Speaker 1: Bloomberg Tech is a lie from coast to coast, with
Speaker 1: Caroline Hide in New York and Ed Lovelow in San Francisco.
Speaker 2: Welcome to Bloomberg Tech. I'm Katie Greifeld.
Speaker 3: Coming up on today's show.
Speaker 2: Intel shares fall on a report that in Vidia halted
Speaker 2: tests to use Intel's.
Speaker 3: Methods in chip making. Plus, the federal.
Speaker 2: Judge gives the ok for the Trump administration to move
Speaker 2: ahead on a one hundred thousand dollars fee on new
Speaker 2: H one B visa applications. What that means for Silicon
Speaker 2: Valley hiring and Tesla faces more regulatory scrutiny with a
Speaker 2: new federal probe over its emergency door release. All that
Speaker 2: and more coming up. Let's take a look at these markets.
Speaker 2: It is Christmas Eve, there is no training volume to speak.
Speaker 3: Of, but you can see the S and P five.
Speaker 2: Hundred up slightly on this Wednesday, hier by about two
Speaker 2: tenths of a percent. The NAZAQ one hundred underperforming. Will
Speaker 2: tell you why in just a minute. The Philadelphia Semiconductor
Speaker 2: and also green but really slight gains here. Volatility continuing
Speaker 2: to drain out of these equity markets. The Vicks Trading
Speaker 2: with a thirteen handle on this Christmas Eve. Meanwhile, let's
Speaker 2: get to two specific names that are restraining what you're
Speaker 2: seeing when it comes to the big tech complex, Intel
Speaker 2: and Invidia. Intel down about one and a half percent,
Speaker 2: in Vidia down nearly one percent. Given how big Nvidia is,
Speaker 2: that is really acting as a weight on the overall benchmarks. Here,
Speaker 2: let's bring in Bloomberg Equities reporter Ryan Blastelica for the
Speaker 2: latest on what's going on here. The headline that I'm
Speaker 2: reading on the terminal, Intel falling on a report that
Speaker 2: Invidia has halted a production test of some of its
Speaker 2: advanced chip making capacity.
Speaker 3: Here, Ryan, what do we know so far?
Speaker 4: Hey, good morning, Thanks for having me. So the background
Speaker 4: for this is that for several years now, Intel has
Speaker 4: really struggled against perception that it is falling behind in
Speaker 4: chip manufacturing, especially through companies like PSMC overseas. Now, there
Speaker 4: was a lot of hope this year following an investment
Speaker 4: from Nvidia, following the government taking a stake that it
Speaker 4: would be able to better finance this ambitious turnaround program
Speaker 4: to sort of re establish its leadership position in chip manufacturing.
Speaker 4: So this report basically says and in Nvidia try to
Speaker 4: have some of the latest chip processing out of Intel,
Speaker 4: and it's pausing that.
Speaker 3: So I don't think this will come.
Speaker 4: As a huge surprise, because there was seen as a
Speaker 4: pretty significant gap between Intel and TSMC, you know, and
Speaker 4: the other major chip manufacturers. However, this is probably just
Speaker 4: enough of a cost for disappointment in Intel, which has
Speaker 4: really been bid up quite dramatically this year on the
Speaker 4: back of all this news that it's seen about the
Speaker 4: investments and so forth.
Speaker 2: Right, absolutely, just to recap in Nvidia itself agreed to
Speaker 2: invest five billion dollars into Intel in September. That followed
Speaker 2: the US government announcing that it was also taking a
Speaker 2: roughly ten per state ten percent stake in the company.
Speaker 2: So there's a lot of hopes, as you say, for
Speaker 2: a potential turnaround story here for Intel. We know that
Speaker 2: they have new CEO as well, but just give us
Speaker 2: some context here, you know, how this specific year's performance
Speaker 2: compares to the last several years of disappointment for Intel.
Speaker 4: Yeah, So one thing I would just say is that
Speaker 4: when Nvidia announced the stake in Intel, they did make
Speaker 4: a point of saying that there wasn't any sort of
Speaker 4: agreement that it would be using the chip manufacturing here,
Speaker 4: but clearly they've been trying it out, they've been testing it,
Speaker 4: and the fact that they are pausing here it's just
Speaker 4: enough of the you know it sort of underlines how
Speaker 4: Intel has really sort of fallen behind competitors in this
Speaker 4: pretty significant area. Now, there is still a lot of
Speaker 4: interest in building out domestic chip manufacturing. Ine building a
Speaker 4: chip here, I believe it's in Ohio, TSMC has building
Speaker 4: a chip that I think is in Arizona. There's a
Speaker 4: lot of money surrounding this that Chipsas was involving this.
Speaker 4: There's a lot of significance here, especially when it comes
Speaker 4: to issues like national security here. So this is something
Speaker 4: people are paying a lot of attention to. And certainly
Speaker 4: if the news had been the opposite and Intel Nvidia
Speaker 4: had come out and said that it is going to
Speaker 4: be using Intel, I think that would be a pretty sick,
Speaker 4: magnificant game change for Intel as we go into twenty
Speaker 4: twenty six. The idea that is really re establishing itself
Speaker 4: in manufacturing, I think would cause a lot of people
Speaker 4: to reassess the stock in its prospects.
Speaker 2: Absolutely and tell definitely a story to keep an eye
Speaker 2: on in twenty twenty six. Ryan, before I let you go,
Speaker 2: you had a great story out on the terminal in
Speaker 2: the past two days talking about how it's the boring
Speaker 2: bets when it comes to tech that seems to be
Speaker 2: working the best this year. Memory chips, hard disk drives
Speaker 2: come to mind. What are some of the specific names
Speaker 2: that really stood out in the tech space this year.
Speaker 4: Well, Micron especially has been a really big gainer this year.
Speaker 4: It's memory chips, the high bandwidth memory that's a pretty
Speaker 4: significant part of overall AI infrastructure. That stock is I
Speaker 4: think roughly tripbolder. So this year it recently had results.
Speaker 4: Results were very strong, the stock moved up even more.
Speaker 4: And if you look beyond that, the companies that are
Speaker 4: you know, typically don't get a ton of interest, companies
Speaker 4: like sand Disk, Western Digital, Seagate Technology, makers of hard
Speaker 4: disk drives, also a part of the AI infrastructure. This
Speaker 4: is something that people were saying, was it fully appreciated?
Speaker 4: Hard to make that case. Now some of these stocks
Speaker 4: have doubled, tripled. They're some of the biggest gainers on
Speaker 4: the S and P five hundred this year. And it
Speaker 4: is you know, in I kind of bet ironically and
Speaker 4: a part of the market that otherwise would be a
Speaker 4: little bit too dull for most people to be excited about.
