WEBVTT - The Fed's Rate Decision and TikTok's CEO Testimony 0:00:01.480 --> 0:00:04.840 From Bahard of We're Innovation, Money and power can lie 0:00:05.040 --> 0:00:09.760 in Silicon Valley, NBR. This is Bloomberg Technology with Caroline 0:00:09.840 --> 0:00:26.600 Hyde and Ed Ludlow. I'm Caroline Hyder Blom Mugs World 0:00:26.600 --> 0:00:29.120 Taquarters in New York and Ludlow is off today. This 0:00:29.240 --> 0:00:31.960 is Bloomberg Technology coming up. We count you down to 0:00:32.000 --> 0:00:35.200 the f O MC rate decision. Is VC exposed? Banks 0:00:35.240 --> 0:00:38.640 continue to struggle? We assess what it all means, protect 0:00:38.680 --> 0:00:42.080 your investments, the jobs in the sector with VC's and 0:00:42.120 --> 0:00:45.000 founders across this show, and as we get the c 0:00:45.200 --> 0:00:48.600 suite perspective for you too, Adobe CEO, we go live 0:00:48.640 --> 0:00:51.680 to the Creative Software Giants Summit conference in Las Vegas, 0:00:51.920 --> 0:00:55.320 whilst full coverage on TikTok as it's chief prepares to 0:00:55.320 --> 0:00:58.320 defend the social media company on Capitol Hill tomorrow Canny 0:00:58.360 --> 0:01:01.400 as wage lawmakers push a ban or a forced sale. 0:01:01.640 --> 0:01:04.280 We'll bring you those details and so much more throughout 0:01:04.280 --> 0:01:07.280 the show. First, let's go to the CEO perspective on 0:01:07.360 --> 0:01:09.840 the micro on their own news on the Macro. Joining 0:01:09.920 --> 0:01:12.480 us from the Adobe Summit conference in Las Vegas is 0:01:12.520 --> 0:01:16.320 Adobe CEO Chintannu Narayan, and it's great to have you 0:01:16.440 --> 0:01:19.640 chanton making important announcements as you do on the day 0:01:19.640 --> 0:01:23.840 in new generative AI offerings. But first, chantonneu your perspective, Sir, 0:01:24.040 --> 0:01:27.120 you've led this business as CEO since two thousand and seven. 0:01:27.319 --> 0:01:30.039 You know what it's like to lead a giant through 0:01:30.200 --> 0:01:34.399 a financial instability issue, through a bank crisis. What do 0:01:34.440 --> 0:01:40.800 you make of the macro economic environment for Adobe right now? Well, Caroline, 0:01:40.840 --> 0:01:43.199 thank you so much for having me on your show. 0:01:43.319 --> 0:01:45.720 And as you know, we just announced our Q one 0:01:45.840 --> 0:01:50.280 results and for us, digital really just continues to be 0:01:50.440 --> 0:01:55.680 a massive tailwind because it's reshaping how we live, how 0:01:55.720 --> 0:01:59.480 we work, how we're entertained. And Adobe has always really 0:01:59.560 --> 0:02:03.000 focused on ensuring that we build a company for the 0:02:03.080 --> 0:02:06.680 long run. You're absolutely right their business cycles, but whether 0:02:06.720 --> 0:02:10.040 it's consumer sentiment or whether it's small and medium business 0:02:10.080 --> 0:02:15.320 creation or larger enterprises. While there's perhaps more scrutiny on 0:02:15.360 --> 0:02:19.640 the expense, people realize that in order to drive profitable growth, 0:02:20.040 --> 0:02:22.640 technology is one of those areas that you have to 0:02:22.680 --> 0:02:25.720 continue to invest in. So maybe we're a little more 0:02:25.720 --> 0:02:29.280 fortunate because we have more mission critical solutions and we 0:02:29.320 --> 0:02:34.600 have a more diverse portfolio. As it relates to geographic exposure. 0:02:35.200 --> 0:02:38.519 But you know the company posted really strong results. Let's 0:02:38.560 --> 0:02:43.120 talk about amid this desire to continue to focus on 0:02:43.240 --> 0:02:45.640 R and D. You are, of course today announcing all 0:02:45.680 --> 0:02:47.600 indeed and the last couple of days that your summit 0:02:47.639 --> 0:02:51.840 announcing new artificial intelligence iterations in your product, in particular 0:02:52.120 --> 0:02:55.520 fire Fly defaminative of generative AI tools, and boy, the 0:02:55.600 --> 0:02:57.800 one silver lining, the one area of growth that we 0:02:57.919 --> 0:02:59.919 keep continuing to talk about. No matter what the MAC 0:03:00.200 --> 0:03:03.960 environment is generative AI models, it's in beta. Can you 0:03:04.000 --> 0:03:07.919 just give our audience really what this means in terms 0:03:07.919 --> 0:03:11.480 of text in generating image, what sort of is this actually? 