WEBVTT - Biden in Poland and Apple's $200K Bonuses 0:00:02.840 --> 0:00:06.120 From the heart of where innovation, money and power Colli 0:00:06.960 --> 0:00:11.479 in Silicon Valley and beyond. This is Bloomberg Technology with 0:00:11.560 --> 0:00:27.159 Emily Jay. I'm Emily Jack in San Francisco, and this 0:00:27.200 --> 0:00:30.080 is Bloomberg Technology. Coming up in the next hour. President 0:00:30.120 --> 0:00:34.120 Biden in Poland at the center of Ukraine's refugee crisis 0:00:34.320 --> 0:00:37.839 as Russia's military focuses on taking full control of the 0:00:37.880 --> 0:00:41.320 dome bas region, but falters in Key. We'll look at 0:00:41.320 --> 0:00:46.120 the continuing fallout from the war from cyberspace to outer space, 0:00:47.080 --> 0:00:51.199 plus Apple dolling out an additional unusual bonus to Key 0:00:51.240 --> 0:00:54.680 engineers some upwards of two hundred thousand dollars. How to 0:00:54.760 --> 0:00:57.680 keep staff loyal as the post pandemic war for talent 0:00:58.160 --> 0:01:01.320 ramps up. We'll have more on that. Bloom School and 0:01:01.400 --> 0:01:04.160 install cart also trying to lawre new employees by taking 0:01:04.200 --> 0:01:10.680 an unexpectedly lower valuation, slashing its own valuation by almost 0:01:10.720 --> 0:01:14.440 from thirty nine to twenty four billion dollars. This is 0:01:14.480 --> 0:01:19.640 public market volatility continues. We'll discuss another work school all 0:01:19.640 --> 0:01:21.040 of that in a moment, but first let's get a 0:01:21.080 --> 0:01:23.000 look at the market. Tech stocks and in the week 0:01:23.080 --> 0:01:25.959 down are at Ludlow here now with the latest and 0:01:25.959 --> 0:01:28.080 it's not all bad news right now. Okay, look we're 0:01:28.080 --> 0:01:30.080 a little lower flat on a Friday, but we did 0:01:30.080 --> 0:01:31.960 see a late come back from the ASTAC one D 0:01:32.160 --> 0:01:35.520 very tech heavy index. Of course, that's his oil trim games. 0:01:35.520 --> 0:01:37.800 You see w t I West Texas in the media 0:01:37.840 --> 0:01:41.880 above a hundred ten dollars a barrel higher a hundred 0:01:41.959 --> 0:01:45.040 thirteen aout in US tenure yield at two point four 0:01:45.160 --> 0:01:47.280 seven percent nears two and a half percent. But coming 0:01:47.319 --> 0:01:49.200 me into my bloombow terminal, will look we have some 0:01:49.320 --> 0:01:52.600 sustained momentum in tech stocks and has that one hundred 0:01:52.760 --> 0:01:56.120 having his first back to back weekly gain since the 0:01:56.160 --> 0:01:59.240 beginning of February that despite the backdrop of higher yields. 0:01:59.240 --> 0:02:03.760 Of course, yields has impacted tech stocks with higher multiples. 0:02:03.800 --> 0:02:07.560 This concerned, of course, that it discounts the present value 0:02:07.760 --> 0:02:10.440 of future profits Elsewhere big tech names on the move, 0:02:10.480 --> 0:02:13.920 of course, this Friday, looking at Meta parent company of Facebook, 0:02:14.120 --> 0:02:16.440 it looks like the US and EU has reached a 0:02:16.480 --> 0:02:19.359 deal and accord over data movement, the flow of data 0:02:19.600 --> 0:02:22.120 between the two continents. Facebook was a company to express 0:02:22.160 --> 0:02:24.799 concern their octa continues to be lower off that high 0:02:24.840 --> 0:02:29.239 can Spotify ending its ad platform, add back platform, free 0:02:29.280 --> 0:02:31.480 to play platform in Russia as well. Emily, all right, 0:02:31.880 --> 0:02:34.080 thanks for that update. I want to move now to 0:02:34.200 --> 0:02:37.600 our top story. Talks between Russia and Ukraine are making 0:02:37.639 --> 0:02:41.320 no progress, according to a top aid to the Ukrainian president, 0:02:41.400 --> 0:02:44.400 but President Biden did make progress with EU leaders on 0:02:44.440 --> 0:02:48.280 a plan to wean Europe off Russian oil and Titan sanctions. 