Speaker 2: Absolutely, Ryan really appreciate reporting this year. That is Bloomberg's
Speaker 2: Ryan blast Elica. Meanwhile, let's get a broader look at
Speaker 2: the tech markets and one investors are looking ahead to
Speaker 2: in twenty twenty six with epec Oscar desh Kaya cis
Speaker 2: quote senior market analyst. Great to have you with us.
Speaker 2: So I actually want to start where we left off
Speaker 2: with Ryan. It's really interesting that you think about what
Speaker 2: really worked in twenty twenty five. It was the so
Speaker 2: called boring parts of the AI trade. A lot of
Speaker 2: these you know, memory disc makers, memory chip makers that is,
Speaker 2: in the likes of Micron. I wonder you know whether
Speaker 2: you expect that will be the momentum headed into twenty
Speaker 2: twenty six.
Speaker 5: Well, it's pretty much explainable why these memory chips, boring
Speaker 5: park yourself department of the market gain more than the
Speaker 5: other exciting parts. One of the reasons for that is
Speaker 5: that because the AI chip demand was so strong that
Speaker 5: many manufacturers actually assass more capacity in producing these chips
Speaker 5: in demand, and they reduce their capacity for producing other
Speaker 5: and more boring podcasts off the market. That's one of
Speaker 5: the reasons why what explains actually the rally that we've
Speaker 5: seen in Standings and Seagate and Western Digital and likes
Speaker 5: into twenty twenty six. We think that not only that
Speaker 5: the boring, the most boring and undervalued pockets of the
Speaker 5: market will be an investors' radar, but we will also
Speaker 5: expect to see actually this technology and AI rarely broaden
Speaker 5: towards the non technology podcasts off the market because the
Speaker 5: AI productivity, AI cost efficiencies will also benefit to any
Speaker 5: other sector out there, including banks, healthcare industries. And I
Speaker 5: think that this is going to be the big story
Speaker 5: of twenty twenty six.
Speaker 2: Yeah, absolutely, and we don't have much longer to it.
Speaker 2: I want to talk a little bit about, you know
Speaker 2: what didn't necessarily work when it comes to the overall
Speaker 2: AI trade in twenty twenty five, and it's something to
Speaker 2: talk about that as a monolith. But while memory chip
Speaker 2: makers seem to have a great year, you take a
Speaker 2: look at some of these software names. Adobe comes to mind,
Speaker 2: for example, and it feels like some of these companies
Speaker 2: just can't get their footing under them. Service now Salesforce
Speaker 2: Force also examples there. I wonder, you know what you
Speaker 2: make of what's going on in that sector.
Speaker 5: Well, these companies have come under the pressure of AI.
Speaker 6: You would expect that making.
Speaker 5: AI tools available to investors would boost their revenue, but
Speaker 5: it actually had the exact opposite impact effect on these companies.
Speaker 5: They have not been able to monetize and sell these
Speaker 5: AI boosted models to investors as much as they wanted.
Speaker 5: And actually the fact that other models, other AI models
Speaker 5: came to the market to challenge these companies, have also
Speaker 5: been a big problem for these companies. We think that
Speaker 5: in terms of AI applications, the competition is going to
Speaker 5: be quite rough in twenty twenty six because there are
Speaker 5: a lot of AIMI some of them are going to
Speaker 5: be where some of them are going.
Speaker 6: To be losers.
Speaker 5: But it's exactly the same story for the big AI
Speaker 5: applications and the likes of AI A Dope for example,
Speaker 5: or Shutter Circle. These companies that just integrated AI applications
Speaker 5: on their products offering will have to face that competition.
Speaker 5: I think that that's going to be also waiting on
Speaker 5: the margins.
Speaker 2: Yeah, it's a good reminder of dure that there are
Speaker 2: companies that are doing the disrupting and then there's companies
Speaker 2: that the market thinks are being disrupted right now.
Speaker 3: But I also want to talk.
Speaker 2: A little bit about you know, what we're seeing when
Speaker 2: it comes to Capex. That has remained one of the
Speaker 2: dominant stories when it comes to you know, every three
Speaker 2: months we get those earnings report, and we've seen it
Speaker 2: start to really get expressed in certain companies. Oracle comes
Speaker 2: to mind, both their equity and their debt. This pressure
Speaker 2: to see some sort of ROI when it comes to spending.
Speaker 2: I wonder if you see that pressure broadening out next
Speaker 2: year EPEC of course.
Speaker 5: I mean since the last three months, since the last
Speaker 5: earning season, what we have seen is that the headline
Speaker 5: shiny headline figures were no longer impressive for investors. They
Speaker 5: wanted to dig deeper into these reports. One, how are
Speaker 5: the revenues are being accounted? And two what's happening with
Speaker 5: the debt? Is the debt too high? Or is the
Speaker 5: debt being uploaded? Was also one of the questions that
Speaker 5: investors have been asking and have been worried about. So
Speaker 5: what investors want today is to see slowing investment until
Speaker 5: we see return on investment. The problem here with the
Speaker 5: technology is that if there isn't overspending. The risk is
Speaker 5: that this technology gets outdated by the time revenues start
Speaker 5: coming in. So we really think that spending is going
Speaker 5: to be one of the major issues and major major
Speaker 5: talking points into twenty twenty six.
Speaker 6: And one way to go around this.
Speaker 5: Risk is to choose companies that are able to turn
Speaker 5: this over spending into an immediate revenue opportunity, like the
Speaker 5: ones that do have data center. Is that the ones
Speaker 5: that are actually able to rent their chips out And
Speaker 5: in this context what we see is Microsoft, Amazon, Aret
Speaker 5: and Google are the three companies that could help investors
Speaker 5: reduce this risk of overspending in AI and EPEC.
Speaker 2: I've less than a minute with you, but before I
Speaker 2: let you go, I would love to hear heading into
Speaker 2: twenty twenty six, what is your highest conviction.
Speaker 5: Well, the highest conviction right now is rotation again from
Speaker 5: technology to non technology pockets off the market.
Speaker 6: I think it is important to note.
Speaker 5: That the macracinic backdrop remains positive for technology stocks as well,
Speaker 5: so we think that the reley could continue, but it
Speaker 5: might decelerate next year, and again the AI enthusiasm will
Speaker 5: probably move toward the non technology pockets off the market.
Speaker 5: Toward toward the sectors that actually do also use technology
Speaker 5: that could be boosted by a IT tools.