0:03:11.520 --> 0:03:16.120 As a user of Adobe, we think it is really 0:03:16.160 --> 0:03:19.400 a transformational moment, both for the company as well as 0:03:19.440 --> 0:03:23.440 for the industry. And Caroline, where we focus on is 0:03:23.560 --> 0:03:26.400 our vision is how do we unleash creativity for all. 0:03:27.080 --> 0:03:30.400 It's our assertion and hypothesis that everybody has a story 0:03:30.440 --> 0:03:33.200 to tell, they would like to tell that story on 0:03:33.280 --> 0:03:35.480 different media. I was listening to your show and you 0:03:35.520 --> 0:03:38.680 were talking about what's happening with other platforms like TikTok. 0:03:39.320 --> 0:03:42.560 But people fear the blank a page or the blank slate, 0:03:43.000 --> 0:03:45.760 and so I think generative AI is a great way 0:03:45.800 --> 0:03:49.240 to have an on ramp into being able to take 0:03:49.280 --> 0:03:52.400 your idea, describe that in words, and then generate an 0:03:52.400 --> 0:03:55.400 image associated with it. And you know, I think people 0:03:55.440 --> 0:03:58.800 are also really focused on what are the ethical issues 0:03:59.160 --> 0:04:03.440 associated we're generating you know, these images, and I think 0:04:03.440 --> 0:04:07.400 we've taken a very prudent and correct approach. So we 0:04:07.440 --> 0:04:12.000 think it helps people make our products more accessible, more productive, 0:04:12.000 --> 0:04:14.720 and more fun. How are you chucking those legal concerns 0:04:14.760 --> 0:04:19.920 for creators that perhaps don't want their images used. That's 0:04:19.960 --> 0:04:22.800 part of the reason that we are actually starting with 0:04:22.880 --> 0:04:26.039 a beta, because engaging with the community has been a 0:04:26.080 --> 0:04:31.080 really important aspect of how we introduce this. We've had 0:04:31.560 --> 0:04:35.040 a site called be Hans. Be Hans is, you know, 0:04:35.200 --> 0:04:38.320 the most popular site for creative professionals in terms of 0:04:38.360 --> 0:04:42.159 how they showcase their content and get inspired. So, you know, 0:04:42.160 --> 0:04:45.479 Adobe has had a multi decade history of engaging with 0:04:45.640 --> 0:04:50.360 our customers. In this particular case, we were very, very 0:04:50.520 --> 0:04:54.320 ruthless about ensuring that the content on which our models 0:04:54.360 --> 0:04:58.320 were trained is content that we have absolute license for. 0:04:58.800 --> 0:05:02.160 I think other companies have not been as strict or 0:05:02.240 --> 0:05:05.520 as diligent about ensuring that the content that they used 0:05:05.520 --> 0:05:07.960 to train the models. As we all know, the more 0:05:08.040 --> 0:05:10.159 data that you have to train the models, the better 0:05:10.200 --> 0:05:13.440 the models are. And so our approach has been always 0:05:13.480 --> 0:05:15.960 to make sure that this is bulletproof in terms of 0:05:16.520 --> 0:05:19.640 having rights to it and just engaging with the community. 0:05:19.920 --> 0:05:23.040 We've also talked about how as we continue to have 0:05:23.080 --> 0:05:26.760 our stock service, which is a very popular image three 0:05:26.880 --> 0:05:29.720 D service, that we will compensate the people who are 0:05:29.800 --> 0:05:33.440 participating in that. So it's a thoughtful approach. It's the 0:05:33.440 --> 0:05:36.960 beginning of the journey, but most important, it's transparency and 0:05:37.040 --> 0:05:41.200 engagement with our community. Chantony, you are full and you 0:05:41.240 --> 0:05:43.719 all think about ethics, and you just mentioned TikTok, so 0:05:43.760 --> 0:05:45.240 I just have to go there for a moment. What 0:05:45.279 --> 0:05:50.520 do you make of the business? Well, I think from 0:05:50.520 --> 0:05:54.800 my perspective, you know, every few years you have multiple platforms, 0:05:54.880 --> 0:05:58.320 and for me, when I think about TikTok or I 0:05:58.360 --> 0:06:01.960 think about the other platforms, it's really this insatiable appetite 0:06:02.200 --> 0:06:05.039 that people have for both consuming and for creating content. 