WEBVTT - TSMC's US Grants and JPMorgan's CEO on AI

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news from Mahard where Innovation,

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<v Speaker 1>money and power Collie in Silicon Valley, Nbon. This is

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<v Speaker 1>Bloomberg Technology with Caroline Hyde and Ed Ludlove.

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<v Speaker 2>I'm Caroline Heide at Blomberg's World headquarters in New York.

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<v Speaker 3>Ed Ludlow is off. This is Bloomberg Technology. Coming up the.

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<v Speaker 2>US awards TSMC eleven point six billion dollars in grants

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<v Speaker 2>and loans in an effort to boost that domestic semiconductor

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<v Speaker 2>manufacturing or break down what the move means for the

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<v Speaker 2>US chip production. Plus, in his annual letter to shareholders,

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<v Speaker 2>JP Morgan CEO Jamie Diamond likens artificial intelligence to the

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<v Speaker 2>invention of a steam engine.

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<v Speaker 3>Will discuss his views on how the technology is changing

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<v Speaker 3>the world and his work force and blue checks.

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<v Speaker 2>They're back and Eno Musk's X the social platform makes

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<v Speaker 2>a U turn as it offers premium features to popular

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<v Speaker 2>accounts for free thatsas Musk takes on Brazilian court leaders.

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<v Speaker 2>Details on that and so much more throughout this hour,

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<v Speaker 2>But focus on the public markets as we look towards

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<v Speaker 2>CPI print coming on Wednesday. All eyes focus on what

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<v Speaker 2>the bond market is doing yields actually curringly up three

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<v Speaker 2>basis points, and in fact we're seeing the highest levels

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<v Speaker 2>for the entirety of this year. But it's not pulling

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<v Speaker 2>back on any sort of risk taking in the equity

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<v Speaker 2>market thus far. We still see the NASA pushing up

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<v Speaker 2>some five tenths of a percent. So keep an eye

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<v Speaker 2>on some of the key names that are driving US high.

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<v Speaker 2>And even as bond markets do still worry about basically

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<v Speaker 2>basically inflatory pressures and what that means for a federal

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<v Speaker 2>reserve and the likelihood of a cup coming throughout the

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<v Speaker 2>rest of the year, Bitcoin still charging to new highs

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<v Speaker 2>for at three point five percent higher seventy seven hundred

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<v Speaker 2>and fifty six, or we're back at near those all

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<v Speaker 2>time highs. Move on, some of the other risk assets

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<v Speaker 2>to the individual names are on the move in the

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<v Speaker 2>individual benchmarks. Tesla best performed on the last that one hundred.

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<v Speaker 2>We're up five percent. Now remember this a beaten up stock,

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<v Speaker 2>worst perform on the S and P five hundred so

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<v Speaker 2>far this year. And Elon Mus trying to switch the

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<v Speaker 2>narrative here, trying to move from the worries about ultimately

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<v Speaker 2>deliveries being weak even a concern about the cheaper models,

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<v Speaker 2>and instead wants us to focus on robotaxis and whether

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<v Speaker 2>or not that big unveil will be enough. The booster

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<v Speaker 2>stock coming on August the eighth, so exactly four months time.

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<v Speaker 3>I'm looking at.

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<v Speaker 2>Amazon encroaching on all record highs percentage point one hundred

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<v Speaker 2>and eighty seven, as yet more desire to be getting into.

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<v Speaker 3>This stock pushes this name higher.

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<v Speaker 2>I'm looking though, at the key story of the day,

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<v Speaker 2>and this is where we've got a drill in for TSMC.

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<v Speaker 2>Of course, Taiwanee Semiconductor giants getting eleven point six billion

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<v Speaker 2>dollars in grants and loans to be putting its third

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<v Speaker 2>fab in Phoenix, Arizona. This is all about the latest

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<v Speaker 2>infrastructure play to ensure that we've got domestic chips made

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<v Speaker 2>here in the United States. Then it could be the

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<v Speaker 2>underpinning of artificial intelligence. This stock is up two point

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<v Speaker 2>two five percent on the ADRs.

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<v Speaker 3>What does it mean for the broader ecosystem? I'm pleased

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<v Speaker 3>to say.

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<v Speaker 2>Advisor's capital management partner and portfolio manager Joanne Foeni joins

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<v Speaker 2>us with your expertise and the chip making field, and John,

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<v Speaker 2>how important is it that we get foreign expertise into

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<v Speaker 2>the US to continue with a supply chain that has

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<v Speaker 2>proven to be broken on previous minds of what two

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<v Speaker 2>or three years ago.

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<v Speaker 4>Yeah, Caroline morning, You know, the value to the US

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<v Speaker 4>of having more domestic manufacturing at the leading edge or

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<v Speaker 4>close to the leading edge of semiconductors is strategically pretty important.

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<v Speaker 5>Right.

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<v Speaker 4>We are all looking at geopolitical instabilities and risks, particularly

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<v Speaker 4>in the Asia Pacific, and so this builds on Taiwan

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<v Speaker 4>Semi's ability to spread their manufacturing around the world. They

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<v Speaker 4>already have announced plans in Japan and Germany for lagging

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<v Speaker 4>edge manufacturing. They already have operations here in the US,

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<v Speaker 4>but really really limited. This will bring to the US

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<v Speaker 4>a significant portion of some manufacturing close to the leading

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<v Speaker 4>edge by the time it's done.

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<v Speaker 6>And that'll be that will help stabilize things.

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<v Speaker 4>It also de risks Taiwan Semi a little bit for.

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<v Speaker 3>Investors, Okay, de risk to a certain degree.

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<v Speaker 2>What's been interesting is other companies, when coming into the

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<v Speaker 2>United States wanting to boost their manufacturing, have worried about

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<v Speaker 2>the limitation on labor. Have we got the right Ultimately,

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<v Speaker 2>rest of the joined up approach here. Yes, you can

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<v Speaker 2>get the money, you can get the grants and the loans,

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<v Speaker 2>but if you've got the talent pool, yeah.

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<v Speaker 6>It's a real challenge.

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<v Speaker 4>So when I was working up at Albany Nanotech as

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<v Speaker 4>part of the team there that was trying to bring

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<v Speaker 4>manufacturing to upstate New York, and there wasn't much beyond

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<v Speaker 4>IBM in the Hudson Valley. We had to invest in

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<v Speaker 4>the local industrial infrastructure, if you like, not just labor,

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<v Speaker 4>but also machine shops and other support to a fabrication facility.

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<v Speaker 4>Intel is going to face those challenges in Ohio because

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<v Speaker 4>there's very little infrastructure there in this area. Taiwan send

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<v Speaker 4>Me at least already has plenty of operations in Phoenix,

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<v Speaker 4>and they're going to have to do more, and so

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<v Speaker 4>training programs in conjunction with local technical colleges and community

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<v Speaker 4>colleges helped to create that funnel. Fortunately, chip fabrication plants

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<v Speaker 4>tend to be very capital intensive. It's not a lot

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<v Speaker 4>labor that ends up getting hired here, so these subsidies

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<v Speaker 4>aren't really about creating jobs, although you hear other politicians

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<v Speaker 4>say that probably most of the jobs are in the

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<v Speaker 4>construction of the plant itself. Once the plant is up

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<v Speaker 4>and running, you know, maybe one thousand or two people.

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<v Speaker 4>So it's not a huge number. And I know people

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<v Speaker 4>are focused on this concern about labor, but we do

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<v Speaker 4>have great engineering schools in this country, and once the

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<v Speaker 4>job opportunities are there, you tend to see more kids

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<v Speaker 4>flow into those programs. Plus you add in the customized

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<v Speaker 4>training programs from the companies.

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<v Speaker 2>Okay, So the companies, when we think of TSMC being

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<v Speaker 2>one that is really making the most of subsidies, loans

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<v Speaker 2>grants being offered, so too is Intel as well. And

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<v Speaker 2>I'm just interested as to how much you think this

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<v Speaker 2>money this chipset will be filtering into foreign entities or

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<v Speaker 2>indeed more more local US presence.

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<v Speaker 4>Well, you know, the leading edge in manufacturing, unfortunately for

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<v Speaker 4>the US companies, has been taken over by Taiwan, Semi

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<v Speaker 4>and Samsung. Intel had made some mistakes in their planning

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<v Speaker 4>for manufacturing design.

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<v Speaker 6>They chose a path.

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<v Speaker 4>That ultimately didn't didn't work out very well, and now

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<v Speaker 4>Pat Gelsinger is trying to shift that path to the

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<v Speaker 4>more modern alternative and it's going to take them some

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<v Speaker 4>years and it's going to be costly. So in terms

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<v Speaker 4>of the US strategic goal of creating more supply of

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<v Speaker 4>chip manufacturing in this country, we have no choice but

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<v Speaker 4>to include foreign companies like Taiwan, Same and Samsung. We

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<v Speaker 4>will see if Intel ultimately as successful and bringing their

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<v Speaker 4>manufacturing up to snuff, but right now they're trailing edge.

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<v Speaker 2>Move it on and consider for US, Joanne, ultimately whether

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<v Speaker 2>or not you say it takes some of the risk

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<v Speaker 2>out for investors, does it really take the risk out

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<v Speaker 2>of supply chain concerns going into the next ten twenty

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<v Speaker 2>years that we've seen that hit so hard during COVID.

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<v Speaker 4>No, Caroline, and I did you ask that question deliberately

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<v Speaker 4>to get no answer. I mean, there is just a

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<v Speaker 4>global integration of manufacturing, not just in chips, but you know,

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<v Speaker 4>as we saw during COVID, also in protective clothing and devices,

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<v Speaker 4>and we don't ever really want to undo that. We

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<v Speaker 4>value incredibly and benefit incredibly from trade and having countries

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<v Speaker 4>specialize in manufacturing the things that they're comparative advantage favors,

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<v Speaker 4>and we get cheaper goods because of it. Consumers benefit

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<v Speaker 4>around the world because of that, that separation of production

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<v Speaker 4>by specialty. So we don't ever want to undo trade flows, right,

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<v Speaker 4>But what we want to do is shore up the

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<v Speaker 4>infrastructure of politics and economics, hopefully to keep disruptions to

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<v Speaker 4>supply chains as low as we can now. Obviously COVID

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<v Speaker 4>or something like that, another pandemic comes along and we're

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<v Speaker 4>gonna have problems, and so we have tried to onshore

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<v Speaker 4>more production of critical items, and that's what the Chips Act.

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<v Speaker 6>Is all about.