Speaker 2: Absolutely, that rotation, especially from growth to value, has been
Speaker 2: fascinating to watch over the past couple of weeks.
Speaker 3: Ipec Osker Deshkai.
Speaker 2: Of Swiss quote great to get some time with you.
Speaker 2: Now coming up on B tech, a judge has ruled
Speaker 2: in President Trump's favor upholding one hundred thousand dollars H
Speaker 2: one B visa fees. Some of the most vulnerable companies are.
Speaker 3: In the tech sector, but the legal fight is an over.
Speaker 2: More on that.
Speaker 3: Next, this is Bloomberg Well, a federal judge says that the.
Speaker 2: Trump administration can move ahead with a one hundred thousand
Speaker 2: dollar fee on new H one V visa applications. Now
Speaker 2: that is adding pressure on US tech companies that rely
Speaker 2: on hiring foreign skilled workers. Eric laws and Larson, he
Speaker 2: covers legal affairs and politics for Bloomberg News, please to
Speaker 2: say he joins me now on set. So Eric, give
Speaker 2: us some context here. You know, we tend to talk
Speaker 2: about tech companies when it comes to these visa fees,
Speaker 2: but just how exposed is the industry to this potential
Speaker 2: one hundred thousand dollars.
Speaker 1: Fee minor sending from these lawsuits that have been filed
Speaker 1: and from the data we've seen is that they're pretty exposed. Notably,
Speaker 1: these companies did not file lawsuits challenging the visa. It
Speaker 1: was filed by other groups. The ruling we just got
Speaker 1: was from the Chamber of Commerce. So maybe they're waiting
Speaker 1: to see where this goes. But certainly the Trump administration
Speaker 1: and other government officials say that these companies can afford them,
Speaker 1: even though they do use them quite a bit and
Speaker 1: they are pretty exposed. The government simply argues there are
Speaker 1: plenty of American workers who they could be paying to
Speaker 1: do the same job, just paying them more.
Speaker 2: Yeah, I mean, you think about some of these giant
Speaker 2: tech companies with deep pockets. Talk to us about the
Speaker 2: public sector though when it comes to healthcare and education,
Speaker 2: because again we talk about tech all the time, but
Speaker 2: these sectors also rely on H one B visas exactly.
Speaker 1: And there is another lawsuit that was filed by nineteen
Speaker 1: Democratic attorneys general. Most of the Democratic led states are
Speaker 1: part of this lawsuit, led by California, which has the
Speaker 1: most of these visas are mostly in California, and these
Speaker 1: states argue that they're suing on behalf of the public
Speaker 1: sector because of healthcare. They say that they have to
Speaker 1: look out for the healthcare industry, the residents and their states.
Speaker 1: They say that the quality of healthcare will simply suffer
Speaker 1: because there is a shortage of these skilled healthcare workers
Speaker 1: who use these visas and won't necessarily be able to
Speaker 1: afford one hundred thousand dollars fee from these hospitals. You know,
Speaker 1: maybe the companies can afford that, but hospitals not so much.
Speaker 1: So there's not really a carve out for them, and
Speaker 1: the hospitals could suffer according to these states that sued
Speaker 1: earlier this month, and there's a hearing in that case
Speaker 1: in February, so remains to be seen how a judgabile
Speaker 1: rule on that aspect.
Speaker 3: Well, that's the rub, right.
Speaker 2: You think about Amazon, Microsoft, Meta Apple, for example, if
Speaker 2: they're playing millions of dollars potentially for specific AI talent,
Speaker 2: a one hundred thousand dollar fee probably doesn't seem like
Speaker 2: that much then.
Speaker 3: But to your point, you know, if it's.
Speaker 2: Hospital having to pony up that fee, it's a much
Speaker 2: different conversation. Walk us through how you might expect the
Speaker 2: legal fight to take shape next, because it seems like
Speaker 2: there's a lot of different moving parts here.
Speaker 1: Sure, So the ruling that we just got was from
Speaker 1: the lawsuit filed by the Chamber of Commerce in Federal
Speaker 1: Court in Washington. That case is essentially over unless there's
Speaker 1: an appeal. It was a summary judgment. The judge, who
Speaker 1: was an Obama appointee, by the way, just ruled flat
Speaker 1: out that the government was correct. The President had brought
Speaker 1: authority to issue this under the powers given to him
Speaker 1: by Congress in the Immigration and Nationality Act. But these
Speaker 1: lawsuit filed by the Democratic led States, that is, like
Speaker 1: I said, there will be a hearing on their motion
Speaker 1: for an injunction against the visa in February. There isn't
Speaker 1: a hearing set on the third lawsuit, which is filed
Speaker 1: by unions, So this could take months to play out,
Speaker 1: and as with so many of the other legal challenges
Speaker 1: involving the president's policies and executive orders, it could end
Speaker 1: up at the Supreme Court, and that could be quite
Speaker 1: some time. The big question for employers and potential visa
Speaker 1: holders is whether or not this program, this fee will
Speaker 1: stay in place during the entire legal challenge. Right now,
Speaker 1: it is, but these other lawsuits could result in different outcomes.
Speaker 3: All right, Eric, really appreciate your reporting.
Speaker 2: Great to see someone else in the office on Christmas
Speaker 2: Eve as well.
Speaker 3: That is Bloomberg's Eric Larson.
Speaker 2: Meanwhile, another story that's tying together tech and politics is
Speaker 2: that the Trump administration has imposed visa sanctions on former
Speaker 2: European Union Commissioner Theory Breton, along with four other activists
Speaker 2: who have pushed for regulations to online content moderation. Now
Speaker 2: Secretary of State Marco Rubio said in a post on
Speaker 2: x Quote, for far too long, ideologues in Europe have
Speaker 2: led organized efforts to coerce American platforms to punish American
Speaker 2: viewpoints they oppose. We stand ready and willing to expand.
Speaker 2: This lifts this list if others do not reverse course
Speaker 2: for more. Let's go now to bloom It's Laura Davison
Speaker 2: live in Washington. So Laura, first, give us the reaction
Speaker 2: that you're seeing and hearing. Was this move necessarily a surprise?
Speaker 7: This move was a surprise and really came as a
Speaker 7: shock to both the people who were the subject of
Speaker 7: these visa sanctions as well as to other European officials,
Speaker 7: both at the EU level, and individual countries. There's been
Speaker 7: a really a strong and forceful pushback saying that this
Speaker 7: is a move that amounts to censorship and is very inappropriate.
