WEBVTT - Microsoft CEO at Google Trial and Tesla's Delivery Numbers 0:00:01.080 --> 0:00:06.360 From Mahart where Innovations, Money and Power Collie in Silicon Valley, NBN. 0:00:06.720 --> 0:00:11.239 This is Bloomberg Technology with Caroline Hyde and Ed Ludlow. 0:00:24.480 --> 0:00:27.000 And Caroline Hide at Lumberg's world headquarters in New York 0:00:27.360 --> 0:00:29.120 and im Ed Lodlow in San Francisco. 0:00:29.200 --> 0:00:30.680 This is Gloobag Technology. 0:00:30.720 --> 0:00:33.120 Coming up, we'll get the outlook for investing in the 0:00:33.159 --> 0:00:35.960 tech sector. That's as Gorman saxas that those stocks are 0:00:36.000 --> 0:00:37.800 poised for an earnings legged. 0:00:37.640 --> 0:00:42.120 Rebound, and we'll have the latest updates from Google's antitrust trial. 0:00:42.200 --> 0:00:46.239 As Microsoft CEO Satya Nadella takes the stand past. 0:00:46.080 --> 0:00:48.280 We'll get a read on the state of the EV industry. 0:00:48.320 --> 0:00:51.240 Some mixed numbers coming out to Tesla and Ribban. We'll 0:00:51.240 --> 0:00:52.040 dig into those. 0:00:51.840 --> 0:00:52.320 In a moment. 0:00:52.440 --> 0:00:54.560 We're kind of starting this week, Caroline, much as we 0:00:54.640 --> 0:00:57.080 ended last week, which is thinking about anti trust and 0:00:57.120 --> 0:01:00.280 thinking about some of the megacap tech names of the 0:01:00.400 --> 0:01:02.720 marketly higher and Monday session. The news that we'll get 0:01:02.720 --> 0:01:06.160 into shortly is that Microsoft CEO Seti and Nadella is 0:01:06.240 --> 0:01:10.080 understand in the Google antitrust trial that the government has 0:01:10.120 --> 0:01:13.200 put on focus on search. The kind of top line 0:01:13.280 --> 0:01:16.959 is that According to Nadella, it is bogus quote the 0:01:17.040 --> 0:01:19.800 idea that there is choice in the search market, and 0:01:19.840 --> 0:01:21.880 we will bring you those details later in the program. 0:01:22.080 --> 0:01:23.800 Yeah, we've got to dig in on the edge trust 0:01:24.240 --> 0:01:26.920 feeling of things and indeed what it means from market. 0:01:26.920 --> 0:01:29.080 There's been so under pressure just thinking a month is 0:01:29.120 --> 0:01:31.240 scone of October and as that goes off by what 0:01:31.280 --> 0:01:33.880 five point eight percent, having its worst month since December 0:01:33.959 --> 0:01:34.960 twenty twenty two. 0:01:35.080 --> 0:01:37.160 So what does October bring? Danny Fisher's with us. 0:01:37.200 --> 0:01:39.800 He manages four point three billion dollars in Janis Henderson's 0:01:39.840 --> 0:01:42.760 Global Technology and Innovation Fund, And really we do have 0:01:42.840 --> 0:01:45.959 these headwinds, ed pointing out the regulatory headwind, But is 0:01:46.000 --> 0:01:48.480 there going to be a buying opportunity into technology as 0:01:48.480 --> 0:01:49.360 it stands for October? 0:01:49.400 --> 0:01:52.880 Denny, Well, it's always hard to tell, you know, on 0:01:52.920 --> 0:01:55.480 a month to month basis, but clearly September was a 0:01:55.480 --> 0:01:59.040 difficult month and it was a confluence of events as 0:01:59.080 --> 0:02:01.520 we know, and as Edge just talked about in the 0:02:01.600 --> 0:02:04.960 lead in the tenure continues to rise. That is generally 0:02:05.000 --> 0:02:07.520 a headwind for growth oriented stocks just the way you 0:02:07.640 --> 0:02:11.480 discount them. But then secondly, is the tenure isn't going 0:02:11.600 --> 0:02:15.160 up because economic growth is robust. It's going up because 0:02:15.200 --> 0:02:20.040 inflation pressures continue to persist, and you know, the FEDS 0:02:20.080 --> 0:02:23.760 indicated that it's going to be you know, higher for longer, 0:02:23.840 --> 0:02:27.080 and so I think investors needed to digest that. And 0:02:27.160 --> 0:02:31.079 so where we go from here is, you know, earnings. 