WEBVTT - China's iPhone Ban and Instacart's IPO 0:00:01.680 --> 0:00:05.320 From Marhard where Innovation of Money and Power Collie in 0:00:05.440 --> 0:00:10.399 Silicon Valley, NBN. This is Bloomberg Technology with Caroline Hyde 0:00:10.400 --> 0:00:11.320 and Ed Ludlove. 0:00:24.720 --> 0:00:27.160 I'm Caroline Heide of Bloomberg's world headquarters in New York, 0:00:27.640 --> 0:00:29.320 and I'm Ed Ludlow in San Francisco. 0:00:29.440 --> 0:00:31.600 This is Bloomberg Technology coming up. 0:00:31.680 --> 0:00:34.000 Oh, Apple wiping out as much as two hundred billion 0:00:34.040 --> 0:00:37.519 dollars in market value. That's as China broadens its iPhone. Man, 0:00:37.840 --> 0:00:39.879 we'll discuss the outlook for the company and what it 0:00:39.920 --> 0:00:41.720 means for US China relations. 0:00:42.800 --> 0:00:45.560 And we'll dive deep into the world of artificial intelligence 0:00:45.560 --> 0:00:48.560 with the CEO of Imbu, which just raised two hundred 0:00:48.560 --> 0:00:51.040 million dollars, and we speak to the former CEO of 0:00:51.200 --> 0:00:54.000 r go Ais he embarks on a new mission with 0:00:54.040 --> 0:00:57.240 more than a billion dollars in backing expected to come 0:00:57.320 --> 0:00:58.200 from SoftBank. 0:00:58.440 --> 0:01:01.600 Meanwhile, Instacart preparing to said it's IPO price range as 0:01:01.640 --> 0:01:04.920 soon as Monday, as the startup is gearing for its 0:01:05.040 --> 0:01:07.520 road show. We'll bring you all that and so much more. 0:01:07.600 --> 0:01:11.200 But Ed, the market is being dictated front and center 0:01:11.480 --> 0:01:13.160 by what is happening with Apple right now. 0:01:13.840 --> 0:01:16.080 Yeah, and that's exactly how we frame it. The news 0:01:16.200 --> 0:01:20.440 Chinese authorities, according to Bloomberg sources, are thinking about expanding 0:01:20.440 --> 0:01:23.560 a ban on the iPhone in state enterprises and in 0:01:23.600 --> 0:01:24.600 government agencies. 0:01:24.640 --> 0:01:25.959 The market reaction is clear, with. 0:01:26.160 --> 0:01:29.200 Off session lows in Thursday session down around three percent, 0:01:29.400 --> 0:01:31.639 but just following the open we were down five percent. 0:01:31.720 --> 0:01:34.080 That was putting us on track for our biggest single 0:01:34.160 --> 0:01:37.720 day drop since September of last year, so in a year, 0:01:37.920 --> 0:01:39.840 and on a two day basis, we were headed for 0:01:39.880 --> 0:01:42.479 our biggest two day drop since May of twenty twenty two. 0:01:42.560 --> 0:01:45.080 That tells you the severity of the action, and we 0:01:45.120 --> 0:01:47.039 will look at some of the suppliers later in the 0:01:47.080 --> 0:01:50.240 program who are also moving to the downside. You talked 0:01:50.240 --> 0:01:51.800 about at the top of the show that two hundred 0:01:51.840 --> 0:01:55.240 billion dollars in market cap shed because of what's been 0:01:55.280 --> 0:01:57.120 reported over the last twenty four hours. That was on 0:01:57.120 --> 0:01:59.200 a two day basis. Where we're at now two point 0:01:59.280 --> 0:02:03.040 seven to seven billion or eighty billion dollars approximately in 0:02:03.080 --> 0:02:06.560 marketcap eighty to ninety billion shed this morning alone. And 0:02:06.600 --> 0:02:09.040 you think about Apple as the biggest constituent of both 0:02:09.080 --> 0:02:11.040 the S and B five hundred, then as that one 0:02:11.160 --> 0:02:13.840 hundred Carr, You're absolutely right. It's being felt much more 0:02:13.880 --> 0:02:17.040 broadly in financial markets this Thursday. Let's get the details 0:02:17.200 --> 0:02:20.440 and what's happening with China's reported Apple ban with Bloomberg's 0:02:20.440 --> 0:02:23.280 Mark gum and chief correspondent for Apple, Mark tell us 0:02:23.320 --> 0:02:24.480 what we know at this state. 