1 00:00:02,440 --> 00:00:10,280 Speaker 1: Bloomberg Audio Studios, podcasts, radio news from Mahard where Innovation, 2 00:00:10,560 --> 00:00:14,920 Speaker 1: money and power Collie in Silicon Valley, Nbon. This is 3 00:00:14,960 --> 00:00:18,400 Speaker 1: Bloomberg Technology with Caroline Hyde and Ed Ludlove. 4 00:00:32,040 --> 00:00:34,360 Speaker 2: I'm Caroline Heide at Blomberg's World headquarters in New York. 5 00:00:34,560 --> 00:00:37,800 Speaker 3: Ed Ludlow is off. This is Bloomberg Technology. Coming up the. 6 00:00:37,800 --> 00:00:41,800 Speaker 2: US awards TSMC eleven point six billion dollars in grants 7 00:00:41,800 --> 00:00:44,560 Speaker 2: and loans in an effort to boost that domestic semiconductor 8 00:00:44,560 --> 00:00:47,479 Speaker 2: manufacturing or break down what the move means for the 9 00:00:47,560 --> 00:00:50,760 Speaker 2: US chip production. Plus, in his annual letter to shareholders, 10 00:00:50,800 --> 00:00:54,800 Speaker 2: JP Morgan CEO Jamie Diamond likens artificial intelligence to the 11 00:00:54,840 --> 00:00:56,240 Speaker 2: invention of a steam engine. 12 00:00:56,440 --> 00:00:58,520 Speaker 3: Will discuss his views on how the technology is changing 13 00:00:58,600 --> 00:01:01,640 Speaker 3: the world and his work force and blue checks. 14 00:01:01,760 --> 00:01:04,720 Speaker 2: They're back and Eno Musk's X the social platform makes 15 00:01:04,720 --> 00:01:07,160 Speaker 2: a U turn as it offers premium features to popular 16 00:01:07,200 --> 00:01:11,200 Speaker 2: accounts for free thatsas Musk takes on Brazilian court leaders. 17 00:01:11,600 --> 00:01:13,800 Speaker 2: Details on that and so much more throughout this hour, 18 00:01:13,920 --> 00:01:17,199 Speaker 2: But focus on the public markets as we look towards 19 00:01:17,240 --> 00:01:20,160 Speaker 2: CPI print coming on Wednesday. All eyes focus on what 20 00:01:20,200 --> 00:01:22,959 Speaker 2: the bond market is doing yields actually curringly up three 21 00:01:23,000 --> 00:01:25,200 Speaker 2: basis points, and in fact we're seeing the highest levels 22 00:01:25,319 --> 00:01:27,880 Speaker 2: for the entirety of this year. But it's not pulling 23 00:01:27,920 --> 00:01:29,760 Speaker 2: back on any sort of risk taking in the equity 24 00:01:29,800 --> 00:01:32,080 Speaker 2: market thus far. We still see the NASA pushing up 25 00:01:32,080 --> 00:01:34,200 Speaker 2: some five tenths of a percent. So keep an eye 26 00:01:34,240 --> 00:01:35,959 Speaker 2: on some of the key names that are driving US high. 27 00:01:36,200 --> 00:01:38,880 Speaker 2: And even as bond markets do still worry about basically 28 00:01:38,920 --> 00:01:41,480 Speaker 2: basically inflatory pressures and what that means for a federal 29 00:01:41,480 --> 00:01:43,800 Speaker 2: reserve and the likelihood of a cup coming throughout the 30 00:01:43,800 --> 00:01:46,199 Speaker 2: rest of the year, Bitcoin still charging to new highs 31 00:01:46,240 --> 00:01:49,520 Speaker 2: for at three point five percent higher seventy seven hundred 32 00:01:49,520 --> 00:01:51,440 Speaker 2: and fifty six, or we're back at near those all 33 00:01:51,480 --> 00:01:53,720 Speaker 2: time highs. Move on, some of the other risk assets 34 00:01:53,760 --> 00:01:55,160 Speaker 2: to the individual names are on the move in the 35 00:01:55,160 --> 00:01:58,560 Speaker 2: individual benchmarks. Tesla best performed on the last that one hundred. 36 00:01:58,600 --> 00:02:00,920 Speaker 2: We're up five percent. Now remember this a beaten up stock, 37 00:02:00,960 --> 00:02:02,840 Speaker 2: worst perform on the S and P five hundred so 38 00:02:02,920 --> 00:02:05,280 Speaker 2: far this year. And Elon Mus trying to switch the 39 00:02:05,360 --> 00:02:08,600 Speaker 2: narrative here, trying to move from the worries about ultimately 40 00:02:08,639 --> 00:02:11,880 Speaker 2: deliveries being weak even a concern about the cheaper models, 41 00:02:12,040 --> 00:02:14,799 Speaker 2: and instead wants us to focus on robotaxis and whether 42 00:02:14,919 --> 00:02:16,680 Speaker 2: or not that big unveil will be enough. The booster 43 00:02:16,680 --> 00:02:19,520 Speaker 2: stock coming on August the eighth, so exactly four months time. 44 00:02:19,639 --> 00:02:20,240 Speaker 3: I'm looking at. 45 00:02:20,120 --> 00:02:23,720 Speaker 2: Amazon encroaching on all record highs percentage point one hundred 46 00:02:23,720 --> 00:02:27,160 Speaker 2: and eighty seven, as yet more desire to be getting into. 47 00:02:26,960 --> 00:02:28,360 Speaker 3: This stock pushes this name higher. 48 00:02:28,360 --> 00:02:30,200 Speaker 2: I'm looking though, at the key story of the day, 49 00:02:30,200 --> 00:02:32,760 Speaker 2: and this is where we've got a drill in for TSMC. 50 00:02:33,040 --> 00:02:37,120 Speaker 2: Of course, Taiwanee Semiconductor giants getting eleven point six billion 51 00:02:37,200 --> 00:02:39,880 Speaker 2: dollars in grants and loans to be putting its third 52 00:02:39,919 --> 00:02:43,200 Speaker 2: fab in Phoenix, Arizona. This is all about the latest 53 00:02:43,240 --> 00:02:46,600 Speaker 2: infrastructure play to ensure that we've got domestic chips made 54 00:02:46,639 --> 00:02:48,160 Speaker 2: here in the United States. Then it could be the 55 00:02:48,240 --> 00:02:50,880 Speaker 2: underpinning of artificial intelligence. This stock is up two point 56 00:02:50,919 --> 00:02:52,600 Speaker 2: two five percent on the ADRs. 57 00:02:52,960 --> 00:02:54,880 Speaker 3: What does it mean for the broader ecosystem? I'm pleased 58 00:02:54,919 --> 00:02:55,280 Speaker 3: to say. 59 00:02:55,120 --> 00:02:58,920 Speaker 2: Advisor's capital management partner and portfolio manager Joanne Foeni joins 60 00:02:58,960 --> 00:03:02,280 Speaker 2: us with your expertise and the chip making field, and John, 61 00:03:02,639 --> 00:03:06,280 Speaker 2: how important is it that we get foreign expertise into 62 00:03:06,280 --> 00:03:09,919 Speaker 2: the US to continue with a supply chain that has 63 00:03:10,080 --> 00:03:13,680 Speaker 2: proven to be broken on previous minds of what two 64 00:03:13,800 --> 00:03:14,480 Speaker 2: or three years ago. 65 00:03:15,560 --> 00:03:18,920 Speaker 4: Yeah, Caroline morning, You know, the value to the US 66 00:03:19,080 --> 00:03:22,280 Speaker 4: of having more domestic manufacturing at the leading edge or 67 00:03:22,320 --> 00:03:26,240 Speaker 4: close to the leading edge of semiconductors is strategically pretty important. 68 00:03:26,280 --> 00:03:26,440 Speaker 5: Right. 69 00:03:26,480 --> 00:03:30,520 Speaker 4: We are all looking at geopolitical instabilities and risks, particularly 70 00:03:30,520 --> 00:03:33,960 Speaker 4: in the Asia Pacific, and so this builds on Taiwan 71 00:03:34,080 --> 00:03:37,120 Speaker 4: Semi's ability to spread their manufacturing around the world. They 72 00:03:37,120 --> 00:03:40,600 Speaker 4: already have announced plans in Japan and Germany for lagging 73 00:03:40,680 --> 00:03:43,760 Speaker 4: edge manufacturing. They already have operations here in the US, 74 00:03:43,800 --> 00:03:47,160 Speaker 4: but really really limited. This will bring to the US 75 00:03:47,800 --> 00:03:52,040 Speaker 4: a significant portion of some manufacturing close to the leading 76 00:03:52,080 --> 00:03:53,880 Speaker 4: edge by the time it's done. 77 00:03:53,520 --> 00:03:56,520 Speaker 6: And that'll be that will help stabilize things. 78 00:03:56,520 --> 00:03:58,840 Speaker 4: It also de risks Taiwan Semi a little bit for. 79 00:03:59,000 --> 00:04:02,520 Speaker 3: Investors, Okay, de risk to a certain degree. 80 00:04:02,560 --> 00:04:05,320 Speaker 2: What's been interesting is other companies, when coming into the 81 00:04:05,440 --> 00:04:08,160 Speaker 2: United States wanting to boost their manufacturing, have worried about 82 00:04:08,160 --> 00:04:11,440 Speaker 2: the limitation on labor. Have we got the right Ultimately, 83 00:04:12,000 --> 00:04:14,920 Speaker 2: rest of the joined up approach here. Yes, you can 84 00:04:14,920 --> 00:04:16,400 Speaker 2: get the money, you can get the grants and the loans, 85 00:04:16,400 --> 00:04:18,599 Speaker 2: but if you've got the talent pool, yeah. 86 00:04:18,400 --> 00:04:19,200 Speaker 6: It's a real challenge. 87 00:04:19,200 --> 00:04:21,320 Speaker 4: So when I was working up at Albany Nanotech as 88 00:04:21,360 --> 00:04:23,320 Speaker 4: part of the team there that was trying to bring 89 00:04:23,400 --> 00:04:26,680 Speaker 4: manufacturing to upstate New York, and there wasn't much beyond 90 00:04:26,720 --> 00:04:30,160 Speaker 4: IBM in the Hudson Valley. We had to invest in 91 00:04:30,200 --> 00:04:33,200 Speaker 4: the local industrial infrastructure, if you like, not just labor, 92 00:04:33,560 --> 00:04:37,799 Speaker 4: but also machine shops and other support to a fabrication facility. 93 00:04:38,000 --> 00:04:40,400 Speaker 4: Intel is going to face those challenges in Ohio because 94 00:04:40,440 --> 00:04:43,680 Speaker 4: there's very little infrastructure there in this area. Taiwan send 95 00:04:43,720 --> 00:04:46,800 Speaker 4: Me at least already has plenty of operations in Phoenix, 96 00:04:47,040 --> 00:04:48,719 Speaker 4: and they're going to have to do more, and so 97 00:04:48,920 --> 00:04:53,080 Speaker 4: training programs in conjunction with local technical colleges and community 98 00:04:53,080 --> 00:04:57,400 Speaker 4: colleges helped to create that funnel. Fortunately, chip fabrication plants 99 00:04:57,440 --> 00:04:59,920 Speaker 4: tend to be very capital intensive. It's not a lot 100 00:05:00,200 --> 00:05:03,080 Speaker 4: labor that ends up getting hired here, so these subsidies 101 00:05:03,120 --> 00:05:06,040 Speaker 4: aren't really about creating jobs, although you hear other politicians 102 00:05:06,040 --> 00:05:08,039 Speaker 4: say that probably most of the jobs are in the 103 00:05:08,040 --> 00:05:10,560 Speaker 4: construction of the plant itself. Once the plant is up 104 00:05:10,560 --> 00:05:13,080 Speaker 4: and running, you know, maybe one thousand or two people. 