Speaker 7: On the US side, this is, you know, sort of
Speaker 7: just a one prong and what has really become a
Speaker 7: multifaceted cold war between the US and the EU, particularly
Speaker 7: as it relates to tech companies and who has the
Speaker 7: power to regulate and tax them.
Speaker 2: Yeah, and you know, we talk about, you know, this
Speaker 2: censorship potentially of American viewpoints, what specific platforms, you know,
Speaker 2: was the Trump administration holding up as an example where
Speaker 2: censorship actually did take place.
Speaker 7: Yeah, So there's a couple different here. Largely the big
Speaker 7: social media platform so Facebook, Instagram, and in particular Elon
Speaker 7: Musk's platform has been the subject of a rather large
Speaker 7: fine earlier this year for not allowing these content moderation
Speaker 7: to feed out hate speech from the platform. So, you know,
Speaker 7: X had to pay this fine. This has kind of
Speaker 7: become this ongoing tit for tat war of you you know,
Speaker 7: and you could almost see these visa sanctions coming from
Speaker 7: the US as a response to that fine earlier this year.
Speaker 2: All Right, Laura really appreciate the update that is Bloomberg's
Speaker 2: Laura Davison joining us from Washington, well as Warner Brothers
Speaker 2: Discovery in Paramount Way. Their next moves media deal making
Speaker 2: is back in focus. Joining us now is Stephen wolf Perira.
Speaker 2: He is CEO and founder of Alpha, an independent AI
Speaker 2: governance intelligence firm for board directors and C suite executives.
Speaker 2: Great to have you with us, Stevens. So let's talk
Speaker 2: about Warner Brothers. You had Larry Ellison coming out with
Speaker 2: his personal guarantee of forty billion dollars for the Paramounts
Speaker 2: guidance hostile bid. That is, do you think that that
Speaker 2: goes far enough to address some of the Warner Brothers
Speaker 2: board's concerns about financing.
Speaker 8: So it's great to be here, Happy holidays. But this
Speaker 8: is very going to be a gift for the Ellsons
Speaker 8: because if you think about what they are doing, they
Speaker 8: are truly amassing one of the biggest and most important
Speaker 8: collection of media assets in record time. And you know
Speaker 8: whether the thirty dollars a share is going to be enough.
Speaker 8: I think they're going to have to sweeten the deal.
Speaker 8: But I think you need to look at this from
Speaker 8: a larger advantage point because if you really look at
Speaker 8: the assets that they're starting to consolidate. It really is
Speaker 8: concerning on the one hand, exciting on the other. But
Speaker 8: when you think about Paramount combined with potentially TikTok obviously
Speaker 8: Warner Brothers Discovery, you just look at all the different
Speaker 8: pieces of this puzzle. We're really seeing the reshaping of
Speaker 8: the American media landscape right before our eyes.
Speaker 3: Let's talk through some of the concerns here.
Speaker 2: As you said, it's exciting, but there's also concerns.
Speaker 3: In highest order. What would you say tops the list?
Speaker 8: I mean, one is this really trying to understand what
Speaker 8: really is going to be the governance and implications of
Speaker 8: this when you think about the amount of data that
Speaker 8: they are now going to have to be able to
Speaker 8: train all their AI. Again, this is not just a
Speaker 8: media company. Obviously, Larry Ellison with Oracle understanding the TikTok angle,
Speaker 8: this is really connected to the dots and all these
Speaker 8: AI companies are desperate for more data to train their models.
Speaker 8: And so when you really look at this, this is
Speaker 8: a truly incredible opportunity to consolidate data all under this
Speaker 8: massive umbrella, which is really going to be Skydance, Paramount
Speaker 8: and Oracle.
Speaker 2: Interesting, So you're saying that Oracle, you know, if we
Speaker 2: actually see Paramount Skuiddance be able to win the Warner
Speaker 2: Brothers Discovery bidding war, that Oracle might then potentially use
Speaker 2: their content library for training for their models.
Speaker 8: I mean, again, you have one hundred percent control over Paramount,
Speaker 8: you know, what's to say, what is the control going
Speaker 8: to look like? You know, for one of Brother's Discovery.
Speaker 8: Once it's under that umbrella, You're just going to have
Speaker 8: a lot of ability to kind of blur the lines
Speaker 8: and us really see who is going to be able
Speaker 8: to have some type of guardrails governance guidelines around all
Speaker 8: of this, And I think that that's something that shareholders
Speaker 8: need to look into. Obviously, you want to have your
Speaker 8: furniturey responsibilities as a shareholder, but certainly the board is
Speaker 8: going to have to make some really tough decisions. I
Speaker 8: think there is a really interesting reason why the board
Speaker 8: has actually rejected the Ellisons repeatedly until they had to
Speaker 8: go public with this hostile takeover.
Speaker 2: Yeah, it is a fascinating situation where you have the
Speaker 2: Warner Brothers board saying that we've approved, we recommend the
Speaker 2: Netflix offer. At the same time, you have Paramount basically
Speaker 2: going directly to the shareholders with this tender offer.
Speaker 3: I mean, what do you make of it? How do
Speaker 3: you see the investor.
Speaker 2: Base actually swaying here when it comes to what the
Speaker 2: board is saying and what Paramount is saying.
Speaker 8: Look, the truth of the matter is you have a
Speaker 8: very deluded shareholder base. Obviously, you're going to have the
Speaker 8: large institutional investors, the Black Rocks, Vanguard, State Street, We're
Speaker 8: controlling a lot of the shareholder count. But when you
Speaker 8: really think about where investors are going to be, they're
Speaker 8: going to really vote for what's going to be the
Speaker 8: best return for them. And so I think you really
Speaker 8: are going to see Netflix really trying to have to
Speaker 8: up the ante. They obviously have a very clean, you
Speaker 8: know kind of approach, They have a very clean deal,
Speaker 8: obviously have a better credit rating. When you think about
Speaker 8: what the levered company is going to look like, combined
Speaker 8: with Paramount as well as one of our discovery, I
Speaker 8: think it's going to be north of maybe six seven
Speaker 8: times you know det Tim at DA. So just from
Speaker 8: a capital perspective, it's going to be an extremely levered asset.
Speaker 8: That's part of the reason why Larry Ellison is doing
Speaker 8: the personal guarantee and.
Speaker 2: Steven, we have less than a minute here left with you.
Speaker 2: But you know, when you look into your crystal ball,
Speaker 2: how long do you think this saga will continue? How
Speaker 2: long will it take to actually get a conclusion here?