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<v Speaker 2>What's been interesting is there's been for example, Bloombag Intelligence saying, look,

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<v Speaker 2>ASML chip equipment maker is likely to be another key

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<v Speaker 2>player that fits from some of the grants.

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<v Speaker 3>The loans, the support, the subsidies that the.

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<v Speaker 2>US government currently has. Any other key players that come

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<v Speaker 2>to mind, Well, yeah, I.

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<v Speaker 4>Think that's the right to point out the equipment guys.

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<v Speaker 4>The more chip fabrication facilities that are built, the better

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<v Speaker 4>it is for LAMB research, for applied materials, for ASML KLA.

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<v Speaker 4>You know, all the chip guys, and all the gas

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<v Speaker 4>suppliers and the other smaller equipment suppliers like say of

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<v Speaker 4>Eco instruments. You know, there's a lot of beneficiaries. This

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<v Speaker 4>is a very large industry and so it's pretty broad.

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<v Speaker 4>And also the companies that use these manufacturers Benvidia, a M, D. Apple,

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<v Speaker 4>they all benefit by having a source of supply that's

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<v Speaker 4>more globally diversified and therefore less subject to geopolitical risks.

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<v Speaker 2>We always love having your perspective and currently thought and

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<v Speaker 2>your nose when they're necessary. Taran Feenie of Advisor's Capital Management,

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<v Speaker 2>thank you so much for joining us. Monday, Jamie Diamonds

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<v Speaker 2>annual letter to Shareholders out and guess what the focus

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<v Speaker 2>is out?

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<v Speaker 3>Official intelligence?

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<v Speaker 2>We want to dig in as to why he's once

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<v Speaker 2>again calling this out in his letter. Fishinali Bassek of

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<v Speaker 2>Blomberg News. Twenty seventeen was the first time he mentioned

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<v Speaker 2>official intelligence in his share letter, but this time it

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<v Speaker 2>is the key driver of the entire letter.

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<v Speaker 7>It feels like, Yeah, it is the scale and the

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<v Speaker 7>scope at which he mentions it that is different from

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<v Speaker 7>prior years. But to your point, he has mentioned it

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<v Speaker 7>a lot before, and certainly we know that JP Morgan

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<v Speaker 7>has invested a lot of money in this, So what

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<v Speaker 7>is different this time around the scale at which they're

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<v Speaker 7>using it. The use cases have jumped from about three

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<v Speaker 7>hundred use cases a year ago to about four hundred

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<v Speaker 7>now and importantly also The number of data scientists and

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<v Speaker 7>machine learning experts have also been rising over at JP Morgan.

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<v Speaker 7>Interestingly enough, last year when he mentioned artificial intelligence, it

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<v Speaker 7>was one of the specific issues, but it was still

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<v Speaker 7>behind climate, and this time he listed this as the

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<v Speaker 7>first and foremost issue for JP Morgan.

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<v Speaker 3>Ahead, I mean, just to put a find a detail

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<v Speaker 3>on it.

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<v Speaker 2>What was it two thousand machine learning and AI data

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<v Speaker 2>experts that they've got had, and also an emission that

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<v Speaker 2>the talent pool is going to have to change.

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<v Speaker 3>He's willing to say that will be jobs.

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<v Speaker 7>Lost, absolutely, and also that the ones that are not

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<v Speaker 7>lost will have to be retrained. He's pretty specific about that.

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<v Speaker 7>In addition to the jobs, I think the investment that's

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<v Speaker 7>being made is also very interesting, Caroline. Remember they have

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<v Speaker 7>invested about two billion dollars to build new data centers.

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<v Speaker 7>And he sees this movement to the cloud as inextricably

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<v Speaker 7>linked to the AI revolution, if you will, and he

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<v Speaker 7>has said that this movement towards AI in this society

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<v Speaker 7>at large is as revolutionary as the steam engine or

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<v Speaker 7>the advent of the internet, and so data centers are

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<v Speaker 7>really interesting here for JP Morgan. About thirty percent last

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<v Speaker 7>year of their applications had moved to the cloud. By

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<v Speaker 7>the end of this year will be seventy percent. So

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<v Speaker 7>that transformation is pretty drastic when you look at just

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<v Speaker 7>a year over your tear change for JP Morgan.

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<v Speaker 2>Yeah, because I think we like to focus in on

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<v Speaker 2>the fact that Jamie Diamond's been there saying, look, your

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<v Speaker 2>kids will only have three and a half day work weeks.

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<v Speaker 2>They will be cancer free because of this AI technology.

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<v Speaker 2>But he does then go into cloud. He does just

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<v Speaker 2>go into technology more broadly.

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<v Speaker 7>Yeah, he certainly does in a few different ways. It's

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<v Speaker 7>flattered throughout the entirety of the annual letter. He talks

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<v Speaker 7>about it in terms of JP Morgan's own investment, and

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<v Speaker 7>I think interestingly as well, he talks about this year

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<v Speaker 7>over year as well. But the competitive set not just

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<v Speaker 7>from fintech, but from the likes of Apple, and the

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<v Speaker 7>language also gets more pronounced as you go on. Whereas

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<v Speaker 7>last year he kind of brings up Apple Pay and

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<v Speaker 7>Apple Cards, certain services for Apple, this year he says

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<v Speaker 7>it holds money and moves money, it lends money and

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<v Speaker 7>so on. It effectively acts as a bank, And he

0:11:44.559 --> 0:11:46.960
<v Speaker 7>brings us up in the vein of regulation and all

0:11:46.960 --> 0:11:50.199
<v Speaker 7>the players that are not facing regulation in technology and

0:11:50.320 --> 0:11:53.559
<v Speaker 7>financial services. So it just kind of underscores here his

0:11:53.640 --> 0:11:57.240
<v Speaker 7>intensity to not only keep up but change JP Morgan

0:11:57.280 --> 0:11:58.239
<v Speaker 7>as we look ahead.

0:11:58.240 --> 0:12:00.439
<v Speaker 2>And maybe you'd say the close runner to his talk

0:12:00.480 --> 0:12:05.080
<v Speaker 2>about technology is his less thing guarded approach to regulators.

0:12:05.080 --> 0:12:07.040
<v Speaker 3>Throughout the entirety of the letter to we thank you

0:12:07.080 --> 0:12:07.360
<v Speaker 3>so much.

0:12:07.400 --> 0:12:10.400
<v Speaker 2>Nani Bask always able to jump on this news flow

0:12:10.400 --> 0:12:10.640
<v Speaker 2>with us.

0:12:10.720 --> 0:12:11.320
<v Speaker 3>We thank her for it.

0:12:11.360 --> 0:12:13.360
<v Speaker 2>Meanwhile, let's just stick on the markets. Let's stick on

0:12:13.679 --> 0:12:15.960
<v Speaker 2>artificial intelligence dominating.

0:12:15.440 --> 0:12:16.640
<v Speaker 3>These markets a little bit more.

0:12:16.760 --> 0:12:19.800
<v Speaker 2>January is with us 'BC Bruin Dolphin, head of market analysis,

0:12:19.840 --> 0:12:22.199
<v Speaker 2>and look, we have seen markets continue to be near

0:12:22.240 --> 0:12:24.160
<v Speaker 2>record tized, whether it's the S and P five hundred,

0:12:24.160 --> 0:12:27.559
<v Speaker 2>whether it's the NASDAC and are you anticipating that remains

0:12:27.600 --> 0:12:30.680
<v Speaker 2>the case, Janet, even as we worry about a CPI print,

0:12:30.720 --> 0:12:32.119
<v Speaker 2>for example here in the US.

0:12:32.120 --> 0:12:35.600
<v Speaker 1>Hi Carelin, thanks for having me. So we believe that

0:12:35.800 --> 0:12:41.320
<v Speaker 1>this equitedual market led by artificial intelligence will continue, even

0:12:41.360 --> 0:12:44.880
<v Speaker 1>though you know then might be bumpy inflation data along

0:12:44.880 --> 0:12:46.839
<v Speaker 1>the way. We have already seen how the market has

0:12:46.880 --> 0:12:50.560
<v Speaker 1>performed despite higher bond yields and despite our central bankers

0:12:50.800 --> 0:12:53.600
<v Speaker 1>being being less dubbish recently, so I think there are

0:12:53.920 --> 0:12:56.600
<v Speaker 1>more sickular and mega transfactors that.

0:12:56.640 --> 0:12:58.480
<v Speaker 6>Is driving the equity market rally there.

0:12:58.520 --> 0:13:00.760
<v Speaker 1>I think as long as the inflation is our rages,

0:13:00.960 --> 0:13:03.560
<v Speaker 1>there's no shock. I think as long as bard yeals

0:13:03.600 --> 0:13:07.520
<v Speaker 1>remain pretty stabilized, I think the MarCad rally can continue.

0:13:08.160 --> 0:13:08.880
<v Speaker 3>Does it broaden?

0:13:08.920 --> 0:13:09.040
<v Speaker 5>Though?

0:13:09.040 --> 0:13:11.400
<v Speaker 2>There's a really interesting piece out on the Bloomberg today

0:13:11.440 --> 0:13:13.800
<v Speaker 2>just showing how Wall Street at the moment is trying

0:13:13.800 --> 0:13:17.920
<v Speaker 2>to find a different way of playing the AI optimism. Yes,

0:13:17.960 --> 0:13:19.760
<v Speaker 2>you've already put your money into in video and it's

0:13:19.800 --> 0:13:21.280
<v Speaker 2>up another seventy percent year to date, it was up

0:13:21.320 --> 0:13:23.720
<v Speaker 2>two hundred percent or more than last year. But what

0:13:23.800 --> 0:13:25.800
<v Speaker 2>about some of the emerging market players. What about the

0:13:25.800 --> 0:13:28.880
<v Speaker 2>infrastructure to be had elsewhere? We're just showing a Japanese

0:13:29.000 --> 0:13:30.800
<v Speaker 2>name tower that's done particularly well.

0:13:31.000 --> 0:13:34.680
<v Speaker 1>Well, absolutely so, we actually favor a bass head of

0:13:35.360 --> 0:13:41.400
<v Speaker 1>exploser to semiconductor equipment makers are related names, so of

0:13:41.400 --> 0:13:44.720
<v Speaker 1>course Navidia would be the dominant player. But equally, we

0:13:44.800 --> 0:13:50.080
<v Speaker 1>think there's plenty of opportunities across the entire semiconductor value chained.