0:02:48.480 --> 0:02:51.600 The President also visiting troops near Poland's Ukrainian border as 0:02:51.639 --> 0:02:55.200 the war enters its second month. Joining US now works 0:02:55.200 --> 0:02:58.680 Aggie Council from the ground in Poland. Aggie, you have 0:02:58.800 --> 0:03:01.680 been near the Polish border since almost the beginning of 0:03:01.720 --> 0:03:04.919 the war. Talked to us about how the refugee crisis 0:03:04.960 --> 0:03:10.360 you're seeing is evolving. Yes, So when I first came 0:03:10.400 --> 0:03:14.360 here several weeks ago now, the waiting times for people 0:03:14.400 --> 0:03:17.320 to try and cross the border was up to sixty hours, 0:03:17.400 --> 0:03:20.040 which in a Polish and Ukrainian winter can be a 0:03:20.120 --> 0:03:22.639 real risk to people's lives, and that was a real 0:03:22.680 --> 0:03:25.440 concern for the border guards and for the authorities on 0:03:25.480 --> 0:03:28.280 both sides of the border. Now we're seeing that that 0:03:28.400 --> 0:03:32.079 process of getting people over the border has been streamlined, 0:03:32.120 --> 0:03:34.640 and it's also coupled with the fact that there are 0:03:34.680 --> 0:03:37.320 actually fewer people crossing the border now than where a 0:03:37.320 --> 0:03:40.200 couple of weeks ago. When I speak to volunteers on 0:03:40.240 --> 0:03:43.120 the ground here, a lot of them think that quite 0:03:43.120 --> 0:03:45.160 a lot of the people who have already crossed the 0:03:45.160 --> 0:03:47.440 border are those who are already going to do so, 0:03:47.800 --> 0:03:50.240 and then the ones who remain in the Ukraine are 0:03:50.360 --> 0:03:54.000 choosing to do so to be closer to their families. Now, 0:03:54.160 --> 0:03:58.600 President Biden's visit to the Polish border, is any of 0:03:58.600 --> 0:04:03.160 this changing how he feels how the US will respond 0:04:03.200 --> 0:04:08.280 to Russia. Well, to be honest, there is an immediate 0:04:08.360 --> 0:04:11.680 effect of Biden's visit in the fact that the day 0:04:11.720 --> 0:04:15.960 before he arrived here in Gejov in Poland, he and 0:04:16.080 --> 0:04:19.279 now or the White House announced that the USA would 0:04:19.320 --> 0:04:22.839 be taking in a hundred thousand of the Ukrainian refugees. 0:04:23.080 --> 0:04:26.400 Of course, that pales in comparison to the two million 0:04:26.560 --> 0:04:30.159 that Poland has has taken in. However, that is a 0:04:30.200 --> 0:04:32.880 significant step on the part of the United States, and 0:04:32.960 --> 0:04:36.640 him coming here is also a signal to Poland that 0:04:36.680 --> 0:04:40.640 they're acknowledging the humanitarian relief that Poland is doing here. 0:04:40.880 --> 0:04:44.000 And also Poland has been pushing for the EU to 0:04:44.200 --> 0:04:47.840 give them greater aid when it comes to financially supporting 0:04:47.920 --> 0:04:52.159 them throughout this refugee crisis. What's next for the president 0:04:52.200 --> 0:04:57.280 worth He after he's heading to Warsaw after this, So 0:04:57.360 --> 0:05:02.240 he's going to meet with more people in Warsaw. Today 0:05:02.360 --> 0:05:05.200 he already met with the age second airborn here in 0:05:05.320 --> 0:05:08.400 chechov Um and now he's going on to Warsaw, the 0:05:08.440 --> 0:05:11.680 capital of Poland, in order to have further meetings. And 0:05:11.760 --> 0:05:14.960 so a key factor of this this meets, these meetings 0:05:14.960 --> 0:05:17.160 that he's having here in Poland is not just the 0:05:17.240 --> 0:05:22.440 humanitarian angle, but also the security angle President due to 0:05:22.720 --> 0:05:26.600 the Polish President said in his press conference today with 0:05:26.720 --> 0:05:30.359 President Biden that he that he saw that his country 0:05:30.480 --> 0:05:34.560 was essentially the front line of the current concerns that 0:05:34.640 --> 0:05:38.040 the Native Alliance have when it comes to Russia's aggression 0:05:38.120 --> 0:05:41.880 against Ukraine. All Right, bloombergs Aggie Control for us with 0:05:41.960 --> 0:05:44.719 an update from Poland. Thank you, Aggie for your reporting 0:05:44.720 --> 0:05:48.840 there from the ground. Meantime, cybersecurity defenses around the globe 0:05:48.839 --> 0:05:51.760 remained boosted as the war on Ukraine persists. Joining US 0:05:51.800 --> 0:05:55.120 now Tony Anscomb, chief cyber threat officer of SET, the 0:05:55.120 --> 0:05:58.520 group that detected the latest round of cyber attacks targeting 