105 00:05:13,200 --> 00:05:15,159 Speaker 4: So it's not a huge number. And I know people 106 00:05:15,200 --> 00:05:17,599 Speaker 4: are focused on this concern about labor, but we do 107 00:05:17,680 --> 00:05:20,719 Speaker 4: have great engineering schools in this country, and once the 108 00:05:20,839 --> 00:05:23,480 Speaker 4: job opportunities are there, you tend to see more kids 109 00:05:23,560 --> 00:05:26,560 Speaker 4: flow into those programs. Plus you add in the customized 110 00:05:26,600 --> 00:05:27,920 Speaker 4: training programs from the companies. 111 00:05:28,800 --> 00:05:32,000 Speaker 2: Okay, So the companies, when we think of TSMC being 112 00:05:32,000 --> 00:05:35,320 Speaker 2: one that is really making the most of subsidies, loans 113 00:05:35,320 --> 00:05:37,919 Speaker 2: grants being offered, so too is Intel as well. And 114 00:05:37,960 --> 00:05:39,880 Speaker 2: I'm just interested as to how much you think this 115 00:05:40,040 --> 00:05:43,280 Speaker 2: money this chipset will be filtering into foreign entities or 116 00:05:43,320 --> 00:05:45,719 Speaker 2: indeed more more local US presence. 117 00:05:47,400 --> 00:05:51,040 Speaker 4: Well, you know, the leading edge in manufacturing, unfortunately for 118 00:05:51,120 --> 00:05:54,599 Speaker 4: the US companies, has been taken over by Taiwan, Semi 119 00:05:54,640 --> 00:06:00,120 Speaker 4: and Samsung. Intel had made some mistakes in their planning 120 00:06:00,200 --> 00:06:02,200 Speaker 4: for manufacturing design. 121 00:06:02,480 --> 00:06:03,640 Speaker 6: They chose a path. 122 00:06:03,440 --> 00:06:06,120 Speaker 4: That ultimately didn't didn't work out very well, and now 123 00:06:06,240 --> 00:06:09,480 Speaker 4: Pat Gelsinger is trying to shift that path to the 124 00:06:09,520 --> 00:06:11,640 Speaker 4: more modern alternative and it's going to take them some 125 00:06:11,720 --> 00:06:13,880 Speaker 4: years and it's going to be costly. So in terms 126 00:06:13,920 --> 00:06:17,360 Speaker 4: of the US strategic goal of creating more supply of 127 00:06:17,640 --> 00:06:21,520 Speaker 4: chip manufacturing in this country, we have no choice but 128 00:06:21,640 --> 00:06:25,159 Speaker 4: to include foreign companies like Taiwan, Same and Samsung. We 129 00:06:25,240 --> 00:06:27,880 Speaker 4: will see if Intel ultimately as successful and bringing their 130 00:06:27,920 --> 00:06:31,440 Speaker 4: manufacturing up to snuff, but right now they're trailing edge. 131 00:06:32,560 --> 00:06:36,919 Speaker 2: Move it on and consider for US, Joanne, ultimately whether 132 00:06:37,040 --> 00:06:38,440 Speaker 2: or not you say it takes some of the risk 133 00:06:38,480 --> 00:06:42,560 Speaker 2: out for investors, does it really take the risk out 134 00:06:42,560 --> 00:06:46,120 Speaker 2: of supply chain concerns going into the next ten twenty 135 00:06:46,200 --> 00:06:49,520 Speaker 2: years that we've seen that hit so hard during COVID. 136 00:06:51,000 --> 00:06:54,480 Speaker 4: No, Caroline, and I did you ask that question deliberately 137 00:06:54,920 --> 00:06:57,440 Speaker 4: to get no answer. I mean, there is just a 138 00:06:57,480 --> 00:07:02,000 Speaker 4: global integration of manufacturing, not just in chips, but you know, 139 00:07:02,080 --> 00:07:06,720 Speaker 4: as we saw during COVID, also in protective clothing and devices, 140 00:07:07,040 --> 00:07:10,280 Speaker 4: and we don't ever really want to undo that. We 141 00:07:10,920 --> 00:07:17,080 Speaker 4: value incredibly and benefit incredibly from trade and having countries 142 00:07:17,240 --> 00:07:22,040 Speaker 4: specialize in manufacturing the things that they're comparative advantage favors, 143 00:07:22,440 --> 00:07:25,360 Speaker 4: and we get cheaper goods because of it. Consumers benefit 144 00:07:25,440 --> 00:07:30,160 Speaker 4: around the world because of that, that separation of production 145 00:07:30,320 --> 00:07:33,960 Speaker 4: by specialty. So we don't ever want to undo trade flows, right, 146 00:07:33,960 --> 00:07:36,160 Speaker 4: But what we want to do is shore up the 147 00:07:36,200 --> 00:07:41,800 Speaker 4: infrastructure of politics and economics, hopefully to keep disruptions to 148 00:07:41,960 --> 00:07:44,480 Speaker 4: supply chains as low as we can now. Obviously COVID 149 00:07:44,560 --> 00:07:46,760 Speaker 4: or something like that, another pandemic comes along and we're 150 00:07:46,760 --> 00:07:49,600 Speaker 4: gonna have problems, and so we have tried to onshore 151 00:07:50,040 --> 00:07:52,880 Speaker 4: more production of critical items, and that's what the Chips Act. 152 00:07:52,800 --> 00:07:53,360 Speaker 6: Is all about. 153 00:07:53,680 --> 00:07:56,800 Speaker 2: What's been interesting is there's been for example, Bloombag Intelligence saying, look, 154 00:07:56,840 --> 00:07:59,400 Speaker 2: ASML chip equipment maker is likely to be another key 155 00:07:59,400 --> 00:08:01,600 Speaker 2: player that fits from some of the grants. 156 00:08:01,280 --> 00:08:03,360 Speaker 3: The loans, the support, the subsidies that the. 157 00:08:03,400 --> 00:08:06,160 Speaker 2: US government currently has. Any other key players that come 158 00:08:06,200 --> 00:08:08,840 Speaker 2: to mind, Well, yeah, I. 159 00:08:08,840 --> 00:08:10,800 Speaker 4: Think that's the right to point out the equipment guys. 160 00:08:10,840 --> 00:08:14,120 Speaker 4: The more chip fabrication facilities that are built, the better 161 00:08:14,160 --> 00:08:19,360 Speaker 4: it is for LAMB research, for applied materials, for ASML KLA. 162 00:08:19,520 --> 00:08:21,239 Speaker 4: You know, all the chip guys, and all the gas 163 00:08:21,280 --> 00:08:25,800 Speaker 4: suppliers and the other smaller equipment suppliers like say of 164 00:08:25,960 --> 00:08:30,240 Speaker 4: Eco instruments. You know, there's a lot of beneficiaries. This 165 00:08:30,360 --> 00:08:34,480 Speaker 4: is a very large industry and so it's pretty broad. 166 00:08:34,960 --> 00:08:40,400 Speaker 4: And also the companies that use these manufacturers Benvidia, a M, D. Apple, 167 00:08:40,720 --> 00:08:43,600 Speaker 4: they all benefit by having a source of supply that's 168 00:08:43,640 --> 00:08:47,680 Speaker 4: more globally diversified and therefore less subject to geopolitical risks. 169 00:08:48,880 --> 00:08:52,240 Speaker 2: We always love having your perspective and currently thought and 170 00:08:52,280 --> 00:08:55,840 Speaker 2: your nose when they're necessary. Taran Feenie of Advisor's Capital Management, 171 00:08:56,080 --> 00:09:05,960 Speaker 2: thank you so much for joining us. Monday, Jamie Diamonds 172 00:09:06,000 --> 00:09:08,720 Speaker 2: annual letter to Shareholders out and guess what the focus 173 00:09:08,800 --> 00:09:09,120 Speaker 2: is out? 174 00:09:09,120 --> 00:09:10,119 Speaker 3: Official intelligence? 175 00:09:10,440 --> 00:09:12,400 Speaker 2: We want to dig in as to why he's once 176 00:09:12,440 --> 00:09:15,320 Speaker 2: again calling this out in his letter. Fishinali Bassek of 177 00:09:15,320 --> 00:09:17,840 Speaker 2: Blomberg News. Twenty seventeen was the first time he mentioned 178 00:09:17,880 --> 00:09:20,200 Speaker 2: official intelligence in his share letter, but this time it 179 00:09:20,240 --> 00:09:22,840 Speaker 2: is the key driver of the entire letter. 180 00:09:22,880 --> 00:09:24,520 Speaker 7: It feels like, Yeah, it is the scale and the 181 00:09:24,559 --> 00:09:26,600 Speaker 7: scope at which he mentions it that is different from 182 00:09:26,600 --> 00:09:28,560 Speaker 7: prior years. But to your point, he has mentioned it 183 00:09:28,640 --> 00:09:31,120 Speaker 7: a lot before, and certainly we know that JP Morgan 184 00:09:31,160 --> 00:09:33,200 Speaker 7: has invested a lot of money in this, So what 185 00:09:33,360 --> 00:09:36,920 Speaker 7: is different this time around the scale at which they're 186 00:09:37,000 --> 00:09:39,400 Speaker 7: using it. The use cases have jumped from about three 187 00:09:39,440 --> 00:09:42,400 Speaker 7: hundred use cases a year ago to about four hundred 188 00:09:42,559 --> 00:09:46,120 Speaker 7: now and importantly also The number of data scientists and 189 00:09:46,240 --> 00:09:49,640 Speaker 7: machine learning experts have also been rising over at JP Morgan. 190 00:09:50,040 --> 00:09:54,360 Speaker 7: Interestingly enough, last year when he mentioned artificial intelligence, it 191 00:09:54,520 --> 00:09:56,360 Speaker 7: was one of the specific issues, but it was still 192 00:09:56,400 --> 00:10:00,360 Speaker 7: behind climate, and this time he listed this as the 193 00:10:00,400 --> 00:10:03,240 Speaker 7: first and foremost issue for JP Morgan. 194 00:10:03,280 --> 00:10:05,320 Speaker 3: Ahead, I mean, just to put a find a detail 195 00:10:05,320 --> 00:10:05,520 Speaker 3: on it. 196 00:10:05,559 --> 00:10:08,439 Speaker 2: What was it two thousand machine learning and AI data 197 00:10:08,640 --> 00:10:12,400 Speaker 2: experts that they've got had, and also an emission that 198 00:10:12,480 --> 00:10:14,000 Speaker 2: the talent pool is going to have to change. 199 00:10:14,040 --> 00:10:16,160 Speaker 3: He's willing to say that will be jobs. 200 00:10:15,880 --> 00:10:18,640 Speaker 7: Lost, absolutely, and also that the ones that are not 201 00:10:18,720 --> 00:10:21,280 Speaker 7: lost will have to be retrained. He's pretty specific about that. 202 00:10:21,600 --> 00:10:24,400 Speaker 7: In addition to the jobs, I think the investment that's 203 00:10:24,400 --> 00:10:27,280 Speaker 7: being made is also very interesting, Caroline. Remember they have 204 00:10:27,360 --> 00:10:30,200 Speaker 7: invested about two billion dollars to build new data centers. 205 00:10:30,400 --> 00:10:33,760 Speaker 7: And he sees this movement to the cloud as inextricably 206 00:10:33,880 --> 00:10:36,920 Speaker 7: linked to the AI revolution, if you will, and he 207 00:10:37,000 --> 00:10:40,280 Speaker 7: has said that this movement towards AI in this society 208 00:10:40,280 --> 00:10:44,400 Speaker 7: at large is as revolutionary as the steam engine or 209 00:10:44,440 --> 00:10:47,720 Speaker 7: the advent of the internet, and so data centers are 210 00:10:47,720 --> 00:10:51,640 Speaker 7: really interesting here for JP Morgan. About thirty percent last 211 00:10:51,720 --> 00:10:54,320 Speaker 7: year of their applications had moved to the cloud. By 212 00:10:54,360 --> 00:10:56,520 Speaker 7: the end of this year will be seventy percent. So 213 00:10:56,559 --> 00:10:59,319 Speaker 7: that transformation is pretty drastic when you look at just 214 00:10:59,360 --> 00:11:01,120 Speaker 7: a year over your tear change for JP Morgan. 