Speaker 8: I mean, obviously they pushed out the shreword of vote
Speaker 8: down to January twenty first, and then you're going to
Speaker 8: have obviously all the regulatory you know, kind of theater
Speaker 8: that you're going to have to go through. But I
Speaker 8: feel like this is just the beginning, because this is
Speaker 8: now the reshaping of American media. And when you really
Speaker 8: understand what is happening, this is a data play, and
Speaker 8: when you really connect the dots, this is truly going
Speaker 8: to reshape the way that all the AI companies are
Speaker 8: going to be able to have access to data. Who
Speaker 8: is controlling that? And where are the government s guardrails
Speaker 8: around it?
Speaker 6: All?
Speaker 2: Right? Stephen, really appreciate your time.
Speaker 3: That is Stephen wolf Perrera.
Speaker 2: He is the CEO and founder of Alpha. Let's take
Speaker 2: a look at these markets on this Christmas seve the
Speaker 2: S and P five hundred, A little bit of green
Speaker 2: on the screen. As I said at the top, no
Speaker 2: trading volume to speak of, but you can see we're
Speaker 2: drifting about three tenths of a percent higher. Tech not
Speaker 2: quite outperforming today at the NASAQ one hundred higher by
Speaker 2: just about two tenths of a percent. You can see
Speaker 2: the Philadelphia Semiconductor Index a little bit below that as well.
Speaker 2: Very quiet though when it comes to volatility as measured
Speaker 2: by the VIS, you can see we are down about
Speaker 2: forty seven ball points and trading with a thirteen handle.
Speaker 2: Let's talk about why you can see the NAZAQ one
Speaker 2: hundred underd performing. A lot of that comes back to Nvidia,
Speaker 2: and it comes back to Intel. Reuter's reporting this morning
Speaker 2: that basically in Nvidia has halted a test to use
Speaker 2: Intel's production process to make advanced chips. That is adding
Speaker 2: to pressure on Intel down about one point four percent.
Speaker 2: In Vidia shares also in the red as well. For
Speaker 2: more on this story, let's bring in Bloomberg Television Markets
Speaker 2: correspondent Normal Linda sitting to my left.
Speaker 3: So, Nora, what do we know so.
Speaker 2: Far about this so called eighteen A process.
Speaker 9: Well, the fact that Nvidia is halting using Intel's eighteen
Speaker 9: A manufacturing process, it actually is concerning for a lot
Speaker 9: of investors because we know that this is critical to
Speaker 9: Intel's turnaround story, especially as it tries to scale and
Speaker 9: really compete against the likes of say TSMC. They are
Speaker 9: a global competitor, and people are really concerned right now
Speaker 9: as to whether or not Intel is really able to
Speaker 9: display the fact that it's able to keep up in
Speaker 9: this space.
Speaker 2: And so talk to us about the Nvidia of it
Speaker 2: all and how it comes in. We know that in
Speaker 2: Vidia agreed to invest five billion dollars into Intel two September,
Speaker 2: So how are the two companies fortunes kind of aligned here.
Speaker 9: Yeah, it's a bit of a complex relationship between Nvidia
Speaker 9: and Intel, because it's not that Intel is necessarily giving
Speaker 9: in Nvidia is not necessarily a customer of Intel. In
Speaker 9: video actually works primarily with TSMC. But the fact that
Speaker 9: Nvidia was able to test out the eighteen A from Intel,
Speaker 9: people are really seeing this essentially as a marquee player
Speaker 9: in the mix, actually co signing this company and essentially
Speaker 9: giving more legitimacy, validity to a name that we know
Speaker 9: we've seen the US government coming in trying to back
Speaker 9: taking a ten percent stake in this company. As we're
Speaker 9: really trying to see more production in the chip space
Speaker 9: here in the United States.
Speaker 2: And what sense do we have of why, you know,
Speaker 2: Intel and the market in general is reacting in.
Speaker 3: This way to this news.
Speaker 2: It seems to be some sensitivity here, even though there
Speaker 2: wasn't necessarily a contract between these two companies.
Speaker 9: It wasn't necessarily a contract between the two companies, But
Speaker 9: this still raises doubts about the fact of Nvidia stepping
Speaker 9: away from this partnership here, especially because in video sorry
Speaker 9: excuse me, investors are looking for proof that Intel can
Speaker 9: essentially attract top tier customers. So that's what's really key
Speaker 9: here in this moment. The Nvidia name is what's really
Speaker 9: helping to elevate Intel in this moment, and to see
Speaker 9: in Nvidia potentially stepping away from that test run of
Speaker 9: the eighteen A manufacturing process is essentially giving investors some concern.
Speaker 2: All right, great reporting, Nora, I'll be seeing you in
Speaker 2: just about thirty minutes time. Nora and I will take
Speaker 2: you through the close this early Close today from twelve
Speaker 2: to two pm on BTV. But let's keep this conversation
Speaker 2: going right now, because twenty twenty five has been a
Speaker 2: landmark year for ETFs, with actively managed funds taking the
Speaker 2: baton to surpass passive funds for the first time. Let's
Speaker 2: bring in Sylvia Jablonski. She is CEO and CIO over
Speaker 2: at Defiance ETFs.
Speaker 3: Sylvia, great to talk to you on this Christmas eve.
Speaker 2: And it's certainly the case that active ETFs have been
Speaker 2: on fire for the past several years twenty two twenty five,
Speaker 2: no exception, and we're seeing a lot of activity, a
Speaker 2: lot of interest from investors in these leverage single stock
Speaker 2: ETFs which do count as actively managed products. We know
Speaker 2: that Defiance, of course is involved in that space. Talk
Speaker 2: us through you know how you see that interest evolving,
Speaker 2: if at all in twenty twenty six.
Speaker 6: Yeah, hy Katie.
Speaker 10: Great to be with you today and happy holidays, Merry
Speaker 10: Christmas and happy New Year. Yeah, I think you know
Speaker 10: it's it's been a stellar year for levertytfs in general,
Speaker 10: both index based and.
Speaker 6: Single name funds.
Speaker 10: You know, we've seen billions of dollars of assets flowing
Speaker 10: into those funds and to your point, to active funds.
Speaker 10: And so what I think has happened over the last
Speaker 10: couple of years, and you and I have talked about
Speaker 10: this a bunch, is you know, we went through this
Speaker 10: period of time where it was it was all passive,
Speaker 10: and a lot of the ideas that were coming out
Speaker 10: resembled the others. So there were a lot of me
Speaker 10: too products out there, whether it.
Speaker 6: Was the Mattos or anything else.
Speaker 10: And really over the last two years, we've seen a
Speaker 10: lot of innovation, and we've seen that in single name
Speaker 10: leverage stocks, and we've seen that in option and space products,
Speaker 10: so a lot of single names that pay income, for example.