0:02:25.000 --> 0:02:26.160 Yeah, Ed, thank you for having me. 0:02:26.200 --> 0:02:30.880 What we're reporting is that government owned companies, government agencies, 0:02:31.639 --> 0:02:34.760 those types of government affiliated organizations, in addition to the 0:02:34.760 --> 0:02:38.800 government itself is either banning or plans to ban the 0:02:38.919 --> 0:02:43.680 use of iPhones and other foreign built devices or foreign 0:02:44.360 --> 0:02:49.520 devices from foreign run companies to China within the region. Now, Tip, 0:02:49.600 --> 0:02:52.160 this is clearly having a major impact. 0:02:51.760 --> 0:02:52.400 On the market. 0:02:52.440 --> 0:02:55.200 Like you said, a couple hundred billion dollars of marketcap 0:02:55.200 --> 0:02:57.920 getting wiped away because of this news. And one thing 0:02:57.960 --> 0:03:00.280 I want to clarify is I think investor can Burns 0:03:00.320 --> 0:03:02.920 is not so much on lost unit sales from a 0:03:02.960 --> 0:03:05.800 potential ban like this from these agencies, but it's what 0:03:05.840 --> 0:03:08.880 it means for Chinese nationalism and if people in China 0:03:08.960 --> 0:03:12.640 are going to decide to no longer buy iPhones in 0:03:12.720 --> 0:03:14.800 some quantity because of this, So it's not the government 0:03:14.800 --> 0:03:17.640 employees that investors are concerned about but if this is 0:03:17.639 --> 0:03:20.120 going to create some sort of domino effect for the 0:03:20.160 --> 0:03:22.720 iPhone's penetration within China. 0:03:22.320 --> 0:03:25.399 And Mark of course, Ed shouts out that the suppliers 0:03:25.400 --> 0:03:29.120 are under pressure, market valuations being lost with Qualcom Skyworks, 0:03:29.400 --> 0:03:31.240 we think of Micron technology as well. 0:03:31.600 --> 0:03:33.960 What about the supply side, What about the. 0:03:33.919 --> 0:03:36.120 Amount of manufacturing that's done in China by Apple? 0:03:36.920 --> 0:03:38.640 Yeah, I mean if you think about the larger Apple 0:03:38.680 --> 0:03:41.840 ecosystem in supply chain, right, when Apple is impacted by 0:03:41.880 --> 0:03:45.480 something like this, it's not only landing at Apple's doorstep, 0:03:45.560 --> 0:03:48.560 it's all the suppliers that contribute to the company's products, 0:03:48.600 --> 0:03:53.000 right Qualcom you mentioned there's other technology makers Micron and 0:03:53.040 --> 0:03:55.840 such that you mentioned that could be fearful of further 0:03:55.920 --> 0:03:58.800 bands impacting them down the road for products that their 0:03:58.920 --> 0:04:02.400 components are in. Certainly this is a concerning but we 0:04:02.520 --> 0:04:05.800 have to see exactly how widespread this becomes. If you 0:04:05.840 --> 0:04:08.960 look on social media China Mobile, there was a rumor 0:04:09.040 --> 0:04:12.120 yesterday going around that China Mobile would not be procuring 0:04:12.240 --> 0:04:14.839 iPhone fifteen units as part of this band. Given China 0:04:14.880 --> 0:04:18.200 Mobile is a state run carrier. It's a major carrier 0:04:18.279 --> 0:04:20.240 with nearly a billion customers there. 0:04:20.320 --> 0:04:21.440 So that was quite scary. 0:04:21.480 --> 0:04:23.640 But the carrier has come out through state media and 0:04:23.880 --> 0:04:26.520 denied the idea that they're not going to be working 0:04:26.520 --> 0:04:29.080 with Apple, so that is a positive there. But we 0:04:29.160 --> 0:04:31.480 really have to see how widespread this becomes and how 0:04:31.520 --> 0:04:34.680 this is going to impact the minds of consumers. Obviously, 0:04:34.720 --> 0:04:37.560 this band comes at the same time that Huawei and 0:04:37.640 --> 0:04:40.480 other Chinese phonemakers are upping their game in China too, 0:04:40.960 --> 0:04:44.479 so clearly, just days ahead of Apple's big iPhone fifteen launch, 0:04:44.920 --> 0:04:46.839 there is some concern going on in China. But we 0:04:46.920 --> 0:04:49.800 still need to see how broad this goes. 0:04:49.720 --> 0:04:51.160 Well said regarding Huawei. 0:04:51.160 --> 0:04:52.880 Will dig into that in a moment, but for now, 0:04:53.040 --> 0:04:57.040 we really sang Mark governman, of course our chief really 0:04:57.200 --> 0:04:59.920 correspondent on all things Apple, and let's get the investigate. 