0:06:05.160 --> 0:06:08.280 And so you know, I am not as familiar with 0:06:08.320 --> 0:06:11.000 all of the issues that others are perhaps concerned about, 0:06:11.279 --> 0:06:14.400 but from my perspective and the role that Adobe can play. 0:06:14.839 --> 0:06:17.440 It's like, how do we allow people to express themselves? 0:06:17.440 --> 0:06:20.600 And I think that insatiable appetite is not going to 0:06:20.680 --> 0:06:25.120 go away. Of course, when it comes to authorities analyzing 0:06:25.160 --> 0:06:29.120 tech businesses like TikTok, there's some authorities eyeing M and 0:06:29.200 --> 0:06:32.760 A here in the US, in particular the DJ analyzing 0:06:32.760 --> 0:06:35.919 your deal for Figma at the moment, how integral is 0:06:35.920 --> 0:06:40.120 the Figma deal to your generative AI movement forward? How 0:06:40.160 --> 0:06:42.320 integral is that deal? Full stop? Will you fight to 0:06:42.360 --> 0:06:48.800 protect it? Well? From our perspective, the strategic rationale for 0:06:48.960 --> 0:06:53.000 why we are excited about Figma is three things. We 0:06:53.040 --> 0:06:56.240 believe that we can accelerate product design, which enables new 0:06:56.279 --> 0:07:00.800 interactive experiences to be built for digital medium. The second 0:07:00.800 --> 0:07:03.120 reason is we think we can actually extend all of 0:07:03.120 --> 0:07:07.040 our products to do creative collaboration on the web and 0:07:07.080 --> 0:07:10.560 allow more stakeholders to participate, much like we did with 0:07:10.600 --> 0:07:14.760 our acquisitions of Workfront and frame Io. And third, I 0:07:14.800 --> 0:07:19.360 think that there's this new emerging paradigm where the distinction 0:07:19.480 --> 0:07:25.920 between collaboration, creativity and productivity is rapidly diminishing, and everybody 0:07:25.920 --> 0:07:28.960 who wants to create a school project or a document 0:07:29.320 --> 0:07:32.960 wants to engage in it, both using words in text 0:07:33.040 --> 0:07:36.480 and images and animation. So strategically we think that it 0:07:36.640 --> 0:07:40.120 is a real extension of what we do. The Figma 0:07:40.200 --> 0:07:43.080 business is an adjacency for us. I know there've been 0:07:43.120 --> 0:07:46.280 some questions about what does this mean for our core business. 0:07:46.320 --> 0:07:49.800 As we showed our core business is extremely strong, So 0:07:49.800 --> 0:07:52.920 we're doing this from a position of strength. We're confident 0:07:53.000 --> 0:07:57.880 about our position in this. It's such an adjacency. The 0:07:57.960 --> 0:08:02.320 overlap is diminimous to but we will engage with the authorities. 0:08:02.800 --> 0:08:08.120 Would you ever abandon the deal of you had to, Well, 0:08:08.120 --> 0:08:10.800 at this point, you know, given we are confident about 0:08:10.840 --> 0:08:13.760 you know, the deal terms, we will just continue to 0:08:14.320 --> 0:08:17.440 operate with the authorities. And you know that's what we're 0:08:17.480 --> 0:08:21.080 focused on, which is how do we you know, continue 0:08:21.080 --> 0:08:24.000 to deliver value to customers and demonstrate why this is 0:08:24.000 --> 0:08:28.400 a good thing for the community, for customers and another 0:08:28.480 --> 0:08:32.600 important thing for the economy. If companies that are being 0:08:32.640 --> 0:08:36.120 created the US has been the hotbed of entrepreneurship, it 0:08:36.280 --> 0:08:39.320 is really critical that you know, there be economic outcomes 0:08:39.360 --> 0:08:42.520 that are appropriate for startups as well. So at this 0:08:42.559 --> 0:08:45.920 point we're really focused on continuing to impress upon the authorities. 0:08:46.120 --> 0:08:49.120 Why this is good? Full circle back to the macro there, 0:08:49.240 --> 0:08:52.240 Adobe CEO, We thank you so much, Chantanoon or Ayan, 0:08:52.520 --> 0:08:55.480 whether you get back to your summit now, speaking of 0:08:55.679 --> 0:09:00.400 ultificial intelligence, can send President Martin Law played well company's 0:09:00.440 --> 0:09:04.200 prospects in international gaming and AI this year. He called 0:09:04.240 --> 0:09:06.520 it a growth multiplier and said that ten Cent will 0:09:06.520 --> 0:09:10.000 gradually integrate AI capabilities across its suite of products, from 0:09:10.000 --> 0:09:12.400 