0:02:31.320 --> 0:02:34.839 As you talked about in October brings earning season, it's 0:02:34.880 --> 0:02:38.079 going to be a tug of war, I would call it, 0:02:38.200 --> 0:02:40.160 depending on you know, it's going to be a lot 0:02:40.160 --> 0:02:43.840 of idiosyncratic stories. And if we just look at the 0:02:43.840 --> 0:02:47.920 most recent reports, for example, from companies like Adobe and 0:02:48.040 --> 0:02:52.760 Accenture that had August quarter ins Accentures was much more muted, 0:02:53.440 --> 0:02:57.880 definitely some more macroeconomic headwinds associated with their results. But 0:02:57.919 --> 0:03:00.440 then Adobe that has some you know, unique drivers and 0:03:00.480 --> 0:03:04.320 it's business and is on their front foot with AI, 0:03:05.200 --> 0:03:08.080 actually put up very very nice numbers and you know, 0:03:08.200 --> 0:03:11.480 expectations to be strong going forward. So I think, you know, 0:03:11.480 --> 0:03:13.680 it's just it's going to be a case by case basis. 0:03:13.800 --> 0:03:16.480 At any one session, a market does not make I 0:03:16.480 --> 0:03:18.600 get that. But let's show the megacaps again. You know, 0:03:18.639 --> 0:03:22.400 Alphabet at one point eight percent, we talked about AI. 0:03:22.680 --> 0:03:26.400 We know about the macro picture right now, the kind 0:03:26.400 --> 0:03:29.760 of acceptance that rates will be higher for longer. But 0:03:29.880 --> 0:03:33.920 did the share prices on your screen have any basis 0:03:34.440 --> 0:03:40.000 or priced in reflecting antitrust? What's happening in the courtroom 0:03:40.040 --> 0:03:42.240 right now? Is there any investor concern at all? 0:03:42.840 --> 0:03:45.120 Yeah, well, there absolutely has to be. And what's interesting, 0:03:45.160 --> 0:03:47.480 the one name that isn't on that screen is Apple. 0:03:47.760 --> 0:03:51.600 So if we look at them, you know, Google, Microsoft, Apple, 0:03:51.680 --> 0:03:54.720 they're all intertwined in this as it relates to the 0:03:54.760 --> 0:03:59.960 fault search and it's really really important because Google effect 0:04:00.000 --> 0:04:02.640 actively pays Apple. 0:04:02.560 --> 0:04:03.880 An exorbitant amount of money. 0:04:03.960 --> 0:04:06.600 There are many different estimates out there at what it 0:04:06.640 --> 0:04:10.320 is to actually be the default search provider on iOS, 0:04:10.840 --> 0:04:13.320 and that you know is, you know, those are the 0:04:13.360 --> 0:04:16.360 most important consumers in the world effectively, and so it's 0:04:16.360 --> 0:04:21.120 a very very virtuous relationship. Microsoft would love to be 0:04:21.160 --> 0:04:24.039 able to compete for that business, given their investments into 0:04:24.080 --> 0:04:26.599 being and particularly what they're doing, which at GPT now 0:04:26.640 --> 0:04:27.159 as well. 0:04:27.640 --> 0:04:28.960 But the reality is, you. 0:04:28.880 --> 0:04:31.960 Know, Google's been able to you know, quote unquote corner 0:04:32.000 --> 0:04:35.320 the market, and that is the government's case is that 0:04:35.440 --> 0:04:39.360 Google is exercising market power or Alphabet is exercising market 0:04:39.400 --> 0:04:43.479 power in this default relationship. The hard part though, is 0:04:43.600 --> 0:04:46.120 you know, I mean, Apple's the one that is actually 0:04:46.600 --> 0:04:49.400 kind of the toll taker here in terms of actually 0:04:49.400 --> 0:04:53.000 dictating the terms. But also it's a result of the 0:04:53.080 --> 0:04:56.440 idea that Alphabet has the best consumer experience for search. 0:04:56.520 --> 0:04:59.040 So it's not as though consumers are being harmed by 0:04:59.080 --> 0:05:03.280 any means. That's where the antitrust laws and these cases 0:05:03.320 --> 0:05:07.120 are evolving because are very different than what we've seen historically. 