0:05:00.080 --> 0:05:02.080 Let's get a conversation with Alet Young now chief investment 0:05:02.120 --> 0:05:05.760 strategists at a quantitive research firm, Map Signals, and Alec 0:05:06.400 --> 0:05:08.640 did you agree with Mark there that really this is 0:05:08.680 --> 0:05:12.800 the concern of not just state run businesses, but the 0:05:12.839 --> 0:05:15.479 fact that this is Chinese nationalism, This is a consumer 0:05:15.560 --> 0:05:18.520 no wanting, no longer wanting to purchase Apple products. 0:05:19.320 --> 0:05:20.400 Well, thank you for having me. 0:05:20.839 --> 0:05:24.760 Certainly a very noisy situation around Apple right now. There's 0:05:24.760 --> 0:05:30.040 no question that part of the negative inferences that are 0:05:30.080 --> 0:05:33.279 swirling around right now is this idea that Apple gets 0:05:33.320 --> 0:05:38.159 caught up in a nationalist rivalry between the US and China. 0:05:38.960 --> 0:05:42.800 If iPhones, for example, were to become stigmatized throughout Chinese 0:05:42.880 --> 0:05:45.240 society over the next few months to the point that 0:05:46.040 --> 0:05:51.640 it depressed demand, those types of narratives inevitably are popping 0:05:51.640 --> 0:05:53.200 into investors' minds right now. 0:05:53.760 --> 0:05:54.799 But I think it's. 0:05:54.640 --> 0:06:00.880 Worth noting that so far the ban in the government agencies, 0:06:02.240 --> 0:06:04.960 we're looking at about a half a million units according 0:06:04.960 --> 0:06:06.839 to a lot of the Wall Street research that I'm reading, 0:06:07.880 --> 0:06:09.960 and that's out of a total run rate over the 0:06:10.640 --> 0:06:15.040 next twelve months of about forty five million iPhones in China. 0:06:15.120 --> 0:06:18.760 So the current band impacts a little over one percent 0:06:18.920 --> 0:06:21.600 of the units. Obviously, if it spreads to state owned 0:06:21.680 --> 0:06:25.440 enterprises and it winds up having a bigger societal impact 0:06:25.560 --> 0:06:28.559 in China on iPhone usage, it would be much worse, 0:06:28.640 --> 0:06:29.760 much bigger, But at this. 0:06:29.800 --> 0:06:31.359 Point it's fairly contained. 0:06:31.400 --> 0:06:34.159 It's also worth noting that Apple has been gaining market 0:06:34.240 --> 0:06:38.120 share in China over the last few years, about three 0:06:38.200 --> 0:06:40.560 hundred basis points in the last twelve months. 0:06:40.760 --> 0:06:40.960 Now. 0:06:40.960 --> 0:06:43.159 It is true that Huawei. 0:06:42.839 --> 0:06:46.719 Is launching more competitive bones, so you know, it'll be 0:06:46.720 --> 0:06:49.760 interesting to see how that dynamic evolves. But the current 0:06:49.880 --> 0:06:53.240 context is that Apple's doing very well in China. 0:06:53.440 --> 0:06:57.359 Its valuation is done very well as well. Do you 0:06:57.400 --> 0:07:00.000 think that basically this is a bit of a perfect storm. 0:07:00.080 --> 0:07:03.200 Therefore we're seeing the sort of market cap erosion because 0:07:03.240 --> 0:07:05.680 of how well tech companies have outperformed. Because we're at 0:07:05.680 --> 0:07:08.800 a twenty nine times future earnings, Yeah, I. 0:07:08.800 --> 0:07:10.800 Think the streets at about six fifty for next year, 0:07:10.840 --> 0:07:12.840 so we're actually at twenty seven and change on the 0:07:12.840 --> 0:07:14.200 forward multiple right now. 0:07:14.520 --> 0:07:15.640 But there's no question that. 0:07:15.600 --> 0:07:17.760 When the stock peaked at one ninety eight a few 0:07:17.760 --> 0:07:20.080 weeks ago, it was around thirty times. It was priced 0:07:20.120 --> 0:07:22.560 to perfection. So this type of news is not going 0:07:22.640 --> 0:07:26.520 to be greeted favorably. In addition, we've got macro issues 0:07:26.560 --> 0:07:29.640 with rising rates that can also pressure equity valuation. 0:07:29.760 --> 0:07:31.440 So I think this is a healthy pullback. 