215 00:11:00,960 --> 00:11:02,520 Speaker 2: Yeah, because I think we like to focus in on 216 00:11:02,520 --> 00:11:04,560 Speaker 2: the fact that Jamie Diamond's been there saying, look, your 217 00:11:04,600 --> 00:11:06,720 Speaker 2: kids will only have three and a half day work weeks. 218 00:11:06,760 --> 00:11:09,120 Speaker 2: They will be cancer free because of this AI technology. 219 00:11:09,200 --> 00:11:11,000 Speaker 2: But he does then go into cloud. He does just 220 00:11:11,040 --> 00:11:12,440 Speaker 2: go into technology more broadly. 221 00:11:12,559 --> 00:11:15,240 Speaker 7: Yeah, he certainly does in a few different ways. It's 222 00:11:15,320 --> 00:11:18,760 Speaker 7: flattered throughout the entirety of the annual letter. He talks 223 00:11:18,800 --> 00:11:21,360 Speaker 7: about it in terms of JP Morgan's own investment, and 224 00:11:21,480 --> 00:11:24,199 Speaker 7: I think interestingly as well, he talks about this year 225 00:11:24,240 --> 00:11:26,920 Speaker 7: over year as well. But the competitive set not just 226 00:11:26,960 --> 00:11:29,640 Speaker 7: from fintech, but from the likes of Apple, and the 227 00:11:29,760 --> 00:11:33,760 Speaker 7: language also gets more pronounced as you go on. Whereas 228 00:11:33,840 --> 00:11:35,559 Speaker 7: last year he kind of brings up Apple Pay and 229 00:11:35,600 --> 00:11:38,880 Speaker 7: Apple Cards, certain services for Apple, this year he says 230 00:11:38,960 --> 00:11:41,440 Speaker 7: it holds money and moves money, it lends money and 231 00:11:41,480 --> 00:11:44,480 Speaker 7: so on. It effectively acts as a bank, And he 232 00:11:44,559 --> 00:11:46,960 Speaker 7: brings us up in the vein of regulation and all 233 00:11:46,960 --> 00:11:50,199 Speaker 7: the players that are not facing regulation in technology and 234 00:11:50,320 --> 00:11:53,559 Speaker 7: financial services. So it just kind of underscores here his 235 00:11:53,640 --> 00:11:57,240 Speaker 7: intensity to not only keep up but change JP Morgan 236 00:11:57,280 --> 00:11:58,239 Speaker 7: as we look ahead. 237 00:11:58,240 --> 00:12:00,439 Speaker 2: And maybe you'd say the close runner to his talk 238 00:12:00,480 --> 00:12:05,080 Speaker 2: about technology is his less thing guarded approach to regulators. 239 00:12:05,080 --> 00:12:07,040 Speaker 3: Throughout the entirety of the letter to we thank you 240 00:12:07,080 --> 00:12:07,360 Speaker 3: so much. 241 00:12:07,400 --> 00:12:10,400 Speaker 2: Nani Bask always able to jump on this news flow 242 00:12:10,400 --> 00:12:10,640 Speaker 2: with us. 243 00:12:10,720 --> 00:12:11,320 Speaker 3: We thank her for it. 244 00:12:11,360 --> 00:12:13,360 Speaker 2: Meanwhile, let's just stick on the markets. Let's stick on 245 00:12:13,679 --> 00:12:15,960 Speaker 2: artificial intelligence dominating. 246 00:12:15,440 --> 00:12:16,640 Speaker 3: These markets a little bit more. 247 00:12:16,760 --> 00:12:19,800 Speaker 2: January is with us 'BC Bruin Dolphin, head of market analysis, 248 00:12:19,840 --> 00:12:22,199 Speaker 2: and look, we have seen markets continue to be near 249 00:12:22,240 --> 00:12:24,160 Speaker 2: record tized, whether it's the S and P five hundred, 250 00:12:24,160 --> 00:12:27,559 Speaker 2: whether it's the NASDAC and are you anticipating that remains 251 00:12:27,600 --> 00:12:30,680 Speaker 2: the case, Janet, even as we worry about a CPI print, 252 00:12:30,720 --> 00:12:32,119 Speaker 2: for example here in the US. 253 00:12:32,120 --> 00:12:35,600 Speaker 1: Hi Carelin, thanks for having me. So we believe that 254 00:12:35,800 --> 00:12:41,320 Speaker 1: this equitedual market led by artificial intelligence will continue, even 255 00:12:41,360 --> 00:12:44,880 Speaker 1: though you know then might be bumpy inflation data along 256 00:12:44,880 --> 00:12:46,839 Speaker 1: the way. We have already seen how the market has 257 00:12:46,880 --> 00:12:50,560 Speaker 1: performed despite higher bond yields and despite our central bankers 258 00:12:50,800 --> 00:12:53,600 Speaker 1: being being less dubbish recently, so I think there are 259 00:12:53,920 --> 00:12:56,600 Speaker 1: more sickular and mega transfactors that. 260 00:12:56,640 --> 00:12:58,480 Speaker 6: Is driving the equity market rally there. 261 00:12:58,520 --> 00:13:00,760 Speaker 1: I think as long as the inflation is our rages, 262 00:13:00,960 --> 00:13:03,560 Speaker 1: there's no shock. I think as long as bard yeals 263 00:13:03,600 --> 00:13:07,520 Speaker 1: remain pretty stabilized, I think the MarCad rally can continue. 264 00:13:08,160 --> 00:13:08,880 Speaker 3: Does it broaden? 265 00:13:08,920 --> 00:13:09,040 Speaker 5: Though? 266 00:13:09,040 --> 00:13:11,400 Speaker 2: There's a really interesting piece out on the Bloomberg today 267 00:13:11,440 --> 00:13:13,800 Speaker 2: just showing how Wall Street at the moment is trying 268 00:13:13,800 --> 00:13:17,920 Speaker 2: to find a different way of playing the AI optimism. Yes, 269 00:13:17,960 --> 00:13:19,760 Speaker 2: you've already put your money into in video and it's 270 00:13:19,800 --> 00:13:21,280 Speaker 2: up another seventy percent year to date, it was up 271 00:13:21,320 --> 00:13:23,720 Speaker 2: two hundred percent or more than last year. But what 272 00:13:23,800 --> 00:13:25,800 Speaker 2: about some of the emerging market players. What about the 273 00:13:25,800 --> 00:13:28,880 Speaker 2: infrastructure to be had elsewhere? We're just showing a Japanese 274 00:13:29,000 --> 00:13:30,800 Speaker 2: name tower that's done particularly well. 275 00:13:31,000 --> 00:13:34,680 Speaker 1: Well, absolutely so, we actually favor a bass head of 276 00:13:35,360 --> 00:13:41,400 Speaker 1: exploser to semiconductor equipment makers are related names, so of 277 00:13:41,400 --> 00:13:44,720 Speaker 1: course Navidia would be the dominant player. But equally, we 278 00:13:44,800 --> 00:13:50,080 Speaker 1: think there's plenty of opportunities across the entire semiconductor value chained. 279 00:13:50,480 --> 00:13:53,520 Speaker 1: So I think some of the other players for example, 280 00:13:53,720 --> 00:13:58,360 Speaker 1: in memories, in infrastructure, in intellectual property. They may not 281 00:13:58,960 --> 00:14:04,600 Speaker 1: yet have the recognition or significant valley like Navidia, but 282 00:14:05,080 --> 00:14:08,960 Speaker 1: there are plenty of opportunities, so we feel that it 283 00:14:09,240 --> 00:14:12,000 Speaker 1: perhaps is a good way to play it via equal 284 00:14:12,040 --> 00:14:15,960 Speaker 1: weight basket of stocks exposed to that theme rather than 285 00:14:16,120 --> 00:14:19,240 Speaker 1: just you know, being a field selected stocks. 286 00:14:19,240 --> 00:14:23,320 Speaker 2: For instance, it's interesting you mentioned in video and a 287 00:14:23,360 --> 00:14:26,480 Speaker 2: lot of some of the risk in amid the exuberance 288 00:14:26,520 --> 00:14:28,760 Speaker 2: around that name has been its relationship to China, the 289 00:14:28,760 --> 00:14:31,400 Speaker 2: fact that ultimately it depends on China as the end market, 290 00:14:31,440 --> 00:14:33,640 Speaker 2: and of course in manufacturing as well. How much do 291 00:14:33,640 --> 00:14:36,120 Speaker 2: you think geopolitical headwinds are going to be something that 292 00:14:36,160 --> 00:14:37,520 Speaker 2: we need to consider a bit more in the second 293 00:14:37,520 --> 00:14:38,000 Speaker 2: half of the year. 294 00:14:38,360 --> 00:14:41,720 Speaker 1: Well, we always need to consider geopolitical factors, but I 295 00:14:41,800 --> 00:14:45,440 Speaker 1: do think that in that case US stocks are likely 296 00:14:45,480 --> 00:14:49,840 Speaker 1: to outperform the x US regents if you talk about 297 00:14:50,240 --> 00:14:54,800 Speaker 1: AI stocks for instance, because I think, as we all 298 00:14:55,000 --> 00:14:59,240 Speaker 1: seen already, there are plenty of subsidies, looks and grants 299 00:14:59,280 --> 00:15:03,440 Speaker 1: for a company to actually produce in America, so the 300 00:15:03,600 --> 00:15:06,680 Speaker 1: entire value chain may shift more and more to America. 301 00:15:06,760 --> 00:15:09,080 Speaker 1: So I do think that the American companies may be 302 00:15:09,240 --> 00:15:13,840 Speaker 1: less impacted by these political residents. Obviously, the China play, 303 00:15:13,920 --> 00:15:17,360 Speaker 1: we're not very very interested in that. I think some 304 00:15:17,440 --> 00:15:19,560 Speaker 1: of the em plays may also be more at risk 305 00:15:20,080 --> 00:15:23,360 Speaker 1: if there are more tosks of trade tensions and drop 306 00:15:23,360 --> 00:15:26,760 Speaker 1: political tensions. So I do think us off should be 307 00:15:26,760 --> 00:15:28,320 Speaker 1: better in the circumstances. 308 00:15:28,800 --> 00:15:30,840 Speaker 3: I'BC Ruined Dolphin, head of market Analysis. 309 00:15:30,880 --> 00:15:32,880 Speaker 2: Generally, it's always great to catch up with you on 310 00:15:32,920 --> 00:15:34,240 Speaker 2: the show in your global perspective. 311 00:15:34,320 --> 00:15:36,320 Speaker 3: We thank you for it. Look, we're going to go 312 00:15:36,520 --> 00:15:37,920 Speaker 3: a little bit more global in a moment. 313 00:15:38,040 --> 00:15:40,640 Speaker 2: We have a conversation on cybersecurity with the former try 314 00:15:40,680 --> 00:15:43,240 Speaker 2: for staff, a cybersecurity and infrastructure security agency that. 315 00:15:43,360 --> 00:15:44,920 Speaker 3: CASA, Kristen Todd. 316 00:15:45,360 --> 00:15:49,280 Speaker 2: What she's seeing about concerns relating to Microsoft and ultimately 317 00:15:49,280 --> 00:15:50,120 Speaker 2: exposure to China. 