 2: podcast live video businesses over at Spotify. So much news
Speaker 2: to talk about. I wanted to start off with Spotify.
Speaker 2: But how much of an impact is the still bank
Speaker 2: instability at First Republic. Have you felt that your portfolio
Speaker 2: companies and yourself have diversified enough.
Speaker 12: Yeah, Look, I think you know if you're a founder,
Speaker 12: whether you're banking in twenty twenty three or twenty nineteen
Speaker 12: when I was building my company, I think it's always
Speaker 12: good practice to diversify across several different banks, just like
Speaker 12: anyone would with any investment strategy. If you're a startup,
Speaker 12: you might be carrying a lot of cash and it's
Speaker 12: always a good idea to be responsible about it. And
Speaker 12: that's the advice that you know I would give to
Speaker 12: a founder today or back then when I was starting
Speaker 12: my company.
Speaker 3: Hey, Mike, I'm going to jump in here. Welcome to
Speaker 3: the program. It's good to see you. Thanks Ed, Thanks Ery, course,
Speaker 3: it's good to see you. Because things are difficult right now.
Speaker 3: You know, one hand, we just told you that news
Speaker 3: about Keith Block starting a new firm and raising funds,
Speaker 3: and then on the other hand we hear founders absolutely
Speaker 3: desperate for cash to get rounds closed across your portfolio companies.
Speaker 6: What is the situation for you?
Speaker 12: Look, I think it really depends on what you're building
Speaker 12: and what customers you're building for, and how they're responding
Speaker 12: to what you're building. Obviously, you know there are always
Speaker 12: going to be cycles to different markets. Certain categories are
Speaker 12: more exciting than others right now. Obviously, generative AI is
Speaker 12: a category that is very exciting to startup founders, customers
Speaker 12: and venture capitalists as well. There's a massive shift ongoing
Speaker 12: right now, and I think as a result, that sector
Speaker 12: of the market is extremely exciting.
Speaker 6: At the moment.
Speaker 2: Okay, so let's stick in there. Let's go to the
Speaker 2: silver lightning amid all of this, Because you, of course
Speaker 2: have been investing in companies that deploy AI, whether it's Granola,
Speaker 2: whether of course it's also tone And some of these
Speaker 2: companies are getting big valuations. How are they adding to
Speaker 2: productivity in the here and now?
Speaker 12: Yeah, Look, I think you know, every decade or so,
Speaker 12: there's a massive shift in technology. Back in December, I
Speaker 12: was really vocal that I believe the generative AI would
Speaker 12: be as consequential to consumer technology as the iPhone would.
Speaker 6: I feel even more strongly about that now.
Speaker 12: In fact, I think it's potentially even more consequential than
Speaker 12: the Internet, and it is already changing the way that
Speaker 12: we work, that we live, that we socialize, that we learn,
Speaker 12: that we create. And that's an area in particular that
Speaker 12: I get really really excited about. If you look back
Speaker 12: at the history of the Internet, all forms of media,
Speaker 12: all forms of creativity, end up getting democratized by technology.
Speaker 6: Technology makes it easier to create.
Speaker 12: Generative AI is accelerating that trend by decades, maybe centuries,
Speaker 12: by enabling anyone to create anything with the tap of
Speaker 12: a button. You know, like you said, I found at Anchor,
Speaker 12: the podcasting platform. We would have killed to have access
Speaker 12: to this technology even just a couple of years ago.
Speaker 12: And so I think, you know, all these areas that
Speaker 12: I mentioned stand to be vastly accelerated. But I'm very
Speaker 12: excited by creativity in general.
Speaker 3: Michael, possibly before your time, but light Speed was a
Speaker 3: firm that over recent years went to its LPs and
Speaker 3: hard sold crypto.
Speaker 6: Crypto is it?
Speaker 3: This is the big thing until it wasn't anymore. Now
Speaker 3: light Speed is going to its LPs. And I guess
Speaker 3: saying the same thing about AI, it's the next big
Speaker 3: thing you talked about once in a decade technological change.
Speaker 3: What's the risk that you see the same cycle we
Speaker 3: saw with crypto.
Speaker 12: Look, I think with crypto, there you know, there was
Speaker 12: a lot of value generated from crypt and there still
Speaker 12: stands to be a lot of value generated from crypto.
Speaker 12: And know we continue to make investments in the space,
Speaker 12: especially on the infrastructure side. I think with generative AI,
Speaker 12: it's hitting consumer applications right now.
Speaker 6: So take TOME as an example.
Speaker 12: You mentioned Tom Caroline and also touching on the intersection
Speaker 12: with creativity, Tome is disrupting a massive, massive market of
Speaker 12: presentation software. Presentations are one of the most ubiquitous creative
Speaker 12: formats in the workplace, but they're really, really hard to.
Speaker 6: Create, right.
Speaker 12: It takes a lot of skill, a lot of effort
Speaker 12: to make a lot of time to make a beautiful
Speaker 12: PowerPoint presentation, and once you do, you're stuck with a
Speaker 12: sixteen by nine grid that you can't even really.
Speaker 6: Look at on your mobile phone.