0:07:31.520 --> 0:07:34.720 But in terms of the bigger question, does this change 0:07:34.760 --> 0:07:37.880 the bulkcase for Apple of the long term, I definitely 0:07:37.960 --> 0:07:41.480 think the jury's still out. You know, there's probably some 0:07:41.640 --> 0:07:44.920 legitimate signal in today's news, but there's also a tremendous 0:07:44.920 --> 0:07:49.880 amount of noise, yes and overreacting to knee jerk noisy 0:07:50.040 --> 0:07:52.880 media driven things around this. 0:07:52.920 --> 0:07:53.960 Stock and many others. 0:07:54.000 --> 0:07:56.680 Frankly, has it historically been a great way to make 0:07:56.760 --> 0:07:58.320 money on Wall Street? 0:07:58.960 --> 0:08:01.640 And was interesting is that Apple has a big event 0:08:01.680 --> 0:08:04.400 coming up pretty soon. But Apple has also been pretty 0:08:04.720 --> 0:08:06.560 dedicated to China in terms of what. 0:08:06.520 --> 0:08:09.520 They've said, at least, this is the big question for 0:08:09.600 --> 0:08:12.600 me alec. Right last quarter they said that there was 0:08:12.640 --> 0:08:15.280 a swing in China to eight percent revenue growth in 0:08:15.400 --> 0:08:18.480 Greater China from a three percent decline the prior quarter. 0:08:18.800 --> 0:08:22.400 But it's what they called switchers, consumers in China that 0:08:22.400 --> 0:08:25.320 were buying an iPhone for the first time or switching 0:08:25.720 --> 0:08:29.560 from a domestic or other international brand. I acknowledge what 0:08:29.560 --> 0:08:32.000 you just said, but look at the market reaction and 0:08:32.080 --> 0:08:35.640 explain to us whether this is knee jerk or it's 0:08:35.679 --> 0:08:39.560 the market recalibrating what they heard from Apple in that 0:08:39.640 --> 0:08:40.280 earning school. 0:08:41.120 --> 0:08:42.320 I think it's a little bit of both. 0:08:42.360 --> 0:08:44.839 Obviously, it's knee jerk because investors have to react to 0:08:44.880 --> 0:08:45.920 the news as it breaks. 0:08:46.160 --> 0:08:48.120 We can't control when we get the news, but. 0:08:48.200 --> 0:08:52.720 Definitely a recalibration of potential, you know, revenue headwinds, earnings 0:08:52.720 --> 0:08:56.360 headwinds is definitely in the calculus here. But you know, ultimately, 0:08:57.200 --> 0:09:00.920 you know, American investors were not used to gauging, you know, 0:09:01.000 --> 0:09:05.560 government intervention of this magnitude. It's normally about the free 0:09:05.600 --> 0:09:08.520 market deciding who's got the best product. I think on 0:09:08.559 --> 0:09:13.480 that basis, it's clear Chinese people love iPhones, but obviously 0:09:13.520 --> 0:09:14.600 when we have you know, the. 0:09:14.559 --> 0:09:17.120 Government's hand at play so heavily. 0:09:17.280 --> 0:09:19.880 It's difficult for Americans to read because frankly, it's not 0:09:19.960 --> 0:09:22.560 something that we're used to in our home market or 0:09:22.600 --> 0:09:25.320 really in most major markets around the world. 0:09:25.360 --> 0:09:28.200 So we'll have to see how it plays out. But 0:09:28.520 --> 0:09:30.800 unless you know, the government. 0:09:30.520 --> 0:09:34.240 Takes a very heavy hand, you know, I don't think 0:09:34.240 --> 0:09:36.559 this is going to really be looked back upon as 0:09:36.600 --> 0:09:40.559 a major negative, game changing inflection point for the company. 0:09:41.280 --> 0:09:42.760 You know, at the question of the day here, I'm 0:09:42.760 --> 0:09:46.520 going back television has been is tech in trouble? You know, 0:09:46.559 --> 0:09:49.040 in the year of Ai, the year of the FED 0:09:49.840 --> 0:09:54.440 and valuations? Is geopolitics in China now kind of an 0:09:54.480 --> 0:09:55.960 equal weighted risk factor. 0:09:57.360 --> 0:09:59.920 Yeah, I mean it's definitely I don't know about equal weighted. 0:10:00.040 --> 0:10:02.480 We've got a lot of other macro issues we're contending with, 0:10:02.600 --> 0:10:06.920 but certainly geopolitical risk with China is at the top 0:10:06.920 --> 0:10:11.440 of the geopolitical risk table, and certainly you know the 0:10:11.480 --> 0:10:15.880 situation with Taiwan and now just this general competitive tension 0:10:16.200 --> 0:10:19.760 that we seem to have going on with the Chinese. 