1 00:00:01,080 --> 00:00:06,360 Speaker 1: From Mahart where Innovations, Money and Power Collie in Silicon Valley, NBN. 2 00:00:06,720 --> 00:00:11,239 Speaker 2: This is Bloomberg Technology with Caroline Hyde and Ed Ludlow. 3 00:00:24,480 --> 00:00:27,000 Speaker 3: And Caroline Hide at Lumberg's world headquarters in New York 4 00:00:27,360 --> 00:00:29,120 Speaker 3: and im Ed Lodlow in San Francisco. 5 00:00:29,200 --> 00:00:30,680 Speaker 4: This is Gloobag Technology. 6 00:00:30,720 --> 00:00:33,120 Speaker 3: Coming up, we'll get the outlook for investing in the 7 00:00:33,159 --> 00:00:35,960 Speaker 3: tech sector. That's as Gorman saxas that those stocks are 8 00:00:36,000 --> 00:00:37,800 Speaker 3: poised for an earnings legged. 9 00:00:37,640 --> 00:00:42,120 Speaker 4: Rebound, and we'll have the latest updates from Google's antitrust trial. 10 00:00:42,200 --> 00:00:46,239 Speaker 4: As Microsoft CEO Satya Nadella takes the stand past. 11 00:00:46,080 --> 00:00:48,280 Speaker 3: We'll get a read on the state of the EV industry. 12 00:00:48,320 --> 00:00:51,240 Speaker 3: Some mixed numbers coming out to Tesla and Ribban. We'll 13 00:00:51,240 --> 00:00:52,040 Speaker 3: dig into those. 14 00:00:51,840 --> 00:00:52,320 Speaker 5: In a moment. 15 00:00:52,440 --> 00:00:54,560 Speaker 4: We're kind of starting this week, Caroline, much as we 16 00:00:54,640 --> 00:00:57,080 Speaker 4: ended last week, which is thinking about anti trust and 17 00:00:57,120 --> 00:01:00,280 Speaker 4: thinking about some of the megacap tech names of the 18 00:01:00,400 --> 00:01:02,720 Speaker 4: marketly higher and Monday session. The news that we'll get 19 00:01:02,720 --> 00:01:06,160 Speaker 4: into shortly is that Microsoft CEO Seti and Nadella is 20 00:01:06,240 --> 00:01:10,080 Speaker 4: understand in the Google antitrust trial that the government has 21 00:01:10,120 --> 00:01:13,200 Speaker 4: put on focus on search. The kind of top line 22 00:01:13,280 --> 00:01:16,959 Speaker 4: is that According to Nadella, it is bogus quote the 23 00:01:17,040 --> 00:01:19,800 Speaker 4: idea that there is choice in the search market, and 24 00:01:19,840 --> 00:01:21,880 Speaker 4: we will bring you those details later in the program. 25 00:01:22,080 --> 00:01:23,800 Speaker 3: Yeah, we've got to dig in on the edge trust 26 00:01:24,240 --> 00:01:26,920 Speaker 3: feeling of things and indeed what it means from market. 27 00:01:26,920 --> 00:01:29,080 Speaker 3: There's been so under pressure just thinking a month is 28 00:01:29,120 --> 00:01:31,240 Speaker 3: scone of October and as that goes off by what 29 00:01:31,280 --> 00:01:33,880 Speaker 3: five point eight percent, having its worst month since December 30 00:01:33,959 --> 00:01:34,960 Speaker 3: twenty twenty two. 31 00:01:35,080 --> 00:01:37,160 Speaker 5: So what does October bring? Danny Fisher's with us. 32 00:01:37,200 --> 00:01:39,800 Speaker 3: He manages four point three billion dollars in Janis Henderson's 33 00:01:39,840 --> 00:01:42,760 Speaker 3: Global Technology and Innovation Fund, And really we do have 34 00:01:42,840 --> 00:01:45,959 Speaker 3: these headwinds, ed pointing out the regulatory headwind, But is 35 00:01:46,000 --> 00:01:48,480 Speaker 3: there going to be a buying opportunity into technology as 36 00:01:48,480 --> 00:01:49,360 Speaker 3: it stands for October? 37 00:01:49,400 --> 00:01:52,880 Speaker 1: Denny, Well, it's always hard to tell, you know, on 38 00:01:52,920 --> 00:01:55,480 Speaker 1: a month to month basis, but clearly September was a 39 00:01:55,480 --> 00:01:59,040 Speaker 1: difficult month and it was a confluence of events as 40 00:01:59,080 --> 00:02:01,520 Speaker 1: we know, and as Edge just talked about in the 41 00:02:01,600 --> 00:02:04,960 Speaker 1: lead in the tenure continues to rise. That is generally 42 00:02:05,000 --> 00:02:07,520 Speaker 1: a headwind for growth oriented stocks just the way you 43 00:02:07,640 --> 00:02:11,480 Speaker 1: discount them. But then secondly, is the tenure isn't going 44 00:02:11,600 --> 00:02:15,160 Speaker 1: up because economic growth is robust. It's going up because 45 00:02:15,200 --> 00:02:20,040 Speaker 1: inflation pressures continue to persist, and you know, the FEDS 46 00:02:20,080 --> 00:02:23,760 Speaker 1: indicated that it's going to be you know, higher for longer, 47 00:02:23,840 --> 00:02:27,080 Speaker 1: and so I think investors needed to digest that. And 48 00:02:27,160 --> 00:02:31,079 Speaker 1: so where we go from here is, you know, earnings. 49 00:02:31,320 --> 00:02:34,839 Speaker 1: As you talked about in October brings earning season, it's 50 00:02:34,880 --> 00:02:38,079 Speaker 1: going to be a tug of war, I would call it, 51 00:02:38,200 --> 00:02:40,160 Speaker 1: depending on you know, it's going to be a lot 52 00:02:40,160 --> 00:02:43,840 Speaker 1: of idiosyncratic stories. And if we just look at the 53 00:02:43,840 --> 00:02:47,920 Speaker 1: most recent reports, for example, from companies like Adobe and 54 00:02:48,040 --> 00:02:52,760 Speaker 1: Accenture that had August quarter ins Accentures was much more muted, 55 00:02:53,440 --> 00:02:57,880 Speaker 1: definitely some more macroeconomic headwinds associated with their results. But 56 00:02:57,919 --> 00:03:00,440 Speaker 1: then Adobe that has some you know, unique drivers and 57 00:03:00,480 --> 00:03:04,320 Speaker 1: it's business and is on their front foot with AI, 58 00:03:05,200 --> 00:03:08,080 Speaker 1: actually put up very very nice numbers and you know, 59 00:03:08,200 --> 00:03:11,480 Speaker 1: expectations to be strong going forward. So I think, you know, 60 00:03:11,480 --> 00:03:13,680 Speaker 1: it's just it's going to be a case by case basis. 61 00:03:13,800 --> 00:03:16,480 Speaker 4: At any one session, a market does not make I 62 00:03:16,480 --> 00:03:18,600 Speaker 4: get that. But let's show the megacaps again. You know, 63 00:03:18,639 --> 00:03:22,400 Speaker 4: Alphabet at one point eight percent, we talked about AI. 64 00:03:22,680 --> 00:03:26,400 Speaker 4: We know about the macro picture right now, the kind 65 00:03:26,400 --> 00:03:29,760 Speaker 4: of acceptance that rates will be higher for longer. But 66 00:03:29,880 --> 00:03:33,920 Speaker 4: did the share prices on your screen have any basis 67 00:03:34,440 --> 00:03:40,000 Speaker 4: or priced in reflecting antitrust? What's happening in the courtroom 68 00:03:40,040 --> 00:03:42,240 Speaker 4: right now? Is there any investor concern at all? 69 00:03:42,840 --> 00:03:45,120 Speaker 1: Yeah, well, there absolutely has to be. And what's interesting, 70 00:03:45,160 --> 00:03:47,480 Speaker 1: the one name that isn't on that screen is Apple. 71 00:03:47,760 --> 00:03:51,600 Speaker 1: So if we look at them, you know, Google, Microsoft, Apple, 72 00:03:51,680 --> 00:03:54,720 Speaker 1: they're all intertwined in this as it relates to the 73 00:03:54,760 --> 00:03:59,960 Speaker 1: fault search and it's really really important because Google effect 74 00:04:00,000 --> 00:04:02,640 Speaker 1: actively pays Apple. 75 00:04:02,560 --> 00:04:03,880 Speaker 6: An exorbitant amount of money. 76 00:04:03,960 --> 00:04:06,600 Speaker 1: There are many different estimates out there at what it 77 00:04:06,640 --> 00:04:10,320 Speaker 1: is to actually be the default search provider on iOS, 78 00:04:10,840 --> 00:04:13,320 Speaker 1: and that you know is, you know, those are the 79 00:04:13,360 --> 00:04:16,360 Speaker 1: most important consumers in the world effectively, and so it's 80 00:04:16,360 --> 00:04:21,120 Speaker 1: a very very virtuous relationship. Microsoft would love to be 81 00:04:21,160 --> 00:04:24,039 Speaker 1: able to compete for that business, given their investments into 82 00:04:24,080 --> 00:04:26,599 Speaker 1: being and particularly what they're doing, which at GPT now 83 00:04:26,640 --> 00:04:27,159 Speaker 1: as well. 84 00:04:27,640 --> 00:04:28,960 Speaker 6: But the reality is, you. 85 00:04:28,880 --> 00:04:31,960 Speaker 1: Know, Google's been able to you know, quote unquote corner 86 00:04:32,000 --> 00:04:35,320 Speaker 1: the market, and that is the government's case is that 87 00:04:35,440 --> 00:04:39,360 Speaker 1: Google is exercising market power or Alphabet is exercising market 88 00:04:39,400 --> 00:04:43,479 Speaker 1: power in this default relationship. The hard part though, is 89 00:04:43,600 --> 00:04:46,120 Speaker 1: you know, I mean, Apple's the one that is actually 90 00:04:46,600 --> 00:04:49,400 Speaker 1: kind of the toll taker here in terms of actually 91 00:04:49,400 --> 00:04:53,000 Speaker 1: dictating the terms. But also it's a result of the 92 00:04:53,080 --> 00:04:56,440 Speaker 1: idea that Alphabet has the best consumer experience for search. 93 00:04:56,520 --> 00:04:59,040 Speaker 1: So it's not as though consumers are being harmed by 94 00:04:59,080 --> 00:05:03,280 Speaker 1: any means. That's where the antitrust laws and these cases 95 00:05:03,320 --> 00:05:07,120 Speaker 1: are evolving because are very different than what we've seen historically. 96 00:05:07,320 --> 00:05:10,559 Speaker 4: But this is interesting for you in particular, Denny, because 97 00:05:10,560 --> 00:05:13,360 Speaker 4: you look at your portfolio, right, you have some exposure 98 00:05:13,400 --> 00:05:16,360 Speaker 4: to Microsoft and to Apple. Which one are you're most 99 00:05:16,400 --> 00:05:19,960 Speaker 4: concerned about? There are a number of possible outcomes, of course, 100 00:05:20,279 --> 00:05:22,919 Speaker 4: but which one carries the most risk based on what 101 00:05:22,920 --> 00:05:24,159 Speaker 4: you just outlined. 