0:13:50.480 --> 0:13:53.520
<v Speaker 1>So I think some of the other players for example,

0:13:53.720 --> 0:13:58.360
<v Speaker 1>in memories, in infrastructure, in intellectual property. They may not

0:13:58.960 --> 0:14:04.600
<v Speaker 1>yet have the recognition or significant valley like Navidia, but

0:14:05.080 --> 0:14:08.960
<v Speaker 1>there are plenty of opportunities, so we feel that it

0:14:09.240 --> 0:14:12.000
<v Speaker 1>perhaps is a good way to play it via equal

0:14:12.040 --> 0:14:15.960
<v Speaker 1>weight basket of stocks exposed to that theme rather than

0:14:16.120 --> 0:14:19.240
<v Speaker 1>just you know, being a field selected stocks.

0:14:19.240 --> 0:14:23.320
<v Speaker 2>For instance, it's interesting you mentioned in video and a

0:14:23.360 --> 0:14:26.480
<v Speaker 2>lot of some of the risk in amid the exuberance

0:14:26.520 --> 0:14:28.760
<v Speaker 2>around that name has been its relationship to China, the

0:14:28.760 --> 0:14:31.400
<v Speaker 2>fact that ultimately it depends on China as the end market,

0:14:31.440 --> 0:14:33.640
<v Speaker 2>and of course in manufacturing as well. How much do

0:14:33.640 --> 0:14:36.120
<v Speaker 2>you think geopolitical headwinds are going to be something that

0:14:36.160 --> 0:14:37.520
<v Speaker 2>we need to consider a bit more in the second

0:14:37.520 --> 0:14:38.000
<v Speaker 2>half of the year.

0:14:38.360 --> 0:14:41.720
<v Speaker 1>Well, we always need to consider geopolitical factors, but I

0:14:41.800 --> 0:14:45.440
<v Speaker 1>do think that in that case US stocks are likely

0:14:45.480 --> 0:14:49.840
<v Speaker 1>to outperform the x US regents if you talk about

0:14:50.240 --> 0:14:54.800
<v Speaker 1>AI stocks for instance, because I think, as we all

0:14:55.000 --> 0:14:59.240
<v Speaker 1>seen already, there are plenty of subsidies, looks and grants

0:14:59.280 --> 0:15:03.440
<v Speaker 1>for a company to actually produce in America, so the

0:15:03.600 --> 0:15:06.680
<v Speaker 1>entire value chain may shift more and more to America.

0:15:06.760 --> 0:15:09.080
<v Speaker 1>So I do think that the American companies may be

0:15:09.240 --> 0:15:13.840
<v Speaker 1>less impacted by these political residents. Obviously, the China play,

0:15:13.920 --> 0:15:17.360
<v Speaker 1>we're not very very interested in that. I think some

0:15:17.440 --> 0:15:19.560
<v Speaker 1>of the em plays may also be more at risk

0:15:20.080 --> 0:15:23.360
<v Speaker 1>if there are more tosks of trade tensions and drop

0:15:23.360 --> 0:15:26.760
<v Speaker 1>political tensions. So I do think us off should be

0:15:26.760 --> 0:15:28.320
<v Speaker 1>better in the circumstances.

0:15:28.800 --> 0:15:30.840
<v Speaker 3>I'BC Ruined Dolphin, head of market Analysis.

0:15:30.880 --> 0:15:32.880
<v Speaker 2>Generally, it's always great to catch up with you on

0:15:32.920 --> 0:15:34.240
<v Speaker 2>the show in your global perspective.

0:15:34.320 --> 0:15:36.320
<v Speaker 3>We thank you for it. Look, we're going to go

0:15:36.520 --> 0:15:37.920
<v Speaker 3>a little bit more global in a moment.

0:15:38.040 --> 0:15:40.640
<v Speaker 2>We have a conversation on cybersecurity with the former try

0:15:40.680 --> 0:15:43.240
<v Speaker 2>for staff, a cybersecurity and infrastructure security agency that.

0:15:43.360 --> 0:15:44.920
<v Speaker 3>CASA, Kristen Todd.

0:15:45.360 --> 0:15:49.280
<v Speaker 2>What she's seeing about concerns relating to Microsoft and ultimately

0:15:49.280 --> 0:15:50.120
<v Speaker 2>exposure to China.

0:15:50.160 --> 0:15:50.840
<v Speaker 3>That's up next.

0:15:51.160 --> 0:16:09.600
<v Speaker 2>This is bloombag Technology. It's time now for talking tech.

0:16:09.680 --> 0:16:12.920
<v Speaker 2>First up, Paddy Cosgrove. Well, he's returning to the Web

0:16:12.920 --> 0:16:16.280
<v Speaker 2>Summit tech conference. The news comes after he resigned, remember

0:16:16.320 --> 0:16:18.240
<v Speaker 2>back in October of last year, after he made a

0:16:18.280 --> 0:16:21.600
<v Speaker 2>political statement on the conflict between Israel and Hamas following

0:16:21.600 --> 0:16:23.360
<v Speaker 2>the October seventh terrorist attacks.

0:16:23.600 --> 0:16:24.760
<v Speaker 3>Because where the.

0:16:24.560 --> 0:16:27.080
<v Speaker 2>Co founder of the Web Summit tech conference confirmed the

0:16:27.120 --> 0:16:29.720
<v Speaker 2>news on x that he is returning to his role

0:16:30.080 --> 0:16:30.720
<v Speaker 2>as CEO.

0:16:31.480 --> 0:16:33.120
<v Speaker 3>Plus's AI demand.

0:16:32.760 --> 0:16:36.080
<v Speaker 2>Quickens Ali Babara's slashing the cloud prices globally defend off

0:16:36.200 --> 0:16:37.360
<v Speaker 2>rivals and revived growth.

0:16:37.480 --> 0:16:37.640
<v Speaker 5>Now.

0:16:37.640 --> 0:16:39.160
<v Speaker 3>The move comes amid a surge in.

0:16:39.200 --> 0:16:42.080
<v Speaker 2>Demand for cloud computing to support a global boom in

0:16:42.160 --> 0:16:46.200
<v Speaker 2>AI development, as well as some pretty complicated internal restructuring,

0:16:46.920 --> 0:16:49.960
<v Speaker 2>and some key lawmakers have struck a deal on national

0:16:50.040 --> 0:16:52.560
<v Speaker 2>data privacy here in the United States. The landmark agreement

0:16:52.600 --> 0:16:55.160
<v Speaker 2>reached by the House Energy and Commerce Chair and the

0:16:55.200 --> 0:16:58.840
<v Speaker 2>Senate Commerce Chair, would be the first time established federal

0:16:58.840 --> 0:17:02.320
<v Speaker 2>consumer data privacy rights would be formed and allow Americans

0:17:02.360 --> 0:17:07.520
<v Speaker 2>to sue companies such as Google and Meta over violations. Meanwhile,

0:17:07.800 --> 0:17:11.440
<v Speaker 2>the Department of Homeland Security Cyber Safety Review Board has

0:17:11.560 --> 0:17:14.760
<v Speaker 2>been out with a report on Microsoft that was pretty damning.

0:17:14.960 --> 0:17:18.359
<v Speaker 2>It assessed the Microsoft Exchange online intrusion that occurred in

0:17:18.400 --> 0:17:21.480
<v Speaker 2>May and Junior twenty twenty three. Stig in to what

0:17:21.560 --> 0:17:25.600
<v Speaker 2>that report showed, the limitations and over all the cybersecurity

0:17:25.640 --> 0:17:28.040
<v Speaker 2>spaces it sits right now. Former chief of Staff for

0:17:28.080 --> 0:17:31.639
<v Speaker 2>Cybersecurity and Infrastructure Security Agency Kissed and Todd is with

0:17:31.760 --> 0:17:34.600
<v Speaker 2>US and currently serving as the president of Wondrous and

0:17:34.600 --> 0:17:36.080
<v Speaker 2>it's great to have some time with you. Kissed and

0:17:36.680 --> 0:17:38.400
<v Speaker 2>we don't want to sort of overlook this. It came

0:17:38.440 --> 0:17:41.040
<v Speaker 2>at the beginning of last week, but it almost sort

0:17:41.080 --> 0:17:45.399
<v Speaker 2>of highlighted one oh one cybersecurity etiquette that seemed to

0:17:45.400 --> 0:17:47.000
<v Speaker 2>have been failed over at Microsoft.

0:17:47.320 --> 0:17:49.000
<v Speaker 3>Can you just detael a little bit about what you

0:17:49.000 --> 0:17:49.879
<v Speaker 3>thought about the report?

0:17:50.160 --> 0:17:53.480
<v Speaker 8>Sure, So, the Cyber Safety Review Board, it was launched

0:17:53.480 --> 0:17:55.520
<v Speaker 8>in twenty one and it was really executed in twenty

0:17:55.520 --> 0:17:58.720
<v Speaker 8>twenty two. This was the third investigation that it conducted,

0:17:58.760 --> 0:18:02.040
<v Speaker 8>and last August, the Secretary of Homeland Security said that

0:18:02.080 --> 0:18:04.720
<v Speaker 8>the review Board was going to look into this intrusion

0:18:04.920 --> 0:18:07.080
<v Speaker 8>that occurred, as you said in May and June, and

0:18:07.160 --> 0:18:09.919
<v Speaker 8>what it found, most specifically was that the intrusion was

0:18:09.960 --> 0:18:13.520
<v Speaker 8>preventable and should have never occurred. The intrusion itself hacked

0:18:13.520 --> 0:18:16.960
<v Speaker 8>into the email systems of over five hundred individuals in

0:18:17.000 --> 0:18:20.080
<v Speaker 8>twenty two organizations, but specifically it hacked into the email

0:18:20.119 --> 0:18:23.439
<v Speaker 8>of the US Secretary of Commerce Gina Ramundo and the

0:18:23.560 --> 0:18:27.120
<v Speaker 8>US Ambassador to China, Nick Burns, prior to an official

0:18:27.200 --> 0:18:31.200
<v Speaker 8>visit to China, and what the review board attributed this

0:18:32.080 --> 0:18:34.560
<v Speaker 8>breach that should have been preventable to was the fact

0:18:34.560 --> 0:18:38.840
<v Speaker 8>that it identified Microsoft as having poor security practices, a

0:18:38.960 --> 0:18:43.320
<v Speaker 8>lack of transparency into the breach, and a lacks corporate

0:18:43.320 --> 0:18:45.280
<v Speaker 8>culture when it comes to cybersecurity.