we chat to online media. Now the news comes as 0:09:12.400 --> 0:09:15.160 ten cents revenue inch to one percent higher after two 0:09:15.160 --> 0:09:18.160 successive quarters of contractions. That's where a fifteen percent jump 0:09:18.160 --> 0:09:20.520 in online advertising revenue, in particular in the final three 0:09:20.559 --> 0:09:30.560 months of twenty twenty two. Wall Street leaders and US 0:09:30.600 --> 0:09:34.720 officials are discussing an intervention at First Republic Bank, exploring 0:09:34.720 --> 0:09:37.120 the possibility of government backing to encourage a deal that 0:09:37.160 --> 0:09:39.480 would shore up the lender. This after we learned today 0:09:39.520 --> 0:09:42.199 that pat West has beefed up liquidity after a deposit 0:09:42.280 --> 0:09:45.520 exodus from its venture banking segment. So much going on 0:09:45.559 --> 0:09:48.640 with these lenders. Meanwhile, fintech startups like Arc, like Trance, 0:09:48.720 --> 0:09:51.960 like Brex, they have moved to provide emergency funding two companies. 0:09:51.960 --> 0:09:55.120 Brex told Bloomberger had seen record business and an excess 0:09:55.160 --> 0:09:57.640 of one billion dollars in payroll loan requests from startups 0:09:57.679 --> 0:10:01.160 that have funds trapped in Silicon Valley Bank joining us 0:10:01.160 --> 0:10:03.960 now to discuss the macro but also innovations of their own. 0:10:04.080 --> 0:10:07.040 And Rique Doubograss is brex Co CEO, who is not 0:10:07.080 --> 0:10:09.320 only onboarding at a rapid rate, but you're also announcing 0:10:09.320 --> 0:10:12.280 new product offerings to boot. And Rique just talked to 0:10:12.320 --> 0:10:15.040 us as a highly valued startup in this environment that's 0:10:15.040 --> 0:10:19.479 been looking to service finance professionals in particular with your offerings. 0:10:20.120 --> 0:10:22.040 How have you managed to deal with the rapid uptick 0:10:22.280 --> 0:10:24.640 in people wanting to be onboard? How you what's the 0:10:24.760 --> 0:10:28.920 SBB fall up in Like, yeah, absolutely so First, thank 0:10:28.920 --> 0:10:30.760 you so much for having me on the show. It's 0:10:30.800 --> 0:10:34.160 been honestly one of the craziest weeks in my professional 0:10:34.200 --> 0:10:36.720 career of everything that's happening and something sad for the 0:10:36.760 --> 0:10:40.240 technology industry. You know, we definitely saying our support to 0:10:40.360 --> 0:10:43.760 sub and hope they have a successful outcome with the regulators. 0:10:44.760 --> 0:10:47.800 What happened was, you know, since the fallout, I think 0:10:47.840 --> 0:10:50.320 a lot of customers moved from wanting to have a 0:10:50.440 --> 0:10:54.760 relationship with one bank to wanting to have multiple relationships. 0:10:55.480 --> 0:10:57.440 And I think Brex, you know, as kind of like 0:10:57.480 --> 0:11:00.920 another company that has startup friendly and knows this startup 0:11:00.960 --> 0:11:04.880 market has been one of the I would say most 0:11:05.000 --> 0:11:09.880 common choices for startups wanting to diversify their funds, you know, 0:11:10.040 --> 0:11:14.760 from keeping maybe someone sub some on Brex and some 0:11:14.240 --> 0:11:16.600 on some of the big banks as well. So we've 0:11:16.640 --> 0:11:19.400 been seeing a lot of inflow of deposits and new 0:11:19.480 --> 0:11:22.440 customers because of that. And Okay, I asked this to 0:11:22.480 --> 0:11:27.360 the pilot CEO yesterday again another company servicing largely startups 0:11:27.559 --> 0:11:31.080 in the space, do you worry about your own consolidation 0:11:31.200 --> 0:11:35.440 of the types of people that you're offering your products too? Yeah, 0:11:35.480 --> 0:11:38.280 absolutely so. Even though Brex started a startups and we're 0:11:38.360 --> 0:11:40.320 very well known for it back in twenty seventeen, we 0:11:40.360 --> 0:11:44.600 actually serve a variety of industries today, like we serve 0:11:44.679 --> 0:11:49.120 media companies and you know, a beer company CpG. So 0:11:49.280 --> 0:11:53.360 we have a pretty diversified industries in our products. And 0:11:53.480 --> 0:11:56.599 because we're not a bank, right, we're not succeptable, I 0:11:56.640 --> 0:11:59.560 would say to bank runs because we're a cash management account. 