102 00:05:23,800 --> 00:05:27,760 Speaker 1: Yeah, that would be Apple because Apples generating these what 103 00:05:27,800 --> 00:05:31,080 Speaker 1: are called traffic acquisition costs from Alphabet today. Yes, they're 104 00:05:31,120 --> 00:05:33,560 Speaker 1: one hundred percent gross margin, they fall straight to the 105 00:05:33,560 --> 00:05:36,000 Speaker 1: bottom line, and that's money that Apple can reinvest into 106 00:05:36,040 --> 00:05:38,480 Speaker 1: its business and would be a material earning set if 107 00:05:38,480 --> 00:05:42,239 Speaker 1: they actually weren't able to capture that today Microsoft gets nothing, 108 00:05:42,640 --> 00:05:48,400 Speaker 1: So Microsoft could pay twice the amount that Alphabet pays 109 00:05:48,480 --> 00:05:51,000 Speaker 1: to be the default search provider, and it would actually 110 00:05:51,040 --> 00:05:54,680 Speaker 1: be incremental to the business. The challenges being doesn't have 111 00:05:55,560 --> 00:05:58,120 Speaker 1: the critical mass and so they don't get the same 112 00:05:58,200 --> 00:06:03,159 Speaker 1: advertising density in the same return earns on advertising spend 113 00:06:03,560 --> 00:06:04,479 Speaker 1: that Alphabet gets. 114 00:06:04,480 --> 00:06:05,360 Speaker 6: So there are a lot of. 115 00:06:05,320 --> 00:06:08,240 Speaker 1: Things to think about. But it's all upside for Microsoft. 116 00:06:08,760 --> 00:06:12,960 Speaker 1: It's you know, could be downside for Apple and clearly 117 00:06:13,000 --> 00:06:15,919 Speaker 1: would be downside for Alphabet if the most onerous outcome 118 00:06:16,080 --> 00:06:17,159 Speaker 1: actually came to Fruition. 119 00:06:17,440 --> 00:06:19,599 Speaker 3: And what's been so interesting, Denny about the timing of 120 00:06:19,600 --> 00:06:23,279 Speaker 3: all of this is that, well, Alphabet Search is having 121 00:06:23,279 --> 00:06:25,840 Speaker 3: a run for its money from a competition perspective from 122 00:06:26,000 --> 00:06:28,720 Speaker 3: generative AI, and many had wondered whether BING would suddenly 123 00:06:28,720 --> 00:06:30,520 Speaker 3: come to the fore with a power of open AI. 124 00:06:31,320 --> 00:06:34,280 Speaker 3: All the names that you're putting your attention on. When 125 00:06:34,279 --> 00:06:37,440 Speaker 3: you have such a large exposure to Microsoft things number one, 126 00:06:37,480 --> 00:06:39,880 Speaker 3: but you've also got nvideo in there, You've also got 127 00:06:39,880 --> 00:06:43,960 Speaker 3: a course ASML. All these companies have an AI uplift. 128 00:06:44,000 --> 00:06:45,400 Speaker 3: Here is it priced in yet? 129 00:06:45,440 --> 00:06:45,880 Speaker 5: Do you think? 130 00:06:47,160 --> 00:06:50,320 Speaker 1: Well, actually, with the market, you know, it's interesting coming 131 00:06:50,360 --> 00:06:53,560 Speaker 1: into this year, nothing was priced into these stocks as 132 00:06:53,600 --> 00:06:55,920 Speaker 1: it related to AI, and then we got a lot 133 00:06:55,960 --> 00:06:58,880 Speaker 1: that was actually priced in. And now you know, if 134 00:06:58,880 --> 00:07:01,920 Speaker 1: we actually look at the estimates and the valuations of 135 00:07:01,960 --> 00:07:06,160 Speaker 1: these companies, they're actually all still fairly reasonable. I mean, 136 00:07:06,400 --> 00:07:09,880 Speaker 1: if you go back to September of twenty twenty two, 137 00:07:10,600 --> 00:07:14,240 Speaker 1: the market expected in Vidia to earn somewhere around five 138 00:07:14,320 --> 00:07:18,800 Speaker 1: dollars in twenty twenty four. The market now is expecting 139 00:07:18,800 --> 00:07:22,200 Speaker 1: in Vidia to earn sixteen or seventeen dollars in twenty 140 00:07:22,240 --> 00:07:24,640 Speaker 1: twenty four, meaning the estimates have gone up three x 141 00:07:25,160 --> 00:07:27,560 Speaker 1: and the stock actually hasn't gone up that much. So 142 00:07:27,600 --> 00:07:29,960 Speaker 1: you could argue in Video is cheaper today than it 143 00:07:30,040 --> 00:07:32,840 Speaker 1: was in September of twoenty twenty two. Despite the move, 144 00:07:33,320 --> 00:07:36,000 Speaker 1: Microsoft now is back to one. It's one of its, 145 00:07:36,160 --> 00:07:39,400 Speaker 1: you know, most reasonable valuations that we've seen in some time. 146 00:07:39,520 --> 00:07:43,640 Speaker 1: Google or Alphabet still trades sub twenty times arnies. I mean, 147 00:07:43,680 --> 00:07:46,120 Speaker 1: so there you look at these they're not egregious by 148 00:07:46,160 --> 00:07:51,280 Speaker 1: any means, and the fundamentals actually continue to be just 149 00:07:51,400 --> 00:07:53,840 Speaker 1: fine for all of these companies, if not robust in 150 00:07:53,880 --> 00:07:57,080 Speaker 1: some of the cases like in Vidia for example, and 151 00:07:57,160 --> 00:07:57,680 Speaker 1: to Inder, say. 152 00:07:57,640 --> 00:07:59,840 Speaker 3: Fields as though you are aligning with Goldman a little 153 00:07:59,840 --> 00:08:04,200 Speaker 3: bit here in terms of yes, valuations might ostensibly look 154 00:08:04,280 --> 00:08:06,360 Speaker 3: quite high, but actually, when you're looking at the fundamentals 155 00:08:06,360 --> 00:08:10,200 Speaker 3: of this business, actually there's still relatively opportunities, is certainly 156 00:08:10,240 --> 00:08:13,800 Speaker 3: what Goldman sees when we're looking towards earnings. Where is 157 00:08:14,000 --> 00:08:17,080 Speaker 3: the risk factor when you're looking sort of at the 158 00:08:17,080 --> 00:08:19,800 Speaker 3: companies that are being eroded by the opportunity of AI, 159 00:08:19,920 --> 00:08:22,240 Speaker 3: where isn't deploying it fast enough, thick enough at the 160 00:08:22,280 --> 00:08:23,840 Speaker 3: moment from your perspective. 161 00:08:24,480 --> 00:08:27,720 Speaker 1: Yeah, absolutely, you know there are companies that are we 162 00:08:28,040 --> 00:08:30,680 Speaker 1: sort of go through this exercise of draw line down 163 00:08:30,680 --> 00:08:32,439 Speaker 1: the middle of the whiteboard and who's on the right 164 00:08:32,480 --> 00:08:34,000 Speaker 1: side of time and who's on the you know, the 165 00:08:34,040 --> 00:08:35,920 Speaker 1: wrong side of time of AI? 166 00:08:36,640 --> 00:08:38,280 Speaker 6: And you know, we we. 167 00:08:38,520 --> 00:08:40,600 Speaker 1: You know, I mentioned Adobe earlier as a company that 168 00:08:40,840 --> 00:08:43,000 Speaker 1: you know, it was actually, you know, if we go 169 00:08:43,080 --> 00:08:45,480 Speaker 1: back nine months ago, was viewed as being clearly on 170 00:08:45,520 --> 00:08:48,439 Speaker 1: the wrong side of time. And as they've been able 171 00:08:48,480 --> 00:08:54,000 Speaker 1: to actually communicate with the street more clearly as to 172 00:08:54,240 --> 00:08:57,200 Speaker 1: their product roadmap and actually deliver on products and put 173 00:08:57,280 --> 00:08:59,880 Speaker 1: up results, the company is now firmly on the other 174 00:09:00,120 --> 00:09:02,440 Speaker 1: the right side of AI. And so one of the 175 00:09:02,440 --> 00:09:05,199 Speaker 1: things that I think is really interesting in this market. 176 00:09:05,320 --> 00:09:07,880 Speaker 1: You know, we have the obvious winners, and I think 177 00:09:07,880 --> 00:09:09,640 Speaker 1: we have some obvious losers, and then we have some 178 00:09:09,679 --> 00:09:12,480 Speaker 1: companies that maybe are perceived as losers that they can 179 00:09:12,520 --> 00:09:15,120 Speaker 1: move into that winner's bucket, and we're really focused on 180 00:09:15,160 --> 00:09:16,560 Speaker 1: trying to find some of those as well. 181 00:09:17,520 --> 00:09:20,200 Speaker 4: Benny Fish, Janis Henderson, we love the winners and losers 182 00:09:20,200 --> 00:09:23,959 Speaker 4: conversation here on Bloomberg Technology, particularly around AI. Thank you 183 00:09:24,000 --> 00:09:26,640 Speaker 4: now coming up here on the show. The trial of 184 00:09:26,720 --> 00:09:29,000 Speaker 4: Sam Bankman Freed is coming up this week, and we're 185 00:09:29,000 --> 00:09:32,520 Speaker 4: going to be joined by Duke University's Campbell Harvey about 186 00:09:32,520 --> 00:09:35,400 Speaker 4: the significance of this trial for the industry. Somebody that 187 00:09:35,440 --> 00:09:38,840 Speaker 4: the defense called upon and said no to testifying this 188 00:09:38,920 --> 00:09:53,080 Speaker 4: is Bloomberg. Sam Bankman Freed is getting ready to go 189 00:09:53,160 --> 00:09:55,720 Speaker 4: to trial for what prosecutors alleged was one of the 190 00:09:55,720 --> 00:09:58,719 Speaker 4: biggest financial frauds in US history. For more, I want 191 00:09:58,720 --> 00:10:02,520 Speaker 4: to bring in Campbell Harvey, professor of finance at Duke University, 192 00:10:02,559 --> 00:10:04,760 Speaker 4: who was asked to be an expert for the defense 193 00:10:05,360 --> 00:10:09,200 Speaker 4: in this case. And Professor Harvey, you declined to give 194 00:10:09,520 --> 00:10:14,400 Speaker 4: expert testimony. Why why did you decline? 195 00:10:15,320 --> 00:10:19,440 Speaker 7: I have to admit I was very tempted because it's 196 00:10:19,480 --> 00:10:23,560 Speaker 7: such a fascinating trial and to be teaching my classes 197 00:10:23,559 --> 00:10:28,000 Speaker 7: from the courtroom on zoom could be pretty entertaining for 198 00:10:28,080 --> 00:10:32,640 Speaker 7: my students. But in the bottom line, there were a 199 00:10:32,679 --> 00:10:38,439 Speaker 7: few reasons that I declined, and probably the biggest reason 200 00:10:38,640 --> 00:10:41,960 Speaker 7: is that if I do this type of testimony, the 201 00:10:42,040 --> 00:10:45,800 Speaker 7: deal is that I tell the jury what I believe, 202 00:10:47,280 --> 00:10:48,640 Speaker 7: and that usually wants me out. 203 00:10:50,120 --> 00:10:52,679 Speaker 4: So why would that be a problem. You know you've 204 00:10:52,760 --> 00:10:55,000 Speaker 4: been The idea would be that you have been called 205 00:10:55,000 --> 00:11:00,440 Speaker 4: in as an expert witness, right to assess a bigger 206 00:11:00,480 --> 00:11:03,640 Speaker 4: picture rather than of the individual action. Why would that 207 00:11:03,720 --> 00:11:04,880 Speaker 4: be a problem. 