0:18:45.680 --> 0:18:48.160
<v Speaker 2>And we've got to remember of the frustrations that gena

0:18:48.240 --> 0:18:50.760
<v Speaker 2>Romando Commas sectuary showed in particular of a trip to

0:18:50.840 --> 0:18:53.920
<v Speaker 2>China and what was ultimately unfilled by China at the

0:18:53.960 --> 0:18:57.000
<v Speaker 2>same time, just the Huawei phone that was suddenly presented,

0:18:57.000 --> 0:19:00.040
<v Speaker 2>and everyone realizing this moment that perhaps some of the

0:19:00.160 --> 0:19:04.280
<v Speaker 2>limitations on tech from US to China perhaps isn't doing

0:19:04.320 --> 0:19:06.800
<v Speaker 2>the job that many had thought. I'm interested in the

0:19:06.880 --> 0:19:09.080
<v Speaker 2>Threat Act and known as Storm zero five to five

0:19:09.119 --> 0:19:09.919
<v Speaker 2>eight that seems to.

0:19:09.880 --> 0:19:10.880
<v Speaker 3>Have been what's at play here.

0:19:10.880 --> 0:19:14.160
<v Speaker 2>But how much should Microsoft have been able to prevent

0:19:14.600 --> 0:19:17.879
<v Speaker 2>all of this and or how many other risks are

0:19:17.880 --> 0:19:20.400
<v Speaker 2>the overcoming on a day to day basis. We've shouting

0:19:20.400 --> 0:19:23.120
<v Speaker 2>out one particular failing, but how often are they achieving

0:19:23.160 --> 0:19:24.760
<v Speaker 2>what they determined to do well.

0:19:24.760 --> 0:19:27.480
<v Speaker 8>This is the big concern because we continue to see

0:19:27.520 --> 0:19:31.320
<v Speaker 8>these types of breaches happening from Microsoft vulnerabilities and I

0:19:31.320 --> 0:19:33.720
<v Speaker 8>have a former colleague at SISO who talks about the

0:19:33.760 --> 0:19:37.080
<v Speaker 8>fact that we say vulnerabilities, but in fact their defects.

0:19:37.280 --> 0:19:41.520
<v Speaker 8>When you prioritize adding features over security, this vulnerability of

0:19:41.560 --> 0:19:45.240
<v Speaker 8>infrastructure only increases. And the challenge really this is a

0:19:45.320 --> 0:19:50.000
<v Speaker 8>national security risk because Microsoft is ubiquitous across the federal government.

0:19:50.040 --> 0:19:52.200
<v Speaker 8>It is one of the largest, if not the largest

0:19:52.240 --> 0:19:56.160
<v Speaker 8>technical technology company in the world. But importantly, the US

0:19:56.240 --> 0:20:01.800
<v Speaker 8>federal government has its essential services underpinned by micro Microsoft technology,

0:20:01.800 --> 0:20:05.200
<v Speaker 8>and importantly, these are the services that support national security.

0:20:05.240 --> 0:20:08.440
<v Speaker 8>So when there are vulnerabilities in the Microsoft system, that

0:20:08.520 --> 0:20:11.320
<v Speaker 8>translates onto our national security safety.

0:20:11.680 --> 0:20:13.560
<v Speaker 3>I think matchwas than adas well.

0:20:13.600 --> 0:20:16.159
<v Speaker 8>I think what was interesting about this report is early

0:20:16.200 --> 0:20:19.560
<v Speaker 8>on when the investigation initiated, Microsoft said let's make this

0:20:19.600 --> 0:20:23.400
<v Speaker 8>a cloud service provider investigation, and the report did that,

0:20:23.480 --> 0:20:27.600
<v Speaker 8>and it talked about the other companies, Amazon, Google, Oracle

0:20:27.920 --> 0:20:30.600
<v Speaker 8>all having better security practices. But I think the key

0:20:30.600 --> 0:20:34.040
<v Speaker 8>piece here is this isn't necessarily a commercial competitiveness issue

0:20:34.040 --> 0:20:36.840
<v Speaker 8>other than government looking at options. But in the very

0:20:36.880 --> 0:20:40.320
<v Speaker 8>near term this is a national security issue because we've

0:20:40.359 --> 0:20:42.840
<v Speaker 8>got to be paying attention to the resilience and the

0:20:42.880 --> 0:20:46.040
<v Speaker 8>safety and security are of our infrastructure, which is underpinned

0:20:46.119 --> 0:20:49.159
<v Speaker 8>by technology that's created in the private sector. And I

0:20:49.160 --> 0:20:51.879
<v Speaker 8>think one of the most telling pieces was the last October,

0:20:52.240 --> 0:20:54.359
<v Speaker 8>the directors of intelligence from the Five Eyes, which are

0:20:54.359 --> 0:20:56.919
<v Speaker 8>the countries New Zealand, Australia, Canada, the UK, and the

0:20:57.000 --> 0:21:00.399
<v Speaker 8>US came together in Silicon Valley in an unpressed, dented

0:21:00.400 --> 0:21:03.320
<v Speaker 8>meeting to meet with the CEOs of those technology companies

0:21:03.359 --> 0:21:05.919
<v Speaker 8>to say, we have a real threat from China and

0:21:05.960 --> 0:21:08.479
<v Speaker 8>you may not have built your company as a national

0:21:08.480 --> 0:21:11.280
<v Speaker 8>security company, but your technology is now part of the

0:21:11.359 --> 0:21:12.840
<v Speaker 8>national security of this country.

0:21:13.119 --> 0:21:15.760
<v Speaker 2>Kessentad, it's so great to get your expertise across this.

0:21:15.920 --> 0:21:18.600
<v Speaker 2>Thank you for well reminding us why it is a little

0:21:18.600 --> 0:21:20.720
<v Speaker 2>a crucial President of Wandras, we thank you.

0:21:29.359 --> 0:21:33.840
<v Speaker 9>Apple has another new next big thing under exploration home robots.

0:21:34.240 --> 0:21:37.919
<v Speaker 9>The company has teams within its AI in hardware engineering

0:21:38.000 --> 0:21:43.080
<v Speaker 9>organizations exploring the feasibility of bringing robotics driven devices to market.

0:21:43.720 --> 0:21:47.639
<v Speaker 9>The company is testing a tabletop device that uses a

0:21:47.720 --> 0:21:51.680
<v Speaker 9>robotic arm to move around an iPad display. For instance,

0:21:51.760 --> 0:21:54.359
<v Speaker 9>if a user is on a FaceTime call, the screen

0:21:54.400 --> 0:21:56.639
<v Speaker 9>can move to mimic the head movements like a nod

0:21:57.040 --> 0:21:59.119
<v Speaker 9>or the turn of ahead as the person on the

0:21:59.160 --> 0:22:02.359
<v Speaker 9>other end of the call. The more interesting product under

0:22:02.359 --> 0:22:06.320
<v Speaker 9>consideration is a home robot similar to the Amazon astro

0:22:06.640 --> 0:22:09.720
<v Speaker 9>that can follow a user around their home. Some ideas

0:22:09.720 --> 0:22:12.520
<v Speaker 9>for that include video conferencing, as well as a pie

0:22:12.520 --> 0:22:14.880
<v Speaker 9>in the sky ambition for the robot to be able

0:22:14.920 --> 0:22:18.480
<v Speaker 9>to conduct household chores, such as cleaning dishes before they

0:22:18.480 --> 0:22:22.200
<v Speaker 9>go in a dishwasher. Any release is probably many years away.

0:22:22.400 --> 0:22:26.160
<v Speaker 9>If it happens at all. I'm Mark German, this is Bloomberg.

0:22:28.400 --> 0:22:31.159
<v Speaker 2>Meanwhile, let's get to check in on these markets, because

0:22:31.480 --> 0:22:34.880
<v Speaker 2>overall we are seeing equity markets managing to drift higher,

0:22:34.880 --> 0:22:36.920
<v Speaker 2>and it's that one hundred and tenth of percent. We're

0:22:36.920 --> 0:22:38.800
<v Speaker 2>coming off of our highs, though, and that might be

0:22:38.800 --> 0:22:41.480
<v Speaker 2>in the face of borrowing costs that continue to rise.

0:22:41.720 --> 0:22:43.720
<v Speaker 2>On the bomb market, we're seeing two year yields up

0:22:43.720 --> 0:22:46.720
<v Speaker 2>another three basis points, let's call it four point seventy seven.

0:22:46.840 --> 0:22:49.000
<v Speaker 2>We're also seeing the ten year yield up at the

0:22:49.119 --> 0:22:51.960
<v Speaker 2>highest in November of last year. Why, we're worried about

0:22:51.960 --> 0:22:54.240
<v Speaker 2>inflationary pressure, and we'll be getting yet more data later

0:22:54.280 --> 0:22:56.760
<v Speaker 2>in the week. On Wednesday, the CPI print many bracing

0:22:56.760 --> 0:22:59.440
<v Speaker 2>for and what that means for the Federal Reserve Bitcoin though,

0:22:59.480 --> 0:23:01.679
<v Speaker 2>I mean shaping off any concerns with the bond market

0:23:01.800 --> 0:23:04.440
<v Speaker 2>a risk asset up another three point three percent, again

0:23:04.520 --> 0:23:06.600
<v Speaker 2>off of recent highs. But we're seventy one thousand, six

0:23:06.680 --> 0:23:08.880
<v Speaker 2>hundred and sixty eight managing to rally through the weekend.

0:23:09.280 --> 0:23:11.080
<v Speaker 2>Move on to some of the individual names that we've

0:23:11.080 --> 0:23:14.280
<v Speaker 2>been keeping a close eye on, and well, TSMC has

0:23:14.280 --> 0:23:15.960
<v Speaker 2>got to be a key name if you're trading the

0:23:15.960 --> 0:23:17.280
<v Speaker 2>American depositary receipts.

0:23:17.280 --> 0:23:18.719
<v Speaker 3>That is, we're higher on the day.

0:23:18.800 --> 0:23:21.679
<v Speaker 2>Why eleven point six billion dollars coming in grants and

0:23:21.720 --> 0:23:24.680
<v Speaker 2>loans for this particular chip maker to be building yet

0:23:24.680 --> 0:23:27.640
<v Speaker 2>further fab units, a third one in Phoenix, Arizona. All

0:23:27.680 --> 0:23:30.119
<v Speaker 2>of about the supply chain here in the United States.