0:11:59.640 --> 0:12:02.480 So I'm not super worried about the same problems that 0:12:02.520 --> 0:12:04.559 the banks are having because we are not a bank. 0:12:04.960 --> 0:12:07.040 That's even though we got a lot of you go ahead, 0:12:07.440 --> 0:12:10.040 well no, and okay, let's talk about what you are. 0:12:10.160 --> 0:12:13.040 Let's talk about what in particularly empower platform is because 0:12:13.400 --> 0:12:17.640 it's cards, it's expenses management, but it's also travel. Now 0:12:17.640 --> 0:12:20.400 this is a new iteration and new announcement that you've got. 0:12:20.480 --> 0:12:24.960 How hard is it to iterate to bring new offerings 0:12:25.000 --> 0:12:26.760 to the table when you're also trying to onboard like 0:12:26.800 --> 0:12:30.000 mad Yeah for sure. So think about it as all 0:12:30.080 --> 0:12:33.160 spend right, So we have corporate cards that we started, 0:12:33.200 --> 0:12:36.760 and we went to expense management, our business account products 0:12:36.760 --> 0:12:39.000 so you can make wires, ah checks and today we're 0:12:39.000 --> 0:12:41.360 announced and travel. So now not only are going to 0:12:41.440 --> 0:12:44.439 be able to book your travel on different websites, while 0:12:44.480 --> 0:12:46.920 inside of brex app, you can book all your travel 0:12:46.920 --> 0:12:49.080 on a super easy way and you can have the 0:12:49.160 --> 0:12:53.000 experience from your entire travel from booking the trip to 0:12:53.120 --> 0:12:55.920 swiping through your credit card and restaurants and ubers that 0:12:55.960 --> 0:12:59.160 you may need on your business expenses that you don't need, receipts, 0:12:59.200 --> 0:13:01.760 you don't need memo. Everything is automated to you. All 0:13:01.800 --> 0:13:05.520 the approvals are automated. You can keep everyone on budget 0:13:05.559 --> 0:13:07.640 with our live budget systems. So a lot of companies 0:13:07.679 --> 0:13:10.360 we're seeing are trying to control their travel costs and 0:13:10.679 --> 0:13:12.840 a lot of them are saying, hey, you should just 0:13:12.960 --> 0:13:15.360 travel take two stops, you know, on the way to 0:13:15.400 --> 0:13:18.080 San Francisco, New York because it's cheaper. We're saying, don't 0:13:18.120 --> 0:13:21.600 do that. Give accountability to your managers to actually choose 0:13:21.600 --> 0:13:24.120 the trips that they let their teams do and keep 0:13:24.160 --> 0:13:27.520 everyone on budget. What are you seeing with your clients 0:13:27.520 --> 0:13:30.079 in this macro environment we're thinking of the FED today 0:13:30.120 --> 0:13:34.880 with thinking of well financial issues in terms of well 0:13:35.080 --> 0:13:37.920 the conditions are contracting in many ways. Are you seeing 0:13:37.960 --> 0:13:39.959 that from your client perspective in terms of the trimming 0:13:40.000 --> 0:13:44.480 their costs? Absolutely? And I think that's, you know, a 0:13:44.600 --> 0:13:47.520 met positive for our industry. I think everyone is learning 0:13:47.520 --> 0:13:49.720 how to do more or less and using even more 0:13:49.760 --> 0:13:52.400 technology to learn how to do more or less right. 0:13:52.480 --> 0:13:55.240 I think a lot of the AI revolution, for example, 0:13:55.280 --> 0:13:58.240 that we're seeing of general AI. We announced an AI 0:13:58.360 --> 0:14:00.880 product also a few weeks ago that you're going to 0:14:00.880 --> 0:14:03.319 be able to ask any questions you would want to 0:14:03.360 --> 0:14:05.560 de finance team and have an AI response to you, 0:14:05.640 --> 0:14:07.240 can I buy this, how do I buy this? Where 0:14:07.240 --> 0:14:09.160 do I get this approve of how you know, how 0:14:09.160 --> 0:14:11.280 I'm budget I'm spending too much on this? These are 0:14:11.280 --> 0:14:13.360 all questions that would take up the finance team to 0:14:13.400 --> 0:14:16.000 go and do reports and now can be answered by 0:14:16.040 --> 0:14:19.120 an AI. Right. So, I think this part of doing 0:14:19.160 --> 0:14:21.840 more with less is something that is actually going to 0:14:21.880 --> 0:14:24.200 be really positive for the technology industry, which was a 0:14:24.240 --> 0:14:27.240 little bit you know, bloated