0:10:19.559 --> 0:10:24.800 The Trade Secretary's recent visit Jui Romando didn't really go 0:10:24.880 --> 0:10:28.959 over that well. So it's definitely something that investors are 0:10:29.000 --> 0:10:31.480 going to have to monitor, especially in light. 0:10:31.320 --> 0:10:31.520 Of the. 0:10:34.000 --> 0:10:39.040 Recent regulations around semiconductors and you know US banning their 0:10:39.080 --> 0:10:41.880 access to certain high end semis. They're trying to do 0:10:41.960 --> 0:10:45.640 the same to us in other areas. We've got Nvidia involved, 0:10:45.760 --> 0:10:48.760 So it's definitely something that investors are going to have 0:10:48.800 --> 0:10:49.200 to watch. 0:10:50.160 --> 0:10:53.120 Alec Young, chief investment strategist at MAP Signals, thank you. 0:10:53.120 --> 0:10:56.079 A perfect segue, because the other top story is s 0:10:56.200 --> 0:11:00.160 k Heinex has opened an investigation into the use of 0:11:00.200 --> 0:11:03.200 its chips in the latest phone from Huawei after a 0:11:03.240 --> 0:11:07.400 tear down commissioned by Bloomberg of the latest device revealed 0:11:07.400 --> 0:11:11.479 that s ke Heinez's memory and flash storage was inside, 0:11:11.880 --> 0:11:15.600 though the Korean maker confirmed to Bloomberg it has not 0:11:15.720 --> 0:11:19.040 worked with Huawei and it has been adhering Caroline to 0:11:19.280 --> 0:11:22.320 US sanctions. This is an incredible story and. 0:11:22.240 --> 0:11:26.040 This is where politics and of course supply chain really 0:11:26.120 --> 0:11:29.600 intertwine and timing. We were just mentioning Gina Romando, of 0:11:29.600 --> 0:11:32.800 course was over there in China Commerce Secretary. At that 0:11:32.880 --> 0:11:36.800 exact moment, Huawei very quietly unleashes this new product, the 0:11:36.880 --> 0:11:39.480 Mate sixty. We all wonder where the chippers come from. 0:11:39.559 --> 0:11:42.679 Is s mic Smick as has known, or have they 0:11:42.760 --> 0:11:46.160 been bypassing some of these very stringent what do they 0:11:46.160 --> 0:11:49.280 call it, sort of a high walls the ability of 0:11:49.400 --> 0:11:52.240 the US seemingly been trying to cut them off from 0:11:52.280 --> 0:11:54.320 the supply chain that they still manage to access. 0:11:55.040 --> 0:11:57.080 This is how it came about. Huawei put out the 0:11:57.080 --> 0:11:59.719 Mate sixty pro. Bloomberg News got their hands on one, 0:12:00.000 --> 0:12:02.440 took it to Tech Insights, they did a tear down. 0:12:02.720 --> 0:12:05.559 One of the main processors was made in China by Smick. 0:12:05.960 --> 0:12:09.360 And now they've uncovered two memory chips nand in a 0:12:09.440 --> 0:12:12.440 high end or next gen d ram that are covered 0:12:12.440 --> 0:12:15.560 by sanctioned sa Gainitz has responded straight away saying, look, 0:12:15.559 --> 0:12:18.199 we didn't know about this, We did not work with Huawei. 0:12:18.520 --> 0:12:23.080 And meanwhile, it's been this sort of moment to celebrate 0:12:23.200 --> 0:12:25.760 for the Chinese at least this idea that they're able 0:12:25.800 --> 0:12:29.680 to produce these incredibly powerful chips in their own country, 0:12:29.920 --> 0:12:32.920 supply them, and therefore make an incredibly powerful new phone 0:12:32.960 --> 0:12:34.920 that some analysts are saying, could this be the Apple 0:12:35.000 --> 0:12:37.840 killer in China? And the question is is how much 0:12:37.880 --> 0:12:41.080 they have managed to really build and operate and become 0:12:41.240 --> 0:12:44.199 self sustaining when it comes to their own semiconductors in China. 0:12:44.320 --> 0:12:46.920 We continue to dig into that key geopolitical story. We 0:12:47.000 --> 0:12:49.040 continue to think about the knock on a Fox effects 0:12:49.080 --> 0:12:51.960 for the entire border market ed because this is a 0:12:52.040 --> 0:12:55.040 key concern China US what it means for Apple. Of course, 0:12:55.040 --> 0:12:56.720 when you've got the big bell, whether that is Apple 0:12:56.800 --> 0:12:58.680 under pressure, you're going to have the whole nastac. 