0:05:58.720 --> 0:06:03.400 various Ukrainian organizations, and talk to us about this latest salvo. Tony, 0:06:03.480 --> 0:06:09.120 what is significance about the tactics you're seeing from the Russians. Well, firstly, 0:06:09.120 --> 0:06:13.120 these cyber tanks were data wipers, so I mean, we're 0:06:13.120 --> 0:06:16.000 all very familiar with things like ransomware. They're encrypted data 0:06:16.040 --> 0:06:17.800 and you can get it back if you pay pay 0:06:17.839 --> 0:06:20.800 the cyber criminal. These are just malicious pieces of code 0:06:21.000 --> 0:06:22.920 that actually do exactly what they say on the tin. 0:06:23.279 --> 0:06:26.080 They wipe the data so it can no longer be 0:06:26.279 --> 0:06:30.640 accessed or recovered in any way. So it's very very malicious. 0:06:30.680 --> 0:06:35.240 And what is interesting about these particular variants is there 0:06:35.440 --> 0:06:39.360 was intent here because they were compiled some of them 0:06:39.400 --> 0:06:42.760 back in the end of last year, and they've been 0:06:42.760 --> 0:06:44.960 sitting on systems and we think they've been there for 0:06:45.000 --> 0:06:48.520 some time prior to actually being implemented. We don't know 0:06:48.560 --> 0:06:50.800 how they got there, but we certainly know they've been 0:06:50.839 --> 0:06:56.120 there for some time and then unleashed to coincide with 0:06:56.400 --> 0:07:01.400 Russia's attack on the Ukraine. Now, yeah, we can't attribute 0:07:01.839 --> 0:07:05.080 where these came from or who's who have who wrote 0:07:05.120 --> 0:07:09.000 these pieces of code? Um, But yes, they're they're causing 0:07:09.640 --> 0:07:13.960 causing damage. You've detected a couple of other attacks in 0:07:14.000 --> 0:07:16.840 recent weeks, But there is this lingering question of why 0:07:16.880 --> 0:07:21.840 we're not seeing more and more devastating cyber attacks from Russia. 0:07:21.880 --> 0:07:26.640 Why is that? Well, I have my own opinion here, Emily, 0:07:26.920 --> 0:07:31.240 it could well be that. Um. You know, firstly, it's 0:07:31.320 --> 0:07:35.120 very hard to attribute a cyber attack. If somebody launches 0:07:35.120 --> 0:07:37.240 a cyber attack, actually turning around and saying it came 0:07:37.320 --> 0:07:41.760 from this personal or this this group is very difficult 0:07:41.760 --> 0:07:46.920 and complex. So if all nations states have the ability 0:07:47.000 --> 0:07:50.640 to have a cyber attack on each other, it could 0:07:50.680 --> 0:07:54.320 actually be that we're sitting here looking at the new 0:07:54.520 --> 0:07:56.720 digital deterrent in the same way we think of a 0:07:56.800 --> 0:08:01.080 nuclear deterrent. Everybody has one and it's hopefully everybody using it. 0:08:01.400 --> 0:08:04.200 Maybe that's the case where we're sitting with a digital 0:08:04.240 --> 0:08:08.320 deterrent that each side knows that they both have access 0:08:08.640 --> 0:08:12.280 to tools that could do untold damage in both in 0:08:12.360 --> 0:08:16.840 societies all over the world, and maybe we're seeing that 0:08:16.840 --> 0:08:21.560 that play out. Now, how strong do you think cyber 0:08:21.560 --> 0:08:23.760 defenses are. Of course, we've been hearing these warnings from 0:08:23.760 --> 0:08:28.160 the Widen administration that companies need to buckle up boost 0:08:28.240 --> 0:08:32.640 all of their defenses. Is it going to work? Well? Hopefully. 0:08:32.679 --> 0:08:35.000 I mean, let's be clear, over the last several years, 0:08:35.360 --> 0:08:39.480 we've seen so many cyber attacks and so much infrastructure 0:08:39.640 --> 0:08:44.160 and finance and education get at tanked by ransomware, all 0:08:44.160 --> 0:08:48.200 for monetization purposes. So a lot of organizations are already 0:08:48.360 --> 0:08:53.680 very well down the path of having the right pieces 0:08:53.679 --> 0:08:57.640 in place to keep themselves protected. This is just another 0:08:58.640 --> 0:09:02.160 bump on the a cybersecurity teams to turn and say, right, 0:09:02.280 --> 0:09:04.000 you know, we need to do a little bit more. 0:09:04.800 --> 0:09:06.600 But I think this is not you know, we're not 0:09:06.640 --> 0:09:09.120 starting from