over the last few years 0:14:27.280 --> 0:14:29.160 because of the excess money, and I think it will 0:14:29.200 --> 0:14:31.680 be super positive and a lot of our products are 0:14:31.720 --> 0:14:35.080 helping companies do that, like I mentioned with our travel 0:14:35.120 --> 0:14:38.240 products and the live budgets. Enrik, thank you for coming 0:14:38.240 --> 0:14:40.640 on telling us your story and what it's been like 0:14:40.920 --> 0:14:43.440 in the last week or so. Enrik Dograss, thank you, 0:14:43.480 --> 0:14:46.320 Brex co CEO. Mean, while coming up, we're going to 0:14:46.360 --> 0:14:48.920 walking through everything you need to know before tomorrow's TikTok 0:14:48.920 --> 0:14:52.080 hearing on Capitol Hill from New York. This is m 0:14:52.080 --> 0:15:08.320 back to achieve our resales target intentivistory. So in short, 0:15:08.440 --> 0:15:11.760 Germany gross to gegu is tired and the spending are 0:15:11.800 --> 0:15:16.240 the key for the improvement of our profitability. That one's 0:15:16.240 --> 0:15:19.680 the CFO of Chinese EV maker NEOs saying they will 0:15:19.920 --> 0:15:22.520 be meeting their target of doubling sales at two hundred 0:15:22.520 --> 0:15:25.520 fifty thousand electric vehicles this year. Now that exists to 0:15:25.520 --> 0:15:28.440 today's talking tech, and we're sticking with EV's first up forward, 0:15:28.680 --> 0:15:31.800 the company taking a small steps towards revealing losses in 0:15:31.880 --> 0:15:35.000 the EV business. Now, the automaker will unveil an overhaul 0:15:35.080 --> 0:15:38.920 financial reporting structure for its redesign company that really lays 0:15:38.920 --> 0:15:41.920 out the profit and the loss of each business line. 0:15:42.160 --> 0:15:45.000 The new look balance sheet will give investors a more 0:15:45.000 --> 0:15:48.520 complete view of forwards at nascent EV business, including expenses, 0:15:48.680 --> 0:15:51.360 of course, and revenue how much money it's actually losing. 0:15:51.640 --> 0:15:54.920 Turning down to chips, the Biden administration unveiling tight restrictions 0:15:55.000 --> 0:15:58.000 on new operations in China by chipmakers that get federal 0:15:58.040 --> 0:16:00.440 funds to build in the United States at the fifty 0:16:00.480 --> 0:16:03.760 billion dollar Chips and Science Act will now bar firms 0:16:03.800 --> 0:16:06.920 that win grants from expanding output in China by five 0:16:06.920 --> 0:16:09.840 percent for advanced chips or ten percent for older technology. 0:16:10.040 --> 0:16:13.480 The Commerce Department also outlined other measures, including look at 0:16:13.520 --> 0:16:16.360 and one hundred thousand dollars spending cap on investments in 0:16:16.440 --> 0:16:20.280 advanced capacity in the country and sticking with China and 0:16:20.360 --> 0:16:23.480 the Biden administration, the US is assessing whether Silicon Valley 0:16:23.480 --> 0:16:27.320 banks collapse infected more pain on Chinese technology startups than 0:16:27.360 --> 0:16:30.560 the government in Beijing, and indeed Chinese companies have disclosed. 0:16:30.720 --> 0:16:34.600 The Biden administration is pulling together data on Chinese companies 0:16:34.640 --> 0:16:37.680 that may have accounts with regional US banks. The key 0:16:37.760 --> 0:16:41.200 question is whether there is any risk of broader contagion 0:16:41.200 --> 0:16:44.920 in the world's second largest economy. Sticking with Chinese companies, 0:16:45.000 --> 0:16:47.840 the CEO of TikTok will appear before the House Energy 0:16:47.920 --> 0:16:51.280 Commerce Committee tomorrow in an effort to prevent TikTok's ban 0:16:51.480 --> 0:16:54.800 or for sale. We go now to Capitol Hill, where 0:16:54.800 --> 0:16:59.000 our own Alex Barnka is standing by, and overall, what 0:16:59.080 --> 0:17:02.000 are you expecting to do? We think the show Chow, 0:17:02.080 --> 0:17:05.760 the CEO company, pushed back on the viewpoint coming from 0:17:05.800 --> 0:17:09.160 the lollmakers right now. Well, according to his prepared remarks 0:17:09.200 --> 0:17:12.040 that he plans on giving tomorrow, pushback is exactly what 0:17:12.080 --> 0:17:15.320 he's trying to do. His remarks are very definitive, saying 0:17:15.320 --> 0:17:18.320 things like byte dance TikTok's parent company is not an 0:17:18.320 --> 0:17:21.880 agent of the Chinese government or any other country. He'll 0:17:21.920 --> 0:17:25.600 also say that the security plan in concert with Oracle 0:17:26.080 --> 0:17:30.600 is a American plan storing American users data on American 0:17:30.680 --> 0:17:34.159 soil by an American company. So he's coming in with 0:17:34.280 --> 0:17:36.880 kind of a really definitive tone here for his first 0:17:36.920 --> 0:17:43.240 testimony on Capitol Hill overall. Has the lot being been present? 