0:12:58.360 --> 0:12:59.160 On the downside. 0:12:59.280 --> 0:13:01.720 But just think who was thinking was it was actually 0:13:01.720 --> 0:13:03.360 in the green earlier trade. It's now off by more 0:13:03.360 --> 0:13:05.640 than two percent. We're seeing some other key players, and 0:13:05.679 --> 0:13:09.040 we've mentioned the suppliers to Apple being under pressure, The 0:13:09.080 --> 0:13:11.480 Coal com for example two year yield. Though interesting that 0:13:11.480 --> 0:13:13.200 we're seeing the bond market just get a little bit 0:13:13.240 --> 0:13:15.800 of bid on the front end. Now we've seen, of 0:13:15.840 --> 0:13:18.160 course many wondering about where. 0:13:18.000 --> 0:13:19.120 We see the federal reserve go. 0:13:19.200 --> 0:13:21.960 The job bless hims today once again strength in the 0:13:22.040 --> 0:13:24.920 US jobs market. But for now, maybe we get a 0:13:24.920 --> 0:13:27.240 little bit of buying moment after the sell off that 0:13:27.240 --> 0:13:29.360 we've seen in the bond market of late. Euro under 0:13:29.400 --> 0:13:32.040 pressure because we've got very weak European data over all, 0:13:32.080 --> 0:13:34.720 the really peeking out the tiniest bit of growth in 0:13:34.760 --> 0:13:36.640 the second quarter. What does that mean for the ECB 0:13:36.760 --> 0:13:39.040 The euro is down versus the US dollar, so much 0:13:39.080 --> 0:13:40.839 more to come on the macro and the micro. This 0:13:40.960 --> 0:13:42.400 is win bog technology. 0:13:57.480 --> 0:13:58.440 Time for talking tech. 0:13:58.480 --> 0:14:00.959 First up, California Governor Gain having use and signed and 0:14:01.080 --> 0:14:05.040 executive order on AI regulation that it instructs state agencies 0:14:05.400 --> 0:14:08.960 to examine how artificial intelligence might threaten the security and 0:14:09.000 --> 0:14:13.360 privacy of California residents, while also authorizing state employees to 0:14:13.480 --> 0:14:17.080 experiment with AI tools and try integrating them into the 0:14:17.080 --> 0:14:17.920 state's operations. 0:14:17.960 --> 0:14:19.240 Use some tol Bloomberg News. 0:14:19.400 --> 0:14:22.280 There's a Pandora's box being opened here and we just 0:14:22.360 --> 0:14:26.000 want it done in a safe way. Plus billionaire Patrick 0:14:26.080 --> 0:14:30.040 Drahi's debt laid in telecommunications empire Altice is weighing the 0:14:30.080 --> 0:14:33.040 sale of its French data centers in a deal valued 0:14:33.080 --> 0:14:35.200 at one point one billion dollars, as well as the 0:14:35.200 --> 0:14:38.360 sale of part of the capital of Altis France, and 0:14:38.440 --> 0:14:42.680 options for Portugal Telecom and its ad tech company Teeds. 0:14:42.720 --> 0:14:45.120 All of this in an effort to shore up confidence 0:14:45.160 --> 0:14:48.000 in his network of businesses, which have been battered by 0:14:48.000 --> 0:14:52.000 a Portuguese corruption probe targeting key figures linked to our teas. 0:14:52.080 --> 0:14:55.400 And Finally, a fintech owner in London is facing allegations 0:14:55.400 --> 0:14:59.320 that he helped notorious drug traffickers attempt to launder hundreds 0:14:59.320 --> 0:15:02.600 of millions of euros through a crypto exchange platform. The 0:15:02.600 --> 0:15:05.240 thirty eight year old Italian is alleged to have converted 0:15:05.280 --> 0:15:08.720 piles of cash into crypto accounts for a criminal gang. 0:15:08.760 --> 0:15:11.800 The case puts the British financial technology scene under fresh 0:15:11.800 --> 0:15:15.080 scrutiny amid fears that its weak controls are enabling the 0:15:15.120 --> 0:15:17.680 movement of illicit funds around the world. 