318 00:15:50,160 --> 00:15:50,840 Speaker 3: That's up next. 319 00:15:51,160 --> 00:16:09,600 Speaker 2: This is bloombag Technology. It's time now for talking tech. 320 00:16:09,680 --> 00:16:12,920 Speaker 2: First up, Paddy Cosgrove. Well, he's returning to the Web 321 00:16:12,920 --> 00:16:16,280 Speaker 2: Summit tech conference. The news comes after he resigned, remember 322 00:16:16,320 --> 00:16:18,240 Speaker 2: back in October of last year, after he made a 323 00:16:18,280 --> 00:16:21,600 Speaker 2: political statement on the conflict between Israel and Hamas following 324 00:16:21,600 --> 00:16:23,360 Speaker 2: the October seventh terrorist attacks. 325 00:16:23,600 --> 00:16:24,760 Speaker 3: Because where the. 326 00:16:24,560 --> 00:16:27,080 Speaker 2: Co founder of the Web Summit tech conference confirmed the 327 00:16:27,120 --> 00:16:29,720 Speaker 2: news on x that he is returning to his role 328 00:16:30,080 --> 00:16:30,720 Speaker 2: as CEO. 329 00:16:31,480 --> 00:16:33,120 Speaker 3: Plus's AI demand. 330 00:16:32,760 --> 00:16:36,080 Speaker 2: Quickens Ali Babara's slashing the cloud prices globally defend off 331 00:16:36,200 --> 00:16:37,360 Speaker 2: rivals and revived growth. 332 00:16:37,480 --> 00:16:37,640 Speaker 5: Now. 333 00:16:37,640 --> 00:16:39,160 Speaker 3: The move comes amid a surge in. 334 00:16:39,200 --> 00:16:42,080 Speaker 2: Demand for cloud computing to support a global boom in 335 00:16:42,160 --> 00:16:46,200 Speaker 2: AI development, as well as some pretty complicated internal restructuring, 336 00:16:46,920 --> 00:16:49,960 Speaker 2: and some key lawmakers have struck a deal on national 337 00:16:50,040 --> 00:16:52,560 Speaker 2: data privacy here in the United States. The landmark agreement 338 00:16:52,600 --> 00:16:55,160 Speaker 2: reached by the House Energy and Commerce Chair and the 339 00:16:55,200 --> 00:16:58,840 Speaker 2: Senate Commerce Chair, would be the first time established federal 340 00:16:58,840 --> 00:17:02,320 Speaker 2: consumer data privacy rights would be formed and allow Americans 341 00:17:02,360 --> 00:17:07,520 Speaker 2: to sue companies such as Google and Meta over violations. Meanwhile, 342 00:17:07,800 --> 00:17:11,440 Speaker 2: the Department of Homeland Security Cyber Safety Review Board has 343 00:17:11,560 --> 00:17:14,760 Speaker 2: been out with a report on Microsoft that was pretty damning. 344 00:17:14,960 --> 00:17:18,359 Speaker 2: It assessed the Microsoft Exchange online intrusion that occurred in 345 00:17:18,400 --> 00:17:21,480 Speaker 2: May and Junior twenty twenty three. Stig in to what 346 00:17:21,560 --> 00:17:25,600 Speaker 2: that report showed, the limitations and over all the cybersecurity 347 00:17:25,640 --> 00:17:28,040 Speaker 2: spaces it sits right now. Former chief of Staff for 348 00:17:28,080 --> 00:17:31,639 Speaker 2: Cybersecurity and Infrastructure Security Agency Kissed and Todd is with 349 00:17:31,760 --> 00:17:34,600 Speaker 2: US and currently serving as the president of Wondrous and 350 00:17:34,600 --> 00:17:36,080 Speaker 2: it's great to have some time with you. Kissed and 351 00:17:36,680 --> 00:17:38,400 Speaker 2: we don't want to sort of overlook this. It came 352 00:17:38,440 --> 00:17:41,040 Speaker 2: at the beginning of last week, but it almost sort 353 00:17:41,080 --> 00:17:45,399 Speaker 2: of highlighted one oh one cybersecurity etiquette that seemed to 354 00:17:45,400 --> 00:17:47,000 Speaker 2: have been failed over at Microsoft. 355 00:17:47,320 --> 00:17:49,000 Speaker 3: Can you just detael a little bit about what you 356 00:17:49,000 --> 00:17:49,879 Speaker 3: thought about the report? 357 00:17:50,160 --> 00:17:53,480 Speaker 8: Sure, So, the Cyber Safety Review Board, it was launched 358 00:17:53,480 --> 00:17:55,520 Speaker 8: in twenty one and it was really executed in twenty 359 00:17:55,520 --> 00:17:58,720 Speaker 8: twenty two. This was the third investigation that it conducted, 360 00:17:58,760 --> 00:18:02,040 Speaker 8: and last August, the Secretary of Homeland Security said that 361 00:18:02,080 --> 00:18:04,720 Speaker 8: the review Board was going to look into this intrusion 362 00:18:04,920 --> 00:18:07,080 Speaker 8: that occurred, as you said in May and June, and 363 00:18:07,160 --> 00:18:09,919 Speaker 8: what it found, most specifically was that the intrusion was 364 00:18:09,960 --> 00:18:13,520 Speaker 8: preventable and should have never occurred. The intrusion itself hacked 365 00:18:13,520 --> 00:18:16,960 Speaker 8: into the email systems of over five hundred individuals in 366 00:18:17,000 --> 00:18:20,080 Speaker 8: twenty two organizations, but specifically it hacked into the email 367 00:18:20,119 --> 00:18:23,439 Speaker 8: of the US Secretary of Commerce Gina Ramundo and the 368 00:18:23,560 --> 00:18:27,120 Speaker 8: US Ambassador to China, Nick Burns, prior to an official 369 00:18:27,200 --> 00:18:31,200 Speaker 8: visit to China, and what the review board attributed this 370 00:18:32,080 --> 00:18:34,560 Speaker 8: breach that should have been preventable to was the fact 371 00:18:34,560 --> 00:18:38,840 Speaker 8: that it identified Microsoft as having poor security practices, a 372 00:18:38,960 --> 00:18:43,320 Speaker 8: lack of transparency into the breach, and a lacks corporate 373 00:18:43,320 --> 00:18:45,280 Speaker 8: culture when it comes to cybersecurity. 374 00:18:45,680 --> 00:18:48,160 Speaker 2: And we've got to remember of the frustrations that gena 375 00:18:48,240 --> 00:18:50,760 Speaker 2: Romando Commas sectuary showed in particular of a trip to 376 00:18:50,840 --> 00:18:53,920 Speaker 2: China and what was ultimately unfilled by China at the 377 00:18:53,960 --> 00:18:57,000 Speaker 2: same time, just the Huawei phone that was suddenly presented, 378 00:18:57,000 --> 00:19:00,040 Speaker 2: and everyone realizing this moment that perhaps some of the 379 00:19:00,160 --> 00:19:04,280 Speaker 2: limitations on tech from US to China perhaps isn't doing 380 00:19:04,320 --> 00:19:06,800 Speaker 2: the job that many had thought. I'm interested in the 381 00:19:06,880 --> 00:19:09,080 Speaker 2: Threat Act and known as Storm zero five to five 382 00:19:09,119 --> 00:19:09,919 Speaker 2: eight that seems to. 383 00:19:09,880 --> 00:19:10,880 Speaker 3: Have been what's at play here. 384 00:19:10,880 --> 00:19:14,160 Speaker 2: But how much should Microsoft have been able to prevent 385 00:19:14,600 --> 00:19:17,879 Speaker 2: all of this and or how many other risks are 386 00:19:17,880 --> 00:19:20,400 Speaker 2: the overcoming on a day to day basis. We've shouting 387 00:19:20,400 --> 00:19:23,120 Speaker 2: out one particular failing, but how often are they achieving 388 00:19:23,160 --> 00:19:24,760 Speaker 2: what they determined to do well. 389 00:19:24,760 --> 00:19:27,480 Speaker 8: This is the big concern because we continue to see 390 00:19:27,520 --> 00:19:31,320 Speaker 8: these types of breaches happening from Microsoft vulnerabilities and I 391 00:19:31,320 --> 00:19:33,720 Speaker 8: have a former colleague at SISO who talks about the 392 00:19:33,760 --> 00:19:37,080 Speaker 8: fact that we say vulnerabilities, but in fact their defects. 393 00:19:37,280 --> 00:19:41,520 Speaker 8: When you prioritize adding features over security, this vulnerability of 394 00:19:41,560 --> 00:19:45,240 Speaker 8: infrastructure only increases. And the challenge really this is a 395 00:19:45,320 --> 00:19:50,000 Speaker 8: national security risk because Microsoft is ubiquitous across the federal government. 396 00:19:50,040 --> 00:19:52,200 Speaker 8: It is one of the largest, if not the largest 397 00:19:52,240 --> 00:19:56,160 Speaker 8: technical technology company in the world. But importantly, the US 398 00:19:56,240 --> 00:20:01,800 Speaker 8: federal government has its essential services underpinned by micro Microsoft technology, 399 00:20:01,800 --> 00:20:05,200 Speaker 8: and importantly, these are the services that support national security. 400 00:20:05,240 --> 00:20:08,440 Speaker 8: So when there are vulnerabilities in the Microsoft system, that 401 00:20:08,520 --> 00:20:11,320 Speaker 8: translates onto our national security safety. 402 00:20:11,680 --> 00:20:13,560 Speaker 3: I think matchwas than adas well. 403 00:20:13,600 --> 00:20:16,159 Speaker 8: I think what was interesting about this report is early 404 00:20:16,200 --> 00:20:19,560 Speaker 8: on when the investigation initiated, Microsoft said let's make this 405 00:20:19,600 --> 00:20:23,400 Speaker 8: a cloud service provider investigation, and the report did that, 406 00:20:23,480 --> 00:20:27,600 Speaker 8: and it talked about the other companies, Amazon, Google, Oracle 407 00:20:27,920 --> 00:20:30,600 Speaker 8: all having better security practices. But I think the key 408 00:20:30,600 --> 00:20:34,040 Speaker 8: piece here is this isn't necessarily a commercial competitiveness issue 409 00:20:34,040 --> 00:20:36,840 Speaker 8: other than government looking at options. But in the very 410 00:20:36,880 --> 00:20:40,320 Speaker 8: near term this is a national security issue because we've 411 00:20:40,359 --> 00:20:42,840 Speaker 8: got to be paying attention to the resilience and the 412 00:20:42,880 --> 00:20:46,040 Speaker 8: safety and security are of our infrastructure, which is underpinned 413 00:20:46,119 --> 00:20:49,159 Speaker 8: by technology that's created in the private sector. And I 414 00:20:49,160 --> 00:20:51,879 Speaker 8: think one of the most telling pieces was the last October, 415 00:20:52,240 --> 00:20:54,359 Speaker 8: the directors of intelligence from the Five Eyes, which are 416 00:20:54,359 --> 00:20:56,919 Speaker 8: the countries New Zealand, Australia, Canada, the UK, and the 417 00:20:57,000 --> 00:21:00,399 Speaker 8: US came together in Silicon Valley in an unpressed, dented 418 00:21:00,400 --> 00:21:03,320 Speaker 8: meeting to meet with the CEOs of those technology companies 419 00:21:03,359 --> 00:21:05,919 Speaker 8: to say, we have a real threat from China and 420 00:21:05,960 --> 00:21:08,479 Speaker 8: you may not have built your company as a national 421 00:21:08,480 --> 00:21:11,280 Speaker 8: security company, but your technology is now part of the 422 00:21:11,359 --> 00:21:12,840 Speaker 8: national security of this country. 