0:17:43.440 --> 0:17:47.560 Has the viewpoint anything, is anything that we're going to 0:17:47.600 --> 0:17:49.760 hit tomorrow actually going to be new in some way? 0:17:49.800 --> 0:17:53.200 Do you think it's really interesting you ask that, Carolina. 0:17:53.600 --> 0:17:56.760 It is sounding like a lot of the same talking points, 0:17:56.960 --> 0:18:00.119 the facts that Cho likes to lean into. He's going 0:18:00.160 --> 0:18:03.600 to be bringing those into the Hill tomorrow, talking about 0:18:03.640 --> 0:18:06.880 the security plan, talking about how he believes that TikTok 0:18:06.920 --> 0:18:09.720 is doing more to protect young users, which will definitely 0:18:09.720 --> 0:18:11.760 be on the mind of the representatives who are in 0:18:11.760 --> 0:18:14.280 the room. Now, Look, these are a lot of points 0:18:14.320 --> 0:18:16.679 that we are familiar with. They're the points that our 0:18:16.680 --> 0:18:20.119 sources tell us they have been bringing to lawmakers in 0:18:20.160 --> 0:18:22.680 those closed door meetings ahead of the Hill. So he's 0:18:22.720 --> 0:18:25.879 facing a pretty tough crowd. Honestly, when you think about 0:18:25.880 --> 0:18:28.080 what is a win for him tomorrow. It's almost to 0:18:28.160 --> 0:18:32.200 do no more damage than the sentiment has already been done. 0:18:32.480 --> 0:18:36.360 And if anything starts to ingratiate or kind of humanize 0:18:36.760 --> 0:18:41.119 TikTok and lay that line clear that he believes there's 0:18:41.240 --> 0:18:44.320 no chance that the Chinese government can exert any influence 0:18:44.359 --> 0:18:46.480 on the app. Very briefly addicts, do you think he'll 0:18:46.520 --> 0:18:50.600 reference us social media companies? I think he will, if 0:18:50.640 --> 0:18:54.520 not by name, then by tune, saying hey, look, we're 0:18:54.520 --> 0:18:57.280 actually doing more on data protection, we're doing more on 0:18:57.359 --> 0:19:00.280 trust and safety policy. So maybe you should be worried 0:19:00.320 --> 0:19:04.080 about all of us and access TikTok Alex Sparenka, great 0:19:04.119 --> 0:19:14.760 to have you on from DC. Welcome active Bluemo technology. 0:19:14.800 --> 0:19:16.800 I'm Caroline Hyde in New York. It is nine thirty 0:19:16.880 --> 0:19:18.879 on the West Coast, it is twelve thirty right here 0:19:18.920 --> 0:19:21.720 in New York is four thirty pm in London. All 0:19:21.840 --> 0:19:24.959 eyes in the financial and economic world are laser focused, 0:19:24.960 --> 0:19:27.119 of course, on what Federal Chair J. Powell is going 0:19:27.160 --> 0:19:29.080 to be saying today. He's going to be trying to 0:19:29.119 --> 0:19:31.240 balance his fight against inflation. Let me just saw in 0:19:31.240 --> 0:19:34.480 the UK against look, a sudden banking crisis that's erupted, 0:19:34.520 --> 0:19:37.400 and as part of that, there are ongoing concerns about funding, 0:19:37.520 --> 0:19:39.640 funding for startups, funding for those that have been hit 0:19:39.680 --> 0:19:43.000 by the SVB collapse, and ongoing concerns that we have 0:19:43.080 --> 0:19:46.000 today on First Republic and now pack West. And yes, 0:19:46.480 --> 0:19:49.160 you may not realize it, for not all of these 0:19:49.160 --> 0:19:53.119 people are tech bros, because there are also non traditional founders, 0:19:53.400 --> 0:19:56.600 many that don't necessarily get thought of when we see 0:19:56.800 --> 0:20:00.000 and say Silicon Valley, who also been affected by this crisis. 