0:05:07.320 --> 0:05:10.559 But this is interesting for you in particular, Denny, because 0:05:10.560 --> 0:05:13.360 you look at your portfolio, right, you have some exposure 0:05:13.400 --> 0:05:16.360 to Microsoft and to Apple. Which one are you're most 0:05:16.400 --> 0:05:19.960 concerned about? There are a number of possible outcomes, of course, 0:05:20.279 --> 0:05:22.919 but which one carries the most risk based on what 0:05:22.920 --> 0:05:24.159 you just outlined. 0:05:23.800 --> 0:05:27.760 Yeah, that would be Apple because Apples generating these what 0:05:27.800 --> 0:05:31.080 are called traffic acquisition costs from Alphabet today. Yes, they're 0:05:31.120 --> 0:05:33.560 one hundred percent gross margin, they fall straight to the 0:05:33.560 --> 0:05:36.000 bottom line, and that's money that Apple can reinvest into 0:05:36.040 --> 0:05:38.480 its business and would be a material earning set if 0:05:38.480 --> 0:05:42.239 they actually weren't able to capture that today Microsoft gets nothing, 0:05:42.640 --> 0:05:48.400 So Microsoft could pay twice the amount that Alphabet pays 0:05:48.480 --> 0:05:51.000 to be the default search provider, and it would actually 0:05:51.040 --> 0:05:54.680 be incremental to the business. The challenges being doesn't have 0:05:55.560 --> 0:05:58.120 the critical mass and so they don't get the same 0:05:58.200 --> 0:06:03.159 advertising density in the same return earns on advertising spend 0:06:03.560 --> 0:06:04.479 that Alphabet gets. 0:06:04.480 --> 0:06:05.360 So there are a lot of. 0:06:05.320 --> 0:06:08.240 Things to think about. But it's all upside for Microsoft. 0:06:08.760 --> 0:06:12.960 It's you know, could be downside for Apple and clearly 0:06:13.000 --> 0:06:15.919 would be downside for Alphabet if the most onerous outcome 0:06:16.080 --> 0:06:17.159 actually came to Fruition. 0:06:17.440 --> 0:06:19.599 And what's been so interesting, Denny about the timing of 0:06:19.600 --> 0:06:23.279 all of this is that, well, Alphabet Search is having 0:06:23.279 --> 0:06:25.840 a run for its money from a competition perspective from 0:06:26.000 --> 0:06:28.720 generative AI, and many had wondered whether BING would suddenly 0:06:28.720 --> 0:06:30.520 come to the fore with a power of open AI. 0:06:31.320 --> 0:06:34.280 All the names that you're putting your attention on. When 0:06:34.279 --> 0:06:37.440 you have such a large exposure to Microsoft things number one, 0:06:37.480 --> 0:06:39.880 but you've also got nvideo in there, You've also got 0:06:39.880 --> 0:06:43.960 a course ASML. All these companies have an AI uplift. 0:06:44.000 --> 0:06:45.400 Here is it priced in yet? 0:06:45.440 --> 0:06:45.880 Do you think? 0:06:47.160 --> 0:06:50.320 Well, actually, with the market, you know, it's interesting coming 0:06:50.360 --> 0:06:53.560 into this year, nothing was priced into these stocks as 0:06:53.600 --> 0:06:55.920 it related to AI, and then we got a lot 0:06:55.960 --> 0:06:58.880 that was actually priced in. And now you know, if 0:06:58.880 --> 0:07:01.920 we actually look at the estimates and the valuations of 0:07:01.960 --> 0:07:06.160 these companies, they're actually all still fairly reasonable. I mean, 0:07:06.400 --> 0:07:09.880 if you go back to September of twenty twenty two, 0:07:10.600 --> 0:07:14.240 the market expected in Vidia to earn somewhere around five 0:07:14.320 --> 0:07:18.800 dollars in twenty twenty four. The market now is expecting 0:07:18.800 --> 0:07:22.200 in Vidia to earn sixteen or seventeen dollars in twenty 0:07:22.240 --> 0:07:24.640 twenty four, meaning the estimates have gone up three x 0:07:25.160 --> 0:07:27.560 and the stock actually hasn't gone up that much. So 0:07:27.600 --> 0:07:29.960 you could argue in Video is cheaper today than it 0:07:30.040 --> 0:07:32.840 was in September of twoenty twenty two. Despite the move, 0:07:33.320 --> 0:07:36.000 Microsoft now is back to one. It's one of its, 0:07:36.160 --> 0:07:39.400 you know, most reasonable valuations that we've seen in some time. 0:07:39.520 --> 0:07:43.640 Google or Alphabet still trades sub