scratchy, And that's my point. One thing that 0:09:09.160 --> 0:09:12.360 concerns me though, is if you look at the number 0:09:12.400 --> 0:09:16.679 of for example, water water utility companies here in the US, 0:09:16.720 --> 0:09:19.280 it's fifty of them, and many of them are very 0:09:19.440 --> 0:09:22.280 very small and very regional, and I think they probably 0:09:22.360 --> 0:09:25.240 lack a lot of the skills and resources needed to 0:09:25.400 --> 0:09:30.199 actually create that cyber secure environment. I'm I mean, I'm 0:09:30.240 --> 0:09:32.320 not far from you down in half Moon Bay, and 0:09:32.840 --> 0:09:35.640 I'm certainly the one here in Half Moon Bay is 0:09:35.760 --> 0:09:40.920 very small and very rural. All right, Well, let's hope 0:09:41.040 --> 0:09:44.280 that all of these companies, all of these different organizations, 0:09:44.280 --> 0:09:47.200 these utilities, have what they need when it comes to 0:09:47.200 --> 0:09:50.960 protecting themselves. Tony Anscom of e Set, thank you for 0:09:51.000 --> 0:09:54.520 giving us an update on cyber space. Coming up, grocery 0:09:54.520 --> 0:09:59.680 delivery giant Instacart slashing its valuation by almost but saying 0:10:00.040 --> 0:10:03.400 too good thing for employees. At least, we'll discuss why next, 0:10:03.760 --> 0:10:21.680 Mrs Bloomberg, Apple is paying a small number of engineers 0:10:21.760 --> 0:10:25.040 another round of special stock bonuses. This is part of 0:10:25.040 --> 0:10:28.320 an unusual push to retain Key Town. According to people 0:10:28.320 --> 0:10:31.320 with knowledge of the matter. Let's bring in Bloomberg's Mark 0:10:31.320 --> 0:10:34.120 German on yet another scoop. So, Mark, look, Apple pays 0:10:34.120 --> 0:10:38.040 out bonuses all the time, but this one seems more unusual. 0:10:38.160 --> 0:10:41.240 Why are they doing this? Yes, so this is a bonus. 0:10:41.360 --> 0:10:43.640 Is the second time they're doing this. This is restricted 0:10:43.679 --> 0:10:46.560 stock you and so these vest over four years right now. 0:10:46.640 --> 0:10:50.640 Obviously inflation is very high. Bay area high housing prices 0:10:50.679 --> 0:10:53.960 are increasing per usual. Uh, you're seeing a lot of 0:10:54.000 --> 0:10:58.360 poaching being done from Amazon, Microsoft and particularly Meta Slash, 0:10:58.400 --> 0:11:01.640 Facebook of Apple employees to help build their metaverse. They're 0:11:01.679 --> 0:11:04.240 also having their stringent return to work policy kicking into 0:11:04.240 --> 0:11:06.520 place over the next several weeks. So Apple wants to 0:11:06.559 --> 0:11:09.160 do everything it can to really retain that key talent. 0:11:09.280 --> 0:11:12.120 So they're giving these massive bonuses to people working in 0:11:12.160 --> 0:11:15.800 their software from car division, software engineering, and hardware engineering, 0:11:16.120 --> 0:11:18.319 and those four your vesting periods are designed to keep 0:11:18.360 --> 0:11:21.600 those people in place for the next little while. Now, 0:11:21.640 --> 0:11:25.000 Apple is you know, certainly one of those places that 0:11:25.120 --> 0:11:27.840 has always been a magnet for top talent, and they've 0:11:27.880 --> 0:11:31.599 managed to keep people for years despite all of this competition. 0:11:31.760 --> 0:11:36.600 Is Apple facing you know, a bigger challenge with other 0:11:36.679 --> 0:11:40.040 big tech companies at this moment because of the post 0:11:40.040 --> 0:11:44.400 pandemic environment. I think every tech company is facing the 0:11:44.440 --> 0:11:47.400 same issue. Right. You have people leaving Google, you have 0:11:47.440 --> 0:11:51.160 people leaving Microsoft, Amazon, Apple, you have people leaving all 0:11:51.200 --> 0:11:53.840 of these companies, right, so they're all competing with different 0:11:53.840 --> 0:11:58.080 benefits to keep their top talent. Uh. Interestingly, Apple is 0:11:58.120 --> 0:12:00.439 the place that you go to me be if you're 0:12:01.120 --> 0:12:03.600 a veteran in your field, Right, if you're the type 0:12:03.600 --> 0:12:05.960 of person who wants to work on a product that 0:12:06.000 --> 0:12:08.000 you know is going to be used