0:23:30.240 --> 0:23:32.639
<v Speaker 2>ASML could be a key winner in this particular area

0:23:32.640 --> 0:23:35.200
<v Speaker 2>as well. Bloomberg Intelligence out with a great note saying

0:23:35.359 --> 0:23:38.640
<v Speaker 2>like ASML chip equipment maker based over in the Netherlands

0:23:38.640 --> 0:23:40.760
<v Speaker 2>could well be doing well from the chips act over

0:23:40.760 --> 0:23:41.800
<v Speaker 2>here in the United States.

0:23:41.880 --> 0:23:43.280
<v Speaker 3>We're up a percentage.

0:23:42.760 --> 0:23:46.280
<v Speaker 2>Point and Tesla best performer on the NASA one hundred today.

0:23:46.359 --> 0:23:48.800
<v Speaker 2>We're up more than five percent. Now, all of this

0:23:48.920 --> 0:23:53.200
<v Speaker 2>as we see perhaps a focus more reorientating on robotaxis

0:23:53.240 --> 0:23:55.640
<v Speaker 2>tesa CEO Elon Musk saying that the ev maker will

0:23:55.680 --> 0:23:58.680
<v Speaker 2>unveil its a long promise Robotaxi on August the eighth,

0:23:58.720 --> 0:23:59.320
<v Speaker 2>exactly four.

0:23:59.240 --> 0:23:59.800
<v Speaker 3>Months from now.

0:24:00.119 --> 0:24:02.840
<v Speaker 2>That that's years after first hinting at plans for a

0:24:02.880 --> 0:24:07.440
<v Speaker 2>dedicated robotaxi back in twenty nineteen. Shares at Hazer were,

0:24:07.560 --> 0:24:10.159
<v Speaker 2>as we see, rallying on this news after the announcement,

0:24:10.280 --> 0:24:13.200
<v Speaker 2>even as the company has recently been struggling with a

0:24:13.440 --> 0:24:17.359
<v Speaker 2>week sales competition from cheap Chinese electric vehicles. Plenty of

0:24:17.400 --> 0:24:21.080
<v Speaker 2>concerns that have pushed this share lower throughout the course of.

0:24:21.040 --> 0:24:21.960
<v Speaker 3>Twenty twenty four.

0:24:22.280 --> 0:24:23.880
<v Speaker 2>But let's just switch gears and look at what else

0:24:23.920 --> 0:24:25.879
<v Speaker 2>Elil Musk has been focused on of late, because of

0:24:25.920 --> 0:24:28.160
<v Speaker 2>course X is one of them, and the blue verification

0:24:28.240 --> 0:24:30.879
<v Speaker 2>check mark on X. It's been reserved of course to

0:24:30.960 --> 0:24:34.720
<v Speaker 2>paid subscribers since must overhauld the social platform up until now,

0:24:35.240 --> 0:24:38.439
<v Speaker 2>because Mask recently decided to grant the status marker for

0:24:38.600 --> 0:24:41.760
<v Speaker 2>free to those with enough followers, which is roughly what

0:24:41.800 --> 0:24:44.120
<v Speaker 2>it was like previously, but because of what it has

0:24:44.160 --> 0:24:48.359
<v Speaker 2>become some qualifying newsers now sound a little embarrassed to

0:24:48.400 --> 0:24:50.159
<v Speaker 2>have a blue check mark back, and they want their

0:24:50.160 --> 0:24:52.080
<v Speaker 2>followers to know that they are not paying for it,

0:24:52.560 --> 0:24:54.640
<v Speaker 2>or please to how welcome Bluembergs Astin Card to the show,

0:24:54.680 --> 0:24:57.440
<v Speaker 2>who's just been writing about this in the daily newsletter

0:24:57.520 --> 0:25:01.439
<v Speaker 2>and Austin just give us some of the anecdotal evidence

0:25:01.480 --> 0:25:03.480
<v Speaker 2>that people are a bit worried about looking as it

0:25:03.520 --> 0:25:04.680
<v Speaker 2>they pay for blue check mark.

0:25:05.119 --> 0:25:06.879
<v Speaker 10>You know, in recent days, we've seen a lot of

0:25:06.880 --> 0:25:09.840
<v Speaker 10>these very high profile users who were not paying Twitter,

0:25:10.000 --> 0:25:12.679
<v Speaker 10>and in fact had their blue check mark revoked by

0:25:12.720 --> 0:25:15.760
<v Speaker 10>you on eighteen months ago, suddenly seeing that verification status

0:25:15.800 --> 0:25:18.280
<v Speaker 10>appear in their profiles again. And you see a lot

0:25:18.320 --> 0:25:20.320
<v Speaker 10>of them tweeting saying number one, I did not pay

0:25:20.320 --> 0:25:23.280
<v Speaker 10>for this and number two I want to turn it off.

0:25:23.760 --> 0:25:25.920
<v Speaker 10>You see, there is an option within the settings menu.

0:25:26.040 --> 0:25:30.080
<v Speaker 10>So you saw some like the high profile producer of

0:25:30.119 --> 0:25:33.760
<v Speaker 10>The Wire, David Simon, he was very much complaining saying

0:25:33.760 --> 0:25:35.400
<v Speaker 10>that he was not paying for this blue check mark,

0:25:35.400 --> 0:25:36.840
<v Speaker 10>that he would never pay for it. He does not

0:25:36.840 --> 0:25:40.359
<v Speaker 10>support Elon. And I think what this signals is that

0:25:41.119 --> 0:25:43.400
<v Speaker 10>the blue check mark has gone from being a status

0:25:43.480 --> 0:25:46.440
<v Speaker 10>of verification to being something a little bit more meaningless,

0:25:46.440 --> 0:25:50.400
<v Speaker 10>if not devoid of value, maybe overly politicized. It means

0:25:50.400 --> 0:25:53.119
<v Speaker 10>something more than just this is your true identity and

0:25:53.160 --> 0:25:56.680
<v Speaker 10>you are somewhat of nod. It's really had this sort

0:25:56.720 --> 0:26:00.960
<v Speaker 10>of controversy installed embedded into that blue check mark since

0:26:00.960 --> 0:26:03.320
<v Speaker 10>Elon took it over eighteen months ago and promised to

0:26:03.320 --> 0:26:05.480
<v Speaker 10>get rid of this what he called a lords and

0:26:05.520 --> 0:26:07.359
<v Speaker 10>peasant system of verification.

0:26:08.080 --> 0:26:10.240
<v Speaker 2>Yeah, go back to therefore the change of heart for

0:26:10.280 --> 0:26:13.320
<v Speaker 2>Elon Musk himself. What hasn't been working under the new system.

0:26:14.080 --> 0:26:15.480
<v Speaker 10>So when he took it over about a year and

0:26:15.520 --> 0:26:17.879
<v Speaker 10>a half ago, he felt the process was corrupt. It

0:26:17.920 --> 0:26:21.760
<v Speaker 10>was essentially given out to celebrities, politicians, you know, other

0:26:21.840 --> 0:26:25.040
<v Speaker 10>notable figures, brands, and he just felt the process was,

0:26:25.720 --> 0:26:28.240
<v Speaker 10>you know, nonsensical as he described it. He felt it

0:26:28.280 --> 0:26:30.119
<v Speaker 10>was unclear who could get it and who could not.

0:26:30.600 --> 0:26:32.719
<v Speaker 10>So when he took over, he revoked it in mass

0:26:32.720 --> 0:26:35.159
<v Speaker 10>for a lot of very famous people, which created a

0:26:35.200 --> 0:26:37.960
<v Speaker 10>lot of chaos. And the way the system he replaced

0:26:37.960 --> 0:26:40.840
<v Speaker 10>it with it required you to pay for a premium

0:26:40.880 --> 0:26:43.680
<v Speaker 10>subscription at least eight dollars, maybe sixteen dollars a month

0:26:43.960 --> 0:26:45.680
<v Speaker 10>and then you would go through a review process and

0:26:45.720 --> 0:26:48.240
<v Speaker 10>get a blue check mark. The issue was all the

0:26:48.240 --> 0:26:51.479
<v Speaker 10>people whose blue checks were removed did not sort of

0:26:51.600 --> 0:26:53.840
<v Speaker 10>re engage with the platform. They saw it as a

0:26:53.880 --> 0:26:56.560
<v Speaker 10>sign of protests. They'd created so much content, so much

0:26:56.560 --> 0:26:58.919
<v Speaker 10>engagement on the platform, and suddenly, you know, someone like

0:26:59.000 --> 0:27:00.920
<v Speaker 10>Lebron James, he would say, wait, I have to pay

0:27:00.920 --> 0:27:03.399
<v Speaker 10>for my own blue check mark now. And then on

0:27:03.440 --> 0:27:05.240
<v Speaker 10>the reverse end, you saw a lot of people who

0:27:05.280 --> 0:27:09.120
<v Speaker 10>supported Elon suddenly rushing to buy this blue check mark,

0:27:09.160 --> 0:27:11.720
<v Speaker 10>and it almost became a symbol of what whether you

0:27:11.720 --> 0:27:14.080
<v Speaker 10>were supporting what Elon was doing with Twitter or perhaps

0:27:14.080 --> 0:27:17.399
<v Speaker 10>his worldview his politics has approached a free speech and

0:27:17.440 --> 0:27:20.439
<v Speaker 10>so it became overly politicized. And now again it really

0:27:20.440 --> 0:27:22.440
<v Speaker 10>I'm not quite sure what a blue check mark means

0:27:22.600 --> 0:27:24.640
<v Speaker 10>if you have it in your profile, does it mean

0:27:24.840 --> 0:27:26.359
<v Speaker 10>you are who you say you are, or that you

0:27:26.359 --> 0:27:28.479
<v Speaker 10>support Elon or you just like paying for Twitter.

0:27:29.040 --> 0:27:31.960
<v Speaker 2>Let's just talk about Elon's commitment to free speech for

0:27:31.960 --> 0:27:34.520
<v Speaker 2>a moment and the global aspect of it, Austin, because

0:27:34.920 --> 0:27:37.480
<v Speaker 2>over in Brazil it looks as though there has been

0:27:37.520 --> 0:27:41.640
<v Speaker 2>a push by certain well judges over there to want

0:27:41.680 --> 0:27:44.600
<v Speaker 2>to clamp down on the use of Twitter and next

0:27:44.600 --> 0:27:47.560
<v Speaker 2>and certain voices to be heard on the platform. Now

0:27:47.600 --> 0:27:51.240
<v Speaker 2>in a masque is saying he's lifting certain restrictions in Brazil,

0:27:51.320 --> 0:27:54.520
<v Speaker 2>basically defying court orders over there. Can you give us

0:27:54.720 --> 0:27:56.560
<v Speaker 2>sort of ultimately what's brought us to this moment?