twenty times arnies. I mean, 0:07:43.680 --> 0:07:46.120 so there you look at these they're not egregious by 0:07:46.160 --> 0:07:51.280 any means, and the fundamentals actually continue to be just 0:07:51.400 --> 0:07:53.840 fine for all of these companies, if not robust in 0:07:53.880 --> 0:07:57.080 some of the cases like in Vidia for example, and 0:07:57.160 --> 0:07:57.680 to Inder, say. 0:07:57.640 --> 0:07:59.840 Fields as though you are aligning with Goldman a little 0:07:59.840 --> 0:08:04.200 bit here in terms of yes, valuations might ostensibly look 0:08:04.280 --> 0:08:06.360 quite high, but actually, when you're looking at the fundamentals 0:08:06.360 --> 0:08:10.200 of this business, actually there's still relatively opportunities, is certainly 0:08:10.240 --> 0:08:13.800 what Goldman sees when we're looking towards earnings. Where is 0:08:14.000 --> 0:08:17.080 the risk factor when you're looking sort of at the 0:08:17.080 --> 0:08:19.800 companies that are being eroded by the opportunity of AI, 0:08:19.920 --> 0:08:22.240 where isn't deploying it fast enough, thick enough at the 0:08:22.280 --> 0:08:23.840 moment from your perspective. 0:08:24.480 --> 0:08:27.720 Yeah, absolutely, you know there are companies that are we 0:08:28.040 --> 0:08:30.680 sort of go through this exercise of draw line down 0:08:30.680 --> 0:08:32.439 the middle of the whiteboard and who's on the right 0:08:32.480 --> 0:08:34.000 side of time and who's on the you know, the 0:08:34.040 --> 0:08:35.920 wrong side of time of AI? 0:08:36.640 --> 0:08:38.280 And you know, we we. 0:08:38.520 --> 0:08:40.600 You know, I mentioned Adobe earlier as a company that 0:08:40.840 --> 0:08:43.000 you know, it was actually, you know, if we go 0:08:43.080 --> 0:08:45.480 back nine months ago, was viewed as being clearly on 0:08:45.520 --> 0:08:48.439 the wrong side of time. And as they've been able 0:08:48.480 --> 0:08:54.000 to actually communicate with the street more clearly as to 0:08:54.240 --> 0:08:57.200 their product roadmap and actually deliver on products and put 0:08:57.280 --> 0:08:59.880 up results, the company is now firmly on the other 0:09:00.120 --> 0:09:02.440 the right side of AI. And so one of the 0:09:02.440 --> 0:09:05.199 things that I think is really interesting in this market. 0:09:05.320 --> 0:09:07.880 You know, we have the obvious winners, and I think 0:09:07.880 --> 0:09:09.640 we have some obvious losers, and then we have some 0:09:09.679 --> 0:09:12.480 companies that maybe are perceived as losers that they can 0:09:12.520 --> 0:09:15.120 move into that winner's bucket, and we're really focused on 0:09:15.160 --> 0:09:16.560 trying to find some of those as well. 0:09:17.520 --> 0:09:20.200 Benny Fish, Janis Henderson, we love the winners and losers 0:09:20.200 --> 0:09:23.959 conversation here on Bloomberg Technology, particularly around AI. Thank you 0:09:24.000 --> 0:09:26.640 now coming up here on the show. The trial of 0:09:26.720 --> 0:09:29.000 Sam Bankman Freed is coming up this week, and we're 0:09:29.000 --> 0:09:32.520 going to be joined by Duke University's Campbell Harvey about 0:09:32.520 --> 0:09:35.400 the significance of this trial for the industry. Somebody that 0:09:35.440 --> 0:09:38.840 the defense called upon and said no to testifying this 0:09:38.920 --> 0:09:53.080 is Bloomberg. Sam Bankman Freed is getting ready to go 0:09:53.160 --> 0:09:55.720 to trial for what prosecutors alleged was one of the 0:09:55.720 --> 0:09:58.719 biggest financial frauds in US history. For more, I want 0:09:58.720 --> 0:10:02.520 to bring in Campbell Harvey, professor of finance at Duke University, 0:10:02.559 --> 0:10:04.760 who was asked to be an expert for the defense 0:10:05.360 --> 0:10:09.200 in this case. And Professor Harvey, you declined to give 0:10:09.520 --> 0:10:14.400 expert testimony. Why why did you decline? 