Speaker 10: And I think that, you know, you've seen huge amounts
Speaker 10: of growth in that because investors we're looking for that,
Speaker 10: right And so what I expect to happen in the
Speaker 10: next couple of years is to see that transition with
Speaker 10: new and exciting names coming out in the single name
Speaker 10: leverage space, some of the new you know, picks and
Speaker 10: shovels of AI for example, quantum names, some of the
Speaker 10: themes that are really popular and growing into the next year.
Speaker 6: And then I think we'll see other things grow out too.
Speaker 10: I think we'll see new thematics as some of these
Speaker 10: AI themes, quantum themes, you know, infrastructure, anything related to
Speaker 10: the advancement of tech really kind of change and grow.
Speaker 10: So investors are getting very comfortable with ETFs and expect
Speaker 10: that to continue.
Speaker 2: And stepping back a bit, I always wonder, you know,
Speaker 2: if you're managing a stable of you know, single stock ets,
Speaker 2: you know that some will probably take off be very popular.
Speaker 2: There are certain names that retail investors in particular, just
Speaker 2: seem to gravitate to. But at the other end of
Speaker 2: the spectrum, there's some names that you know probably aren't
Speaker 2: going to garner that same interest.
Speaker 3: Ever, And I wonder, you know, as an.
Speaker 2: Issuer of ETFs, do you basically just hope you get
Speaker 2: a few hits when it comes to the single names
Speaker 2: and hope that that sort of subsidizes the rest of
Speaker 2: the lineup, which may or may not take off.
Speaker 10: Well, I think as an issuer, we you know, we
Speaker 10: do a lot of due diligence on this, right. We
Speaker 10: research the names that we're interested in launching, and we
Speaker 10: kind of look and see, you know, what is their beta,
Speaker 10: what is their sort of volatility score, what kind of
Speaker 10: interest there is in social media, what kind of interest
Speaker 10: there is amongst institutional clients, what kind of interest there
Speaker 10: is just in general media press research on certain topics.
Speaker 10: So we do a lot of work before we actually
Speaker 10: bring a product to market, so we have high conviction
Speaker 10: and everything that we're launching, as I would think most
Speaker 10: etfishuers do.
Speaker 6: Right to your.
Speaker 10: Point, some of them just don't hit, and you know,
Speaker 10: and that's disappointing. But the way we view this is,
Speaker 10: you know, we essentially just just move on and just
Speaker 10: try to make sure that we're capturing the right trends
Speaker 10: and the right themes that investors are looking at. And
Speaker 10: if products, you know, if some products are unprofitable, then
Speaker 10: that's a result of this moment in time and it
Speaker 10: can only change.
Speaker 6: Right.
Speaker 10: We've seen products that sat for two years and did
Speaker 10: nothing take off three years later.
Speaker 3: So yeah, allanges No, it's a good point.
Speaker 2: And I think a Bloomberg intelligence has some unofficial Lazarus
Speaker 2: list where you know, a name does nothing for a
Speaker 2: couple of years and ETF does nothing and then all
Speaker 2: of a sudden it rises from the dead, if you will.
Speaker 2: But in any case, I do wonder, you know, when
Speaker 2: we talk about themes. Obviously AI has been a big
Speaker 2: theme when it comes to equity ETFs, but then you
Speaker 2: think about what's happening in the bond markets right now
Speaker 2: and sort of the AI debt deluge if you will,
Speaker 2: has definitely emerged as a theme when it comes to
Speaker 2: credit markets in twenty twenty five. Would you ever consider
Speaker 2: launching a fixed income thematic ETF or is that something
Speaker 2: that maybe they're just isn't a market for.
Speaker 10: Well, I think that there could be a market for
Speaker 10: different fixed income products, and you know, I would suspect
Speaker 10: that issuers such as ourselves are doing research in the space,
Speaker 10: and you know, there could be some some opportunities there.
Speaker 10: It's you know, it's it's something that we're always looking at.
Speaker 10: And I think, you know, to your point, yes, there
Speaker 10: is you know, sort of that debt issue with AI.
Speaker 10: There's also a concentration issue growing with AI. Right, I
Speaker 10: think a lot of the big eats are out there
Speaker 10: in the space.
Speaker 6: But I actually think there's more to come.
Speaker 10: You know, you saw on December twentieth, actually the Trump
Speaker 10: administration just announced that they're going to be putting a
Speaker 10: big agenda and a big priority on researching and building
Speaker 10: out six G so that the United States has leadership
Speaker 10: in that space. Right, and so that's an area that
Speaker 10: we're super excited about. Like we have a six G
Speaker 10: ETF and that hasn't been talked to me you know,
Speaker 10: to the point of like ETFs being popular.
Speaker 6: At different times.
Speaker 10: Five G was all the rage, and here we are now,
Speaker 10: you know, oh, we have to focus on this because
Speaker 10: of our AI build out and because of our quantum
Speaker 10: build out, and so you know, there's always different directions
Speaker 10: to grow in terms of the matt at ETF's weather
Speaker 10: fixed incomer equity based.
Speaker 2: Well, let's talk about one ETF that did get a
Speaker 2: lot of interest of yours in twenty twenty five, and
Speaker 2: that was your quantum ETF.
Speaker 3: The ticker there is qt um, and.
Speaker 2: It's all a pretty steady stream of inflows all throughout
Speaker 2: the year, but especially starting in about Midsummer or so.
Speaker 2: When you think about the quantum space and the different
Speaker 2: names that populated, what is your view heading into next year.
Speaker 10: Yeah, so the viewing quantum is you know, kind of
Speaker 10: very much the same, and it's evolving. You know, we
Speaker 10: view this as a long term investment, and in the
Speaker 10: last year, I think the reason that we've seen so
Speaker 10: much interest and so much inflow into the space is
Speaker 10: because you've started to get these proof points of reality
Speaker 10: and commercialization, right, whether it was the bond pricing example
Speaker 10: with HSBC or you know, some of the big kind
Speaker 10: of quality balance sheet mag seven or just you know,
Speaker 10: large tech companies like IBM and Cisco and Oracle in
Speaker 10: addition to the Max seven investing in the space and
Speaker 10: producing you know, products there and having quantum services available
Speaker 10: through clouds and Amazon and things like this. So I
Speaker 10: think as it becomes more commercial and scalable and you know,
Speaker 10: proves itself as a technology that investors are really buying into,
Speaker 10: you know, you could potentially see some performance in those names.