0:27:57.000 --> 0:28:00.000
<v Speaker 10>Sure, he has defied a court order in the Central

0:28:00.200 --> 0:28:04.360
<v Speaker 10>reactivated certain accounts that the court had ordered banned. It's

0:28:04.359 --> 0:28:06.840
<v Speaker 10>still early in the details. We don't quite know what

0:28:06.880 --> 0:28:09.200
<v Speaker 10>accounts have been reactivated. We don't know why they were

0:28:09.320 --> 0:28:12.439
<v Speaker 10>ordered blocked. But a judge there is apparently opened an

0:28:12.440 --> 0:28:14.520
<v Speaker 10>inquiry into the matter and they're looking into and forward.

0:28:14.920 --> 0:28:16.959
<v Speaker 10>But I think what it boils down to before we

0:28:17.040 --> 0:28:18.879
<v Speaker 10>know all the details of how this happened and what

0:28:18.960 --> 0:28:24.040
<v Speaker 10>the nature of these accounts were. It really symbolizes Elon's

0:28:24.200 --> 0:28:28.879
<v Speaker 10>so called free speech sort of purism. He sort of

0:28:28.920 --> 0:28:31.679
<v Speaker 10>presented himself as this free speech advocate that will do

0:28:31.880 --> 0:28:34.919
<v Speaker 10>anything to promote principles over profit, as he put it.

0:28:34.960 --> 0:28:37.520
<v Speaker 10>When he sort of said on x that he was

0:28:37.560 --> 0:28:40.280
<v Speaker 10>going to reactivate these accounts for the good of the

0:28:40.320 --> 0:28:43.200
<v Speaker 10>free speech. He would even leave Brazil, shut down their office,

0:28:43.200 --> 0:28:46.480
<v Speaker 10>sacrifice the revenue if need be, and that is definitely

0:28:46.480 --> 0:28:48.880
<v Speaker 10>the brand that Elon tries to project. But we've also

0:28:48.920 --> 0:28:52.440
<v Speaker 10>seen many sort of hypocritical instances of this, especially in

0:28:52.480 --> 0:28:55.880
<v Speaker 10>the US where he's banned journalists, where he's essentially removed

0:28:55.960 --> 0:28:58.240
<v Speaker 10>verification status one from the New York Times because he

0:28:58.520 --> 0:29:01.960
<v Speaker 10>disagreed with some of the reporting, and then in other instances,

0:29:02.000 --> 0:29:04.960
<v Speaker 10>you know, there was a famous instance where Elon, when

0:29:04.960 --> 0:29:08.400
<v Speaker 10>people were protesting and trying to get AD supporters to

0:29:08.440 --> 0:29:12.440
<v Speaker 10>block their supportive of Twitter, you know, he considered banning

0:29:12.480 --> 0:29:15.560
<v Speaker 10>those users too, who are sort of trying to boycott

0:29:15.560 --> 0:29:18.040
<v Speaker 10>the platform. And so we have this sort of tension

0:29:18.080 --> 0:29:22.960
<v Speaker 10>point between Elon's values and an Ex's business model, which

0:29:22.960 --> 0:29:26.120
<v Speaker 10>has been really struggling to generate revenue since Elon acquired it.

0:29:26.160 --> 0:29:28.240
<v Speaker 10>So you're seeing that play out in Brazil, and it's

0:29:28.240 --> 0:29:31.080
<v Speaker 10>a good question about why he's sort of standing up

0:29:31.120 --> 0:29:34.320
<v Speaker 10>for these particular accounts and whether or not you will

0:29:34.360 --> 0:29:37.560
<v Speaker 10>actually commit to that at the expense of Ex's revenue down.

0:29:37.480 --> 0:29:40.520
<v Speaker 2>There, probably lose all revenue in Brazil and have to

0:29:40.520 --> 0:29:44.360
<v Speaker 2>shut down our office there. As he posted himself, Austin Karr,

0:29:44.440 --> 0:29:45.920
<v Speaker 2>thank you so much for bringing us up to speed

0:29:45.960 --> 0:29:48.880
<v Speaker 2>and a great news that you had out this morning. Meanwhile,

0:29:48.880 --> 0:29:52.520
<v Speaker 2>coming up, fight over diversity in corporate America continues as

0:29:52.560 --> 0:29:55.960
<v Speaker 2>HISS DEI related causes and cases to keep piling up.

0:29:56.040 --> 0:29:56.960
<v Speaker 3>We'll discuss all.

0:29:56.800 --> 0:30:01.280
<v Speaker 2>Of this with hell Alice cofounder Elizabeth Gore next. Meanwhile,

0:30:01.360 --> 0:30:03.480
<v Speaker 2>let's just keep a track on some globally traded stocks

0:30:03.560 --> 0:30:06.840
<v Speaker 2>right now. Atos over in France, French ita company pretty

0:30:06.880 --> 0:30:09.000
<v Speaker 2>in battle. To be honest, it's going to be presenting

0:30:09.040 --> 0:30:12.280
<v Speaker 2>a debt restructuring plan today as the company's top shareholder

0:30:12.360 --> 0:30:15.440
<v Speaker 2>one point seats to build, they say, coalition. They want

0:30:15.480 --> 0:30:17.680
<v Speaker 2>to offer an alternative rescue plan for this particular name.

0:30:17.680 --> 0:30:18.440
<v Speaker 3>It's been under pressure.

0:30:18.520 --> 0:30:20.840
<v Speaker 2>Look at how the share price rallied over the course

0:30:20.840 --> 0:30:22.040
<v Speaker 2>of the European training day.

0:30:22.680 --> 0:30:23.800
<v Speaker 3>This is Blue med Technology.

0:30:39.520 --> 0:30:43.600
<v Speaker 2>Hello Alice as a fintech startup offering grants, networking opportunities

0:30:43.640 --> 0:30:47.200
<v Speaker 2>and access to finance for entrepreneurs from underrepresented groups in particular,

0:30:47.440 --> 0:30:49.880
<v Speaker 2>it's just announced a new Series C funding round in

0:30:49.880 --> 0:30:52.440
<v Speaker 2>our values the company at one hundred and thirty million dollars. Now,

0:30:52.480 --> 0:30:55.000
<v Speaker 2>this is despite being on the front lines of a

0:30:55.080 --> 0:30:58.680
<v Speaker 2>litigation war over diversity in corporate America. Six months ago,

0:30:58.840 --> 0:31:01.320
<v Speaker 2>it was hit with a lawsuit by the conservative activist

0:31:01.360 --> 0:31:04.440
<v Speaker 2>group America First Legal, which has lodged at least six

0:31:04.480 --> 0:31:08.040
<v Speaker 2>other DEI related suits elsewhere. It claims a grant program

0:31:08.040 --> 0:31:11.800
<v Speaker 2>by Hello Alice Co runs for black owned small businesses

0:31:12.080 --> 0:31:12.880
<v Speaker 2>is discriminatory.

0:31:13.320 --> 0:31:14.800
<v Speaker 3>Now, the startup has had.

0:31:14.640 --> 0:31:17.560
<v Speaker 2>To spend six figures on fees for three law firms

0:31:17.560 --> 0:31:19.880
<v Speaker 2>so far, and we're going to dive into this ongoing

0:31:19.920 --> 0:31:22.160
<v Speaker 2>legal battle and indeed, well the ultimate growth of the

0:31:22.200 --> 0:31:24.680
<v Speaker 2>business too. Hello Alice co founder and president Eizabeth.

0:31:24.400 --> 0:31:25.240
<v Speaker 3>Gore is here with us.

0:31:25.600 --> 0:31:29.000
<v Speaker 2>And this comes at a time where the DEI discussion

0:31:29.360 --> 0:31:32.600
<v Speaker 2>pendulum has swung significantly and there is this view that

0:31:32.680 --> 0:31:35.680
<v Speaker 2>people giving an allocating grants to people of color is

0:31:35.720 --> 0:31:40.280
<v Speaker 2>in some way discriminating against white founders. Now, how has

0:31:40.360 --> 0:31:43.000
<v Speaker 2>that been a distraction for the business or actually hasn't

0:31:43.000 --> 0:31:44.120
<v Speaker 2>been a galvanizing force?

0:31:44.320 --> 0:31:44.680
<v Speaker 5>You know it?

0:31:44.880 --> 0:31:47.320
<v Speaker 11>I will just open with it's been a galminizing force.

0:31:47.520 --> 0:31:50.280
<v Speaker 11>We just hit one point five million small businesses on

0:31:50.320 --> 0:31:54.240
<v Speaker 11>the platform and we serve everyone at Hello Walie in

0:31:54.560 --> 0:31:57.160
<v Speaker 11>with the five and a half million small businesses that

0:31:57.200 --> 0:32:00.560
<v Speaker 11>are launching right now in this country is great time

0:32:00.600 --> 0:32:01.520
<v Speaker 11>to be in fintech.

0:32:01.600 --> 0:32:03.720
<v Speaker 5>We think, and we provide credit.

0:32:03.440 --> 0:32:07.160
<v Speaker 11>And loans, grants, and we've done forty million in philanthropy

0:32:07.160 --> 0:32:09.120
<v Speaker 11>and grants, and we're very proud that those have gone

0:32:09.160 --> 0:32:12.800
<v Speaker 11>to women, people of color, US veterans, and white males.

0:32:12.880 --> 0:32:14.680
<v Speaker 11>But we're capitalists at the end of the day. We

0:32:14.720 --> 0:32:18.000
<v Speaker 11>want to make sure everyone are included in the small

0:32:18.040 --> 0:32:19.400
<v Speaker 11>business ecosystem.

0:32:19.400 --> 0:32:20.080
<v Speaker 5>It's critical.

0:32:20.840 --> 0:32:22.880
<v Speaker 3>How's any of your use a base.

0:32:23.240 --> 0:32:27.240
<v Speaker 2>Any prospective clients ever brought this up and I said, look,

0:32:27.440 --> 0:32:31.200
<v Speaker 2>the fact that you'll giving grants to minorities, I feel discriminating.

0:32:32.680 --> 0:32:32.760
<v Speaker 6>No.