0:10:15.320 --> 0:10:19.440 I have to admit I was very tempted because it's 0:10:19.480 --> 0:10:23.560 such a fascinating trial and to be teaching my classes 0:10:23.559 --> 0:10:28.000 from the courtroom on zoom could be pretty entertaining for 0:10:28.080 --> 0:10:32.640 my students. But in the bottom line, there were a 0:10:32.679 --> 0:10:38.439 few reasons that I declined, and probably the biggest reason 0:10:38.640 --> 0:10:41.960 is that if I do this type of testimony, the 0:10:42.040 --> 0:10:45.800 deal is that I tell the jury what I believe, 0:10:47.280 --> 0:10:48.640 and that usually wants me out. 0:10:50.120 --> 0:10:52.679 So why would that be a problem. You know you've 0:10:52.760 --> 0:10:55.000 been The idea would be that you have been called 0:10:55.000 --> 0:11:00.440 in as an expert witness, right to assess a bigger 0:11:00.480 --> 0:11:03.640 picture rather than of the individual action. Why would that 0:11:03.720 --> 0:11:04.880 be a problem. 0:11:06.120 --> 0:11:10.840 So it's often the case that experts are engaged to 0:11:10.960 --> 0:11:15.679 support the point of view of whoever's hiring them. And 0:11:17.040 --> 0:11:23.560 given my reputation, which I consider very important, I'm just 0:11:23.640 --> 0:11:26.440 going to tell what I believed, and this was going 0:11:26.520 --> 0:11:29.920 to be a big time commitment, and it's not my 0:11:30.000 --> 0:11:33.079 main job. My main job is to do research and 0:11:33.320 --> 0:11:35.439 to teach at Duke University. 0:11:35.760 --> 0:11:37.640 Okay, so let's dig in to what you believe. 0:11:37.960 --> 0:11:40.200 Of course, if you were being potentially called on by 0:11:40.240 --> 0:11:42.959 the defense, it would be well to defend what has 0:11:42.960 --> 0:11:45.840 occurred in the world of decentralization. But ultimately what your 0:11:45.920 --> 0:11:49.079 argument is is that, well, this wasn't really a decentralized 0:11:49.080 --> 0:11:50.240 finance problem going on. 0:11:50.360 --> 0:11:52.560 This was a more old school problem going on. 0:11:53.840 --> 0:11:57.719 That's correct. So people believe this is a crypto problem, 0:11:58.120 --> 0:12:01.560 and there are some connections here, but this is like 0:12:01.840 --> 0:12:05.920 a traditional finance problem. This is a problem where you've 0:12:05.920 --> 0:12:11.000 got people running an exchange that have no idea as 0:12:11.040 --> 0:12:14.600 to how to run an exchange, no experience, no experience 0:12:14.679 --> 0:12:21.720 in risk management, and most importantly the co mingling of funds, 0:12:22.120 --> 0:12:25.800 which is the main thing in the case where client 0:12:25.880 --> 0:12:30.360 money is used to bail out edge fund. So these 0:12:30.480 --> 0:12:36.120 are problems that could happen in traditional finance, but given 0:12:36.160 --> 0:12:41.520 the crypto is essentially unregulated or a lot of uncertainty 0:12:41.559 --> 0:12:46.200 of our regulations, many of these exchanges exist offshore. So 0:12:46.360 --> 0:12:50.960 FTX Finance are examples of exchanges that are offshore to 0:12:51.040 --> 0:12:55.840 avoid the regulatory oversight, and that creates problems as we've 0:12:55.840 --> 0:13:00.280 seen with FTX, But it's not the only exchange that 0:13:00.480 --> 0:13:05.920 suffered due to failures in risk management and other things. 0:13:06.320 --> 0:13:10.640 Professor, from the experts and founders and builders that we 0:13:10.679 --> 0:13:12.520 speak to in this space. At the moment, it doesn't 0:13:12.520 --> 0:13:15.440 feel as though the regulatory environment is exactly tempting people 0:13:15.480 --> 0:13:18.080 to continue to build within the United States. In fact, 0:13:18.120 --> 0:13:20.040 it seems as though more are being driven offshore. Is 0:13:20.040 --> 0:13:21.640 that a risk at the moment? Is there some way 0:13:21.640 --> 0:13:24.680 in which the United States could be more attractive to 0:13:24.800 --> 0:13:29.199 ensure that while people can interweave themselves within crypto, they 0:13:29.240 --> 0:13:34.040 can safely use in exchange and indeed whether they use 0:13:34.040 --> 0:13:35.520 it as an asset class or a way in which 0:13:35.559 --> 0:13:38.560 to develop technology. 