423 00:21:13,119 --> 00:21:15,760 Speaker 2: Kessentad, it's so great to get your expertise across this. 424 00:21:15,920 --> 00:21:18,600 Speaker 2: Thank you for well reminding us why it is a little 425 00:21:18,600 --> 00:21:20,720 Speaker 2: a crucial President of Wandras, we thank you. 426 00:21:29,359 --> 00:21:33,840 Speaker 9: Apple has another new next big thing under exploration home robots. 427 00:21:34,240 --> 00:21:37,919 Speaker 9: The company has teams within its AI in hardware engineering 428 00:21:38,000 --> 00:21:43,080 Speaker 9: organizations exploring the feasibility of bringing robotics driven devices to market. 429 00:21:43,720 --> 00:21:47,639 Speaker 9: The company is testing a tabletop device that uses a 430 00:21:47,720 --> 00:21:51,680 Speaker 9: robotic arm to move around an iPad display. For instance, 431 00:21:51,760 --> 00:21:54,359 Speaker 9: if a user is on a FaceTime call, the screen 432 00:21:54,400 --> 00:21:56,639 Speaker 9: can move to mimic the head movements like a nod 433 00:21:57,040 --> 00:21:59,119 Speaker 9: or the turn of ahead as the person on the 434 00:21:59,160 --> 00:22:02,359 Speaker 9: other end of the call. The more interesting product under 435 00:22:02,359 --> 00:22:06,320 Speaker 9: consideration is a home robot similar to the Amazon astro 436 00:22:06,640 --> 00:22:09,720 Speaker 9: that can follow a user around their home. Some ideas 437 00:22:09,720 --> 00:22:12,520 Speaker 9: for that include video conferencing, as well as a pie 438 00:22:12,520 --> 00:22:14,880 Speaker 9: in the sky ambition for the robot to be able 439 00:22:14,920 --> 00:22:18,480 Speaker 9: to conduct household chores, such as cleaning dishes before they 440 00:22:18,480 --> 00:22:22,200 Speaker 9: go in a dishwasher. Any release is probably many years away. 441 00:22:22,400 --> 00:22:26,160 Speaker 9: If it happens at all. I'm Mark German, this is Bloomberg. 442 00:22:28,400 --> 00:22:31,159 Speaker 2: Meanwhile, let's get to check in on these markets, because 443 00:22:31,480 --> 00:22:34,880 Speaker 2: overall we are seeing equity markets managing to drift higher, 444 00:22:34,880 --> 00:22:36,920 Speaker 2: and it's that one hundred and tenth of percent. We're 445 00:22:36,920 --> 00:22:38,800 Speaker 2: coming off of our highs, though, and that might be 446 00:22:38,800 --> 00:22:41,480 Speaker 2: in the face of borrowing costs that continue to rise. 447 00:22:41,720 --> 00:22:43,720 Speaker 2: On the bomb market, we're seeing two year yields up 448 00:22:43,720 --> 00:22:46,720 Speaker 2: another three basis points, let's call it four point seventy seven. 449 00:22:46,840 --> 00:22:49,000 Speaker 2: We're also seeing the ten year yield up at the 450 00:22:49,119 --> 00:22:51,960 Speaker 2: highest in November of last year. Why, we're worried about 451 00:22:51,960 --> 00:22:54,240 Speaker 2: inflationary pressure, and we'll be getting yet more data later 452 00:22:54,280 --> 00:22:56,760 Speaker 2: in the week. On Wednesday, the CPI print many bracing 453 00:22:56,760 --> 00:22:59,440 Speaker 2: for and what that means for the Federal Reserve Bitcoin though, 454 00:22:59,480 --> 00:23:01,679 Speaker 2: I mean shaping off any concerns with the bond market 455 00:23:01,800 --> 00:23:04,440 Speaker 2: a risk asset up another three point three percent, again 456 00:23:04,520 --> 00:23:06,600 Speaker 2: off of recent highs. But we're seventy one thousand, six 457 00:23:06,680 --> 00:23:08,880 Speaker 2: hundred and sixty eight managing to rally through the weekend. 458 00:23:09,280 --> 00:23:11,080 Speaker 2: Move on to some of the individual names that we've 459 00:23:11,080 --> 00:23:14,280 Speaker 2: been keeping a close eye on, and well, TSMC has 460 00:23:14,280 --> 00:23:15,960 Speaker 2: got to be a key name if you're trading the 461 00:23:15,960 --> 00:23:17,280 Speaker 2: American depositary receipts. 462 00:23:17,280 --> 00:23:18,719 Speaker 3: That is, we're higher on the day. 463 00:23:18,800 --> 00:23:21,679 Speaker 2: Why eleven point six billion dollars coming in grants and 464 00:23:21,720 --> 00:23:24,680 Speaker 2: loans for this particular chip maker to be building yet 465 00:23:24,680 --> 00:23:27,640 Speaker 2: further fab units, a third one in Phoenix, Arizona. All 466 00:23:27,680 --> 00:23:30,119 Speaker 2: of about the supply chain here in the United States. 467 00:23:30,240 --> 00:23:32,639 Speaker 2: ASML could be a key winner in this particular area 468 00:23:32,640 --> 00:23:35,200 Speaker 2: as well. Bloomberg Intelligence out with a great note saying 469 00:23:35,359 --> 00:23:38,640 Speaker 2: like ASML chip equipment maker based over in the Netherlands 470 00:23:38,640 --> 00:23:40,760 Speaker 2: could well be doing well from the chips act over 471 00:23:40,760 --> 00:23:41,800 Speaker 2: here in the United States. 472 00:23:41,880 --> 00:23:43,280 Speaker 3: We're up a percentage. 473 00:23:42,760 --> 00:23:46,280 Speaker 2: Point and Tesla best performer on the NASA one hundred today. 474 00:23:46,359 --> 00:23:48,800 Speaker 2: We're up more than five percent. Now, all of this 475 00:23:48,920 --> 00:23:53,200 Speaker 2: as we see perhaps a focus more reorientating on robotaxis 476 00:23:53,240 --> 00:23:55,640 Speaker 2: tesa CEO Elon Musk saying that the ev maker will 477 00:23:55,680 --> 00:23:58,680 Speaker 2: unveil its a long promise Robotaxi on August the eighth, 478 00:23:58,720 --> 00:23:59,320 Speaker 2: exactly four. 479 00:23:59,240 --> 00:23:59,800 Speaker 3: Months from now. 480 00:24:00,119 --> 00:24:02,840 Speaker 2: That that's years after first hinting at plans for a 481 00:24:02,880 --> 00:24:07,440 Speaker 2: dedicated robotaxi back in twenty nineteen. Shares at Hazer were, 482 00:24:07,560 --> 00:24:10,159 Speaker 2: as we see, rallying on this news after the announcement, 483 00:24:10,280 --> 00:24:13,200 Speaker 2: even as the company has recently been struggling with a 484 00:24:13,440 --> 00:24:17,359 Speaker 2: week sales competition from cheap Chinese electric vehicles. Plenty of 485 00:24:17,400 --> 00:24:21,080 Speaker 2: concerns that have pushed this share lower throughout the course of. 486 00:24:21,040 --> 00:24:21,960 Speaker 3: Twenty twenty four. 487 00:24:22,280 --> 00:24:23,880 Speaker 2: But let's just switch gears and look at what else 488 00:24:23,920 --> 00:24:25,879 Speaker 2: Elil Musk has been focused on of late, because of 489 00:24:25,920 --> 00:24:28,160 Speaker 2: course X is one of them, and the blue verification 490 00:24:28,240 --> 00:24:30,879 Speaker 2: check mark on X. It's been reserved of course to 491 00:24:30,960 --> 00:24:34,720 Speaker 2: paid subscribers since must overhauld the social platform up until now, 492 00:24:35,240 --> 00:24:38,439 Speaker 2: because Mask recently decided to grant the status marker for 493 00:24:38,600 --> 00:24:41,760 Speaker 2: free to those with enough followers, which is roughly what 494 00:24:41,800 --> 00:24:44,120 Speaker 2: it was like previously, but because of what it has 495 00:24:44,160 --> 00:24:48,359 Speaker 2: become some qualifying newsers now sound a little embarrassed to 496 00:24:48,400 --> 00:24:50,159 Speaker 2: have a blue check mark back, and they want their 497 00:24:50,160 --> 00:24:52,080 Speaker 2: followers to know that they are not paying for it, 498 00:24:52,560 --> 00:24:54,640 Speaker 2: or please to how welcome Bluembergs Astin Card to the show, 499 00:24:54,680 --> 00:24:57,440 Speaker 2: who's just been writing about this in the daily newsletter 500 00:24:57,520 --> 00:25:01,439 Speaker 2: and Austin just give us some of the anecdotal evidence 501 00:25:01,480 --> 00:25:03,480 Speaker 2: that people are a bit worried about looking as it 502 00:25:03,520 --> 00:25:04,680 Speaker 2: they pay for blue check mark. 503 00:25:05,119 --> 00:25:06,879 Speaker 10: You know, in recent days, we've seen a lot of 504 00:25:06,880 --> 00:25:09,840 Speaker 10: these very high profile users who were not paying Twitter, 505 00:25:10,000 --> 00:25:12,679 Speaker 10: and in fact had their blue check mark revoked by 506 00:25:12,720 --> 00:25:15,760 Speaker 10: you on eighteen months ago, suddenly seeing that verification status 507 00:25:15,800 --> 00:25:18,280 Speaker 10: appear in their profiles again. And you see a lot 508 00:25:18,320 --> 00:25:20,320 Speaker 10: of them tweeting saying number one, I did not pay 509 00:25:20,320 --> 00:25:23,280 Speaker 10: for this and number two I want to turn it off. 510 00:25:23,760 --> 00:25:25,920 Speaker 10: You see, there is an option within the settings menu. 511 00:25:26,040 --> 00:25:30,080 Speaker 10: So you saw some like the high profile producer of 512 00:25:30,119 --> 00:25:33,760 Speaker 10: The Wire, David Simon, he was very much complaining saying 513 00:25:33,760 --> 00:25:35,400 Speaker 10: that he was not paying for this blue check mark, 514 00:25:35,400 --> 00:25:36,840 Speaker 10: that he would never pay for it. He does not 515 00:25:36,840 --> 00:25:40,359 Speaker 10: support Elon. And I think what this signals is that 516 00:25:41,119 --> 00:25:43,400 Speaker 10: the blue check mark has gone from being a status 517 00:25:43,480 --> 00:25:46,440 Speaker 10: of verification to being something a little bit more meaningless, 518 00:25:46,440 --> 00:25:50,400 Speaker 10: if not devoid of value, maybe overly politicized. It means 519 00:25:50,400 --> 00:25:53,119 Speaker 10: something more than just this is your true identity and 520 00:25:53,160 --> 00:25:56,680 Speaker 10: you are somewhat of nod. It's really had this sort 521 00:25:56,720 --> 00:26:00,960 Speaker 10: of controversy installed embedded into that blue check mark since 522 00:26:00,960 --> 00:26:03,320 Speaker 10: Elon took it over eighteen months ago and promised to 523 00:26:03,320 --> 00:26:05,480 Speaker 10: get rid of this what he called a lords and 524 00:26:05,520 --> 00:26:07,359 Speaker 10: peasant system of verification. 525 00:26:08,080 --> 00:26:10,240 Speaker 2: Yeah, go back to therefore the change of heart for 526 00:26:10,280 --> 00:26:13,320 Speaker 2: Elon Musk himself. What hasn't been working under the new system. 