Speaker 1: From Mahard where Innovation, money and power Collie in Silicon Valley, NBN.
Speaker 2: This is Bloomberg Technology with Caroline Hyde and Ed Ludlove.
Speaker 3: I'm Caroline Heine blombergsweltad quarters in New York and I
Speaker 3: met Ludlow in San Francisco.
Speaker 2: This is Bloomberg Technology coming up.
Speaker 3: We'll have full market coverage ahead. Inflation, those worries they
Speaker 3: call the rate hike bets come down? Will this fuel
Speaker 3: still the tech sector rally?
Speaker 2: As apet gets underway in San Francisco, tech executives look
Speaker 2: to meet with China's g will bring you the detail.
Speaker 3: And Apple's largest assembler of iPhones, well, it warns of
Speaker 3: a sales drop as demand concerns linger in the smartphone market.
Speaker 2: There's a lot happening in the show today, and the
Speaker 2: stocks behind me kind of reflect the stories we'll cover.
Speaker 2: We're going to look at fox Conn in its earnings,
Speaker 2: the main contract manufacturer that assembles the iPhone, a worrying outlook,
Speaker 2: but Apple actually up moving higher. Grinder had strong earnings
Speaker 2: to stock up significantly. We will speak to the Grinder CEO,
Speaker 2: and then finally Alphabet, parent company of Google. We're going
Speaker 2: to go to our reporter to talk about what YouTube's
Speaker 2: doing in the context of AI generated content and content moderation.
Speaker 2: In terms of the stock story, there is one name
Speaker 2: that is a big story in its own right, and
Speaker 2: that is in Vidia Video Shares around one and a
Speaker 2: half percent in the session, but currently up for a
Speaker 2: tenth straight day, and if they close highering in the green,
Speaker 2: that ten day win streak matches the record that in
Speaker 2: Vidia set in December of twenty sixteen. It is the
Speaker 2: best performing stock on the S and P five hundred
Speaker 2: year to date. It is the best performing stock on
Speaker 2: the Nasdaq one hundred year to date, and its gain
Speaker 2: is almost two hundred and forty percent year to date.
Speaker 2: The story in the near term has been around AI
Speaker 2: right in their products announcements, but also in this session
Speaker 2: getting a boost from that call of an expected inflation
Speaker 2: print is paused.
Speaker 3: The so called Magnificent seven, those key stocks that are
Speaker 3: just driven some of the rally throughout the year. Is
Speaker 3: it still times you're buying into them? Well, please to
Speaker 3: welcome the perfect guests Leafetangla Investment CIO Nancy Tangla, who
Speaker 3: I think has some key thoughts on really whether there's
Speaker 3: still fuel to the fire of the tech rally. Is
Speaker 3: there when you're getting these sorts of information prints.
Speaker 4: Oh absolutely, I'm in the market loves it.
Speaker 5: But let's also not forget that these stocks have been
Speaker 5: delivering all the way through the rate hype regime from
Speaker 5: the Fed, and then again with inflation higher. We have
Speaker 5: argued that inflation comes down symmetrically, but not necessarily literally
Speaker 5: so linearly. So I think that this is a good number,
Speaker 5: not a huge surprise, and we'll see what happens in December.
Speaker 5: But you know, Caroline, I wrote a piece that this
Speaker 5: market is analogous to nineteen ninety, where we had inflation above.
Speaker 4: Three percent for the entire.
Speaker 5: Decade, yields between five and eight percent on average for
Speaker 5: the entire decade, a war, a recession credit like we
Speaker 5: have now. And then in addition to that, the indices
Speaker 5: we're up, you know, four hundred percent over four hundred
Speaker 5: percent for the Dow in S ANDP and eight over
Speaker 5: eight hundred percent for the Nasdaq.
Speaker 2: The nancy. To be clear in your mind, have we
Speaker 2: hit peak rate.
Speaker 6: Ed?
Speaker 5: I think so, But that doesn't mean we're not going
Speaker 5: to continue to see volatility. I think you know, we've
Speaker 5: never had this much supply come on so quickly, and
Speaker 5: so I think we'll continue to get you know, the
Speaker 5: market will react to bits of news. We'll see what
Speaker 5: the PPI says, But in general, I think we're kind of.
Speaker 3: There, going back to that nineties reminiscing and perhaps echo
Speaker 3: that we currently see in the current market. Nancy, is
Speaker 3: it that therefore we can continue to run on the
Speaker 3: same sort of seven names that the market has loved
Speaker 3: us far, or do you need to get broader, wider
Speaker 3: and where you anticipate some of the gains are going
Speaker 3: to come from.
Speaker 5: I do think you need to get wider, Caroline. I
Speaker 5: mean I think we need industrials to work again, maybe energy.