0:13:38.720 --> 0:13:43.920 So we're in a bad situation right now because there 0:13:43.960 --> 0:13:47.760 are very few regulations and whatever regulations, it's kind of 0:13:47.760 --> 0:13:51.880 like regulation by enforcement, and given the uncertainty as to 0:13:51.960 --> 0:13:56.360 what the regulations will be, many companies are deciding it's 0:13:56.400 --> 0:14:01.040 not worth locating in the US. And no country wants 0:14:01.080 --> 0:14:06.520 to lose their best ideas to some other country. So 0:14:06.600 --> 0:14:10.559 I do think that there's a risk here that innovation 0:14:10.840 --> 0:14:11.920 does move offshore. 0:14:12.600 --> 0:14:13.480 And the next. 0:14:13.280 --> 0:14:17.160 Big thing in this space is not trading like with 0:14:17.360 --> 0:14:20.920 FTX and exchange, where you're treading bitcoin or ether or 0:14:21.000 --> 0:14:24.440 things like that. The next big thing is how this 0:14:24.560 --> 0:14:30.960 technology is deployed in regular companies. So the top companies 0:14:30.960 --> 0:14:35.160 today and this is the idea of Web three where 0:14:35.200 --> 0:14:39.640 this technology can enable many things, so we're not possible before. 0:14:40.360 --> 0:14:43.520 And one example I like to give out is think 0:14:43.560 --> 0:14:46.960 of your computer. How much of the CPU and GPU 0:14:47.080 --> 0:14:50.600 do you use a day? Probably less than an hour, 0:14:51.320 --> 0:14:56.960 So why not rent out the other unused capacity and 0:14:57.000 --> 0:14:59.440 get paid for it? And that's what web three is 0:14:59.480 --> 0:15:04.880 able to do. So I'm actually quite concerned given the 0:15:04.920 --> 0:15:09.400 harsh sort of regulatory enforcement yes right now, the lack 0:15:10.080 --> 0:15:16.120 of regulations, that we cannot participate in this innovation. We 0:15:16.160 --> 0:15:20.840 have two disruptions going on right now, AI and this 0:15:21.280 --> 0:15:23.640 decentralized technology disruption. 0:15:24.720 --> 0:15:28.080 Professor Haffey, you'll offer a book DeFi in the Future 0:15:28.120 --> 0:15:31.840 of Finance that was published summer twenty twenty one. Had 0:15:31.880 --> 0:15:36.320 you been able to carry on your writing through present day, quickly, 0:15:36.680 --> 0:15:41.320 what impact has SBF had on the future of DeFi 0:15:41.840 --> 0:15:43.360 as a standing point in history. 0:15:44.400 --> 0:15:49.360 So what's really important to understand is that SPF and 0:15:50.920 --> 0:15:56.160 FTX is not defied, so it is centralized finance. In 0:15:56.240 --> 0:16:01.920 decentralized finance, you don't give custody of your asset to anybody. 0:16:02.160 --> 0:16:06.000 You're the person that holds custody. You do not delegate 0:16:06.560 --> 0:16:13.000 and with FTX, customers delegated their custody and then allegedly 0:16:14.480 --> 0:16:17.600 those funds were taken and used for a hedge fund, 0:16:17.960 --> 0:16:22.760 the so called co mingling. So decentralized finance is sharply different. 0:16:22.760 --> 0:16:27.520 And I think that this whole scandal within FTX and 0:16:27.880 --> 0:16:32.600 the other bankruptcies, We've had many crypto bankruptcies and almost 0:16:32.600 --> 0:16:36.440 all of them are centralized. These are an exchange FTX 0:16:36.600 --> 0:16:40.640 or lenders that were not experiencing in lending or risk management. 0:16:40.800 --> 0:16:44.000 So I think that this actually shifts the focus away 0:16:44.400 --> 0:16:47.680 from kind of centralized finance to decentralized finance. 0:16:48.480 --> 0:16:51.200 Camill Harvey great some time with the professor of finance 0:16:51.240 --> 0:16:52.120 at you University. 0:16:52.440 --> 0:16:54.720 We await as well starting tomorrow. 