0:15:18.040 --> 0:15:21.640 Caroline really global set of stories there and and look 0:15:21.680 --> 0:15:23.320 now we're going to return a bit more to home 0:15:23.480 --> 0:15:26.360 and for the IPO market, we are gearing up online 0:15:26.400 --> 0:15:30.400 grocery delivery startup and indeed on more broadly e commerce tools. 0:15:30.480 --> 0:15:33.320 Instacart it's preparing to set a price range for its 0:15:33.360 --> 0:15:36.000 IPO and start its investor roadshow as early as the 0:15:36.000 --> 0:15:38.480 coming Monday. Boy, have we got this back to school 0:15:38.480 --> 0:15:40.040 feeling right now? And I'm pleased to welcome to the 0:15:40.080 --> 0:15:43.600 showroomg Ryan Gould, who really can set the scene of 0:15:43.640 --> 0:15:45.760 what story they're going to be trying to tell investors 0:15:45.760 --> 0:15:46.840 on this roadshow come Monday. 0:15:47.080 --> 0:15:48.120 Yeah, thanks, Caroline. 0:15:48.160 --> 0:15:50.400 I think you know, there's certainly some energy as we 0:15:50.440 --> 0:15:52.280 head into this back to school period. Dare I say 0:15:52.280 --> 0:15:54.960 probably a little bit of cautious optimism. You know, there's 0:15:54.960 --> 0:15:57.280 a set of new IPOs that sort of been talked 0:15:57.280 --> 0:16:00.440 about for you know, months, if not years in instacar case. 0:16:01.160 --> 0:16:02.920 You know, as we said, instacart is about to said 0:16:02.920 --> 0:16:04.880 it's price range as early as Monday, kick off a 0:16:04.960 --> 0:16:07.680 road show, and then they could look to price it 0:16:07.680 --> 0:16:10.120 as soon as the nineteenth, so almost a week later 0:16:10.440 --> 0:16:12.720 trading on the twentieth. I think, you know, this is 0:16:12.760 --> 0:16:15.000 a point that you know, we're starting to see people 0:16:15.080 --> 0:16:18.400 sort of jostling for position. Armor is already out there. 0:16:18.440 --> 0:16:20.280 It's the biggest ipea of the year. They've got their 0:16:20.320 --> 0:16:23.720 price range, could be pricing soon. But you know, there's 0:16:23.720 --> 0:16:26.160 certainly some energy, I would say, and I think probably 0:16:26.160 --> 0:16:27.840 there are quite a few investors who are starting to 0:16:27.840 --> 0:16:31.000 feel a little more constructive about how we think about 0:16:31.080 --> 0:16:32.120 hypos in the US. 0:16:32.640 --> 0:16:36.120 Mangled great to have them on very early to the game. 0:16:36.160 --> 0:16:37.960 In terms of Bloomberg, I think we've just welcomed into 0:16:38.000 --> 0:16:44.600 the company and already right here I'm going to beg technology. 0:16:48.560 --> 0:16:49.960 Time now for work shifting. 0:16:50.000 --> 0:16:51.840 It's where look we look at the changing landscape of 0:16:51.880 --> 0:16:55.000 the labor market amid advances in technology and today. But 0:16:55.400 --> 0:16:58.440 job Stata initial jobbers claims in particular showing resilience in 0:16:58.480 --> 0:17:01.800 this workforce lowest levels for job as claims amid a 0:17:01.880 --> 0:17:05.360 resilient labor market for the US, But there are issues 0:17:05.640 --> 0:17:08.480 historic labor force games we've actually seen in particular for women, 0:17:08.960 --> 0:17:13.160 while could be eroded, could be stalled as a panemic 0:17:13.200 --> 0:17:14.440 era lifeline. 0:17:14.000 --> 0:17:16.200 To daycare providers expires, with more than. 0:17:16.119 --> 0:17:19.800 Seventy thousand childcare programs estimated to be in danger of closing. 0:17:20.240 --> 0:17:23.119 Joining US now to discuss look whether technology can. 0:17:22.960 --> 0:17:23.880 Off set this setback. 0:17:24.040 --> 0:17:26.159 Alan of Ekowitz is a general partner at Spring Bank, 0:17:26.160 --> 0:17:29.159 which invests in early stage companies building look infrastructure to 0:17:29.240 --> 0:17:33.440 enable working women and families to succeed and ultimately, can 0:17:33.520 --> 0:17:36.520 technology be any sort of solution in this scenario. It 0:17:36.560 --> 0:17:38.399 seems like a terrible scenario at that. 0:17:39.400 --> 0:17:42.399 Yeah, so it's not a great scenario. It's pretty bad timing. 