208 00:11:06,120 --> 00:11:10,840 Speaker 7: So it's often the case that experts are engaged to 209 00:11:10,960 --> 00:11:15,679 Speaker 7: support the point of view of whoever's hiring them. And 210 00:11:17,040 --> 00:11:23,560 Speaker 7: given my reputation, which I consider very important, I'm just 211 00:11:23,640 --> 00:11:26,440 Speaker 7: going to tell what I believed, and this was going 212 00:11:26,520 --> 00:11:29,920 Speaker 7: to be a big time commitment, and it's not my 213 00:11:30,000 --> 00:11:33,079 Speaker 7: main job. My main job is to do research and 214 00:11:33,320 --> 00:11:35,439 Speaker 7: to teach at Duke University. 215 00:11:35,760 --> 00:11:37,640 Speaker 5: Okay, so let's dig in to what you believe. 216 00:11:37,960 --> 00:11:40,200 Speaker 3: Of course, if you were being potentially called on by 217 00:11:40,240 --> 00:11:42,959 Speaker 3: the defense, it would be well to defend what has 218 00:11:42,960 --> 00:11:45,840 Speaker 3: occurred in the world of decentralization. But ultimately what your 219 00:11:45,920 --> 00:11:49,079 Speaker 3: argument is is that, well, this wasn't really a decentralized 220 00:11:49,080 --> 00:11:50,240 Speaker 3: finance problem going on. 221 00:11:50,360 --> 00:11:52,560 Speaker 5: This was a more old school problem going on. 222 00:11:53,840 --> 00:11:57,719 Speaker 7: That's correct. So people believe this is a crypto problem, 223 00:11:58,120 --> 00:12:01,560 Speaker 7: and there are some connections here, but this is like 224 00:12:01,840 --> 00:12:05,920 Speaker 7: a traditional finance problem. This is a problem where you've 225 00:12:05,920 --> 00:12:11,000 Speaker 7: got people running an exchange that have no idea as 226 00:12:11,040 --> 00:12:14,600 Speaker 7: to how to run an exchange, no experience, no experience 227 00:12:14,679 --> 00:12:21,720 Speaker 7: in risk management, and most importantly the co mingling of funds, 228 00:12:22,120 --> 00:12:25,800 Speaker 7: which is the main thing in the case where client 229 00:12:25,880 --> 00:12:30,360 Speaker 7: money is used to bail out edge fund. So these 230 00:12:30,480 --> 00:12:36,120 Speaker 7: are problems that could happen in traditional finance, but given 231 00:12:36,160 --> 00:12:41,520 Speaker 7: the crypto is essentially unregulated or a lot of uncertainty 232 00:12:41,559 --> 00:12:46,200 Speaker 7: of our regulations, many of these exchanges exist offshore. So 233 00:12:46,360 --> 00:12:50,960 Speaker 7: FTX Finance are examples of exchanges that are offshore to 234 00:12:51,040 --> 00:12:55,840 Speaker 7: avoid the regulatory oversight, and that creates problems as we've 235 00:12:55,840 --> 00:13:00,280 Speaker 7: seen with FTX, But it's not the only exchange that 236 00:13:00,480 --> 00:13:05,920 Speaker 7: suffered due to failures in risk management and other things. 237 00:13:06,320 --> 00:13:10,640 Speaker 3: Professor, from the experts and founders and builders that we 238 00:13:10,679 --> 00:13:12,520 Speaker 3: speak to in this space. At the moment, it doesn't 239 00:13:12,520 --> 00:13:15,440 Speaker 3: feel as though the regulatory environment is exactly tempting people 240 00:13:15,480 --> 00:13:18,080 Speaker 3: to continue to build within the United States. In fact, 241 00:13:18,120 --> 00:13:20,040 Speaker 3: it seems as though more are being driven offshore. Is 242 00:13:20,040 --> 00:13:21,640 Speaker 3: that a risk at the moment? Is there some way 243 00:13:21,640 --> 00:13:24,680 Speaker 3: in which the United States could be more attractive to 244 00:13:24,800 --> 00:13:29,199 Speaker 3: ensure that while people can interweave themselves within crypto, they 245 00:13:29,240 --> 00:13:34,040 Speaker 3: can safely use in exchange and indeed whether they use 246 00:13:34,040 --> 00:13:35,520 Speaker 3: it as an asset class or a way in which 247 00:13:35,559 --> 00:13:38,560 Speaker 3: to develop technology. 248 00:13:38,720 --> 00:13:43,920 Speaker 7: So we're in a bad situation right now because there 249 00:13:43,960 --> 00:13:47,760 Speaker 7: are very few regulations and whatever regulations, it's kind of 250 00:13:47,760 --> 00:13:51,880 Speaker 7: like regulation by enforcement, and given the uncertainty as to 251 00:13:51,960 --> 00:13:56,360 Speaker 7: what the regulations will be, many companies are deciding it's 252 00:13:56,400 --> 00:14:01,040 Speaker 7: not worth locating in the US. And no country wants 253 00:14:01,080 --> 00:14:06,520 Speaker 7: to lose their best ideas to some other country. So 254 00:14:06,600 --> 00:14:10,559 Speaker 7: I do think that there's a risk here that innovation 255 00:14:10,840 --> 00:14:11,920 Speaker 7: does move offshore. 256 00:14:12,600 --> 00:14:13,480 Speaker 8: And the next. 257 00:14:13,280 --> 00:14:17,160 Speaker 7: Big thing in this space is not trading like with 258 00:14:17,360 --> 00:14:20,920 Speaker 7: FTX and exchange, where you're treading bitcoin or ether or 259 00:14:21,000 --> 00:14:24,440 Speaker 7: things like that. The next big thing is how this 260 00:14:24,560 --> 00:14:30,960 Speaker 7: technology is deployed in regular companies. So the top companies 261 00:14:30,960 --> 00:14:35,160 Speaker 7: today and this is the idea of Web three where 262 00:14:35,200 --> 00:14:39,640 Speaker 7: this technology can enable many things, so we're not possible before. 263 00:14:40,360 --> 00:14:43,520 Speaker 7: And one example I like to give out is think 264 00:14:43,560 --> 00:14:46,960 Speaker 7: of your computer. How much of the CPU and GPU 265 00:14:47,080 --> 00:14:50,600 Speaker 7: do you use a day? Probably less than an hour, 266 00:14:51,320 --> 00:14:56,960 Speaker 7: So why not rent out the other unused capacity and 267 00:14:57,000 --> 00:14:59,440 Speaker 7: get paid for it? And that's what web three is 268 00:14:59,480 --> 00:15:04,880 Speaker 7: able to do. So I'm actually quite concerned given the 269 00:15:04,920 --> 00:15:09,400 Speaker 7: harsh sort of regulatory enforcement yes right now, the lack 270 00:15:10,080 --> 00:15:16,120 Speaker 7: of regulations, that we cannot participate in this innovation. We 271 00:15:16,160 --> 00:15:20,840 Speaker 7: have two disruptions going on right now, AI and this 272 00:15:21,280 --> 00:15:23,640 Speaker 7: decentralized technology disruption. 273 00:15:24,720 --> 00:15:28,080 Speaker 4: Professor Haffey, you'll offer a book DeFi in the Future 274 00:15:28,120 --> 00:15:31,840 Speaker 4: of Finance that was published summer twenty twenty one. Had 275 00:15:31,880 --> 00:15:36,320 Speaker 4: you been able to carry on your writing through present day, quickly, 276 00:15:36,680 --> 00:15:41,320 Speaker 4: what impact has SBF had on the future of DeFi 277 00:15:41,840 --> 00:15:43,360 Speaker 4: as a standing point in history. 278 00:15:44,400 --> 00:15:49,360 Speaker 7: So what's really important to understand is that SPF and 279 00:15:50,920 --> 00:15:56,160 Speaker 7: FTX is not defied, so it is centralized finance. In 280 00:15:56,240 --> 00:16:01,920 Speaker 7: decentralized finance, you don't give custody of your asset to anybody. 281 00:16:02,160 --> 00:16:06,000 Speaker 7: You're the person that holds custody. You do not delegate 282 00:16:06,560 --> 00:16:13,000 Speaker 7: and with FTX, customers delegated their custody and then allegedly 283 00:16:14,480 --> 00:16:17,600 Speaker 7: those funds were taken and used for a hedge fund, 284 00:16:17,960 --> 00:16:22,760 Speaker 7: the so called co mingling. So decentralized finance is sharply different. 285 00:16:22,760 --> 00:16:27,520 Speaker 7: And I think that this whole scandal within FTX and 286 00:16:27,880 --> 00:16:32,600 Speaker 7: the other bankruptcies, We've had many crypto bankruptcies and almost 287 00:16:32,600 --> 00:16:36,440 Speaker 7: all of them are centralized. These are an exchange FTX 288 00:16:36,600 --> 00:16:40,640 Speaker 7: or lenders that were not experiencing in lending or risk management. 289 00:16:40,800 --> 00:16:44,000 Speaker 7: So I think that this actually shifts the focus away 290 00:16:44,400 --> 00:16:47,680 Speaker 7: from kind of centralized finance to decentralized finance. 291 00:16:48,480 --> 00:16:51,200 Speaker 3: Camill Harvey great some time with the professor of finance 292 00:16:51,240 --> 00:16:52,120 Speaker 3: at you University. 293 00:16:52,440 --> 00:16:54,720 Speaker 5: We await as well starting tomorrow. 294 00:17:01,000 --> 00:17:01,200 Speaker 6: Time. 295 00:17:01,240 --> 00:17:03,800 Speaker 3: Now for Talking Tech, first up, Google will make its 296 00:17:03,880 --> 00:17:06,800 Speaker 3: Chrome Book laptops in India through a partnership force with HP. 297 00:17:07,119 --> 00:17:09,200 Speaker 5: Now. The deal is viewed as a win for all parties. 298 00:17:09,240 --> 00:17:12,360 Speaker 3: Google can further compete with other PC makers production in India, 299 00:17:12,560 --> 00:17:15,280 Speaker 3: can have HP avoid potential curves on imports, and India 300 00:17:15,359 --> 00:17:18,800 Speaker 3: of course gains more production value from big tech companies. Meanwhile, 301 00:17:18,840 --> 00:17:20,399 Speaker 3: go to the UK now talk Talk is selling its 302 00:17:20,400 --> 00:17:22,680 Speaker 3: business to business unit to a subsidiary run by its 303 00:17:22,680 --> 00:17:25,679 Speaker 3: main shareholders, valued at roughly one hundred and sixteen million dollars. 304 00:17:25,960 --> 00:17:28,760 Speaker 3: The deal comes as part of the British telecoms reorganization 305 00:17:28,880 --> 00:17:30,040 Speaker 3: plan announced last month. 