0:32:33.080 --> 0:32:36.040
<v Speaker 11>In fact, when we announced that we were being sued,

0:32:36.920 --> 0:32:41.120
<v Speaker 11>we've had hundreds of thousands of letters of support, emails,

0:32:41.160 --> 0:32:44.320
<v Speaker 11>people coming out. We're based in Houston, Texas, and we've

0:32:44.320 --> 0:32:47.200
<v Speaker 11>got our vets coming out in support of African Americans.

0:32:47.200 --> 0:32:49.480
<v Speaker 11>We have women's coming out and support of men. The

0:32:49.560 --> 0:32:53.760
<v Speaker 11>small business community, particularly after COVID has really galvanized. They're

0:32:53.800 --> 0:32:56.040
<v Speaker 11>growing now. Capital is tight right now. I will give

0:32:56.080 --> 0:32:59.840
<v Speaker 11>everyone that, but they're really a savvy community that they

0:32:59.920 --> 0:33:02.840
<v Speaker 11>have to have each other. If you look at Main Street,

0:33:02.920 --> 0:33:07.280
<v Speaker 11>all those shops are working together to scale everything we

0:33:07.320 --> 0:33:09.960
<v Speaker 11>need in this country. So that support is there from everyone.

0:33:10.080 --> 0:33:11.960
<v Speaker 11>We have never heard a complain about it ever.

0:33:12.240 --> 0:33:14.440
<v Speaker 2>And so when you're fundraising out there looking for a

0:33:14.480 --> 0:33:16.720
<v Speaker 2>Series C, how much you're having to talk to potential

0:33:16.720 --> 0:33:19.680
<v Speaker 2>invest is about the use of the money for a

0:33:19.720 --> 0:33:22.480
<v Speaker 2>business case, or indeed for a legal case. Is any

0:33:22.480 --> 0:33:24.440
<v Speaker 2>point not having to be commingled.

0:33:23.920 --> 0:33:25.600
<v Speaker 11>Well, sure, I mean there was a lot of tension

0:33:25.960 --> 0:33:28.520
<v Speaker 11>when the case first came out. There was concern about

0:33:28.640 --> 0:33:31.920
<v Speaker 11>the quote legitimacy of our business, and I'm here to

0:33:31.960 --> 0:33:34.680
<v Speaker 11>say that we are now one of the fastest platforms

0:33:34.720 --> 0:33:37.240
<v Speaker 11>for financial technology, offering credit and.

0:33:37.200 --> 0:33:38.440
<v Speaker 5>Loans to small businesses.

0:33:39.520 --> 0:33:41.880
<v Speaker 11>We're about to be profitable, which is really exciting for

0:33:41.920 --> 0:33:46.080
<v Speaker 11>a fintech. But you have to disclose lawsuits a lawsuit,

0:33:46.240 --> 0:33:50.520
<v Speaker 11>and that's why we think that these are very distracting.

0:33:50.600 --> 0:33:52.920
<v Speaker 11>We think they're a waste of money. Everything we've done

0:33:53.000 --> 0:33:55.840
<v Speaker 11>is perfectly legal, and we want to make money for

0:33:55.840 --> 0:33:57.720
<v Speaker 11>our investors. We want to make money for our small

0:33:57.760 --> 0:34:01.440
<v Speaker 11>business owners. And I'm really happy to say despite all this,

0:34:01.520 --> 0:34:05.640
<v Speaker 11>we have significantly grown. It took investors a minute to

0:34:05.680 --> 0:34:07.480
<v Speaker 11>step back be like, WHOA, what is this?

0:34:08.000 --> 0:34:09.239
<v Speaker 5>What is this going to impact me?

0:34:09.520 --> 0:34:11.440
<v Speaker 11>And they're capitalists at the end of the day, and

0:34:11.480 --> 0:34:14.200
<v Speaker 11>our business is growing, We are making money. Our small

0:34:14.239 --> 0:34:17.560
<v Speaker 11>businesses are so no matter what, they came back in

0:34:17.680 --> 0:34:19.560
<v Speaker 11>and funded us and we disclosed our Series C.

0:34:19.760 --> 0:34:20.720
<v Speaker 5>So we're pretty stoked.

0:34:20.800 --> 0:34:23.320
<v Speaker 2>So you remain committed to the philanthropic in depths on

0:34:23.440 --> 0:34:25.719
<v Speaker 2>the bronze absolutely, What do you remain committed to in

0:34:25.800 --> 0:34:27.000
<v Speaker 2>terms of your own technology?

0:34:27.160 --> 0:34:28.799
<v Speaker 3>What are you doing and building now?

0:34:29.080 --> 0:34:31.440
<v Speaker 11>Well, what's really exciting is the evolution of AI. My

0:34:31.480 --> 0:34:33.880
<v Speaker 11>co founder Cohen Rods has really been on the forefront

0:34:33.920 --> 0:34:35.840
<v Speaker 11>of that for a decade and now that it is

0:34:35.920 --> 0:34:39.120
<v Speaker 11>getting i would say cheaper to access great data, it

0:34:39.160 --> 0:34:42.520
<v Speaker 11>allows us with our we have a proprietary Business Health

0:34:42.560 --> 0:34:46.160
<v Speaker 11>Score that score small businesses financial health from zero to

0:34:46.160 --> 0:34:49.280
<v Speaker 11>one hundred and gets them ready for that next step

0:34:49.280 --> 0:34:51.680
<v Speaker 11>of funding. So that Business Health Score is now being

0:34:51.760 --> 0:34:54.160
<v Speaker 11>used not just by us, but everyone from Wells Fargo

0:34:54.280 --> 0:34:57.000
<v Speaker 11>to Chase. So it's a great time for our business

0:34:57.080 --> 0:34:59.360
<v Speaker 11>and we're continuing to say that we are here for

0:34:59.400 --> 0:35:00.000
<v Speaker 11>small business.

0:35:00.040 --> 0:35:02.920
<v Speaker 5>We're going nowhere come back as well.

0:35:03.000 --> 0:35:05.759
<v Speaker 2>The legal dispute continues. We thank her for her time.

0:35:05.880 --> 0:35:17.360
<v Speaker 2>Hello Alice, co founder president Elizabeth Gore. Tens of millions

0:35:17.360 --> 0:35:20.200
<v Speaker 2>of Americans they're gearing up to witness the solar eclipse today,

0:35:20.400 --> 0:35:23.480
<v Speaker 2>when the Sun will become almost entirely coven by the moon,

0:35:23.920 --> 0:35:26.200
<v Speaker 2>so first time in almost a century that the western

0:35:26.239 --> 0:35:28.840
<v Speaker 2>and northern parts of New York State will experience a

0:35:28.920 --> 0:35:32.000
<v Speaker 2>total eclipse. And though the entire event will last for

0:35:32.080 --> 0:35:35.880
<v Speaker 2>several hours, the main spectacle when day turns tonight, is

0:35:35.880 --> 0:35:38.640
<v Speaker 2>expected to last only about a four minute period, and

0:35:38.760 --> 0:35:41.360
<v Speaker 2>it will still be going to cost the US thirty

0:35:41.400 --> 0:35:46.239
<v Speaker 2>gigawatts of solar energy, the output of roughly thirty nuclear reactors.

0:35:47.160 --> 0:35:48.560
<v Speaker 3>Meanwhile, Let's Shift.

0:35:48.320 --> 0:35:52.480
<v Speaker 2>Gears movie producer David Ellison is in negotiations to take

0:35:52.560 --> 0:35:55.440
<v Speaker 2>charge of Paramount. He and his backers have agreed to

0:35:55.440 --> 0:35:57.640
<v Speaker 2>pay a little more than two billion dollars to Sharry

0:35:57.640 --> 0:36:01.560
<v Speaker 2>Redstone's National Amusements and the family company that controls Paramount.

0:36:01.840 --> 0:36:03.239
<v Speaker 3>We want to break all of this down.

0:36:03.480 --> 0:36:06.920
<v Speaker 2>Someone's been writing about it significantly like Chet partner Rich Greenfield,

0:36:07.000 --> 0:36:11.880
<v Speaker 2>and Sharry Redstone likes this offer from Ellison, thinks that

0:36:11.920 --> 0:36:14.319
<v Speaker 2>he can bring about new growth for the business in

0:36:14.360 --> 0:36:17.040
<v Speaker 2>its entirety, not sell off assets to immediately.

0:36:17.480 --> 0:36:18.560
<v Speaker 3>Rich. Do you like this deal?

0:36:19.719 --> 0:36:22.320
<v Speaker 12>Look, this is first of all, we haven't seen exactly

0:36:22.360 --> 0:36:24.319
<v Speaker 12>what the deal looks like and what all of the

0:36:24.360 --> 0:36:27.480
<v Speaker 12>different pieces are. But I think if you're the you know,

0:36:27.600 --> 0:36:32.719
<v Speaker 12>National Amusements, which is effectively Caroline the Redstone family, they

0:36:32.760 --> 0:36:37.440
<v Speaker 12>want an owner that is going to love the asset

0:36:37.640 --> 0:36:40.239
<v Speaker 12>take care of the asset in much the way the

0:36:40.239 --> 0:36:44.560
<v Speaker 12>Redstone family has taken care of the Paramount Studio for decades.

0:36:44.600 --> 0:36:47.719
<v Speaker 12>And I think that's one of the big attractions here

0:36:47.840 --> 0:36:50.040
<v Speaker 12>is you know, merging, because again.

0:36:49.880 --> 0:36:51.800
<v Speaker 6>What this transaction actually is, it's not a sale.

0:36:52.920 --> 0:36:57.759
<v Speaker 12>You know, National Amusements is selling their stake in to Skuidance,

0:36:58.200 --> 0:37:00.920
<v Speaker 12>but it appears the rest of Skydances being folded in,

0:37:00.920 --> 0:37:05.520
<v Speaker 12>So essentially it's Paramount buying Skydance and Skydance taking over

0:37:05.640 --> 0:37:08.880
<v Speaker 12>and having control of overall Paramount.

0:37:08.920 --> 0:37:10.320
<v Speaker 6>But this is not a sale.

0:37:10.560 --> 0:37:13.440
<v Speaker 12>There was you know, it does not seem that National

0:37:13.440 --> 0:37:17.840
<v Speaker 12>Amusements wants to sell the entirety of Paramount to private

0:37:17.880 --> 0:37:21.120
<v Speaker 12>equity and see the company broken up into pieces or

0:37:21.160 --> 0:37:23.600
<v Speaker 12>sold for parts. That doesn't seem to be something they

0:37:23.600 --> 0:37:25.680
<v Speaker 12>want to Remember, what I think a lot of investors

0:37:25.719 --> 0:37:27.840
<v Speaker 12>forget is this is a controlled company.