527 00:26:14,080 --> 00:26:15,480 Speaker 10: So when he took it over about a year and 528 00:26:15,520 --> 00:26:17,879 Speaker 10: a half ago, he felt the process was corrupt. It 529 00:26:17,920 --> 00:26:21,760 Speaker 10: was essentially given out to celebrities, politicians, you know, other 530 00:26:21,840 --> 00:26:25,040 Speaker 10: notable figures, brands, and he just felt the process was, 531 00:26:25,720 --> 00:26:28,240 Speaker 10: you know, nonsensical as he described it. He felt it 532 00:26:28,280 --> 00:26:30,119 Speaker 10: was unclear who could get it and who could not. 533 00:26:30,600 --> 00:26:32,719 Speaker 10: So when he took over, he revoked it in mass 534 00:26:32,720 --> 00:26:35,159 Speaker 10: for a lot of very famous people, which created a 535 00:26:35,200 --> 00:26:37,960 Speaker 10: lot of chaos. And the way the system he replaced 536 00:26:37,960 --> 00:26:40,840 Speaker 10: it with it required you to pay for a premium 537 00:26:40,880 --> 00:26:43,680 Speaker 10: subscription at least eight dollars, maybe sixteen dollars a month 538 00:26:43,960 --> 00:26:45,680 Speaker 10: and then you would go through a review process and 539 00:26:45,720 --> 00:26:48,240 Speaker 10: get a blue check mark. The issue was all the 540 00:26:48,240 --> 00:26:51,479 Speaker 10: people whose blue checks were removed did not sort of 541 00:26:51,600 --> 00:26:53,840 Speaker 10: re engage with the platform. They saw it as a 542 00:26:53,880 --> 00:26:56,560 Speaker 10: sign of protests. They'd created so much content, so much 543 00:26:56,560 --> 00:26:58,919 Speaker 10: engagement on the platform, and suddenly, you know, someone like 544 00:26:59,000 --> 00:27:00,920 Speaker 10: Lebron James, he would say, wait, I have to pay 545 00:27:00,920 --> 00:27:03,399 Speaker 10: for my own blue check mark now. And then on 546 00:27:03,440 --> 00:27:05,240 Speaker 10: the reverse end, you saw a lot of people who 547 00:27:05,280 --> 00:27:09,120 Speaker 10: supported Elon suddenly rushing to buy this blue check mark, 548 00:27:09,160 --> 00:27:11,720 Speaker 10: and it almost became a symbol of what whether you 549 00:27:11,720 --> 00:27:14,080 Speaker 10: were supporting what Elon was doing with Twitter or perhaps 550 00:27:14,080 --> 00:27:17,399 Speaker 10: his worldview his politics has approached a free speech and 551 00:27:17,440 --> 00:27:20,439 Speaker 10: so it became overly politicized. And now again it really 552 00:27:20,440 --> 00:27:22,440 Speaker 10: I'm not quite sure what a blue check mark means 553 00:27:22,600 --> 00:27:24,640 Speaker 10: if you have it in your profile, does it mean 554 00:27:24,840 --> 00:27:26,359 Speaker 10: you are who you say you are, or that you 555 00:27:26,359 --> 00:27:28,479 Speaker 10: support Elon or you just like paying for Twitter. 556 00:27:29,040 --> 00:27:31,960 Speaker 2: Let's just talk about Elon's commitment to free speech for 557 00:27:31,960 --> 00:27:34,520 Speaker 2: a moment and the global aspect of it, Austin, because 558 00:27:34,920 --> 00:27:37,480 Speaker 2: over in Brazil it looks as though there has been 559 00:27:37,520 --> 00:27:41,640 Speaker 2: a push by certain well judges over there to want 560 00:27:41,680 --> 00:27:44,600 Speaker 2: to clamp down on the use of Twitter and next 561 00:27:44,600 --> 00:27:47,560 Speaker 2: and certain voices to be heard on the platform. Now 562 00:27:47,600 --> 00:27:51,240 Speaker 2: in a masque is saying he's lifting certain restrictions in Brazil, 563 00:27:51,320 --> 00:27:54,520 Speaker 2: basically defying court orders over there. Can you give us 564 00:27:54,720 --> 00:27:56,560 Speaker 2: sort of ultimately what's brought us to this moment? 565 00:27:57,000 --> 00:28:00,000 Speaker 10: Sure, he has defied a court order in the Central 566 00:28:00,200 --> 00:28:04,360 Speaker 10: reactivated certain accounts that the court had ordered banned. It's 567 00:28:04,359 --> 00:28:06,840 Speaker 10: still early in the details. We don't quite know what 568 00:28:06,880 --> 00:28:09,200 Speaker 10: accounts have been reactivated. We don't know why they were 569 00:28:09,320 --> 00:28:12,439 Speaker 10: ordered blocked. But a judge there is apparently opened an 570 00:28:12,440 --> 00:28:14,520 Speaker 10: inquiry into the matter and they're looking into and forward. 571 00:28:14,920 --> 00:28:16,959 Speaker 10: But I think what it boils down to before we 572 00:28:17,040 --> 00:28:18,879 Speaker 10: know all the details of how this happened and what 573 00:28:18,960 --> 00:28:24,040 Speaker 10: the nature of these accounts were. It really symbolizes Elon's 574 00:28:24,200 --> 00:28:28,879 Speaker 10: so called free speech sort of purism. He sort of 575 00:28:28,920 --> 00:28:31,679 Speaker 10: presented himself as this free speech advocate that will do 576 00:28:31,880 --> 00:28:34,919 Speaker 10: anything to promote principles over profit, as he put it. 577 00:28:34,960 --> 00:28:37,520 Speaker 10: When he sort of said on x that he was 578 00:28:37,560 --> 00:28:40,280 Speaker 10: going to reactivate these accounts for the good of the 579 00:28:40,320 --> 00:28:43,200 Speaker 10: free speech. He would even leave Brazil, shut down their office, 580 00:28:43,200 --> 00:28:46,480 Speaker 10: sacrifice the revenue if need be, and that is definitely 581 00:28:46,480 --> 00:28:48,880 Speaker 10: the brand that Elon tries to project. But we've also 582 00:28:48,920 --> 00:28:52,440 Speaker 10: seen many sort of hypocritical instances of this, especially in 583 00:28:52,480 --> 00:28:55,880 Speaker 10: the US where he's banned journalists, where he's essentially removed 584 00:28:55,960 --> 00:28:58,240 Speaker 10: verification status one from the New York Times because he 585 00:28:58,520 --> 00:29:01,960 Speaker 10: disagreed with some of the reporting, and then in other instances, 586 00:29:02,000 --> 00:29:04,960 Speaker 10: you know, there was a famous instance where Elon, when 587 00:29:04,960 --> 00:29:08,400 Speaker 10: people were protesting and trying to get AD supporters to 588 00:29:08,440 --> 00:29:12,440 Speaker 10: block their supportive of Twitter, you know, he considered banning 589 00:29:12,480 --> 00:29:15,560 Speaker 10: those users too, who are sort of trying to boycott 590 00:29:15,560 --> 00:29:18,040 Speaker 10: the platform. And so we have this sort of tension 591 00:29:18,080 --> 00:29:22,960 Speaker 10: point between Elon's values and an Ex's business model, which 592 00:29:22,960 --> 00:29:26,120 Speaker 10: has been really struggling to generate revenue since Elon acquired it. 593 00:29:26,160 --> 00:29:28,240 Speaker 10: So you're seeing that play out in Brazil, and it's 594 00:29:28,240 --> 00:29:31,080 Speaker 10: a good question about why he's sort of standing up 595 00:29:31,120 --> 00:29:34,320 Speaker 10: for these particular accounts and whether or not you will 596 00:29:34,360 --> 00:29:37,560 Speaker 10: actually commit to that at the expense of Ex's revenue down. 597 00:29:37,480 --> 00:29:40,520 Speaker 2: There, probably lose all revenue in Brazil and have to 598 00:29:40,520 --> 00:29:44,360 Speaker 2: shut down our office there. As he posted himself, Austin Karr, 599 00:29:44,440 --> 00:29:45,920 Speaker 2: thank you so much for bringing us up to speed 600 00:29:45,960 --> 00:29:48,880 Speaker 2: and a great news that you had out this morning. Meanwhile, 601 00:29:48,880 --> 00:29:52,520 Speaker 2: coming up, fight over diversity in corporate America continues as 602 00:29:52,560 --> 00:29:55,960 Speaker 2: HISS DEI related causes and cases to keep piling up. 603 00:29:56,040 --> 00:29:56,960 Speaker 3: We'll discuss all. 604 00:29:56,800 --> 00:30:01,280 Speaker 2: Of this with hell Alice cofounder Elizabeth Gore next. Meanwhile, 605 00:30:01,360 --> 00:30:03,480 Speaker 2: let's just keep a track on some globally traded stocks 606 00:30:03,560 --> 00:30:06,840 Speaker 2: right now. Atos over in France, French ita company pretty 607 00:30:06,880 --> 00:30:09,000 Speaker 2: in battle. To be honest, it's going to be presenting 608 00:30:09,040 --> 00:30:12,280 Speaker 2: a debt restructuring plan today as the company's top shareholder 609 00:30:12,360 --> 00:30:15,440 Speaker 2: one point seats to build, they say, coalition. They want 610 00:30:15,480 --> 00:30:17,680 Speaker 2: to offer an alternative rescue plan for this particular name. 611 00:30:17,680 --> 00:30:18,440 Speaker 3: It's been under pressure. 612 00:30:18,520 --> 00:30:20,840 Speaker 2: Look at how the share price rallied over the course 613 00:30:20,840 --> 00:30:22,040 Speaker 2: of the European training day. 614 00:30:22,680 --> 00:30:23,800 Speaker 3: This is Blue med Technology. 615 00:30:39,520 --> 00:30:43,600 Speaker 2: Hello Alice as a fintech startup offering grants, networking opportunities 616 00:30:43,640 --> 00:30:47,200 Speaker 2: and access to finance for entrepreneurs from underrepresented groups in particular, 617 00:30:47,440 --> 00:30:49,880 Speaker 2: it's just announced a new Series C funding round in 618 00:30:49,880 --> 00:30:52,440 Speaker 2: our values the company at one hundred and thirty million dollars. Now, 619 00:30:52,480 --> 00:30:55,000 Speaker 2: this is despite being on the front lines of a 620 00:30:55,080 --> 00:30:58,680 Speaker 2: litigation war over diversity in corporate America. Six months ago, 621 00:30:58,840 --> 00:31:01,320 Speaker 2: it was hit with a lawsuit by the conservative activist 622 00:31:01,360 --> 00:31:04,440 Speaker 2: group America First Legal, which has lodged at least six 623 00:31:04,480 --> 00:31:08,040 Speaker 2: other DEI related suits elsewhere. It claims a grant program 624 00:31:08,040 --> 00:31:11,800 Speaker 2: by Hello Alice Co runs for black owned small businesses 625 00:31:12,080 --> 00:31:12,880 Speaker 2: is discriminatory. 626 00:31:13,320 --> 00:31:14,800 Speaker 3: Now, the startup has had. 627 00:31:14,640 --> 00:31:17,560 Speaker 2: To spend six figures on fees for three law firms 628 00:31:17,560 --> 00:31:19,880 Speaker 2: so far, and we're going to dive into this ongoing 629 00:31:19,920 --> 00:31:22,160 Speaker 2: legal battle and indeed, well the ultimate growth of the 630 00:31:22,200 --> 00:31:24,680 Speaker 2: business too. Hello Alice co founder and president Eizabeth. 631 00:31:24,400 --> 00:31:25,240 Speaker 3: Gore is here with us. 632 00:31:25,600 --> 00:31:29,000 Speaker 2: And this comes at a time where the DEI discussion 633 00:31:29,360 --> 00:31:32,600 Speaker 2: pendulum has swung significantly and there is this view that 634 00:31:32,680 --> 00:31:35,680 Speaker 2: people giving an allocating grants to people of color is 635 00:31:35,720 --> 00:31:40,280 Speaker 2: in some way discriminating against white founders. Now, how has 636 00:31:40,360 --> 00:31:43,000 Speaker 2: that been a distraction for the business or actually hasn't 637 00:31:43,000 --> 00:31:44,120 Speaker 2: been a galvanizing force? 