Speaker 5: I think financials have to do some of the heavy lifting.
Speaker 5: But in general, if you look at the Magnificent Seven,
Speaker 5: this is not my work, it's Jason Trennard said strateigis,
Speaker 5: and he separated it out as its own sector. Margins
Speaker 5: are growing faster, earnings and revenue growth growing faster than
Speaker 5: the rest of market and rest of technology, and so
Speaker 5: I think you have to give them the tip of
Speaker 5: the hat and say I may not want to own
Speaker 5: all of them, but I want to own some of them.
Speaker 5: And I need to have them in my portfolio because
Speaker 5: the tailwinds, the secular tailwinds, are at their back.
Speaker 2: Speaking of tailwinds, Nancy, you heard me talk about Nvidia
Speaker 2: at the top of the program, up for a tenth
Speaker 2: straight day, matching it's record run that it's set in
Speaker 2: twenty sixteen. It is the best performing stock on both
Speaker 2: S and B five hundred and as that one hundred.
Speaker 2: What do you make of that run? What is your
Speaker 2: attitude towards it?
Speaker 5: I wished I owned it.
Speaker 4: It was never cheap enough for us.
Speaker 5: It was for about twenty minutes on one day, and
Speaker 5: then we just missed it. I think importantly, what you
Speaker 5: know from last quarters earnings is that the multiple actually
Speaker 5: went down despite the stock running up.
Speaker 4: So I think this is one of those stocks like.
Speaker 5: Amazon a decade ago, like Walmart two or three decades ago,
Speaker 5: that you just step aside and let it run and
Speaker 5: hopefully you own it. We owned Broadcom, so we you know,
Speaker 5: we've had some of the benefits of AI chip and
Speaker 5: cloud computing. We own a lot of the Magnificent seven,
Speaker 5: we just don't own that name. I think if you
Speaker 5: own it, you keep it and let it run, and
Speaker 5: if you don't own it.
Speaker 4: You wait on all of these stocks for pullbacks.
Speaker 3: And what would be the spalk of a pullback do
Speaker 3: you think, Nancie, Well, I.
Speaker 5: Think we got one in October, so in September, I
Speaker 5: think if we and that was based on you know,
Speaker 5: the FED saying they were going to be higher for longer,
Speaker 5: But I would argue in the medium term that doesn't
Speaker 5: matter because we've had much higher rates and strong investment performance,
Speaker 5: particularly from technology, and then I think if we get
Speaker 5: conflicting data and we just continue to hear the FED speak,
Speaker 5: the market is still reacting to that on a daily basis.
Speaker 5: But I would point out that the reason I think
Speaker 5: you want to own these stocks for the long term
Speaker 5: is that in periods of tight labor markets, and they're
Speaker 5: historically been three or four but one again that's mostly analogous,
Speaker 5: which is around the eighties nineties, these stocks, the spend
Speaker 5: in technology has gone up, and then these stocks have outperformed.
Speaker 4: So I don't think the trade's over.
Speaker 5: Someday it will be, but I think for now you
Speaker 5: do want to wait for volatility, maybe a week earnings report,
Speaker 5: a FED another FED speak period where we get you know,
Speaker 5: some conflicting data like we did from pal meeting.
Speaker 4: He was a little more dubvish.
Speaker 5: Last speech he was less so, and the market took
Speaker 5: into heart those are your times.
Speaker 4: That's the time when you stepped in.
Speaker 3: Stepping in two well and in videos we're just hearing
Speaker 3: from ed is at more than two hundred percent. Microsoft
Speaker 3: just hugely outperformed, so has the likes of even Meta
Speaker 3: in this year of efficiency. Nancy, can you talk about
Speaker 3: if there's any consistency on what you're seeing in some
Speaker 3: of the companies that you like. Is there anything that
Speaker 3: makes them stand out uniquely that therefore once you make
Speaker 3: to add because I know you take individual names and
Speaker 3: bring them to us.
Speaker 4: Yeah, so I'm happy to do that.
Speaker 5: So I think I don't know that you would necessarily
Speaker 5: recall this, but we were adding to the group blast fall.
Speaker 5: There was not a good piece of news to be found,
Speaker 5: but they were slowly and quietly delivering strong earnings growth.
Speaker 5: So the names that are in our twelve Best Ideas
Speaker 5: portfolio are Microsoft, strong management team. As you'res taking share,
Speaker 5: they've got they're going to monetize AI. We're seeing them
Speaker 5: cram it into every nick and cranny of offices and
Speaker 5: every other aspect of their business. The deal went through
Speaker 5: with Activision, they launched three sixty five co pilot. I
Speaker 5: think you're going to see this company continue to take
Speaker 5: share and dominate.
Speaker 4: And it's been a you know, it's an obvious.