by hundreds of 0:12:08.040 --> 0:12:12.200 millions or billions of people. That's not necessarily the same 0:12:12.240 --> 0:12:15.080 perk that you get by working and maybe Meta or 0:12:15.080 --> 0:12:17.719 Google or Facebook if we're talking about hardware or one 0:12:17.800 --> 0:12:20.680 unified service. So it is pretty enticing, you know, for 0:12:20.760 --> 0:12:23.680 certain people to work at Apple. Now, Apple doesn't always 0:12:24.000 --> 0:12:26.760 pay as much as competing companies, right, I know, Meta 0:12:27.120 --> 0:12:30.120 you know is paying more than Apple for a number 0:12:30.200 --> 0:12:33.960 of very similar positions if you compare it Apples to Apples. Right. 0:12:34.360 --> 0:12:38.160 Meta also has their remote work policy in place, so 0:12:38.240 --> 0:12:40.400 you could work at Meta. You can work remotely for 0:12:40.440 --> 0:12:43.080 as long as you want, whereas Apple for three days 0:12:43.080 --> 0:12:45.640 per week you're expected in the office. Likewise, with Google 0:12:45.679 --> 0:12:47.640 you to be expected in the office three days per week. 0:12:47.679 --> 0:12:50.319 So everyone is competing for top talent in order to 0:12:50.400 --> 0:12:53.320 keep turning out these products. All right, well we'll see 0:12:53.320 --> 0:12:56.160 how that shakes out. Apples to Apples, as you say, 0:12:56.240 --> 0:13:00.679 Mark German, as always, thank you, meantime grocery to every upstart. 0:13:00.720 --> 0:13:04.640 Instacart has slashed its valuation by almost to reflect public 0:13:04.679 --> 0:13:08.120 market declines across the tech industry. The company raised money 0:13:08.120 --> 0:13:11.480 at a thirty nine billion dollar valuation last year. The 0:13:11.520 --> 0:13:14.960 new valuation twenty four billion dollars, but the company believes 0:13:14.960 --> 0:13:18.120 the new number will give new employees more upside. I 0:13:18.160 --> 0:13:20.200 want to bring in Bloombergs Jackie Dablos now for more 0:13:20.280 --> 0:13:24.200 details on this, another bloomberg scoop, So Jackie, insta cart 0:13:24.440 --> 0:13:30.160 is voluntarily lowering its valuation. This is fairly unprecedented. But 0:13:30.200 --> 0:13:32.240 of course if you look at companies like door dash 0:13:32.240 --> 0:13:36.080 where we've seen massive declines, Shopify, where we see massive declines, 0:13:36.320 --> 0:13:38.720 they say, this just makes sense. Give us a more 0:13:38.760 --> 0:13:42.239 context on why they're doing this. You put it perfectly, 0:13:42.480 --> 0:13:46.800 This is not that unusual for perhaps a public company 0:13:46.840 --> 0:13:50.800 that is already you know, has employees eyes on their 0:13:50.800 --> 0:13:54.199 share price. What instacart is doing is behaving more like 0:13:54.280 --> 0:13:57.280 a public company. There's been so much speculation that they 0:13:57.320 --> 0:13:59.880 could potentially I p O this year, but when you 0:14:00.000 --> 0:14:02.040 look at what's going on in the public markets, they 0:14:02.080 --> 0:14:04.480 took a step back and said that there's a bigger 0:14:04.600 --> 0:14:08.080 issue at play here outside of going public, which is 0:14:08.520 --> 0:14:12.280 the war for tech talent. Exactly what's going on in 0:14:12.400 --> 0:14:16.160 other companies around Silicon Valley, and so what's happening here 0:14:16.240 --> 0:14:21.160 now is that they're going to prioritize these recruitment efforts 0:14:21.280 --> 0:14:25.520 new hires entice them in by giving them shares at 0:14:25.520 --> 0:14:29.160 a lower price and then unlocking that upside as the 0:14:29.200 --> 0:14:32.480 company continues to grow. Now, as I understand, in insta 0:14:32.520 --> 0:14:35.480 cart CEO Fi g c MO explain some of their 0:14:35.480 --> 0:14:38.800 reasoning at an all hands meeting at the company today. 