Speaker 12: Tom takes that whole process. They make it instant, immediate, beautiful,
Speaker 12: just with a few tap of a button.
Speaker 6: Taps of a button. Through generative AI, now anyone can
Speaker 6: make a beautiful, beautiful presentation.
Speaker 12: And as a result, they are literally the fastest growing
Speaker 12: productivity company of all time. They're going faster than Slack
Speaker 12: did at this stage, They're going faster than Dropbox did revenue,
Speaker 12: in terms terms of user growth, in terms of user growth,
Speaker 12: they are just exploding in users because the value is undeniable,
Speaker 12: and that's what we see across the board for so
Speaker 12: many different applications of generative AI.
Speaker 2: At the moment, it's got to monetize it. We thank you,
Speaker 2: Mike great having time with him, which we had longer
Speaker 2: lights to be a ventures partner. Mike mgnano. There, we've
Speaker 2: got to get back to some of the breaking news,
Speaker 2: and of course First Republic Bank saying that it might
Speaker 2: well be looking what's calling to people familiar potentially assessing
Speaker 2: selling off some assets who want to bring in Shinali
Speaker 2: bassec And this is about mortgages, this is about long
Speaker 2: data securities. Is this about stopping FDIC taking it over?
Speaker 6: Yeah? Absolutely.
Speaker 11: We've known for a while that this is something that
Speaker 11: the bank its advisors have wanted to avoid. They can
Speaker 11: find another solution, as they believe it. And now we
Speaker 11: are learning over here at Bloomberg that they are exploring
Speaker 11: divesting fifty to one hundred billion dollars worth of those
Speaker 11: long data securities and mortgage as part of this rescue plan. Now,
Speaker 11: there may be sweeteners for potential buyers here, that's part
Speaker 11: of the deal here. Potentially warrants are preferred equity as
Speaker 11: an incentive to buy some of these assets. Remember when
Speaker 11: we looked at First Republic, which is down thirty percent
Speaker 11: on the day, about ninety percent on the year, certainly
Speaker 11: in dire territory here, loans at the end of the
Speaker 11: quarter were one hundred and seventy three billion, but deposits
Speaker 11: were one hundred billion. There are a lot of concerns
Speaker 11: about the strength of the balance sheet here, but the
Speaker 11: hope here is that by getting rid OF's massets, selling
Speaker 11: these assets at above market value, there can be something
Speaker 11: here for the buyer to hang on to and help
Speaker 11: First Republic albe at a much smaller bank make it
Speaker 11: through the worst of this crisis for themselves.
Speaker 3: Sinnati, one of our sources, saying that if that is
Speaker 3: the case, the US government might need to come in
Speaker 3: and facilitate the negotiation. The conversation goes back to last
Speaker 3: night in strategic options, I mean, what were the strategic
Speaker 3: options on the table as it was outlined by First
Speaker 3: Republic Listen.
Speaker 11: Selling some assets is something we've not only seen First
Speaker 11: Republic potentially explore at this point, but we have seen
Speaker 11: other regional banks also already sell some assets or considered
Speaker 11: doing so as well. There are not that many buyers
Speaker 11: in the United States that could be buying books of
Speaker 11: this size ed and so the question is are these
Speaker 11: big banking buyers that are taking on books are their
Speaker 11: private buyers that can be taking it on. Will the
Speaker 11: FDIC allow those things to happen? Yes, the idea here is.
Speaker 2: To avoid receivership.
Speaker 11: But to the extent that really large books of business
Speaker 11: are sold here, then the government does take a look
Speaker 11: at this depending on whose hands it goes into, if
Speaker 11: there are books of business this large.
Speaker 2: Indeed, Snali jumping on the breaking news with us, of course,
Speaker 2: First Republic banks still very much under pressure in terms
Speaker 2: of share price. Now let's pivot because we've got to
Speaker 2: talk about artificial intelligence again. We've got to talk about
Speaker 2: some news actually coming out of Cisco, just talking about
Speaker 2: how AI software like Chatchiput will make phishing attempts much
Speaker 2: harder to detect, requiring companies to adopt new defenses. In contrast, well,
Speaker 2: Barmin muft Is, co founder Balistic Ventures and former president
Speaker 2: of Matint Cybersecurity Department, recently told us how AI could
Speaker 2: help in the fight against cyber attacks. Just take a listen.
Speaker 4: You can apply AI to automating threat detection, incident response,
Speaker 4: and removing the scarce human capital resources that are available
Speaker 4: so they can focus on higher important things. Having said that,
Speaker 4: though you can't rely on AI to completely automate your business.
Speaker 2: Let's get to a current AT and T exec. The
Speaker 2: chief operating officer no less, Jeff mckelfresh, is with us
Speaker 2: your view on all things to do with the future security.
Speaker 2: We're ramping up to their RSA coverage tomorrow of course, Jeff,
Speaker 2: and well, is chat GPT, is AI going to be
Speaker 2: a help or hindrance? Do you think for security overall?