306 00:17:30,080 --> 00:17:32,440 Speaker 5: Talk Talk is working against looming debt. 307 00:17:32,240 --> 00:17:35,719 Speaker 3: Maturities which need to be refinanced in coming months. 308 00:17:35,960 --> 00:17:37,640 Speaker 5: Plus, in an effort to test its. 309 00:17:37,440 --> 00:17:41,280 Speaker 3: Capacities in a musk, live streamed himself playing four on 310 00:17:41,640 --> 00:17:43,600 Speaker 3: X formerly known as Twitter of course now. The feed 311 00:17:43,680 --> 00:17:46,320 Speaker 3: lasted fifty two minutes, of which the first few minutes 312 00:17:46,359 --> 00:17:48,439 Speaker 3: were spent setting things up for the helpers and staff. 313 00:17:48,720 --> 00:17:52,000 Speaker 3: A concurrent audience of thirteen hundred viewers they tuned in 314 00:17:52,280 --> 00:17:53,160 Speaker 3: with twenty. 315 00:17:52,920 --> 00:17:54,680 Speaker 5: Thousand total by the end. 316 00:17:54,960 --> 00:17:57,200 Speaker 3: Ed so want to be watching in terms of capacities, 317 00:17:57,200 --> 00:17:59,240 Speaker 3: And there's been plenty of other sort of announcements coming 318 00:17:59,280 --> 00:17:59,879 Speaker 3: from X today. 319 00:18:00,560 --> 00:18:01,280 Speaker 6: Yeah, it's interesting. 320 00:18:01,320 --> 00:18:03,359 Speaker 4: I think there's also a partnership with Paris Hilton and 321 00:18:03,359 --> 00:18:07,240 Speaker 4: eleven eleven Media for fashion related video content, signing to 322 00:18:07,240 --> 00:18:10,200 Speaker 4: get a sense of the developments on that platform. 323 00:18:10,280 --> 00:18:10,800 Speaker 6: Now, Sati A. 324 00:18:10,840 --> 00:18:14,080 Speaker 4: Nadella, the CEO of Microsoft, is calling out Google for 325 00:18:14,160 --> 00:18:16,399 Speaker 4: its stake in the search market. Nadella took to the 326 00:18:16,440 --> 00:18:20,000 Speaker 4: stand earlier this morning in the Google antitrust trial, leaving 327 00:18:20,040 --> 00:18:23,520 Speaker 4: no doubt about his perception of Google's dominance. He also 328 00:18:23,600 --> 00:18:26,879 Speaker 4: warned the judge in this case about how artificial intelligence 329 00:18:26,880 --> 00:18:30,520 Speaker 4: could give Google an even larger lead in the search market. 330 00:18:30,600 --> 00:18:34,119 Speaker 4: He basically said Carroe that they're being choice in the 331 00:18:34,160 --> 00:18:36,880 Speaker 4: search market was a bogus quote idea. 332 00:18:37,960 --> 00:18:38,200 Speaker 8: Yeah. 333 00:18:38,280 --> 00:18:40,960 Speaker 3: I think he's also been, of course, one of the 334 00:18:41,040 --> 00:18:45,400 Speaker 3: key people behind the drive to make being something substantive 335 00:18:45,440 --> 00:18:47,359 Speaker 3: in the world of search when it was first launched 336 00:18:47,359 --> 00:18:49,200 Speaker 3: with them Microsoft, and but they couldn't get that. 337 00:18:49,359 --> 00:18:50,600 Speaker 5: They didn't get there. Now there might be. 338 00:18:50,600 --> 00:18:53,560 Speaker 3: Lots of reasoning and blaming as to why that wasn't 339 00:18:53,560 --> 00:18:53,960 Speaker 3: the case. 340 00:18:54,160 --> 00:18:55,680 Speaker 5: Per Suddenly he's going to be trying to. 341 00:18:55,600 --> 00:18:57,720 Speaker 3: Give context to the idea that maybe they couldn't muscle 342 00:18:57,720 --> 00:18:59,320 Speaker 3: in and even offer even more. 343 00:18:59,119 --> 00:19:01,760 Speaker 5: Money than Google to Google than Apple. 344 00:19:01,640 --> 00:19:04,680 Speaker 3: Was currently being potentially an offer to be that sort 345 00:19:04,680 --> 00:19:05,919 Speaker 3: of a competitor on the space. 346 00:19:06,840 --> 00:19:09,479 Speaker 4: Yeah, let's get more context from anam Agarana Blueberg. It's 347 00:19:09,480 --> 00:19:12,080 Speaker 4: had a senior tech analyst and anaag what do you 348 00:19:12,080 --> 00:19:14,560 Speaker 4: make of this? There is choice, it's just a consumers 349 00:19:14,960 --> 00:19:16,000 Speaker 4: just using one browser. 350 00:19:16,080 --> 00:19:19,200 Speaker 9: Right, Yeah, Well, to be Honest, when I read the news, 351 00:19:19,240 --> 00:19:22,359 Speaker 9: I was laughing because only a few months ago, Certia 352 00:19:22,480 --> 00:19:25,520 Speaker 9: went on, you know, with a massive offense with the 353 00:19:25,720 --> 00:19:28,320 Speaker 9: with the browser wars with his you know, open AI 354 00:19:28,520 --> 00:19:32,000 Speaker 9: and then the AI for being and. 355 00:19:32,119 --> 00:19:33,040 Speaker 8: Google's market cup. 356 00:19:33,400 --> 00:19:35,320 Speaker 9: You know, took quite a bit of loss in those 357 00:19:35,359 --> 00:19:38,040 Speaker 9: weeks to follow, and now he's saying that these guys 358 00:19:38,040 --> 00:19:40,760 Speaker 9: have an advantage even in AI. So it's pretty pretty 359 00:19:41,040 --> 00:19:41,720 Speaker 9: amusing to me. 360 00:19:42,000 --> 00:19:43,840 Speaker 3: I mean, he went on to say that Google could 361 00:19:43,840 --> 00:19:47,199 Speaker 3: extend their search dominance into n AI, ANOROG and that 362 00:19:47,280 --> 00:19:49,800 Speaker 3: hasn't been the feeling on the day to day discussion. 363 00:19:49,840 --> 00:19:51,120 Speaker 5: I mean, as we've said time and time. 364 00:19:51,040 --> 00:19:53,840 Speaker 3: Again, this timing of this trial is interesting given the 365 00:19:53,960 --> 00:19:56,840 Speaker 3: run for its money Google seuch as getting from general 366 00:19:56,880 --> 00:19:57,320 Speaker 3: to AI. 367 00:19:58,200 --> 00:19:59,840 Speaker 9: Yeah, you know, And one of the things I talked 368 00:19:59,840 --> 00:20:02,160 Speaker 9: to a lot of investors about is, you know, when 369 00:20:02,160 --> 00:20:04,399 Speaker 9: you look at something like an Apple, Apple has Apple 370 00:20:04,440 --> 00:20:07,120 Speaker 9: Maps and it's pretty crappy and I've never used it. 371 00:20:07,640 --> 00:20:09,800 Speaker 9: I still go out and open up an app that 372 00:20:09,880 --> 00:20:12,800 Speaker 9: has Google Maps in it to do any navigation. Now, 373 00:20:12,840 --> 00:20:15,840 Speaker 9: if for whatever reason, if I don't have Google default 374 00:20:15,840 --> 00:20:18,680 Speaker 9: search on my browser on my phone, I may be 375 00:20:18,960 --> 00:20:21,280 Speaker 9: forced to download an app and that I can use 376 00:20:21,320 --> 00:20:22,040 Speaker 9: search that way. 377 00:20:22,440 --> 00:20:24,119 Speaker 8: At the end of the day, Google Search. 378 00:20:24,000 --> 00:20:27,119 Speaker 9: Is far better than anything else that's out there, and 379 00:20:27,160 --> 00:20:29,199 Speaker 9: I think that's what Google is trying to make a 380 00:20:29,240 --> 00:20:29,720 Speaker 9: case here. 381 00:20:30,160 --> 00:20:32,840 Speaker 5: Crappy a technical term, and rag Ranald, we love it. 382 00:20:32,880 --> 00:20:33,479 Speaker 5: Thank you very much. 383 00:20:33,520 --> 00:20:43,320 Speaker 3: In the from Bloomberg Intelligence, Welcome back to Bloomberg Technology. 384 00:20:43,320 --> 00:20:44,560 Speaker 5: I'm Callen had in New York. 385 00:20:45,040 --> 00:20:46,600 Speaker 6: And I a love like in San Francisco. 386 00:20:46,960 --> 00:20:48,960 Speaker 4: Vian is now down to tens of one Percent's been 387 00:20:49,040 --> 00:20:51,159 Speaker 4: kind of trading way over the place it actually be 388 00:20:51,640 --> 00:20:54,119 Speaker 4: in terms of production and deliveries in the third quarter 389 00:20:54,400 --> 00:20:58,320 Speaker 4: by some distance. But it maintained guidance fifty two thousand 390 00:20:58,440 --> 00:21:00,600 Speaker 4: units this year. And I know a lot of investors 391 00:21:00,640 --> 00:21:02,359 Speaker 4: that we speak to on this program carry they go, 392 00:21:02,359 --> 00:21:04,919 Speaker 4: come on, Rivian, you can do more than fifty two thousand. 393 00:21:05,000 --> 00:21:07,680 Speaker 4: You got on paper the ability to do much better 394 00:21:07,720 --> 00:21:08,080 Speaker 4: than that. 395 00:21:08,560 --> 00:21:09,280 Speaker 6: The market kind of. 396 00:21:09,280 --> 00:21:11,280 Speaker 4: Shrugging its shoulders at this print at least. 397 00:21:11,480 --> 00:21:13,720 Speaker 3: Yeah, it's been a mixed bag, to say the very 398 00:21:13,760 --> 00:21:16,159 Speaker 3: least to digest this morning. And let's get into that 399 00:21:16,160 --> 00:21:18,440 Speaker 3: bag a little bit more to dissect the quarterly delivery 400 00:21:18,440 --> 00:21:21,720 Speaker 3: and production data used to welcome Dana Hall, of course, who. 401 00:21:21,680 --> 00:21:24,040 Speaker 5: Covers these companies and start with Tesla. 402 00:21:24,440 --> 00:21:26,639 Speaker 3: Dan, I was to the reason that we saw this 403 00:21:26,760 --> 00:21:29,800 Speaker 3: drop off in deliveries in production and what it signals 404 00:21:29,800 --> 00:21:30,320 Speaker 3: going forward. 405 00:21:31,480 --> 00:21:34,119 Speaker 10: Yeah, so the drop off was forecast by CEO Elon 406 00:21:34,200 --> 00:21:36,840 Speaker 10: Musk on the July earnings call when they basically said 407 00:21:36,840 --> 00:21:39,040 Speaker 10: that they were going to have factory downtime as they 408 00:21:39,080 --> 00:21:42,320 Speaker 10: prepare for the cyber truck in Austin and really as 409 00:21:42,320 --> 00:21:45,600 Speaker 10: they rolled out the refreshed Model three at Shanghai. So 410 00:21:46,320 --> 00:21:48,240 Speaker 10: we knew that this was going to be a soft quarter. 411 00:21:48,840 --> 00:21:51,560 Speaker 10: I think Wall Street knew it was definitely a miss 412 00:21:51,600 --> 00:21:54,639 Speaker 10: compared to what our consensus was. But the market reaction 413 00:21:54,680 --> 00:21:56,320 Speaker 10: today has been pretty flat. I mean it was sort 414 00:21:56,320 --> 00:21:59,000 Speaker 10: of down pre market and now it's actually trading slightly above. 