0:20:00.080 --> 0:20:02.760 In a Bloomberg opinion piece, Midi Health co founder and 0:20:02.800 --> 0:20:06.600 CEO Joanna Stroba writes that while the Silicon Valley ecosystem 0:20:06.640 --> 0:20:09.800 has plenty of men with bulging egos, there is another 0:20:09.880 --> 0:20:13.080 group quietly building startups there, many of whom were supported 0:20:13.080 --> 0:20:17.760 by Silicon Valley Bank and First Republic Bank. Founders like yourself, Joanna, 0:20:17.920 --> 0:20:20.120 and very produced to say, I can welcome to the program, 0:20:20.400 --> 0:20:23.600 and I'm glad you got the blue memo. I'm really interested, 0:20:24.000 --> 0:20:27.640 Joanna in this piece, this thought leadership and how has 0:20:27.880 --> 0:20:30.520 business like yours been affected by the last couple of weeks, 0:20:31.920 --> 0:20:34.600 you know, like anyone else that's been a really stressful experience. 0:20:34.840 --> 0:20:37.720 It was not clear over the weekend whether we would 0:20:37.760 --> 0:20:40.359 be able to make our pay roll. But this the 0:20:40.440 --> 0:20:43.320 following way week, it wasn't paid clear whether the company 0:20:43.359 --> 0:20:46.600 would would succeed, and so it was it was definitely 0:20:46.640 --> 0:20:48.840 an extressful experience trying to figure out how to get 0:20:49.200 --> 0:20:51.520 how to get everything secured and be sure we'd be 0:20:51.560 --> 0:20:54.040 able to continue to keep all of our employees. You know, 0:20:54.080 --> 0:20:55.880 we have employees all over the country and we wanted 0:20:55.920 --> 0:20:57.639 to make sure they would they would still have jobs. 0:20:57.760 --> 0:21:01.280 Employees like nurses, health practitioners or women's health startup you 0:21:01.359 --> 0:21:05.440 have founded to focus on menopause, on perimenopause in particular, 0:21:06.040 --> 0:21:10.040 and it's almost the antithesis of what perhaps we all 0:21:10.080 --> 0:21:12.720 started to think of and got a lot of notoriety 0:21:12.840 --> 0:21:15.560 during the unfolding of the collapse of SVB. We all 0:21:15.560 --> 0:21:20.359 thought about these rather lyld you know, white male tech 0:21:20.400 --> 0:21:24.200 bros who were on Twitter complaining loudly in all caps. Meanwhile, 0:21:24.440 --> 0:21:27.720 this was about to effect the broader economy. How has 0:21:27.800 --> 0:21:31.880 the conversation gone behind the scenes among women, diverse founders, 0:21:31.880 --> 0:21:34.480 people of color who perhaps felt that this wasn't a 0:21:34.520 --> 0:21:39.960 great pr exercise for their industry. Many of them felt 0:21:40.080 --> 0:21:43.760 very ignored quite honestly, when you read Twitter over the weekend, 0:21:43.840 --> 0:21:46.480 or you read the mainstream media, no one was talking 0:21:46.480 --> 0:21:50.040 about the healthcare the healthcare companies, or the education companies, 0:21:50.119 --> 0:21:53.040 or the clean technology companies. No one was talking about 0:21:53.080 --> 0:21:56.399 female founders are The discussion was about this very small 0:21:56.520 --> 0:22:01.639 group of very verbal, outspoken men on Twitter who were 0:22:02.160 --> 0:22:05.000 loudly protesting the fact that their companies would be hurt. 0:22:05.160 --> 0:22:08.399 But the reality is there are so many more people 0:22:08.400 --> 0:22:11.240 are reflected in Silicon Valley. There were also people who 0:22:11.320 --> 0:22:14.040 run nonprofits whose money was in these banks. There's people 0:22:14.040 --> 0:22:16.640 who run camps who's many in these banks, and so 0:22:16.680 --> 0:22:18.919 none of those people felt hurt during this, and I 0:22:18.960 --> 0:22:20.439 think there was a lot of sense of wow, like 0:22:20.520 --> 0:22:24.040 we have tens of thousands around of employees around the 0:22:24.040 --> 0:22:26.240 country doing really important things that no one is talking 0:22:26.240 --> 0:22:29.199 about us, And it almost felt sort of insult injury 0:22:29.400 --> 0:22:31.120 was that we were just coming off the back. I'm 0:22:31.160 --> 0:22:34.880 sure you were of a lot of female focused events. 0:22:34.960 --> 0:22:37.439 It was of course International Women's Day the week before, 0:22:37.520 --> 0:22:39.520 and there was a lot of talk about diversity and 0:22:39.600 --> 0:22:42.960 trying to build that momentum within the tech scene among vcs. 0:22:43.000 --> 0:22:46.000 You used to be one among founders. You now are one, 0:22:46.359 --> 0:22:49.320