0:14:39.040 --> 0:14:42.800 Instacart also released this statement to us, saying, we're confident 0:14:42.800 --> 0:14:44.760 in the strength of our business, but we're not immune 0:14:44.840 --> 0:14:48.400 to the market turbulence that has impacted leading technology companies, 0:14:48.440 --> 0:14:52.200 both public and private. We can't control the market, but 0:14:52.320 --> 0:14:57.640 we can control how we respond. How do you think employees, Jackie, 0:14:57.920 --> 0:15:00.520 are going to respond to this. I mean, it is 0:15:00.560 --> 0:15:02.360 one thing if you come into a company at a 0:15:02.440 --> 0:15:05.600 thirty nine billion dollar valuation, and it's a different thing 0:15:05.640 --> 0:15:08.720 when you find out the next day it's worth billion dollars. Instead, 0:15:10.000 --> 0:15:14.320 it's a delicate balance, and they are taking a look 0:15:14.320 --> 0:15:16.240 at what it's going to take to get to the 0:15:16.280 --> 0:15:19.440 next level, to achieve that next phase of growth, and 0:15:19.520 --> 0:15:21.920 they will need the people to get there, and so 0:15:22.040 --> 0:15:26.080 absolutely for those long time employees, for even the employees 0:15:26.120 --> 0:15:29.400 of Caper. As you recall, they acquired a company for 0:15:29.560 --> 0:15:34.600 stock earlier in October. Those employees will now only you know, 0:15:34.680 --> 0:15:38.880 see a cut of about less from where the purchase 0:15:38.920 --> 0:15:42.680 price was. So there are going to be winners and losers. 0:15:42.720 --> 0:15:45.880 But this is about the long term play. And here 0:15:45.960 --> 0:15:49.960 instacart is saying we want to be a real player 0:15:50.160 --> 0:15:52.840 in this search for talent, and I think they're going 0:15:52.880 --> 0:15:54.760 to accomplish it. But you also have to think about 0:15:54.800 --> 0:15:58.640 what this means for for investors. They came in at 0:15:58.640 --> 0:16:01.720 a thirty nine billion dollar her valuation this time around. 0:16:01.800 --> 0:16:04.520 Last year they poured in two hundred and sixty five 0:16:04.680 --> 0:16:09.280 million dollars heavyweights like Andreas and Horowitz Sequoia. So there 0:16:09.320 --> 0:16:12.240 are going to be those that don't benefit from this 0:16:12.280 --> 0:16:15.400 type of move, But overall, the long term play is 0:16:15.440 --> 0:16:17.680 they're going to have the talent to really take them 0:16:17.680 --> 0:16:20.360 to the next level. Al Right, Well, our very own 0:16:20.400 --> 0:16:22.760 Bradstone is gonna be sitting down with insta Cart CEO 0:16:22.840 --> 0:16:26.440 fij cmo at Shop Talk next week. I'm sure this 0:16:26.480 --> 0:16:28.760 will be on the top of his agenda to talk 0:16:28.760 --> 0:16:30.960 to her about, so we'll be looking for highlights from 0:16:30.960 --> 0:16:33.560 that conversation. Jackie Dablos, who covers in stacart for us, 0:16:33.720 --> 0:16:36.960 thank you. Coming up in video eying a deal with 0:16:36.960 --> 0:16:40.600 one of the biggest rivals it has, and that is Intel. 0:16:40.800 --> 0:16:44.960 How the competitors could be looking to collaborate to end 0:16:45.120 --> 0:17:06.240 the chip crisis. That is next, This is Bloomberg. After 0:17:06.320 --> 0:17:09.600 returning to making computer monitors, Apple should now go back 0:17:09.640 --> 0:17:14.240 to another market, home WiFi routers. Five years ago, Apple's 0:17:14.240 --> 0:17:17.080 Mac business was a mess. The Mac mcpro had dropped 0:17:17.160 --> 0:17:20.840 key features, The MacPro was a disaster, and updates to 0:17:20.920 --> 0:17:23.600 the Macikre and mc minnie were nowhere to be found. 0:17:24.200 --> 0:17:27.879 Apple had even stopped making routers and monitors. The story 0:17:27.920 --> 0:17:31.040 today could not be more different. Maxim have a fair 0:17:31.040 --> 0:17:34.720 blend of performance, battery life and aesthetics, and Apple external 0:17:34.760 --> 0:17:38.240 monitors are back on sale. Next up should be those routers. 