Speaker 10: But I do you think it's like AI, right, It's
Speaker 10: very much in its infancy. AI is maybe a toddler.
Speaker 10: Quantum is still just learning to call right. So it's
Speaker 10: a long term buy and hold, and I think that
Speaker 10: investors understand that and they're in it for the long run.
Speaker 3: Yeah, it is really interesting.
Speaker 2: I feel like quantum it's just starting to get socialized
Speaker 2: right now. But as you said, I don't think it exactly.
Speaker 3: Knows how to walk yet.
Speaker 2: But Sylvia, I mean you make the point that this
Speaker 2: is a buy and hold investment when it comes to
Speaker 2: your lineup, and you know, you have a broad array
Speaker 2: of funds ranging from Quantum, which of course, as you say,
Speaker 2: is buy and hold, and then you have again those
Speaker 2: leverage single stock ETFs. What is the profile of the
Speaker 2: investors coming into your lineup? Is it safe to say
Speaker 2: it's broadly retail.
Speaker 10: It's not necessarily broadly retail. There's a good mix of
Speaker 10: retail and institutional clients. What I would say is there
Speaker 10: are different risk profiles for our clients. So clients that
Speaker 10: are in the thematic products tend to be long term conservative,
Speaker 10: you know, buy and hold, looking to allocate to their
Speaker 10: portfolios for longer periods of time, whether institutional or retail.
Speaker 6: In terms of the single name stocks.
Speaker 10: It tends to be sophisticated. Whether it's an institution or
Speaker 10: it's a retail day trader, it's a sophisticated trader who
Speaker 10: understands that these are meant to be traded and not held,
Speaker 10: that you know, you're getting returned for a period of time,
Speaker 10: not beyond one day, and you know kind of user
Speaker 10: beware and understand how these products work over time.
Speaker 6: And so it's just a different risk profile.
Speaker 10: But there's a mix of both types of clients, retail
Speaker 10: and institutional, across all the product suites.
Speaker 2: All right, Sylvia, great to get some time with you.
Speaker 2: Happy holidays. That is Sylvia Jablonski of Defiance ETPs.
Speaker 3: Now, coming up on.
Speaker 2: B Tech, we'll discuss the outlook for Tesla. It's sure
Speaker 2: price has been on a tear, but what challenges all wait?
Speaker 2: In twenty twenty six, Steve Wesley, founder of the Wesley Group,
Speaker 2: he joins us. Next, this is Bloomberg Tech. Well, Tesla
Speaker 2: has had quite a year. It shares have soared, its
Speaker 2: CEO secured a record pay package. It's robotaxis launched in
Speaker 2: a limited way in Austin and San Francisco. But on
Speaker 2: the horizon are challenges, among them declining sales, shrinking profits,
Speaker 2: and moves by global regulators. Sources telling us here at
Speaker 2: Bloomberg that the company is facing a new US government
Speaker 2: probe over the door handles of its Model three sedans.
Speaker 2: Steve Wesley, he is a former Tesla board member and
Speaker 2: managing partner of the Wesley Group, joins us. Now, Steve,
Speaker 2: great to have you with us. Let's start again with
Speaker 2: these door handles. We have had a month's long investmentgation
Speaker 2: over here at Bloomberg. We know that the NHTSA has
Speaker 2: opened an investigation in September, and I wonder what you
Speaker 2: make of how this is evolving and the reputational damage
Speaker 2: that this could inflict on Tesla.
Speaker 11: Look, it's a serious issue, but a lot of other
Speaker 11: auto companies have had similarities, for Volkswagen General Motors.
Speaker 12: But it's not a simple software fix.
Speaker 11: So here's a time where Tesla's really got to be
Speaker 11: firing on all cylinders to fix this.
Speaker 2: And I mean, from what you can tell the company's
Speaker 2: public posture, do you think that they are treating this
Speaker 2: with the appropriate degree of seriousness.
Speaker 11: Well, we'll see, this is not a simple software fix,
Speaker 11: so they're going to have to go in re engineers
Speaker 11: and things. The cost is probably going to take a while,
Speaker 11: but it's not the first time it's happened.
Speaker 12: It's happened with other auto companies.
Speaker 11: But I think everybody in the sector is going to
Speaker 11: be focused in on this one. Tesla, as you know,
Speaker 11: has had some other brand challenges, so they want to
Speaker 11: come out. They're trying to position themselves and look like
Speaker 11: a testnology leader, not just an auto company. Fixing this
Speaker 11: sweep top of that priority list absolutely.
Speaker 2: Well, let's talk about the year for Tesla more broadly,
Speaker 2: because shares are up about nineteen percent on a total
Speaker 2: return basis, we know that that has come with a
Speaker 2: lot of volatility.
Speaker 3: You think about where we stand right now.
Speaker 2: Sure, shares have surged in the past few months, but
Speaker 2: sales continue to be an issue. You think about the US,
Speaker 2: you think about Europe. You mentioned that Tesla wants to
Speaker 2: be positioned as a technology company here, but this feels
Speaker 2: like a pretty fundamental issue that is going to need attention.
Speaker 11: Look, this is a huge issue in twenty twenty six
Speaker 11: is going to be a pivotal year. Share price at
Speaker 11: record highs one point six trillion dollar market cap. That's astonishing.
Speaker 11: But Tesla's latency. It's second year in a row of
Speaker 11: declining sales and shrinking profits. So the robotaxi approval it
Speaker 11: has got in Austin is great. They no longer need
Speaker 11: drivers in the cars. That still leaves them way behind Weymouth.
Speaker 11: So Tesla's really got to get into a higher gear
Speaker 11: on regulatory approval. They've got to get into more cities faster,
Speaker 11: and they need to get revenue growth to keep that
Speaker 11: share price up.
Speaker 12: Let's see how well they do.
Speaker 2: Yeah, absolutely, I mean you mentioned Weaimo, and you think
Speaker 2: about the gap. Weymol obviously has that first mover advantage
Speaker 2: Tesla trying to close it here? Do you think that
Speaker 2: that is actually achievable when you think about how far
Speaker 2: out Weimo is and all the different markets it has
Speaker 2: already entered.
Speaker 11: Well, it's going to be tough for Tessa to catch
Speaker 11: up because look, Waimo's already in six cities operational Large City,
Speaker 11: San Francisco, Los Angeles, Phoenix, Miami, Atlanta. But they've announced
Speaker 11: another sixteen cities they're going into. They'll do twelve million
Speaker 11: to fourteen million rides by the end of this year
Speaker 11: next week, but next year, I think they're looking at
Speaker 11: a number close to thirty five million. They're already making
Speaker 11: plants way international. They're doing trials now at London, Tokyo,
Speaker 11: New York City. Waimo's got a huge lead. Tesla's got
Speaker 11: its work cutout for it to catch up. If you're
Speaker 11: positioning yourself as a technology company, they've got to get
Speaker 11: in the race and go toe to toe with Weimo and.