0:17:01.000 --> 0:17:01.200 Time. 0:17:01.240 --> 0:17:03.800 Now for Talking Tech, first up, Google will make its 0:17:03.880 --> 0:17:06.800 Chrome Book laptops in India through a partnership force with HP. 0:17:07.119 --> 0:17:09.200 Now. The deal is viewed as a win for all parties. 0:17:09.240 --> 0:17:12.360 Google can further compete with other PC makers production in India, 0:17:12.560 --> 0:17:15.280 can have HP avoid potential curves on imports, and India 0:17:15.359 --> 0:17:18.800 of course gains more production value from big tech companies. Meanwhile, 0:17:18.840 --> 0:17:20.399 go to the UK now talk Talk is selling its 0:17:20.400 --> 0:17:22.680 business to business unit to a subsidiary run by its 0:17:22.680 --> 0:17:25.679 main shareholders, valued at roughly one hundred and sixteen million dollars. 0:17:25.960 --> 0:17:28.760 The deal comes as part of the British telecoms reorganization 0:17:28.880 --> 0:17:30.040 plan announced last month. 0:17:30.080 --> 0:17:32.440 Talk Talk is working against looming debt. 0:17:32.240 --> 0:17:35.719 Maturities which need to be refinanced in coming months. 0:17:35.960 --> 0:17:37.640 Plus, in an effort to test its. 0:17:37.440 --> 0:17:41.280 Capacities in a musk, live streamed himself playing four on 0:17:41.640 --> 0:17:43.600 X formerly known as Twitter of course now. The feed 0:17:43.680 --> 0:17:46.320 lasted fifty two minutes, of which the first few minutes 0:17:46.359 --> 0:17:48.439 were spent setting things up for the helpers and staff. 0:17:48.720 --> 0:17:52.000 A concurrent audience of thirteen hundred viewers they tuned in 0:17:52.280 --> 0:17:53.160 with twenty. 0:17:52.920 --> 0:17:54.680 Thousand total by the end. 0:17:54.960 --> 0:17:57.200 Ed so want to be watching in terms of capacities, 0:17:57.200 --> 0:17:59.240 And there's been plenty of other sort of announcements coming 0:17:59.280 --> 0:17:59.879 from X today. 0:18:00.560 --> 0:18:01.280 Yeah, it's interesting. 0:18:01.320 --> 0:18:03.359 I think there's also a partnership with Paris Hilton and 0:18:03.359 --> 0:18:07.240 eleven eleven Media for fashion related video content, signing to 0:18:07.240 --> 0:18:10.200 get a sense of the developments on that platform. 0:18:10.280 --> 0:18:10.800 Now, Sati A. 0:18:10.840 --> 0:18:14.080 Nadella, the CEO of Microsoft, is calling out Google for 0:18:14.160 --> 0:18:16.399 its stake in the search market. Nadella took to the 0:18:16.440 --> 0:18:20.000 stand earlier this morning in the Google antitrust trial, leaving 0:18:20.040 --> 0:18:23.520 no doubt about his perception of Google's dominance. He also 0:18:23.600 --> 0:18:26.879 warned the judge in this case about how artificial intelligence 0:18:26.880 --> 0:18:30.520 could give Google an even larger lead in the search market. 0:18:30.600 --> 0:18:34.119 He basically said Carroe that they're being choice in the 0:18:34.160 --> 0:18:36.880 search market was a bogus quote idea. 0:18:37.960 --> 0:18:38.200 Yeah. 0:18:38.280 --> 0:18:40.960 I think he's also been, of course, one of the 0:18:41.040 --> 0:18:45.400 key people behind the drive to make being something substantive 0:18:45.440 --> 0:18:47.359 in the world of search when it was first launched 0:18:47.359 --> 0:18:49.200 with them Microsoft, and but they couldn't get that. 0:18:49.359 --> 0:18:50.600 They didn't get there. Now there might be. 0:18:50.600 --> 0:18:53.560 Lots of reasoning and blaming as to why that wasn't 0:18:53.560 --> 0:18:53.960 the case. 0:18:54.160 --> 0:18:55.680 Per Suddenly he's going to be trying to. 0:18:55.600 --> 0:18:57.720 Give context to the idea that maybe they couldn't muscle 0:18:57.720 --> 0:18:59.320 in and even offer even more. 0:18:59.119 --> 0:19:01.760 Money than Google to Google than Apple. 0:19:01.640 --> 0:19:04.680 Was currently being potentially an offer to be that sort 0:19:04.680 --> 0:19:05.919 of a competitor on the space. 