415 00:21:59,440 --> 00:22:02,000 Speaker 10: I think the big news is that the company reaffirmed 416 00:22:02,040 --> 00:22:05,159 Speaker 10: their guidance for the year of one point eight million units, 417 00:22:05,200 --> 00:22:08,239 Speaker 10: and that is you know, people are excited about that 418 00:22:08,680 --> 00:22:10,240 Speaker 10: the company is going to have to pick up the pace. 419 00:22:10,240 --> 00:22:12,760 Speaker 10: Though in terms of having a record fourth quarter. 420 00:22:12,960 --> 00:22:16,520 Speaker 4: There's a load of debate about the true story down 421 00:22:16,640 --> 00:22:18,719 Speaker 4: time for the assembly line so they can tool up 422 00:22:18,720 --> 00:22:21,320 Speaker 4: for next gen Model three cyber truck. 423 00:22:21,280 --> 00:22:22,840 Speaker 10: Or is it or is it a demand problem? 424 00:22:22,960 --> 00:22:24,840 Speaker 4: Or is it a demand problem? That's exactly where I 425 00:22:24,880 --> 00:22:25,320 Speaker 4: was going to go. 426 00:22:25,920 --> 00:22:27,080 Speaker 6: Is it a demand problem? 427 00:22:27,560 --> 00:22:30,280 Speaker 10: I mean, I definitely think that with high interest rates 428 00:22:30,320 --> 00:22:33,200 Speaker 10: and inflation, you know, buying a car is a huge purchase. 429 00:22:33,240 --> 00:22:35,280 Speaker 10: And I say this as someone who is like driving 430 00:22:35,280 --> 00:22:37,480 Speaker 10: a Beat or Subaru that I've had for seventeen years. 431 00:22:37,560 --> 00:22:40,280 Speaker 10: You know, it is it is a big, big financial 432 00:22:40,280 --> 00:22:43,679 Speaker 10: decision for many families and many people. So you know, 433 00:22:43,800 --> 00:22:47,359 Speaker 10: some people are concerned that the factory downtime is obfuscating 434 00:22:47,520 --> 00:22:51,200 Speaker 10: a demand issue. But you know, we saw Rivian beat, right, 435 00:22:51,240 --> 00:22:54,879 Speaker 10: and I mean the arc of the future is electric 436 00:22:55,119 --> 00:22:59,760 Speaker 10: is electrification. It's just the macro is definitely a factor. 437 00:22:59,560 --> 00:23:03,160 Speaker 4: You know, interesting to compare and contrast. You more than 438 00:23:03,200 --> 00:23:05,840 Speaker 4: anyone on the planet, almost covered the sort of early 439 00:23:05,920 --> 00:23:10,520 Speaker 4: days of Model three ramp, Tesla's first mass production model. 440 00:23:10,960 --> 00:23:14,760 Speaker 4: Rivian's doing comparatively quite well in its first sort of 441 00:23:14,760 --> 00:23:17,639 Speaker 4: eighteen months production. It's just that they spent billions of 442 00:23:17,680 --> 00:23:20,280 Speaker 4: dollars to do it, and Tesla did it with no 443 00:23:20,359 --> 00:23:20,880 Speaker 4: money at. 444 00:23:20,800 --> 00:23:24,879 Speaker 10: All, right, and a lot of people who work at 445 00:23:24,920 --> 00:23:28,040 Speaker 10: Rivian were instrumental to that Model three ramp, So they've 446 00:23:28,119 --> 00:23:30,159 Speaker 10: learned their lessons in terms of how to make. 447 00:23:30,000 --> 00:23:30,520 Speaker 6: A ramp go. 448 00:23:30,640 --> 00:23:33,040 Speaker 10: Well, yeah, I mean I think it'll be a really 449 00:23:33,080 --> 00:23:34,959 Speaker 10: interesting fourth quarter to see what happens. 450 00:23:35,000 --> 00:23:35,159 Speaker 8: You know. 451 00:23:35,200 --> 00:23:37,440 Speaker 10: The challenge the Tesla faces is that everyone in the 452 00:23:37,520 --> 00:23:40,199 Speaker 10: United States is like, where's my refreshed Model three? So 453 00:23:40,240 --> 00:23:42,800 Speaker 10: they need to kind of clear out that inventory. And 454 00:23:43,280 --> 00:23:46,560 Speaker 10: our opinion column is Liam Liam Denning has an excellent 455 00:23:46,560 --> 00:23:48,119 Speaker 10: column today on this as well. 456 00:23:48,680 --> 00:23:51,320 Speaker 3: Looking at some of the analysis in response to some 457 00:23:51,359 --> 00:23:55,040 Speaker 3: of these numbers. You know, Rivian is seemingly sort of 458 00:23:55,040 --> 00:23:57,720 Speaker 3: a positive news story. Ever, core Issi coming out with 459 00:23:58,000 --> 00:24:01,439 Speaker 3: an upgrading to overall where they think this business is 460 00:24:01,440 --> 00:24:05,600 Speaker 3: going to go, they go from to an outperform from Inline. Ultimately, 461 00:24:05,880 --> 00:24:08,840 Speaker 3: how are they setting themselves apart from a brand appeal 462 00:24:08,920 --> 00:24:12,800 Speaker 3: perspective here from the bazaars to make these big sort 463 00:24:12,800 --> 00:24:15,880 Speaker 3: of scale purchases with a Rivian rather than with a Tesla. 464 00:24:18,240 --> 00:24:20,399 Speaker 10: Well, I think that their their strategy is really interesting. 465 00:24:20,400 --> 00:24:22,760 Speaker 10: I mean, they are clearly squarely focused on the pickup 466 00:24:22,760 --> 00:24:25,159 Speaker 10: truck market, which is where Tesla has lagged. A lot 467 00:24:25,200 --> 00:24:27,320 Speaker 10: of people are wondering where is the cyber truck We've 468 00:24:27,359 --> 00:24:29,720 Speaker 10: seen photographs of the truck kind of around the San 469 00:24:29,760 --> 00:24:33,399 Speaker 10: Francisco Bay area and in Texas, but they actually haven't 470 00:24:33,440 --> 00:24:35,960 Speaker 10: like handed any over the customers yet. So the truck up, 471 00:24:36,040 --> 00:24:39,440 Speaker 10: the pickup truck market is clearly where Revian is focusing. 472 00:24:39,440 --> 00:24:42,240 Speaker 10: But then Revin Rivian also has this incredible deal with 473 00:24:42,320 --> 00:24:45,000 Speaker 10: Amazon for the delivery vans, and that's not a segment 474 00:24:45,040 --> 00:24:46,840 Speaker 10: that Tesla has played in at all yet. 475 00:24:47,480 --> 00:24:50,600 Speaker 4: All right, Bloomberg's down a whole everything, ev, but real 476 00:24:50,680 --> 00:24:53,520 Speaker 4: focus on those Tesla numbers, thank you, all right. JP 477 00:24:53,680 --> 00:24:57,440 Speaker 4: Morgan over in London is hosting its Tech Stars Leadership Forum, 478 00:24:57,440 --> 00:25:00,720 Speaker 4: which basically brings together companies and investors to hear from 479 00:25:00,760 --> 00:25:03,840 Speaker 4: the industry's top players. Earlier today, we had an exclusive 480 00:25:03,840 --> 00:25:07,040 Speaker 4: conversation with JP Morgan CEO Jamie Diamond. 481 00:25:07,040 --> 00:25:07,560 Speaker 6: Have a listen. 482 00:25:10,359 --> 00:25:12,359 Speaker 8: It's a living, breathing thing. It's going to change. 483 00:25:12,400 --> 00:25:14,280 Speaker 11: They're going to be all different types of models and 484 00:25:14,320 --> 00:25:16,040 Speaker 11: different types of tools and technology. 485 00:25:16,440 --> 00:25:18,040 Speaker 8: But the way to think about for us. 486 00:25:18,000 --> 00:25:22,600 Speaker 11: Is every single process, so errors, trading, hedging, research, every 487 00:25:22,680 --> 00:25:23,840 Speaker 11: app every database. 488 00:25:23,880 --> 00:25:24,960 Speaker 8: You're going to be applying AI. 489 00:25:25,400 --> 00:25:27,439 Speaker 11: So it might be as a copilot, it might be 490 00:25:27,480 --> 00:25:29,760 Speaker 11: to replace humans. You know AI is doing all the 491 00:25:29,800 --> 00:25:33,160 Speaker 11: equity hedging for us. For the most part, it's idea generation, 492 00:25:33,280 --> 00:25:36,639 Speaker 11: it's large language models, it's no taking while you're talking 493 00:25:36,640 --> 00:25:39,200 Speaker 11: to someone and whiles taking notes and may actually say 494 00:25:39,200 --> 00:25:41,040 Speaker 11: to you that here's the thing of interest to climb 495 00:25:41,040 --> 00:25:44,120 Speaker 11: by Peterson, all error, all customer service, it's a little 496 00:25:44,119 --> 00:25:44,400 Speaker 11: bit of. 497 00:25:44,320 --> 00:25:46,520 Speaker 5: Everything that it is going to replace some jobs. 498 00:25:46,280 --> 00:25:49,159 Speaker 11: Of course, yeah, but I look, folks, people have to 499 00:25:49,160 --> 00:25:53,280 Speaker 11: take a deep breath. Okay, technologies always replace jobs. Your 500 00:25:53,359 --> 00:25:55,680 Speaker 11: children will live to one hundred and not have cancer 501 00:25:55,840 --> 00:25:58,560 Speaker 11: because of technology, and literally they'll probably be working three 502 00:25:58,560 --> 00:26:01,440 Speaker 11: and a half days a week. Technology has done unbelievable 503 00:26:01,480 --> 00:26:05,120 Speaker 11: things from mankind. But you know, planes crash, pharmacies get misused. 504 00:26:05,280 --> 00:26:06,200 Speaker 8: There are negatives. 505 00:26:06,280 --> 00:26:08,200 Speaker 11: This is one of the biggest negative of my view, 506 00:26:08,280 --> 00:26:11,480 Speaker 11: is AI being used by bad people to do bad things. 507 00:26:11,760 --> 00:26:15,760 Speaker 11: Think of cyber You know, Henry Kistenero talks about warfare, 508 00:26:16,720 --> 00:26:18,560 Speaker 11: but you know the fact and I do think you know, 509 00:26:18,600 --> 00:26:20,480 Speaker 11: eventually have legal guardrails around. 510 00:26:20,480 --> 00:26:21,880 Speaker 8: It's kind of hard to do because it's. 511 00:26:21,680 --> 00:26:25,280 Speaker 11: New, but it will add a huge value. And you know, 512 00:26:25,320 --> 00:26:28,080 Speaker 11: for JP Morgan, if it replaces jobs, and we hope 513 00:26:28,119 --> 00:26:31,400 Speaker 11: to redeploy people like at First Republic. You know, we've 514 00:26:31,440 --> 00:26:34,240 Speaker 11: offered jobs to like ninety percent of the people they accepted. 515 00:26:35,359 --> 00:26:37,840 Speaker 11: But we also you know, we've told them as we 516 00:26:38,119 --> 00:26:40,720 Speaker 11: some of those jobs are transitory, but we hire thirty 517 00:26:40,760 --> 00:26:43,360 Speaker 11: thousand people a year, so we expect to be able 518 00:26:43,359 --> 00:26:45,359 Speaker 11: to get them a job somewhere local and a different 519 00:26:45,359 --> 00:26:46,680 Speaker 11: branch or a different. 