Speaker 13: Caroline, thanks for having me. Look, I think for our
Speaker 13: enterprise customers when they think about keeping their workloads and
Speaker 13: their employees safe and secure, you know they need better
Speaker 13: network solutions that are software enabled in order to defend
Speaker 13: against a thread that is invariably likely to be dynamic
Speaker 13: and changing quicker every day. As Barmak just mentioned in
Speaker 13: this previous episode in the announcement with Cisco, the tools
Speaker 13: that make us more productive can be used for good.
Speaker 6: They can be used for bad.
Speaker 13: And what I'm excited about at AT and T and
Speaker 13: what we're hearing from our enterprise customers is that you know,
Speaker 13: the perimeter that they have to defend is getting more complex.
Speaker 13: And not only have a hybrid cloud environment and on
Speaker 13: prem applications, but their end users are also in a
Speaker 13: hybrid environment, connected either at home doing productive work or
Speaker 13: on the go. And so really what the industry is
Speaker 13: looking for is the expertise that AT and T brings
Speaker 13: and providing an integrated converged solution across both fixed and
Speaker 13: mobile networks in an architecture that enables them to respond
Speaker 13: quickly to this very dynamic, changing landscape.
Speaker 3: Jeff, I'm looking forward to being on the ground at
Speaker 3: RSA here in San Francisco. I think a pretty obvious
Speaker 3: question is why is AT and T that and interested
Speaker 3: in cybersecrity. You went to the enterprise side of your business.
Speaker 3: If you think about it as a network, the large
Speaker 3: body of customer data that you're responsible for, it must
Speaker 3: be a pretty big stress for you making sure you
Speaker 3: are safe and secure.
Speaker 6: Well, it certainly is.
Speaker 13: I mean, we operate one of the largest networks in
Speaker 13: the United States and what we do at AT and
Speaker 13: T is important not only for all of our customers,
Speaker 13: but also for the nation our broadband infrastructure and keeping
Speaker 13: it safe and secure as a top priority and part
Speaker 13: of our one hundred and forty seven year heritage. And
Speaker 13: so in that the reason why we are engaged personally
Speaker 13: or internally for our own network itself. I mean, we
Speaker 13: have heavy lifting and work that we do day in
Speaker 13: and day out keeping our own network safe and secure.
Speaker 13: And we've done this ed with network innovation in three areas.
Speaker 13: The first we've actually embedded security capabilities native into our network.
Speaker 13: We couple that with the ability to see across both
Speaker 13: the fixed in the mobile networks. You know, the end customer,
Speaker 13: they don't really discern between how they are connected to
Speaker 13: the Internet, whether they're a large enterprise customer or a consumer.
Speaker 13: But what they know is they need that information to
Speaker 13: be secured and here at AT and T our priority
Speaker 13: is to make those connections fast, reliable and secure.
Speaker 3: Jeff, we asked our audience how top of mind cybersecurity
Speaker 3: is right now, and actually almost seventy percent of respondents
Speaker 3: said that it is a big concern. You know, you
Speaker 3: added few and new customers this quarter that compared with
Speaker 3: a year ago. You kind of you turned on the
Speaker 3: change of heart with home internet services. Is cybersecurity? What
Speaker 3: makes you competitive in those fields? Would you have work
Speaker 3: to do?
Speaker 13: We I think we as an industry have work to do,
Speaker 13: But I think AT and T has a marquee advantage
Speaker 13: here in fact, I mean we added a lot more
Speaker 13: customers than just the post paid fund netad customers. When
Speaker 13: you think about the number of connections for our connected
Speaker 13: cars that we enable across the nation, you could only
Speaker 13: imagine that you would want those interfaces to be secure,
Speaker 13: especially in a day of self driving and autonomous vehicles
Speaker 13: and the promise of what we're bringing to life with
Speaker 13: five G. I will never say that the work is complete.
Speaker 13: It's a very dynamic landscape. And I would tell you
Speaker 13: that our enterprise customers and our consumers, who once ranked
Speaker 13: coverage as high as possible in terms of performance, have
Speaker 13: now elevated security almost equal to the core network performance.
Speaker 13: It's important for our entire customer segment.
Speaker 3: All right, at and T is Chief operating Offici Jeff mcalfrish,
Speaker 3: thank you for joining us, Carol.
Speaker 2: Let's just go back to the breaking news at First
Speaker 2: Republic Bank. Now at session loads, we're quite thirty one percent.
Speaker 2: Remember this is a stock that's already collapsed ninety percent
Speaker 2: in terms of market value so far this year. The reason,
Speaker 2: while we're worrying about the viability of the bank this time,
Speaker 2: we understand according to exclusive Bloomberg reporting, and up to
Speaker 2: one hundred billion dollars in assets sales. We're talking long
Speaker 2: dated securities said, we're talking mortgages and all of this
Speaker 2: hopefully to be above market value. They've got to offer
Speaker 2: some incentives though to US banks to sell them.
Speaker 3: Yeah, and steep, steep declines here today ninety percent I
Speaker 3: think that does it for the show.
Speaker 6: Caroline and has this.
Speaker 2: Edition of Bloomberg Technology Tune in tomorrow. We've got so
Speaker 2: much special coverage coming from U ed RSA of course,
Speaker 2: a MANI and CEO for example, this is the Bloomberg