0:17:38.600 --> 0:17:41.960 Turned back the clock and Apple was one of the 0:17:42.000 --> 0:17:45.879 first major proponents of WiFi, launching an airport face station 0:17:45.920 --> 0:17:49.400 accessory that let users plug in Ethernet cable to give 0:17:49.440 --> 0:17:53.960 their entire home wireless Internet. Over time, Apple launched several 0:17:54.000 --> 0:17:57.320 new variations like the high end Airport Extreme, a low 0:17:57.440 --> 0:18:00.920 end Airport Express, and the Time Capsule for wirelessly backing 0:18:01.000 --> 0:18:06.080 up Mac data. But then Apple discontinued its routers without 0:18:06.080 --> 0:18:09.760 giving any real explanation, seating the market to competitors like 0:18:09.920 --> 0:18:14.400 Arrow and others. Apple should now return to making privacy focused, 0:18:14.720 --> 0:18:18.160 well designed, and well integrated routers for its own product 0:18:18.200 --> 0:18:21.560 hardware ecosystem. That router, of course, should be mesh, so 0:18:21.600 --> 0:18:25.440 it should include multiple pieces to expand wireless Internet reliably 0:18:25.640 --> 0:18:29.480 across an entire home. Apple could even jam those routers 0:18:29.480 --> 0:18:32.159 into a home pod Mini, taking a page out of 0:18:32.240 --> 0:18:35.439 Nesson's book and creating a product that competes nicely with 0:18:35.480 --> 0:18:39.639 both the Google and Amazon ecosystems. I'm Mark German. This 0:18:39.800 --> 0:18:44.760 is power On. You can subscribe to Mark's weekly power 0:18:44.800 --> 0:18:48.359 On newsletter at Bloomberg dot com. Now let's get an 0:18:48.400 --> 0:18:51.119 update on the world of chips within video. One of 0:18:51.119 --> 0:18:53.560 the world's biggest chip makers said earlier this week it 0:18:53.640 --> 0:18:58.480 is considering tapping its main rival Intel to manufacture those chips. 0:18:58.600 --> 0:19:00.640 Let's get more on this with our very own in King, 0:19:00.720 --> 0:19:03.880 who of course covers the chip industry for us. Why 0:19:03.920 --> 0:19:09.200 would nvidio Ian decide to use Intel as its foundry. Yeah, 0:19:09.240 --> 0:19:11.919 I mean it's important to put these remarks in context. 0:19:12.400 --> 0:19:15.880 Kind of typical piece of Jensen lying the CEO, kind 0:19:15.880 --> 0:19:19.840 of talking really he said, look, we're open to looking 0:19:19.880 --> 0:19:23.359 at any new suppliers. Having as many supplies as we 0:19:23.400 --> 0:19:27.520 can possibly get makes sense Intel, if you know, if 0:19:27.520 --> 0:19:29.639 they can get back to leading edge, if they can 0:19:29.680 --> 0:19:33.119 get back to you know, the best production, best performance, 0:19:33.560 --> 0:19:38.000 then will definitely look at them. So what's the next 0:19:38.040 --> 0:19:41.280 step here, what's going to get Intel over the line 0:19:41.480 --> 0:19:44.959 or an invidio say over the line? Yeah, I mean 0:19:45.000 --> 0:19:48.560 the the other side of the gentsen wing experiences. He 0:19:48.640 --> 0:19:52.560 you know, he makes positive complementary remarks about Intel, says 0:19:52.560 --> 0:19:54.080 this is the right thing for Intel to do, and 0:19:54.119 --> 0:19:56.760 then says, oh, by the way, yeah, you know, getting 0:19:56.800 --> 0:19:58.480 to be as good as TSMC is going to be 0:19:58.560 --> 0:20:01.600 really difficult. They'll have to change their whole culture. And 0:20:01.640 --> 0:20:05.920 he starts on this long list of comparisons, unfavorable comparisons 0:20:05.920 --> 0:20:09.000 with TSMC and Samsung and says how good they are. 0:20:09.080 --> 0:20:12.280 So the bottom line is, he said, it will take 0:20:12.320 --> 0:20:16.480 a long time. Now, yesterday we slash you also broke 0:20:16.560 --> 0:20:19.160 some news about the arm I p O and looking 0:20:19.200 --> 0:20:23.199 at a sixty billion dollar valuation. This, of course, that 0:20:23.320 --> 0:20:26.640 deal that in video couldn't close. Sixty billion seems high, 0:20:26.680 --> 0:20:29.960 doesn't it It does? I mean if you compare it 0:20:30.040 --> 0:20:34.600 to what the semi conductor sort of average multiples would 0:20:34.600 --> 0:20:39.040 give you its turn twenty billion dollars above what even 0:20:39.080 --> 0:20:41.239 the highest end would be. But if you look at 0:20:41.280 --> 0:20:44.479 it from the price of what the video transaction had become, 0:20:44.720 --> 0:20:48.199 given the appreciation of video shares, it's about on par 0:20:48.440 --> 0:20:51.080 with what in video would have ended up paying for ARM. 0:20:51.520 --> 0:20:53.840 And what we're being told is that this is really 0:20:53.880 --> 0:20:56.760 just trying to set a floor in people's minds about 0:20:56.800 --> 0:21:00.480 what really soft Bank thinks this company is worth, because this, 0:21:01.040 --> 0:21:05.000 as Massa Sonders said, this is a really pervasive company. 