520 00:26:46,520 --> 00:26:47,600 Speaker 8: Function if we can do that. 521 00:26:47,640 --> 00:26:50,199 Speaker 11: So and we'll be doing that with any dislocation that 522 00:26:50,280 --> 00:26:51,720 Speaker 11: takes place as a result. 523 00:26:51,840 --> 00:26:54,840 Speaker 10: AI the biggest tech companies prop up a huge chunk 524 00:26:54,960 --> 00:26:55,600 Speaker 10: of the SMP. 525 00:26:56,160 --> 00:26:58,520 Speaker 2: Is big tech too big to fail? 526 00:26:58,920 --> 00:27:01,399 Speaker 11: I think as a too a question, you know, I 527 00:27:01,480 --> 00:27:04,520 Speaker 11: think in any industry, Uh well, you say too big 528 00:27:04,560 --> 00:27:06,600 Speaker 11: to fail, which I've lost touch with it. That really 529 00:27:06,680 --> 00:27:08,840 Speaker 11: means anymore because remember car comes are bailed out and 530 00:27:08,880 --> 00:27:11,640 Speaker 11: these things are bailed out, and you know, I don't 531 00:27:11,760 --> 00:27:15,640 Speaker 11: understand they should ask what they want. If the regulars 532 00:27:15,720 --> 00:27:18,280 Speaker 11: don't want a bank to ever fail again, then we 533 00:27:18,320 --> 00:27:20,919 Speaker 11: should do ABC, D and E. If that's the well, 534 00:27:20,960 --> 00:27:22,680 Speaker 11: I didn't think that was the goal. I think Dodd 535 00:27:22,760 --> 00:27:25,760 Speaker 11: Frank actually accomplished most of the goals, which is dramatically 536 00:27:25,800 --> 00:27:28,119 Speaker 11: reduced to risk, create liquidity, capital stuff like that. 537 00:27:28,240 --> 00:27:30,600 Speaker 8: So and big tech you got to be very specific. 538 00:27:30,960 --> 00:27:34,200 Speaker 11: You know, sometimes companies misuse their position and sometimes they don't. 539 00:27:34,440 --> 00:27:37,080 Speaker 11: Sometimes regularly is captured and sometimes they don't, you know, 540 00:27:37,960 --> 00:27:40,000 Speaker 11: but they're they're powerful, you know, and we have to 541 00:27:40,000 --> 00:27:42,480 Speaker 11: deal with I've been writing about you know, big tech 542 00:27:42,800 --> 00:27:44,720 Speaker 11: going to our business. We got fintech, but we also 543 00:27:44,760 --> 00:27:47,760 Speaker 11: have big tech, and they will embed payment systems in 544 00:27:47,800 --> 00:27:49,960 Speaker 11: there to some we're going to white label banks kind 545 00:27:50,000 --> 00:27:52,119 Speaker 11: of what Apple did you know they have the right 546 00:27:52,200 --> 00:27:52,600 Speaker 11: to do that. 547 00:27:52,680 --> 00:27:53,600 Speaker 8: I'm not against that. 548 00:27:53,920 --> 00:27:56,879 Speaker 11: I would be against unfair use of their position to 549 00:27:57,000 --> 00:27:58,119 Speaker 11: dominates in a business. 550 00:27:58,359 --> 00:28:01,359 Speaker 5: Well, Apple is going to we're into financial services. Do 551 00:28:01,400 --> 00:28:02,879 Speaker 5: you worry about the bank of Apple? 552 00:28:02,960 --> 00:28:05,359 Speaker 11: I wrote about it. I wrote about like five years ago. 553 00:28:05,760 --> 00:28:08,200 Speaker 11: You know how you like, what is a bank? Well, 554 00:28:08,240 --> 00:28:10,439 Speaker 11: I will get to compete, so they have they have 555 00:28:10,480 --> 00:28:14,119 Speaker 11: a tough competitor. But you know they hold money, move money. 556 00:28:14,600 --> 00:28:16,800 Speaker 11: Uh that you could put money in a basically you 557 00:28:16,840 --> 00:28:20,760 Speaker 11: know markets, but it's a white labeled checking account, credit card. 558 00:28:21,400 --> 00:28:23,360 Speaker 8: Uh, you know all these things. Yeah, they're a form 559 00:28:23,359 --> 00:28:24,040 Speaker 8: of a competitor. 560 00:28:24,200 --> 00:28:26,480 Speaker 11: You know, we also partner with them, but I'm very 561 00:28:26,560 --> 00:28:28,919 Speaker 11: used to partnering and competing with lots of people. 562 00:28:29,840 --> 00:28:30,720 Speaker 5: Existential threat. 563 00:28:31,720 --> 00:28:34,000 Speaker 11: I don't think it's an existential threat, but I think 564 00:28:34,119 --> 00:28:36,280 Speaker 11: if we were complacent about it. 565 00:28:36,359 --> 00:28:39,600 Speaker 3: Yes, the World of Frenemies with JP Morgan, Ce and 566 00:28:39,760 --> 00:28:42,440 Speaker 3: Jamie Dimmond them. Meanwhile, coming up, we'll have more from 567 00:28:42,480 --> 00:28:44,760 Speaker 3: that Tech Styles Leadership Forum in London with that girl 568 00:28:44,960 --> 00:28:45,600 Speaker 3: JP Morgan. 569 00:28:45,800 --> 00:28:46,320 Speaker 5: That's coming up. 570 00:28:46,320 --> 00:28:56,400 Speaker 2: This is Bruebag Technology. 571 00:29:00,160 --> 00:29:02,920 Speaker 4: It's time for the VC roundup and first Up. Dozens 572 00:29:02,960 --> 00:29:07,280 Speaker 4: of Japanese startups, ranging from software outsourcing companies to translation 573 00:29:07,440 --> 00:29:10,320 Speaker 4: gadget makers, are preparing to list on the Nasdaq in 574 00:29:10,360 --> 00:29:12,600 Speaker 4: the next few years, seven of them in just the 575 00:29:12,640 --> 00:29:15,360 Speaker 4: next few months. The trend follows a number of entrepreneurs 576 00:29:15,360 --> 00:29:19,040 Speaker 4: turning away from an aging risk averse home market over 577 00:29:19,080 --> 00:29:22,000 Speaker 4: in Japan and Canoe entered into a purchase agreement with 578 00:29:22,040 --> 00:29:25,480 Speaker 4: a foreign strategic institutional investor for an investment of forty 579 00:29:25,480 --> 00:29:29,000 Speaker 4: five million dollars with potential for upsizing to one hundred 580 00:29:29,160 --> 00:29:32,040 Speaker 4: and fifty million dollars. The closing and sale are expected 581 00:29:32,080 --> 00:29:35,840 Speaker 4: to occur as soon as possible. Plus Sequoia managing director 582 00:29:35,920 --> 00:29:39,560 Speaker 4: roll Off Bota applauds the changes at X formerly known 583 00:29:39,640 --> 00:29:43,600 Speaker 4: as Twitter. He spoke exclusively with Bloomberg's Emily Chang in London. 584 00:29:43,640 --> 00:29:44,120 Speaker 6: Have a listen. 585 00:29:44,880 --> 00:29:47,600 Speaker 12: My first job opportunity in America was given to be 586 00:29:47,640 --> 00:29:49,960 Speaker 12: by Elon and it was to work for X dot 587 00:29:49,960 --> 00:29:53,120 Speaker 12: com twenty three years ago. So it's an interesting full 588 00:29:53,160 --> 00:29:56,520 Speaker 12: circle that it comes back. We ver enthusiastic about X. 589 00:29:56,800 --> 00:29:58,880 Speaker 12: I think the things that have happened at the company 590 00:29:58,920 --> 00:30:02,800 Speaker 12: in terms of changing the structure, streamline decision making to 591 00:30:02,840 --> 00:30:06,680 Speaker 12: get much more rapid product evolution, record usage levels on 592 00:30:06,760 --> 00:30:10,880 Speaker 12: the service, a reinvention of the business model, full transparency 593 00:30:11,240 --> 00:30:16,120 Speaker 12: on content, moderation and veracity, and so we're very enthusiastic 594 00:30:16,160 --> 00:30:16,720 Speaker 12: about the future. 595 00:30:16,720 --> 00:30:20,760 Speaker 3: And it's early days and enthusiasm being shared from Techtles 596 00:30:20,840 --> 00:30:23,440 Speaker 3: Leadership Forum. It's happening in London at the moment, and 597 00:30:23,680 --> 00:30:25,719 Speaker 3: we want to have not just a conversation about what's 598 00:30:25,720 --> 00:30:28,760 Speaker 3: happening in some private companies, what's happening in public world 599 00:30:28,840 --> 00:30:31,440 Speaker 3: as well. From the event is Matt gel his head 600 00:30:31,480 --> 00:30:34,800 Speaker 3: of EMEA Technology Investment Banking for JP Morgan and just 601 00:30:35,240 --> 00:30:38,160 Speaker 3: we have some excitement of this transition from private to 602 00:30:38,200 --> 00:30:39,120 Speaker 3: public once again. 603 00:30:39,160 --> 00:30:40,640 Speaker 5: We've just had what one. 604 00:30:40,560 --> 00:30:44,520 Speaker 3: Two, three whole IPOs of size here in the United States. 605 00:30:44,800 --> 00:30:47,520 Speaker 3: How is it looking at amea level at the moment, Matt. 606 00:30:47,480 --> 00:30:49,960 Speaker 13: Oh I think it's a similar level of optimism. It's 607 00:30:50,000 --> 00:30:52,480 Speaker 13: been a long wait for the IPO market to reopen. 608 00:30:52,520 --> 00:30:55,120 Speaker 13: We actually did have two tech IPOs in Europe happened 609 00:30:55,120 --> 00:30:58,360 Speaker 13: earlier this year, but it's really the Europe looks to 610 00:30:58,400 --> 00:31:01,360 Speaker 13: the US capital market to gain excitement. It's the deepest 611 00:31:01,400 --> 00:31:04,400 Speaker 13: capital market in the world, and typically it opens up 612 00:31:04,400 --> 00:31:06,880 Speaker 13: six months or so ahead of Europe for the tech indency, 613 00:31:07,320 --> 00:31:09,600 Speaker 13: and so having those IPOs get out, get away, and 614 00:31:09,640 --> 00:31:12,640 Speaker 13: get done has certainly raised enthusiasm here. And we can 615 00:31:12,680 --> 00:31:14,920 Speaker 13: just see on the floor of this conference we have 616 00:31:14,960 --> 00:31:18,120 Speaker 13: about fifty percent more people here than we had last year. 617 00:31:18,240 --> 00:31:21,280 Speaker 13: There's definitely a much more positive outlook from everyone you 618 00:31:21,320 --> 00:31:23,480 Speaker 13: talk to. So we're not out of woods yet for 619 00:31:23,520 --> 00:31:25,720 Speaker 13: a tech recovery, but you can definitely feel we felt 620 00:31:25,760 --> 00:31:28,440 Speaker 13: that we've hit the bottom and we're going upwards from here. 621 00:31:29,480 --> 00:31:32,680 Speaker 4: Matt arms us listing was kind of like a starter 622 00:31:32,800 --> 00:31:36,640 Speaker 4: gun moment here in the United States. Caroline just went 623 00:31:36,720 --> 00:31:39,280 Speaker 4: so deep on that IPO day in New York City. 624 00:31:39,760 --> 00:31:42,520 Speaker 4: But for you guys in Europe, was there a psychological 625 00:31:42,600 --> 00:31:46,080 Speaker 4: blow to arm choosing to list in the United States 626 00:31:46,200 --> 00:31:48,240 Speaker 4: rather than in London or in Europe. 