0:17:42.400 --> 0:17:44.359 We're here at the start of the school year. Against 0:17:44.359 --> 0:17:47.320 most expectations, the percentage of moms of young children in 0:17:47.320 --> 0:17:51.520 the workforce is actually higher than ever having recovered post pandemic, 0:17:51.520 --> 0:17:55.240 which has huge consequences for women's lifetime earnings and career trajectories. 0:17:55.280 --> 0:17:58.000 But as you just meant it, mention, we're about to 0:17:58.040 --> 0:18:00.800 lose twenty four billion dollars in stimulus, which might put 0:18:00.800 --> 0:18:03.280 three hundred children's childcare slots it. 0:18:03.240 --> 0:18:05.400 At risk, and of course put it risk the. 0:18:05.359 --> 0:18:08.200 Ability for all of these women to continue to participate 0:18:08.200 --> 0:18:10.360 in the workforce. And to be really clear, of course, 0:18:10.440 --> 0:18:12.920 this isn't just a mom issue. It's an economy issue. 0:18:13.040 --> 0:18:14.280 It's an inviolent issue. 0:18:14.320 --> 0:18:17.360 And you say, rightly, so it's an impact on GDP, 0:18:17.560 --> 0:18:22.359 on earnings. What about though anyways that in companies you 0:18:22.480 --> 0:18:25.560 invest in can be some sort of support amid perhaps 0:18:25.680 --> 0:18:28.160 slowing money funds coming towards these childcad. 0:18:28.480 --> 0:18:32.160 Yeah, so you know, of course, innovation can't replace infrastructure 0:18:32.160 --> 0:18:35.679 and public policy, it can augment. So technology and startup 0:18:35.720 --> 0:18:39.080 solutions can't print money. But there's a lot that we 0:18:39.119 --> 0:18:41.800 can do to make it easier for families to find access, 0:18:41.880 --> 0:18:44.160 VET and pay for childcare, and of course for care 0:18:44.240 --> 0:18:48.719 businesses themselves, which are often pretty small mom and pop operations, 0:18:48.760 --> 0:18:51.640 to run more efficiently and effectively. So maybe I'll give 0:18:51.680 --> 0:18:54.800 one example from our portfolio, and also happy to talk 0:18:54.840 --> 0:18:58.399 more broadly about areas where we think technology can make 0:18:58.400 --> 0:19:01.040 a really big impact. But we're investors in a wonderful 0:19:01.080 --> 0:19:05.120 company called Wealthy, which combines digital tools, AI and world 0:19:05.119 --> 0:19:08.200 class human expertise to basically serve as a care coordinator 0:19:08.560 --> 0:19:11.119 for the employees of some of the US's largest employers 0:19:11.160 --> 0:19:14.680 like best Buy, Cisco, Hilton, and basically they match families 0:19:14.760 --> 0:19:19.080 with care professionals, automate workflows, automate workfloads to get tasks 0:19:19.080 --> 0:19:21.760 done faster while they're looking for a home healthcare aid, 0:19:21.800 --> 0:19:24.600 pure aging mother, or backup childcare for your kids so 0:19:24.600 --> 0:19:27.280 you don't have to miss work. So that's just one 0:19:27.280 --> 0:19:30.120 example in our own portfolio. But you know, we think 0:19:30.160 --> 0:19:34.639 beyond backup care and childcare specifically, there's a lot of 0:19:34.680 --> 0:19:39.600 opportunities for technology to improve the overall care economy, ranging 0:19:39.680 --> 0:19:42.960 from you know, first it can make hopefully care jobs better. 0:19:43.200 --> 0:19:46.480 Yeah, dare I say artificial intelligence in that sentence? 0:19:47.720 --> 0:19:50.040 Listen if we're if we don't talk about AI, are 0:19:50.040 --> 0:19:54.679 we even doing a technology show right now? Surely you 0:19:54.720 --> 0:19:57.000 know we know that, for instance, healthcare worker burnout is 0:19:57.040 --> 0:19:59.879 an enormous problem in the industry across the care co 0:20:00.000 --> 0:20:02.680 I mean, there's one point eight million vacancy US right now, 0:20:03.000 --> 0:20:06.000 and for instance, things like automation or AI supported charting 0:20:06.040 --> 0:20:09.680 and documentation could cut that work dramatically, giving people time 0:20:09.760 --> 0:20:13.120 back in their schedules, hopefully improving some of the burnout crisis. 0:20:13.160 --> 0:20:16.640