0:37:27.880 --> 0:37:29.080
<v Speaker 6>So just because.

0:37:29.160 --> 0:37:32.640
<v Speaker 12>Public shareholders want something does not mean the company has

0:37:32.680 --> 0:37:35.480
<v Speaker 12>to proceed down that path. That is the danger of

0:37:35.520 --> 0:37:38.080
<v Speaker 12>a controlled company when you're investing, and if you don't

0:37:38.120 --> 0:37:41.080
<v Speaker 12>like it, don't invest in controlled companies.

0:37:41.040 --> 0:37:43.840
<v Speaker 2>Because ultimately you might end up with a slightly dilutive

0:37:44.280 --> 0:37:47.799
<v Speaker 2>deal that leaves you slightly poorer. Ultimately, though, could what

0:37:47.960 --> 0:37:50.359
<v Speaker 2>is the narrative that now needs to be built by

0:37:50.960 --> 0:37:55.239
<v Speaker 2>Allison or anyone else the current board membership of Paramount

0:37:55.320 --> 0:37:57.880
<v Speaker 2>say this will in the long term still reap you benefits.

0:37:58.480 --> 0:38:01.479
<v Speaker 12>Well, Again, if you're Troll shareholder doesn't want to sell

0:38:01.520 --> 0:38:05.720
<v Speaker 12>the entire company, then you really have essentially three choices.

0:38:05.760 --> 0:38:09.880
<v Speaker 12>If you're sitting as the Paramount board, you can do

0:38:10.040 --> 0:38:14.040
<v Speaker 12>nothing right and you literally just operate status quo. I

0:38:14.040 --> 0:38:19.320
<v Speaker 12>think the board recognizes current strategy isn't working. Paramount plus bleeding,

0:38:19.680 --> 0:38:23.680
<v Speaker 12>you know, a billion two billion dollars not a meaningful

0:38:23.719 --> 0:38:26.560
<v Speaker 12>player in the streaming wars. So I don't believe they

0:38:26.640 --> 0:38:28.799
<v Speaker 12>want to move forward with the current strategy.

0:38:29.160 --> 0:38:30.360
<v Speaker 6>Now that they could.

0:38:30.200 --> 0:38:34.880
<v Speaker 12>Fire management, totally, pivot strategy, follow more of the arms

0:38:34.920 --> 0:38:38.000
<v Speaker 12>dealer of content strategy that Sony has pursued.

0:38:38.440 --> 0:38:40.400
<v Speaker 6>Doesn't feel like that's something.

0:38:40.160 --> 0:38:42.680
<v Speaker 12>They really feel comfortable doing, nor do they know exactly

0:38:42.680 --> 0:38:45.160
<v Speaker 12>who they would bring in and then the third piece

0:38:45.280 --> 0:38:48.360
<v Speaker 12>is do a transaction that, while at least in the

0:38:48.400 --> 0:38:52.440
<v Speaker 12>near term diluted to public company shareholders, at least gives

0:38:52.800 --> 0:38:55.600
<v Speaker 12>long term you know, there's a long term pitch to

0:38:55.680 --> 0:38:58.520
<v Speaker 12>the board that I guess makes sense in terms of

0:38:58.840 --> 0:39:02.520
<v Speaker 12>how they're going to invest build Paramount Plus into something bigger,

0:39:03.080 --> 0:39:06.759
<v Speaker 12>use more technology. And I think it's that whole idea

0:39:06.920 --> 0:39:09.200
<v Speaker 12>that the board is obviously dealing with. And if you

0:39:09.280 --> 0:39:11.840
<v Speaker 12>have only you know, if it's really only do nothing

0:39:12.320 --> 0:39:15.520
<v Speaker 12>or do a transaction that's diluted, you can understand why

0:39:15.560 --> 0:39:19.160
<v Speaker 12>they might like the diluted transaction because the status quo

0:39:19.680 --> 0:39:22.440
<v Speaker 12>is not working for Paramount and the company is in

0:39:22.520 --> 0:39:24.440
<v Speaker 12>more and more trouble. And I think, you know, the

0:39:24.480 --> 0:39:26.959
<v Speaker 12>only reason the stock is above ten dollars a share

0:39:27.120 --> 0:39:30.480
<v Speaker 12>was the hope of a transaction, ideally a sale to

0:39:30.520 --> 0:39:33.839
<v Speaker 12>a third party. I think now the question is, is you know,

0:39:34.360 --> 0:39:37.680
<v Speaker 12>how cheap will Skidance end up with this asset? Because

0:39:37.719 --> 0:39:42.160
<v Speaker 12>I think investors are finally realizing today that the sale to.

0:39:42.160 --> 0:39:44.080
<v Speaker 6>A third party isn't happening.

0:39:44.400 --> 0:39:47.240
<v Speaker 2>Yeah, I mean that has been passed over Apollo Global

0:39:47.239 --> 0:39:51.120
<v Speaker 2>Management selling off person specific assets or indeed, I mean

0:39:51.120 --> 0:39:53.400
<v Speaker 2>Warner Brothers seem to have been dead on a rival.

0:39:53.480 --> 0:39:53.680
<v Speaker 3>Rich.

0:39:54.040 --> 0:39:57.840
<v Speaker 2>I'm interested in the technology element you just articulated because

0:39:58.080 --> 0:40:01.600
<v Speaker 2>as Devid Allison has some prower notably his own father

0:40:01.719 --> 0:40:03.920
<v Speaker 2>of course, with Oracle having founded it, but he is

0:40:03.960 --> 0:40:05.719
<v Speaker 2>someone who wants to lean into tech.

0:40:05.760 --> 0:40:07.560
<v Speaker 3>What could technology bring paramount?

0:40:08.320 --> 0:40:10.279
<v Speaker 12>I mean, look, look look at what Skydance has done

0:40:10.320 --> 0:40:12.640
<v Speaker 12>on the animation side. I mean they've been you know,

0:40:12.840 --> 0:40:16.160
<v Speaker 12>they went out and hired the creator or the key

0:40:16.440 --> 0:40:20.840
<v Speaker 12>elements of Pixar Films, John Lassiter. So John Lassiter doesn't

0:40:20.840 --> 0:40:24.000
<v Speaker 12>work for Disney anymore. He left Disney many years ago.

0:40:24.440 --> 0:40:27.600
<v Speaker 12>He now has one thousand person animation business, and so

0:40:27.640 --> 0:40:30.640
<v Speaker 12>that obviously there's a lot of technology that goes into animation.

0:40:31.239 --> 0:40:35.000
<v Speaker 12>John Lassiter's now at Skiddance and they've just you know,

0:40:35.120 --> 0:40:37.960
<v Speaker 12>recently announced that their slate of films is moving from

0:40:38.000 --> 0:40:41.960
<v Speaker 12>Apple TV Plus over to Netflix, and so their first

0:40:42.280 --> 0:40:45.399
<v Speaker 12>major release that John's had full control over comes out

0:40:45.440 --> 0:40:46.439
<v Speaker 12>at the end of this year.

0:40:47.080 --> 0:40:49.240
<v Speaker 6>Obviously they think they have the next Frozen.

0:40:49.320 --> 0:40:52.960
<v Speaker 12>But so you have some really exciting developments on the

0:40:52.960 --> 0:40:57.640
<v Speaker 12>Skydance side that our content sort of infused with technology

0:40:57.680 --> 0:41:00.799
<v Speaker 12>that creates long term opportunity. And again, I think if

0:41:00.840 --> 0:41:04.279
<v Speaker 12>you're sitting at the Paramount board, you're in a tough situation.

0:41:04.800 --> 0:41:06.200
<v Speaker 6>Stock is down dramatically.

0:41:06.239 --> 0:41:07.920
<v Speaker 12>I mean, you look at any you know you've got

0:41:08.000 --> 0:41:09.520
<v Speaker 12>the year to data, but if you look over the

0:41:09.600 --> 0:41:10.839
<v Speaker 12>last several years.

0:41:10.800 --> 0:41:12.240
<v Speaker 6>This has not been a good stock.

0:41:12.719 --> 0:41:15.319
<v Speaker 12>The management team has made you what appears to be

0:41:15.360 --> 0:41:19.480
<v Speaker 12>critical mistakes by entering the streaming wars believing they could,

0:41:19.600 --> 0:41:22.960
<v Speaker 12>you know, compete with the netflixes and the Disneys. They

0:41:22.960 --> 0:41:26.040
<v Speaker 12>clearly can't. And so now the question is what do

0:41:26.120 --> 0:41:28.880
<v Speaker 12>you do. Do you just start shutting things down, do

0:41:28.920 --> 0:41:31.719
<v Speaker 12>you fire everyone, or do you look for a strategic

0:41:31.760 --> 0:41:34.160
<v Speaker 12>merger that, even if it's not great in the short

0:41:34.239 --> 0:41:38.520
<v Speaker 12>term financially, gives long term growth potential or at least

0:41:38.520 --> 0:41:39.600
<v Speaker 12>a story.

0:41:39.680 --> 0:41:41.359
<v Speaker 6>That the board can get comfort with.

0:41:41.400 --> 0:41:44.279
<v Speaker 12>And my guess is the board is getting comfortable with

0:41:44.360 --> 0:41:46.400
<v Speaker 12>that story being the best alternative.

0:41:46.920 --> 0:41:49.520
<v Speaker 2>That story still being written as we stan Rich Greenfield

0:41:49.560 --> 0:41:51.720
<v Speaker 2>come back on it soon. We hope of like shed

0:41:51.840 --> 0:41:54.640
<v Speaker 2>great to have some time with you today. Meanwhile, that

0:41:54.680 --> 0:41:56.640
<v Speaker 2>does it for this edition of Bluebog Technology. You do

0:41:56.760 --> 0:41:58.560
<v Speaker 2>not want to forget to check out our podcast so

0:41:58.680 --> 0:42:01.040
<v Speaker 2>much to be digesting you find it on the terminal,

0:42:01.080 --> 0:42:03.320
<v Speaker 2>as well as online on Apple or Spotify and iHeart.

0:42:03.360 --> 0:42:06.520
<v Speaker 2>If you're based here in North America, have fun viewing

0:42:06.600 --> 0:42:07.120
<v Speaker 2>NA Eclipse.

0:42:07.520 --> 0:42:11.920
<v Speaker 3>Stay safe with your eyes. This is pretty big technology