627 00:31:48,560 --> 00:31:49,280 Speaker 6: No, I don't think so. 628 00:31:49,320 --> 00:31:51,680 Speaker 13: I mean, if you think about ARM, the heritage of 629 00:31:51,720 --> 00:31:55,160 Speaker 13: the company is a British founded but global business who 630 00:31:55,200 --> 00:31:57,520 Speaker 13: then took some time off the capital markets to be 631 00:31:57,560 --> 00:32:01,360 Speaker 13: owned by a Japanese company. What's great for the European 632 00:32:01,360 --> 00:32:04,000 Speaker 13: ecosystem As ARM was able to list, it was able 633 00:32:04,000 --> 00:32:07,640 Speaker 13: to list with huge demand from institutional investors, and it 634 00:32:07,720 --> 00:32:10,120 Speaker 13: set itself up for great success in the capital markets. 635 00:32:10,160 --> 00:32:12,560 Speaker 13: So when we think about European companies, we think about 636 00:32:12,600 --> 00:32:14,560 Speaker 13: growing them and having them. 637 00:32:14,600 --> 00:32:15,560 Speaker 6: Hit the capital markets. 638 00:32:15,600 --> 00:32:18,120 Speaker 13: Where they choose to go is something each company needs 639 00:32:18,120 --> 00:32:20,560 Speaker 13: to make a decision for itself. So long as they've 640 00:32:20,600 --> 00:32:22,680 Speaker 13: got access to the capital markets, that's a great thing 641 00:32:22,720 --> 00:32:24,840 Speaker 13: for the European ecosystem. So there might have been some 642 00:32:24,880 --> 00:32:28,440 Speaker 13: handwringing here or there among some politicians, but for bankers, 643 00:32:28,440 --> 00:32:31,040 Speaker 13: for lawyers, for consultants in the ecosystem, we're all super 644 00:32:31,040 --> 00:32:34,160 Speaker 13: excited that got done and it really should portend well 645 00:32:34,200 --> 00:32:36,040 Speaker 13: for the tech ecosystem in Europe going forward. 646 00:32:36,480 --> 00:32:39,360 Speaker 3: What sort of areas of growth can we expect then 647 00:32:39,480 --> 00:32:41,600 Speaker 3: companies going public? You mentioned there have been a couple 648 00:32:41,760 --> 00:32:44,880 Speaker 3: I'm thinking not to Mattacre is probably one that you're discussing. 649 00:32:44,440 --> 00:32:45,920 Speaker 5: And I on us. 650 00:32:46,440 --> 00:32:49,000 Speaker 3: These are companies that perhaps didn't get quite the exuberant 651 00:32:49,040 --> 00:32:50,520 Speaker 3: of pricing at the top end of the range and 652 00:32:50,520 --> 00:32:53,600 Speaker 3: then bouncing on the first day. How do we get 653 00:32:53,640 --> 00:32:55,160 Speaker 3: excited about what's to come out of. 654 00:32:55,160 --> 00:32:57,240 Speaker 13: Europe map Well, I think, you know, some of it 655 00:32:57,280 --> 00:32:59,320 Speaker 13: has to do with you know, just as that capital 656 00:32:59,320 --> 00:33:01,520 Speaker 13: markets start bounding. If you think about the IPOs that 657 00:33:01,520 --> 00:33:04,240 Speaker 13: have happened in Europe, and you mentioned ionos that happened 658 00:33:04,280 --> 00:33:07,000 Speaker 13: very early this year in a very different market, we're 659 00:33:07,040 --> 00:33:09,480 Speaker 13: now in a position where the major industries are up 660 00:33:10,080 --> 00:33:12,520 Speaker 13: mid mid to high teens, in some cases more than that, 661 00:33:12,560 --> 00:33:15,560 Speaker 13: so there's a much more receptive investor environment. The next 662 00:33:15,560 --> 00:33:17,600 Speaker 13: thing we're looking for is for investors to be making 663 00:33:17,680 --> 00:33:20,239 Speaker 13: money on the tech IPOs, because when that happens, that 664 00:33:20,280 --> 00:33:21,840 Speaker 13: means you're going to see more IPOs. 665 00:33:22,280 --> 00:33:22,840 Speaker 8: And then as you. 666 00:33:22,840 --> 00:33:24,640 Speaker 13: Start to see the US tech IPO's work, we're going 667 00:33:24,680 --> 00:33:27,640 Speaker 13: to see more happen for the European names. I think 668 00:33:27,680 --> 00:33:30,400 Speaker 13: what we'll see for European technology companies is the companies 669 00:33:30,440 --> 00:33:33,719 Speaker 13: with global revenues are increasingly looking to the US, and 670 00:33:33,720 --> 00:33:36,880 Speaker 13: that's so primarily the software businesses, some of the fintech 671 00:33:36,920 --> 00:33:39,280 Speaker 13: businesses that are based here but have a global footprint. 672 00:33:40,160 --> 00:33:43,240 Speaker 13: The more internet digital media businesses that have a European 673 00:33:43,280 --> 00:33:46,520 Speaker 13: focus still really see the European capital markets as being attractive, 674 00:33:46,560 --> 00:33:49,160 Speaker 13: but more so with a look toward twenty four versus 675 00:33:49,160 --> 00:33:49,680 Speaker 13: twenty three. 676 00:33:49,760 --> 00:33:53,920 Speaker 4: Yes, Matt, it's been an astonishing year for your industry. 677 00:33:54,680 --> 00:33:57,479 Speaker 4: You forget that we started with the collapse of Silicon 678 00:33:57,560 --> 00:34:00,719 Speaker 4: Valley Bank and in the UK and you're at particular, 679 00:34:00,880 --> 00:34:04,320 Speaker 4: HSBC moved in really quick to take advantage of some 680 00:34:04,400 --> 00:34:08,400 Speaker 4: of the vacuum. Did JP Morgan benefit from the SVB 681 00:34:08,520 --> 00:34:10,560 Speaker 4: collaps Were you able to come in and find new 682 00:34:10,600 --> 00:34:12,720 Speaker 4: areas of business in the tech sector. 683 00:34:13,080 --> 00:34:16,400 Speaker 13: Yeah, I mean, pre dating the Silicon Value Bank collapse, 684 00:34:16,440 --> 00:34:19,680 Speaker 13: we'd actually already started to really ramp up our offerings 685 00:34:19,719 --> 00:34:22,719 Speaker 13: for early stage technology companies. We'd already been doing that 686 00:34:22,760 --> 00:34:25,839 Speaker 13: for companies Series C and Series D. At the latter 687 00:34:25,840 --> 00:34:28,120 Speaker 13: part to last year, we started ramping and offering for 688 00:34:28,200 --> 00:34:31,720 Speaker 13: companies from Series A onwards. So we were very focused 689 00:34:31,760 --> 00:34:35,160 Speaker 13: on supporting the tech ecosystem from early days, not just 690 00:34:35,239 --> 00:34:38,480 Speaker 13: waiting for the IPO to come in so certainly Silicon 691 00:34:38,520 --> 00:34:41,360 Speaker 13: Valley bank struggles. Maybe you woke up some people at 692 00:34:41,440 --> 00:34:44,200 Speaker 13: vcs and some technology companies that they needed to diversify 693 00:34:44,239 --> 00:34:46,960 Speaker 13: their banking relationships and being able to go to JP 694 00:34:47,040 --> 00:34:50,160 Speaker 13: Morgan here in Europe and get access to our offerings 695 00:34:50,400 --> 00:34:53,640 Speaker 13: on a global basis. I wouldn't say that hurt us 696 00:34:53,680 --> 00:34:56,360 Speaker 13: by any stretch. It probably just raised the profile and 697 00:34:56,400 --> 00:34:58,520 Speaker 13: maybe accelerated our ramp by a couple of months. 698 00:35:00,120 --> 00:35:02,759 Speaker 4: L JP Morgan, great catch up. Get the perspective from 699 00:35:02,800 --> 00:35:04,640 Speaker 4: over in London in Europe. Thank you very much. 700 00:35:11,600 --> 00:35:13,680 Speaker 5: It's going viral. You'll have seen the pictures of. 701 00:35:13,640 --> 00:35:16,560 Speaker 3: Sphere Entertainment's latest venue in Las Vegas, and it just 702 00:35:16,600 --> 00:35:18,480 Speaker 3: opened on Friday with a show by the rock band 703 00:35:18,520 --> 00:35:21,239 Speaker 3: You two other high profile events our schedule for the 704 00:35:21,280 --> 00:35:21,759 Speaker 3: rest of the year. 705 00:35:21,800 --> 00:35:23,360 Speaker 5: People are going wild for this event. 706 00:35:23,640 --> 00:35:27,600 Speaker 3: Alice Attending, calling it a revolutionary leap in Live experiential 707 00:35:27,880 --> 00:35:30,320 Speaker 3: company says it expects final construction costs of the arena 708 00:35:30,480 --> 00:35:33,520 Speaker 3: arena to be pretty mammoth to two point three billion dollars. 709 00:35:33,719 --> 00:35:36,879 Speaker 3: Shares though rallying hard today at sixteen percent in US 710 00:35:36,920 --> 00:35:37,640 Speaker 3: trading ends. 711 00:35:38,440 --> 00:35:41,319 Speaker 4: Let's stick with Live entertainment, the world of but here 712 00:35:41,320 --> 00:35:44,160 Speaker 4: in Silicon Valley. It's the tenth season the iconic lee 713 00:35:44,200 --> 00:35:47,240 Speaker 4: By Stadium in Santa Clara, next to its noisy neighbors 714 00:35:47,239 --> 00:35:51,120 Speaker 4: Apple alphabet pairing of Google, and it's been a big decade. 715 00:35:51,200 --> 00:35:54,080 Speaker 4: There's a big decade to come. Alguido San Francisco forty 716 00:35:54,160 --> 00:35:56,799 Speaker 4: nine as president, joins us on set. You know, we 717 00:35:56,840 --> 00:35:59,200 Speaker 4: always talk about the impact that big tech companies have 718 00:35:59,800 --> 00:36:02,439 Speaker 4: in Silicon Valley. You guys are right in the heart 719 00:36:02,480 --> 00:36:04,880 Speaker 4: of it, and you've put out some data on the 720 00:36:05,040 --> 00:36:07,600 Speaker 4: dollars flying out of the stadium. Just run us through 721 00:36:07,600 --> 00:36:08,720 Speaker 4: what you've announced. 722 00:36:08,800 --> 00:36:10,839 Speaker 14: Yeah, I'm super excited to announce this morning that Levi 723 00:36:11,000 --> 00:36:14,320 Speaker 14: Stadium and it's ten seasons has generated two billion dollars 724 00:36:14,320 --> 00:36:17,720 Speaker 14: of economic impact in our region, you know, employing nearly 725 00:36:17,760 --> 00:36:20,279 Speaker 14: twelve thousand people over those course of the ten years. 