638 00:31:44,320 --> 00:31:44,680 Speaker 5: You know it? 639 00:31:44,880 --> 00:31:47,320 Speaker 11: I will just open with it's been a galminizing force. 640 00:31:47,520 --> 00:31:50,280 Speaker 11: We just hit one point five million small businesses on 641 00:31:50,320 --> 00:31:54,240 Speaker 11: the platform and we serve everyone at Hello Walie in 642 00:31:54,560 --> 00:31:57,160 Speaker 11: with the five and a half million small businesses that 643 00:31:57,200 --> 00:32:00,560 Speaker 11: are launching right now in this country is great time 644 00:32:00,600 --> 00:32:01,520 Speaker 11: to be in fintech. 645 00:32:01,600 --> 00:32:03,720 Speaker 5: We think, and we provide credit. 646 00:32:03,440 --> 00:32:07,160 Speaker 11: And loans, grants, and we've done forty million in philanthropy 647 00:32:07,160 --> 00:32:09,120 Speaker 11: and grants, and we're very proud that those have gone 648 00:32:09,160 --> 00:32:12,800 Speaker 11: to women, people of color, US veterans, and white males. 649 00:32:12,880 --> 00:32:14,680 Speaker 11: But we're capitalists at the end of the day. We 650 00:32:14,720 --> 00:32:18,000 Speaker 11: want to make sure everyone are included in the small 651 00:32:18,040 --> 00:32:19,400 Speaker 11: business ecosystem. 652 00:32:19,400 --> 00:32:20,080 Speaker 5: It's critical. 653 00:32:20,840 --> 00:32:22,880 Speaker 3: How's any of your use a base. 654 00:32:23,240 --> 00:32:27,240 Speaker 2: Any prospective clients ever brought this up and I said, look, 655 00:32:27,440 --> 00:32:31,200 Speaker 2: the fact that you'll giving grants to minorities, I feel discriminating. 656 00:32:32,680 --> 00:32:32,760 Speaker 6: No. 657 00:32:33,080 --> 00:32:36,040 Speaker 11: In fact, when we announced that we were being sued, 658 00:32:36,920 --> 00:32:41,120 Speaker 11: we've had hundreds of thousands of letters of support, emails, 659 00:32:41,160 --> 00:32:44,320 Speaker 11: people coming out. We're based in Houston, Texas, and we've 660 00:32:44,320 --> 00:32:47,200 Speaker 11: got our vets coming out in support of African Americans. 661 00:32:47,200 --> 00:32:49,480 Speaker 11: We have women's coming out and support of men. The 662 00:32:49,560 --> 00:32:53,760 Speaker 11: small business community, particularly after COVID has really galvanized. They're 663 00:32:53,800 --> 00:32:56,040 Speaker 11: growing now. Capital is tight right now. I will give 664 00:32:56,080 --> 00:32:59,840 Speaker 11: everyone that, but they're really a savvy community that they 665 00:32:59,920 --> 00:33:02,840 Speaker 11: have to have each other. If you look at Main Street, 666 00:33:02,920 --> 00:33:07,280 Speaker 11: all those shops are working together to scale everything we 667 00:33:07,320 --> 00:33:09,960 Speaker 11: need in this country. So that support is there from everyone. 668 00:33:10,080 --> 00:33:11,960 Speaker 11: We have never heard a complain about it ever. 669 00:33:12,240 --> 00:33:14,440 Speaker 2: And so when you're fundraising out there looking for a 670 00:33:14,480 --> 00:33:16,720 Speaker 2: Series C, how much you're having to talk to potential 671 00:33:16,720 --> 00:33:19,680 Speaker 2: invest is about the use of the money for a 672 00:33:19,720 --> 00:33:22,480 Speaker 2: business case, or indeed for a legal case. Is any 673 00:33:22,480 --> 00:33:24,440 Speaker 2: point not having to be commingled. 674 00:33:23,920 --> 00:33:25,600 Speaker 11: Well, sure, I mean there was a lot of tension 675 00:33:25,960 --> 00:33:28,520 Speaker 11: when the case first came out. There was concern about 676 00:33:28,640 --> 00:33:31,920 Speaker 11: the quote legitimacy of our business, and I'm here to 677 00:33:31,960 --> 00:33:34,680 Speaker 11: say that we are now one of the fastest platforms 678 00:33:34,720 --> 00:33:37,240 Speaker 11: for financial technology, offering credit and. 679 00:33:37,200 --> 00:33:38,440 Speaker 5: Loans to small businesses. 680 00:33:39,520 --> 00:33:41,880 Speaker 11: We're about to be profitable, which is really exciting for 681 00:33:41,920 --> 00:33:46,080 Speaker 11: a fintech. But you have to disclose lawsuits a lawsuit, 682 00:33:46,240 --> 00:33:50,520 Speaker 11: and that's why we think that these are very distracting. 683 00:33:50,600 --> 00:33:52,920 Speaker 11: We think they're a waste of money. Everything we've done 684 00:33:53,000 --> 00:33:55,840 Speaker 11: is perfectly legal, and we want to make money for 685 00:33:55,840 --> 00:33:57,720 Speaker 11: our investors. We want to make money for our small 686 00:33:57,760 --> 00:34:01,440 Speaker 11: business owners. And I'm really happy to say despite all this, 687 00:34:01,520 --> 00:34:05,640 Speaker 11: we have significantly grown. It took investors a minute to 688 00:34:05,680 --> 00:34:07,480 Speaker 11: step back be like, WHOA, what is this? 689 00:34:08,000 --> 00:34:09,239 Speaker 5: What is this going to impact me? 690 00:34:09,520 --> 00:34:11,440 Speaker 11: And they're capitalists at the end of the day, and 691 00:34:11,480 --> 00:34:14,200 Speaker 11: our business is growing, We are making money. Our small 692 00:34:14,239 --> 00:34:17,560 Speaker 11: businesses are so no matter what, they came back in 693 00:34:17,680 --> 00:34:19,560 Speaker 11: and funded us and we disclosed our Series C. 694 00:34:19,760 --> 00:34:20,720 Speaker 5: So we're pretty stoked. 695 00:34:20,800 --> 00:34:23,320 Speaker 2: So you remain committed to the philanthropic in depths on 696 00:34:23,440 --> 00:34:25,719 Speaker 2: the bronze absolutely, What do you remain committed to in 697 00:34:25,800 --> 00:34:27,000 Speaker 2: terms of your own technology? 698 00:34:27,160 --> 00:34:28,799 Speaker 3: What are you doing and building now? 699 00:34:29,080 --> 00:34:31,440 Speaker 11: Well, what's really exciting is the evolution of AI. My 700 00:34:31,480 --> 00:34:33,880 Speaker 11: co founder Cohen Rods has really been on the forefront 701 00:34:33,920 --> 00:34:35,840 Speaker 11: of that for a decade and now that it is 702 00:34:35,920 --> 00:34:39,120 Speaker 11: getting i would say cheaper to access great data, it 703 00:34:39,160 --> 00:34:42,520 Speaker 11: allows us with our we have a proprietary Business Health 704 00:34:42,560 --> 00:34:46,160 Speaker 11: Score that score small businesses financial health from zero to 705 00:34:46,160 --> 00:34:49,280 Speaker 11: one hundred and gets them ready for that next step 706 00:34:49,280 --> 00:34:51,680 Speaker 11: of funding. So that Business Health Score is now being 707 00:34:51,760 --> 00:34:54,160 Speaker 11: used not just by us, but everyone from Wells Fargo 708 00:34:54,280 --> 00:34:57,000 Speaker 11: to Chase. So it's a great time for our business 709 00:34:57,080 --> 00:34:59,360 Speaker 11: and we're continuing to say that we are here for 710 00:34:59,400 --> 00:35:00,000 Speaker 11: small business. 711 00:35:00,040 --> 00:35:02,920 Speaker 5: We're going nowhere come back as well. 712 00:35:03,000 --> 00:35:05,759 Speaker 2: The legal dispute continues. We thank her for her time. 713 00:35:05,880 --> 00:35:17,360 Speaker 2: Hello Alice, co founder president Elizabeth Gore. Tens of millions 714 00:35:17,360 --> 00:35:20,200 Speaker 2: of Americans they're gearing up to witness the solar eclipse today, 715 00:35:20,400 --> 00:35:23,480 Speaker 2: when the Sun will become almost entirely coven by the moon, 716 00:35:23,920 --> 00:35:26,200 Speaker 2: so first time in almost a century that the western 717 00:35:26,239 --> 00:35:28,840 Speaker 2: and northern parts of New York State will experience a 718 00:35:28,920 --> 00:35:32,000 Speaker 2: total eclipse. And though the entire event will last for 719 00:35:32,080 --> 00:35:35,880 Speaker 2: several hours, the main spectacle when day turns tonight, is 720 00:35:35,880 --> 00:35:38,640 Speaker 2: expected to last only about a four minute period, and 721 00:35:38,760 --> 00:35:41,360 Speaker 2: it will still be going to cost the US thirty 722 00:35:41,400 --> 00:35:46,239 Speaker 2: gigawatts of solar energy, the output of roughly thirty nuclear reactors. 723 00:35:47,160 --> 00:35:48,560 Speaker 3: Meanwhile, Let's Shift. 724 00:35:48,320 --> 00:35:52,480 Speaker 2: Gears movie producer David Ellison is in negotiations to take 725 00:35:52,560 --> 00:35:55,440 Speaker 2: charge of Paramount. He and his backers have agreed to 726 00:35:55,440 --> 00:35:57,640 Speaker 2: pay a little more than two billion dollars to Sharry 727 00:35:57,640 --> 00:36:01,560 Speaker 2: Redstone's National Amusements and the family company that controls Paramount. 728 00:36:01,840 --> 00:36:03,239 Speaker 3: We want to break all of this down. 729 00:36:03,480 --> 00:36:06,920 Speaker 2: Someone's been writing about it significantly like Chet partner Rich Greenfield, 730 00:36:07,000 --> 00:36:11,880 Speaker 2: and Sharry Redstone likes this offer from Ellison, thinks that 731 00:36:11,920 --> 00:36:14,319 Speaker 2: he can bring about new growth for the business in 732 00:36:14,360 --> 00:36:17,040 Speaker 2: its entirety, not sell off assets to immediately. 733 00:36:17,480 --> 00:36:18,560 Speaker 3: Rich. Do you like this deal? 734 00:36:19,719 --> 00:36:22,320 Speaker 12: Look, this is first of all, we haven't seen exactly 735 00:36:22,360 --> 00:36:24,319 Speaker 12: what the deal looks like and what all of the 736 00:36:24,360 --> 00:36:27,480 Speaker 12: different pieces are. But I think if you're the you know, 737 00:36:27,600 --> 00:36:32,719 Speaker 12: National Amusements, which is effectively Caroline the Redstone family, they 738 00:36:32,760 --> 00:36:37,440 Speaker 12: want an owner that is going to love the asset 739 00:36:37,640 --> 00:36:40,239 Speaker 12: take care of the asset in much the way the 740 00:36:40,239 --> 00:36:44,560 Speaker 12: Redstone family has taken care of the Paramount Studio for decades. 741 00:36:44,600 --> 00:36:47,719 Speaker 12: And I think that's one of the big attractions here 742 00:36:47,840 --> 00:36:50,040 Speaker 12: is you know, merging, because again. 