0:19:06.840 --> 0:19:09.479 Yeah, let's get more context from anam Agarana Blueberg. It's 0:19:09.480 --> 0:19:12.080 had a senior tech analyst and anaag what do you 0:19:12.080 --> 0:19:14.560 make of this? There is choice, it's just a consumers 0:19:14.960 --> 0:19:16.000 just using one browser. 0:19:16.080 --> 0:19:19.200 Right, Yeah, Well, to be Honest, when I read the news, 0:19:19.240 --> 0:19:22.359 I was laughing because only a few months ago, Certia 0:19:22.480 --> 0:19:25.520 went on, you know, with a massive offense with the 0:19:25.720 --> 0:19:28.320 with the browser wars with his you know, open AI 0:19:28.520 --> 0:19:32.000 and then the AI for being and. 0:19:32.119 --> 0:19:33.040 Google's market cup. 0:19:33.400 --> 0:19:35.320 You know, took quite a bit of loss in those 0:19:35.359 --> 0:19:38.040 weeks to follow, and now he's saying that these guys 0:19:38.040 --> 0:19:40.760 have an advantage even in AI. So it's pretty pretty 0:19:41.040 --> 0:19:41.720 amusing to me. 0:19:42.000 --> 0:19:43.840 I mean, he went on to say that Google could 0:19:43.840 --> 0:19:47.199 extend their search dominance into n AI, ANOROG and that 0:19:47.280 --> 0:19:49.800 hasn't been the feeling on the day to day discussion. 0:19:49.840 --> 0:19:51.120 I mean, as we've said time and time. 0:19:51.040 --> 0:19:53.840 Again, this timing of this trial is interesting given the 0:19:53.960 --> 0:19:56.840 run for its money Google seuch as getting from general 0:19:56.880 --> 0:19:57.320 to AI. 0:19:58.200 --> 0:19:59.840 Yeah, you know, And one of the things I talked 0:19:59.840 --> 0:20:02.160 to a lot of investors about is, you know, when 0:20:02.160 --> 0:20:04.399 you look at something like an Apple, Apple has Apple 0:20:04.440 --> 0:20:07.120 Maps and it's pretty crappy and I've never used it. 0:20:07.640 --> 0:20:09.800 I still go out and open up an app that 0:20:09.880 --> 0:20:12.800 has Google Maps in it to do any navigation. Now, 0:20:12.840 --> 0:20:15.840 if for whatever reason, if I don't have Google default 0:20:15.840 --> 0:20:18.680 search on my browser on my phone, I may be 0:20:18.960 --> 0:20:21.280 forced to download an app and that I can use 0:20:21.320 --> 0:20:22.040 search that way. 0:20:22.440 --> 0:20:24.119 At the end of the day, Google Search. 0:20:24.000 --> 0:20:27.119 Is far better than anything else that's out there, and 0:20:27.160 --> 0:20:29.199 I think that's what Google is trying to make a 0:20:29.240 --> 0:20:29.720 case here. 0:20:30.160 --> 0:20:32.840 Crappy a technical term, and rag Ranald, we love it. 0:20:32.880 --> 0:20:33.479 Thank you very much. 0:20:33.520 --> 0:20:43.320 In the from Bloomberg Intelligence, Welcome back to Bloomberg Technology. 0:20:43.320 --> 0:20:44.560 I'm Callen had in New York. 0:20:45.040 --> 0:20:46.600 And I a love like in San Francisco. 0:20:46.960 --> 0:20:48.960 Vian is now down to tens of one Percent's been 0:20:49.040 --> 0:20:51.159 kind of trading way over the place it actually be 0:20:51.640 --> 0:20:54.119 in terms of production and deliveries in the third quarter 0:20:54.400 --> 0:20:58.320 by some distance. But it maintained guidance fifty two thousand 0:20:58.440 --> 0:21:00.600 units this year. And I know a lot of investors 0:21:00.640 --> 0:21:02.359 that we speak to on this program carry they go, 0:21:02.359 --> 0:21:04.919 come on, Rivian, you can do more than fifty two thousand. 0:21:05.000 --> 0:21:07.680 You got on paper the ability to do much better 0:21:07.720 --> 0:21:08.080 than that. 0:21:08.560 --> 0:21:09.280 The market kind of. 0:21:09.280 --> 0:21:11.280 Shrugging its shoulders at this print at least. 0:21:11.480 --> 0:21:13.720 Yeah, it's been a mixed bag, to say the very 0:21:13.760 --> 0:21:16.159 least to digest this morning. And let's get into that 0:21:16.160 --> 0:21:18.440 bag a little bit more to dissect the quarterly delivery 0:21:18.440 --> 0:21:21.720 and production data used to welcome Dana Hall, of course, who. 0:21:21.680 --> 0:21:24.040