0:21:05.040 --> 0:21:09.440 These companies everywhere. It's way more than just another chip company. 0:21:09.600 --> 0:21:11.760 And this ARM I p O is way more than 0:21:11.800 --> 0:21:14.600 just a traditional I p O. Right, It's kind of complicated, 0:21:15.560 --> 0:21:17.600 that's right. I mean, there's obviously a lot of stake. 0:21:17.680 --> 0:21:20.399 There's obviously one of the most important companies in the 0:21:20.480 --> 0:21:23.639 semiconductor industry, what will be the largest I p O 0:21:23.720 --> 0:21:25.960 in the sector by a long way. And at the 0:21:26.000 --> 0:21:28.520 same time, soft Bank, as we said in the stories, 0:21:28.600 --> 0:21:31.720 topping these tapping these banks and saying, oh, yes, if 0:21:31.720 --> 0:21:33.919 you want to underwrite this I p O, then you're 0:21:33.920 --> 0:21:36.639 going to have to basically loan us some money. You know, 0:21:36.680 --> 0:21:40.280 it's it's attaching multiple billions of dollars of margin loans 0:21:40.320 --> 0:21:43.640 to the mandate, which again is is an interesting way 0:21:43.680 --> 0:21:46.840 to do things and obviously has you know, potentially positive 0:21:46.840 --> 0:21:51.840 consequences for softbanks liquidity. Alright, and King, thank you for 0:21:52.080 --> 0:21:54.920 those updates and all the news this week coming up, 0:21:55.160 --> 0:21:59.080 Why everyone seems to be searching for evs on Google 0:21:59.280 --> 0:22:02.359 this month? Put the more on Ukraine and rising gas 0:22:02.400 --> 0:22:06.119 prices be an inflection point for the world's transition to 0:22:06.280 --> 0:22:09.840 electric cars. We love more on that next, plus advice 0:22:09.880 --> 0:22:12.920 for startups in uncertain times as the war on Ukraine 0:22:12.920 --> 0:22:59.000 and inflation rattle markets worldwide. This is Bloomberg. Welcome back 0:22:59.000 --> 0:23:01.320 to Bloomberg Technology. I'm only chang in San Francisco. I 0:23:01.359 --> 0:23:04.399 want to talk about what's going viral now. As gas 0:23:04.440 --> 0:23:07.680 prices surge at the pump this month, swarms of people 0:23:07.720 --> 0:23:11.199 took to Google to search all things ev top of 0:23:11.240 --> 0:23:13.639 the pile of questions, how much does it cost to 0:23:13.760 --> 0:23:16.800 charge an electric car? Searches for that phrase. We're up 0:23:17.880 --> 0:23:21.040 this month according to Google, trends are at Ludlow is 0:23:21.280 --> 0:23:23.560 here with why and and we've all felt that pain 0:23:23.600 --> 0:23:27.280 at the pump and it hurts. Could all this searching 0:23:27.400 --> 0:23:30.000 be the beginning of a big transition, a big momentum 0:23:30.040 --> 0:23:32.520 shift for e v s. Yeah, that's what everyone's been 0:23:32.560 --> 0:23:34.960 talking about. Right now is a good time to own 0:23:34.960 --> 0:23:37.359 an EVY. You look at the relative cost of running 0:23:37.359 --> 0:23:40.439 a car on gas versus running on electricity, and the 0:23:40.480 --> 0:23:42.960 gap has just got wider in terms of costs of ownership. 0:23:43.000 --> 0:23:46.320 Plugging in and charging has been more cost effective. So 0:23:46.359 --> 0:23:48.680 we've seen it. People take to Google. There's other third 0:23:48.680 --> 0:23:52.120 party data out there through online auctions, for example, second 0:23:52.119 --> 0:23:54.760 hand car websites. They're thinking, where can I get an 0:23:54.760 --> 0:23:59.560 EVY as soon as possible. Celebrities are also jumping in 0:23:59.680 --> 0:24:01.960 on the fun here, and there was a tweet from 0:24:02.240 --> 0:24:07.200 iced Tea that got a lot of attention. Iced Tea 0:24:07.800 --> 0:24:09.919 so he makes this joke right that he's at the 0:24:09.920 --> 0:24:13.960 gas station and he's been robbed. He says, I've been robbed, 0:24:14.280 --> 0:24:16.400 and he has this kind of long, dire tribe through 0:24:16.400 --> 0:24:18.359 the tweet. Get to the end of the tweet and 0:24:18.400 --> 0:24:21.840 you realize he's talking literally, of course, about the price 0:24:21.880 --> 0:24:26.440 of gas, not that he's literally been physically robbed while 0:24:26.440 --> 0:24:30.000