726 00:36:20,280 --> 00:36:23,640 Speaker 14: And I think, really what's amazing in that is two 727 00:36:23,800 --> 00:36:26,680 Speaker 14: years of that was really impacted by a global pandemic 728 00:36:26,719 --> 00:36:29,080 Speaker 14: where we didn't have live events. So I think about 729 00:36:29,080 --> 00:36:31,160 Speaker 14: it as only eight years and now looking. 730 00:36:30,920 --> 00:36:33,000 Speaker 6: Forward to Super Bowl and World Cup, we're really excited. 731 00:36:33,719 --> 00:36:36,239 Speaker 4: The big story of the year for Caroline and I 732 00:36:37,120 --> 00:36:40,360 Speaker 4: is this huge economic phenomenon called Taylor Swift? 733 00:36:40,880 --> 00:36:43,759 Speaker 6: Have you heard it's for my daughters as well. 734 00:36:43,800 --> 00:36:46,719 Speaker 14: I have three daughters fourteen, twelve, and ten. I know 735 00:36:46,840 --> 00:36:48,280 Speaker 14: all about friendship bracelets. 736 00:36:48,360 --> 00:36:49,279 Speaker 6: Yeah, so fantastic. 737 00:36:49,480 --> 00:36:52,680 Speaker 4: You guys had a tour date in July for Taylor Swift. 738 00:36:52,719 --> 00:36:55,439 Speaker 4: But now looking at what's happening on social media, did 739 00:36:55,480 --> 00:36:58,120 Speaker 4: you guys feel that economic effect from Taylor Swift? 740 00:36:58,160 --> 00:37:01,000 Speaker 14: We absolutely did thirty three million dollars in fact of that, 741 00:37:01,080 --> 00:37:03,480 Speaker 14: which is the largest concert we've ever seen. I've never 742 00:37:03,520 --> 00:37:05,040 Speaker 14: seen anything like it. She is a force to be 743 00:37:05,080 --> 00:37:07,719 Speaker 14: reckoned with, as we know. And look, I think that 744 00:37:07,880 --> 00:37:11,440 Speaker 14: is to me, it's a microcosm of the power of life. 745 00:37:11,600 --> 00:37:14,640 Speaker 14: Sports and entertainment is back coming out of the pandemic. 746 00:37:14,680 --> 00:37:16,600 Speaker 14: We all thought, is this the pandemic bounce? 747 00:37:16,960 --> 00:37:18,400 Speaker 6: It's not. It's here to stay. 748 00:37:18,800 --> 00:37:20,880 Speaker 14: We talk about what seat we're seeing in the streaming 749 00:37:20,920 --> 00:37:23,480 Speaker 14: world with people watching it. We talk about what's happening 750 00:37:23,520 --> 00:37:26,279 Speaker 14: in stagums with people going it's never been better than 751 00:37:26,320 --> 00:37:27,160 Speaker 14: it is right now. 752 00:37:28,120 --> 00:37:30,439 Speaker 3: I mean, we'll see when the Chiefs come to town 753 00:37:30,520 --> 00:37:32,800 Speaker 3: how that happens. Like sole thing so the games, but 754 00:37:34,040 --> 00:37:36,440 Speaker 3: more how are you trying to ensure that you're at 755 00:37:36,480 --> 00:37:38,840 Speaker 3: the cunning edge when we just see the swhere. For example, 756 00:37:39,040 --> 00:37:41,480 Speaker 3: I know when I was up there in the ordering 757 00:37:41,520 --> 00:37:43,560 Speaker 3: my beers at the forty nine Ers game, I was 758 00:37:43,560 --> 00:37:45,320 Speaker 3: doing it all through an app and that felt really 759 00:37:45,600 --> 00:37:47,160 Speaker 3: ahead of the time in twenty sixteen. 760 00:37:47,200 --> 00:37:49,080 Speaker 5: How you continuing to iterate as you look towards the 761 00:37:49,120 --> 00:37:49,759 Speaker 5: next ten years. 762 00:37:50,360 --> 00:37:52,520 Speaker 14: It's a great question, Caroline, and we're going to spend 763 00:37:52,520 --> 00:37:54,480 Speaker 14: about two hundred and fifty million over the course of 764 00:37:54,520 --> 00:37:57,880 Speaker 14: the next ten years at Levi's stating updating and enhancing 765 00:37:57,920 --> 00:38:00,480 Speaker 14: it not just for the fan experience, but frankly for 766 00:38:00,520 --> 00:38:03,400 Speaker 14: the events that are come. We were awarded Super Bowl sixty, 767 00:38:03,400 --> 00:38:05,439 Speaker 14: which will happen in February of twenty twenty six. 768 00:38:05,760 --> 00:38:07,880 Speaker 6: We were all also awarded the World Cup. 769 00:38:07,719 --> 00:38:10,040 Speaker 14: In the summer of twenty twenty six that will not 770 00:38:10,160 --> 00:38:13,080 Speaker 14: happen obviously in any other city outside of the Bay Area. 771 00:38:13,640 --> 00:38:16,279 Speaker 14: And for that, you know, our fans, and not just 772 00:38:16,360 --> 00:38:18,560 Speaker 14: our fans on forty Niners game days, but fans around 773 00:38:18,600 --> 00:38:21,800 Speaker 14: the globe are wanting the best technology, They're wanting the 774 00:38:21,840 --> 00:38:23,799 Speaker 14: best content, they're wanting the best experience. 775 00:38:24,080 --> 00:38:25,160 Speaker 6: So we're going to continue to. 776 00:38:25,120 --> 00:38:28,120 Speaker 14: Advance our invest our dollars to make sure that happens. 777 00:38:28,880 --> 00:38:31,319 Speaker 3: And I think when you're thinking about the experience of 778 00:38:31,400 --> 00:38:33,320 Speaker 3: artificial intelligence and all the ways that you can adopt, 779 00:38:33,360 --> 00:38:34,960 Speaker 3: I mean, you're not only serving as president of San 780 00:38:34,960 --> 00:38:37,719 Speaker 3: Francisco forty nine Ers, but you're also part of a 781 00:38:37,760 --> 00:38:40,759 Speaker 3: consulting firm where you're at elevate. Really think about how 782 00:38:40,760 --> 00:38:43,680 Speaker 3: other companies are adopting all of this. It's happening quickly enough. 783 00:38:43,719 --> 00:38:45,320 Speaker 3: Do you feel that really owning that space? 784 00:38:47,120 --> 00:38:48,920 Speaker 14: Yeah, I think it's a really I mean, as you 785 00:38:48,960 --> 00:38:51,000 Speaker 14: know you report on every day, it's an evolving space. 786 00:38:51,040 --> 00:38:53,399 Speaker 14: And I think sports in the ecosystem that we see 787 00:38:53,440 --> 00:38:55,960 Speaker 14: around it right now is to get to a point 788 00:38:56,000 --> 00:38:58,520 Speaker 14: where we can increase the fan experience on game day. 789 00:38:58,800 --> 00:39:00,520 Speaker 6: But frankly, that's only seven. 790 00:39:00,360 --> 00:39:02,480 Speaker 14: Hundred thousand people that come to San Francisco forty nine 791 00:39:02,560 --> 00:39:04,200 Speaker 14: Ers games. If you think about the forty nine Ers 792 00:39:04,239 --> 00:39:07,160 Speaker 14: ecosystem from a fan base perspective, we have over ten 793 00:39:07,200 --> 00:39:09,880 Speaker 14: million fans across the globe. So we think about our 794 00:39:09,920 --> 00:39:12,960 Speaker 14: spells as a sports and entertainment franchise that's really global 795 00:39:12,960 --> 00:39:15,480 Speaker 14: in nature, and we need all these technology firms to 796 00:39:15,600 --> 00:39:17,520 Speaker 14: help us reach those fans wherever they are. 797 00:39:17,640 --> 00:39:19,919 Speaker 4: For example, the rights that you have in the UK 798 00:39:20,000 --> 00:39:23,560 Speaker 4: international marketing rights outside of the stadium, how are you 799 00:39:23,680 --> 00:39:26,480 Speaker 4: going to grow revenue in eyeballs? Is it a streaming 800 00:39:26,520 --> 00:39:29,160 Speaker 4: fust strategy because you will sit bound by the NFL. 801 00:39:29,280 --> 00:39:31,680 Speaker 14: So yes, we're bound by the NFL as it relates 802 00:39:31,680 --> 00:39:33,520 Speaker 14: to media rights, but we're not bound by the NFL 803 00:39:33,520 --> 00:39:35,919 Speaker 14: as it relates to sports and marketing rights and rights 804 00:39:35,920 --> 00:39:36,960 Speaker 14: and marks in those markets. 805 00:39:37,040 --> 00:39:38,640 Speaker 6: So Ed, you're absolutely correct. 806 00:39:38,680 --> 00:39:41,080 Speaker 14: The San Francisco forty nine Ers have rights to Mexico 807 00:39:41,480 --> 00:39:44,080 Speaker 14: and London today and what we're doing in Mexico. We 808 00:39:44,120 --> 00:39:45,920 Speaker 14: played a game there in Mexico City last year where 809 00:39:45,920 --> 00:39:48,640 Speaker 14: we saw tremendous fan engagement I think the highest gate 810 00:39:48,880 --> 00:39:51,880 Speaker 14: in NFL history as it relates to a international game. 811 00:39:51,680 --> 00:39:53,919 Speaker 6: Played on the England side. In the UK. 812 00:39:54,440 --> 00:39:56,600 Speaker 14: Not only does San Francisco forty nine Ers own Leeds 813 00:39:56,680 --> 00:39:59,520 Speaker 14: United which is in the championship now, but we are 814 00:39:59,560 --> 00:40:02,280 Speaker 14: activating daily. I know we have a global watch party 815 00:40:02,320 --> 00:40:04,600 Speaker 14: coming up for our game we're playing this Sunday night 816 00:40:04,880 --> 00:40:06,040 Speaker 14: in prime time against. 817 00:40:05,800 --> 00:40:06,719 Speaker 6: The Dallas Cowboys. 818 00:40:06,920 --> 00:40:09,840 Speaker 14: So again it's all about reaching those fans wherever they are. 819 00:40:10,000 --> 00:40:12,320 Speaker 3: Ritz they love football and all its forms and guys 820 00:40:12,400 --> 00:40:13,080 Speaker 3: is al Guido. 821 00:40:13,360 --> 00:40:13,759 Speaker 5: We love it. 822 00:40:13,800 --> 00:40:16,359 Speaker 3: Thank you, President of San Francisco forty nine ers. Great 823 00:40:16,360 --> 00:40:18,000 Speaker 3: to spend some time with you. Meanwhile, look that's it 824 00:40:18,000 --> 00:40:20,120 Speaker 3: for this addition of Bloomberg Technology ED what a fault? 825 00:40:20,400 --> 00:40:23,200 Speaker 4: Yeah hour, We have got fast out to the to 826 00:40:23,280 --> 00:40:26,520 Speaker 4: the week exactly recap on our podcast where yougate your podcast. 827 00:40:26,520 --> 00:40:28,480 Speaker 4: You can find it on all the Bloomberg platforms as 828 00:40:28,560 --> 00:40:31,719 Speaker 4: well as Apple, Spotify, and iHeart. FROMSF in New York City, 829 00:40:32,000 --> 00:40:33,320 Speaker 4: this is Bloomberg Technology.