Speaker 3: See if we've got just about a minute left.
Speaker 2: We've talked about door handles, we've talked about sales, we've talked.
Speaker 3: About the robotaxis.
Speaker 2: What else should Tesla be focusing on in twenty twenty six.
Speaker 11: Well, I think there's two things. The key one is
Speaker 11: their energy division is booming. And say what you want
Speaker 11: about Tesla needing new models and maybe being behind in
Speaker 11: full self driving, but every out of company in the
Speaker 11: world today is also an energy company, and Tesla provides
Speaker 11: three products. Power walls you probably see them in garages, megapacks,
Speaker 11: energy blocks for utilities. The takeaway is there's a revolution
Speaker 11: AI and data centers forcing utilities to look for new
Speaker 11: power suppliers.
Speaker 12: Tesla's filling that void.
Speaker 11: Their energy division will grow from ten billion and twenty
Speaker 11: twenty four, so I think about fourteen billion this year.
Speaker 11: They can provide forty percent year of a year growth.
Speaker 11: That's going to help, all right.
Speaker 2: Steve really enjoyed this conversation. Happy Holidays. That is Steve Wesley.
Speaker 2: He is CEO of the Wesley Group. Service Now reaching
Speaker 2: an agreement to buy cybersecurity startup Armists in a cash
Speaker 2: deal valued at seven point seventy five billion dollars, marking
Speaker 2: its biggest acquisition today. I caught up with Service Now
Speaker 2: president and COO on Zaveri yesterday take.
Speaker 13: A lesson when we saw this opportunity and seeing the
Speaker 13: way that AI adoption is going. This is a great
Speaker 13: opportunity for us to continue expanding in our security space.
Speaker 13: So today our security business has crossed billion dollars at
Speaker 13: service now and addition of Armies will allow us to
Speaker 13: now get into more new capabilities with customers are demanding
Speaker 13: from us, as well as allow us to really be
Speaker 13: differentiated as we add AI data workflow with all of
Speaker 13: it being around security and making sure that no breaches
Speaker 13: customers have to deal with. So that's really the thinking
Speaker 13: and Armies is a very innovative company, very well regarded,
Speaker 13: great team, very good domain expertise, and the combination of
Speaker 13: US and them can really change the game in the
Speaker 13: cybersecurity space and build a cybersecurity automation abilties very fast.
Speaker 14: It gets to this idea too. I mean you mentioned
Speaker 14: sort of the potential addition to revenue. I think they
Speaker 14: talked about a three hundred million dollar a run rate
Speaker 14: right now that they're sort of dealing with. This isn't
Speaker 14: obviously just about the additional revenue that you get specifically
Speaker 14: from Armies. I assume this is also about bringing in
Speaker 14: new clients and more importantly keeping the clients you have there.
Speaker 13: Yeah, this is very strategic play. I mean, we are
Speaker 13: very confident of our own revenue plans, right, We don't
Speaker 13: depend on armies to deliver our fifty plus rule of
Speaker 13: fifty plus right, which is twenty plus percent as subscription
Speaker 13: revenue growth and for thirty plus percent in terms of
Speaker 13: having free cash flow margins. So we've been fifty plus
Speaker 13: the last ten years and we keep on delivering that
Speaker 13: and we're not dependent on armies to deliver on what
Speaker 13: we have been sharing with the street. So this is
Speaker 13: much more of a strategic play. They are three hundred
Speaker 13: and forty million in revenue already growing at fifty percent.
Speaker 13: But the key thing is the technology and the IP
Speaker 13: we're bringing in together with Service now capabilities as well
Speaker 13: as a lot of the joint customers, we can go
Speaker 13: together with and really provide them a full capability around
Speaker 13: cybersecurity and help them with all the issues they're dealing
Speaker 13: with from one platform perspective.
Speaker 2: Right.
Speaker 13: They have OURMISS has a lot of data around all
Speaker 13: the assets company has, the physical assets. If you look
Speaker 13: at now physical AI is coming into play as well
Speaker 13: robotics and other things like that. That information combined with
Speaker 13: our service NOWS Confrigation Management database which has access around
Speaker 13: software and hardware. We can really give you full security
Speaker 13: posture management and really give you the exposure guarantee that
Speaker 13: nothing can go wrong.
Speaker 2: And I want to talk about your dealmaking posture overall,
Speaker 2: because we're talking about armists today. But you rewind the
Speaker 2: clock to March, you struck an agreement to buy move
Speaker 2: Works for about two point eighty five billion dollars.
Speaker 3: Should we expect to see more.
Speaker 2: M and A from Service Now in twenty twenty six.
Speaker 13: No, I think we have all the assets we require.
Speaker 13: I think this is an opportunity for Service Now to
Speaker 13: really get into spaces where customers are asking us to
Speaker 13: get quicker, so wrote myp ACS plus scaled capabilities will require.
Speaker 13: But I think we are very confident with all the
Speaker 13: things we have announced so far as the core things
Speaker 13: we require from our portfolio perspective and execration we need
Speaker 13: to do. We always can do continue doing what we've
Speaker 13: been doing before around tukens and small IP purchases. But
Speaker 13: from the security perspective, I think we have what we
Speaker 13: need to become the premium security platform provider in the
Speaker 13: market today.
Speaker 2: That was Service Now President on Itt Zavari. Now, before
Speaker 2: we go, it's time for talking tech. First up, Bitcoin
Speaker 2: missing out on the Christmas chair, currently trading around eighty
Speaker 2: seven thousand today. That comes after a brutal sell off
Speaker 2: in October, not from record highs. Token on track for
Speaker 2: its worst quarterly performance since twenty twenty two. Plus, ads
Speaker 2: could be coming to chat GBT. Open Ai is said
Speaker 2: to be working out the details.
Speaker 3: To integrate ads into its.
Speaker 2: AI chatbot, according to a report from The Information and
Speaker 2: Alphabet's WEAMO says it's updating software across its fleet to
Speaker 2: better handle power outages. The move comes after self driving
Speaker 2: taxis froze and costs a traffic jam during major power
Speaker 2: failure last weekend in San Francisco. Beck does it for
Speaker 2: this edition of Bloomberg Tech. Don't forget to check out
Speaker 2: our podcast This is Bloomberg