743 00:36:49,880 --> 00:36:51,800 Speaker 6: What this transaction actually is, it's not a sale. 744 00:36:52,920 --> 00:36:57,759 Speaker 12: You know, National Amusements is selling their stake in to Skuidance, 745 00:36:58,200 --> 00:37:00,920 Speaker 12: but it appears the rest of Skydances being folded in, 746 00:37:00,920 --> 00:37:05,520 Speaker 12: So essentially it's Paramount buying Skydance and Skydance taking over 747 00:37:05,640 --> 00:37:08,880 Speaker 12: and having control of overall Paramount. 748 00:37:08,920 --> 00:37:10,320 Speaker 6: But this is not a sale. 749 00:37:10,560 --> 00:37:13,440 Speaker 12: There was you know, it does not seem that National 750 00:37:13,440 --> 00:37:17,840 Speaker 12: Amusements wants to sell the entirety of Paramount to private 751 00:37:17,880 --> 00:37:21,120 Speaker 12: equity and see the company broken up into pieces or 752 00:37:21,160 --> 00:37:23,600 Speaker 12: sold for parts. That doesn't seem to be something they 753 00:37:23,600 --> 00:37:25,680 Speaker 12: want to Remember, what I think a lot of investors 754 00:37:25,719 --> 00:37:27,840 Speaker 12: forget is this is a controlled company. 755 00:37:27,880 --> 00:37:29,080 Speaker 6: So just because. 756 00:37:29,160 --> 00:37:32,640 Speaker 12: Public shareholders want something does not mean the company has 757 00:37:32,680 --> 00:37:35,480 Speaker 12: to proceed down that path. That is the danger of 758 00:37:35,520 --> 00:37:38,080 Speaker 12: a controlled company when you're investing, and if you don't 759 00:37:38,120 --> 00:37:41,080 Speaker 12: like it, don't invest in controlled companies. 760 00:37:41,040 --> 00:37:43,840 Speaker 2: Because ultimately you might end up with a slightly dilutive 761 00:37:44,280 --> 00:37:47,799 Speaker 2: deal that leaves you slightly poorer. Ultimately, though, could what 762 00:37:47,960 --> 00:37:50,359 Speaker 2: is the narrative that now needs to be built by 763 00:37:50,960 --> 00:37:55,239 Speaker 2: Allison or anyone else the current board membership of Paramount 764 00:37:55,320 --> 00:37:57,880 Speaker 2: say this will in the long term still reap you benefits. 765 00:37:58,480 --> 00:38:01,479 Speaker 12: Well, Again, if you're Troll shareholder doesn't want to sell 766 00:38:01,520 --> 00:38:05,720 Speaker 12: the entire company, then you really have essentially three choices. 767 00:38:05,760 --> 00:38:09,880 Speaker 12: If you're sitting as the Paramount board, you can do 768 00:38:10,040 --> 00:38:14,040 Speaker 12: nothing right and you literally just operate status quo. I 769 00:38:14,040 --> 00:38:19,320 Speaker 12: think the board recognizes current strategy isn't working. Paramount plus bleeding, 770 00:38:19,680 --> 00:38:23,680 Speaker 12: you know, a billion two billion dollars not a meaningful 771 00:38:23,719 --> 00:38:26,560 Speaker 12: player in the streaming wars. So I don't believe they 772 00:38:26,640 --> 00:38:28,799 Speaker 12: want to move forward with the current strategy. 773 00:38:29,160 --> 00:38:30,360 Speaker 6: Now that they could. 774 00:38:30,200 --> 00:38:34,880 Speaker 12: Fire management, totally, pivot strategy, follow more of the arms 775 00:38:34,920 --> 00:38:38,000 Speaker 12: dealer of content strategy that Sony has pursued. 776 00:38:38,440 --> 00:38:40,400 Speaker 6: Doesn't feel like that's something. 777 00:38:40,160 --> 00:38:42,680 Speaker 12: They really feel comfortable doing, nor do they know exactly 778 00:38:42,680 --> 00:38:45,160 Speaker 12: who they would bring in and then the third piece 779 00:38:45,280 --> 00:38:48,360 Speaker 12: is do a transaction that, while at least in the 780 00:38:48,400 --> 00:38:52,440 Speaker 12: near term diluted to public company shareholders, at least gives 781 00:38:52,800 --> 00:38:55,600 Speaker 12: long term you know, there's a long term pitch to 782 00:38:55,680 --> 00:38:58,520 Speaker 12: the board that I guess makes sense in terms of 783 00:38:58,840 --> 00:39:02,520 Speaker 12: how they're going to invest build Paramount Plus into something bigger, 784 00:39:03,080 --> 00:39:06,759 Speaker 12: use more technology. And I think it's that whole idea 785 00:39:06,920 --> 00:39:09,200 Speaker 12: that the board is obviously dealing with. And if you 786 00:39:09,280 --> 00:39:11,840 Speaker 12: have only you know, if it's really only do nothing 787 00:39:12,320 --> 00:39:15,520 Speaker 12: or do a transaction that's diluted, you can understand why 788 00:39:15,560 --> 00:39:19,160 Speaker 12: they might like the diluted transaction because the status quo 789 00:39:19,680 --> 00:39:22,440 Speaker 12: is not working for Paramount and the company is in 790 00:39:22,520 --> 00:39:24,440 Speaker 12: more and more trouble. And I think, you know, the 791 00:39:24,480 --> 00:39:26,959 Speaker 12: only reason the stock is above ten dollars a share 792 00:39:27,120 --> 00:39:30,480 Speaker 12: was the hope of a transaction, ideally a sale to 793 00:39:30,520 --> 00:39:33,839 Speaker 12: a third party. I think now the question is, is you know, 794 00:39:34,360 --> 00:39:37,680 Speaker 12: how cheap will Skidance end up with this asset? Because 795 00:39:37,719 --> 00:39:42,160 Speaker 12: I think investors are finally realizing today that the sale to. 796 00:39:42,160 --> 00:39:44,080 Speaker 6: A third party isn't happening. 797 00:39:44,400 --> 00:39:47,240 Speaker 2: Yeah, I mean that has been passed over Apollo Global 798 00:39:47,239 --> 00:39:51,120 Speaker 2: Management selling off person specific assets or indeed, I mean 799 00:39:51,120 --> 00:39:53,400 Speaker 2: Warner Brothers seem to have been dead on a rival. 800 00:39:53,480 --> 00:39:53,680 Speaker 3: Rich. 801 00:39:54,040 --> 00:39:57,840 Speaker 2: I'm interested in the technology element you just articulated because 802 00:39:58,080 --> 00:40:01,600 Speaker 2: as Devid Allison has some prower notably his own father 803 00:40:01,719 --> 00:40:03,920 Speaker 2: of course, with Oracle having founded it, but he is 804 00:40:03,960 --> 00:40:05,719 Speaker 2: someone who wants to lean into tech. 805 00:40:05,760 --> 00:40:07,560 Speaker 3: What could technology bring paramount? 806 00:40:08,320 --> 00:40:10,279 Speaker 12: I mean, look, look look at what Skydance has done 807 00:40:10,320 --> 00:40:12,640 Speaker 12: on the animation side. I mean they've been you know, 808 00:40:12,840 --> 00:40:16,160 Speaker 12: they went out and hired the creator or the key 809 00:40:16,440 --> 00:40:20,840 Speaker 12: elements of Pixar Films, John Lassiter. So John Lassiter doesn't 810 00:40:20,840 --> 00:40:24,000 Speaker 12: work for Disney anymore. He left Disney many years ago. 811 00:40:24,440 --> 00:40:27,600 Speaker 12: He now has one thousand person animation business, and so 812 00:40:27,640 --> 00:40:30,640 Speaker 12: that obviously there's a lot of technology that goes into animation. 813 00:40:31,239 --> 00:40:35,000 Speaker 12: John Lassiter's now at Skiddance and they've just you know, 814 00:40:35,120 --> 00:40:37,960 Speaker 12: recently announced that their slate of films is moving from 815 00:40:38,000 --> 00:40:41,960 Speaker 12: Apple TV Plus over to Netflix, and so their first 816 00:40:42,280 --> 00:40:45,399 Speaker 12: major release that John's had full control over comes out 817 00:40:45,440 --> 00:40:46,439 Speaker 12: at the end of this year. 818 00:40:47,080 --> 00:40:49,240 Speaker 6: Obviously they think they have the next Frozen. 819 00:40:49,320 --> 00:40:52,960 Speaker 12: But so you have some really exciting developments on the 820 00:40:52,960 --> 00:40:57,640 Speaker 12: Skydance side that our content sort of infused with technology 821 00:40:57,680 --> 00:41:00,799 Speaker 12: that creates long term opportunity. And again, I think if 822 00:41:00,840 --> 00:41:04,279 Speaker 12: you're sitting at the Paramount board, you're in a tough situation. 823 00:41:04,800 --> 00:41:06,200 Speaker 6: Stock is down dramatically. 824 00:41:06,239 --> 00:41:07,920 Speaker 12: I mean, you look at any you know you've got 825 00:41:08,000 --> 00:41:09,520 Speaker 12: the year to data, but if you look over the 826 00:41:09,600 --> 00:41:10,839 Speaker 12: last several years. 827 00:41:10,800 --> 00:41:12,240 Speaker 6: This has not been a good stock. 828 00:41:12,719 --> 00:41:15,319 Speaker 12: The management team has made you what appears to be 829 00:41:15,360 --> 00:41:19,480 Speaker 12: critical mistakes by entering the streaming wars believing they could, 830 00:41:19,600 --> 00:41:22,960 Speaker 12: you know, compete with the netflixes and the Disneys. They 831 00:41:22,960 --> 00:41:26,040 Speaker 12: clearly can't. And so now the question is what do 832 00:41:26,120 --> 00:41:28,880 Speaker 12: you do. Do you just start shutting things down, do 833 00:41:28,920 --> 00:41:31,719 Speaker 12: you fire everyone, or do you look for a strategic 834 00:41:31,760 --> 00:41:34,160 Speaker 12: merger that, even if it's not great in the short 835 00:41:34,239 --> 00:41:38,520 Speaker 12: term financially, gives long term growth potential or at least 836 00:41:38,520 --> 00:41:39,600 Speaker 12: a story. 837 00:41:39,680 --> 00:41:41,359 Speaker 6: That the board can get comfort with. 838 00:41:41,400 --> 00:41:44,279 Speaker 12: And my guess is the board is getting comfortable with 839 00:41:44,360 --> 00:41:46,400 Speaker 12: that story being the best alternative. 840 00:41:46,920 --> 00:41:49,520 Speaker 2: That story still being written as we stan Rich Greenfield 841 00:41:49,560 --> 00:41:51,720 Speaker 2: come back on it soon. We hope of like shed 842 00:41:51,840 --> 00:41:54,640 Speaker 2: great to have some time with you today. Meanwhile, that 843 00:41:54,680 --> 00:41:56,640 Speaker 2: does it for this edition of Bluebog Technology. You do 844 00:41:56,760 --> 00:41:58,560 Speaker 2: not want to forget to check out our podcast so 845 00:41:58,680 --> 00:42:01,040 Speaker 2: much to be digesting you find it on the terminal, 846 00:42:01,080 --> 00:42:03,320 Speaker 2: as well as online on Apple or Spotify and iHeart. 847 00:42:03,360 --> 00:42:06,520 Speaker 2: If you're based here in North America, have fun viewing 848 00:42:06,600 --> 00:42:07,120 Speaker 2: NA Eclipse. 849 00:42:07,520 --> 00:42:11,920 Speaker 3: Stay safe with your eyes. This is pretty big technology