Speaker 5: Name, but I don't think you want to walk away
Speaker 5: from it at these levels. Adobe is the unsung hero
Speaker 5: of AI. It's also a good management team. That is
Speaker 5: our theme. We paid very close attention to management. I
Speaker 5: think that's the name you want to buy on pullbacks.
Speaker 5: It's a little rich right now service now I've talked
Speaker 5: about before on your program. Bill McDermott delivered a beat
Speaker 5: beaten Rays last quarter, and he's a great salesman and
Speaker 5: he knows how to run the business. They are taking
Speaker 5: it spend away from other providers because they're in the
Speaker 5: sweet spot of navigating cloud computing and generative AI computing.
Speaker 4: And then Amazon.
Speaker 5: I think Tony Jasse got Tim cooked when he took over.
Speaker 5: I bought Apple after Tim Cook was heralded as no
Speaker 5: Steve Jobs, and that was in about twenty twelve to
Speaker 5: twenty thirteen. We were adding to our Amazon last year.
Speaker 5: I think you can still buy it here. He has
Speaker 5: figured it out. He's cut costs, and we're paying very
Speaker 5: close attention to the healthcare portion of their business. But
Speaker 5: the cloud business is still growing remarkably. I think that's
Speaker 5: the name you just buy and you put it away.
Speaker 2: Nancy, you didn't mention Mark Zuckerberg. You mentioned everyone else.
Speaker 2: Meta is a magnificant, magnificent seven stock. Do you hold
Speaker 2: Zuckerberg in the same leadership bracket as those No, So.
Speaker 4: We owned it many years ago.
Speaker 5: We described ourselves as reluctant shareholders. We sold it at
Speaker 5: levels at about current levels and a little bit higher.
Speaker 4: We missed getting back in.
Speaker 5: But as with Google, though, we do own some of Google,
Speaker 5: not in our twelve Best Ideas portfolios, as the names
Speaker 5: I just discussed were. But we don't like the two
Speaker 5: share class. It's really an advertising business. I think the
Speaker 5: metamist step and the spending at both companies needs to
Speaker 5: be rained in. With Google, we're a little more optimistic
Speaker 5: because we like Ruth Kretts in the new role as president,
Speaker 5: but I know you can still make money on it.
Speaker 5: I just think there's better places and more interesting places
Speaker 5: to be, and I don't like I haven't really been
Speaker 5: thrilled with the leadership. Even though the stock price is
Speaker 5: delivered and they cut costs.
Speaker 4: That's great. You can only do that for so long.
Speaker 3: Nancy. We always love you coming here giving us our
Speaker 3: straight talk. Talking about the individual names as well, Nancy
Speaker 3: Tenglo Investments. Always great to catch up with you. Thank
Speaker 3: you very much. Indeed. Meanwhile, speaking of CEOs in San Francisco,
Speaker 3: all eyes are on APEC has lead us on the
Speaker 3: world of tech attend hopeful in fact for an audience
Speaker 3: with one China President Xi Jinping. In fact, CEOs of
Speaker 3: Microsoft City, Tesla, they're all looking to meet with the president.
Speaker 3: She and according to sources, he's even expected to hold
Speaker 3: a dinner with some executives for many corporations that the
Speaker 3: agenda is simple. They're ready to get back to business
Speaker 3: in China.
Speaker 2: End and part of the agenda for Jijingping to meet
Speaker 2: with President Biden is to announce an agreement that would
Speaker 2: see Beijing crackdown on the manufacturer and export of fentanyl.
Speaker 2: According to sources, sentinal crisis is something I discussed with
Speaker 2: San Francisco Mayor London Breed have listen.
Speaker 6: Just to work with the US and to ensure that
Speaker 6: the resources that are being sent out of China that
Speaker 6: come into either the US or Mexico are cut off
Speaker 6: to the fullest extent possible, that we work together in
Speaker 6: order to ensure that this deadly poison that is killing
Speaker 6: people in San Francisco in significant numbers and all over
Speaker 6: the country, that we're able to combat this to stop it.
Speaker 2: So San Francisco, Carrie becomes the center of the US
Speaker 2: China relationship this week, right the social issue of fentanyl,
Speaker 2: the supply chain for that that we discussed, and then
Speaker 2: all of these CEOs who basically say, let's get back
Speaker 2: to good terms with China.
Speaker 3: And it's interesting who might likely be there, And of
Speaker 3: course we know Tesla has key supply chain issue with Shanghaim,
Speaker 3: particularly in China. More broadly, what was interesting sort of
Speaker 3: who's not there? And I know Tim Cook's just been
Speaker 3: to China himself. Notable that as like a California executive,
Speaker 3: not their metal we understand, of course, stunning to sell
Speaker 3: their VR equipment in China. Interesting that Zucker isn't there either.
Speaker 2: Yeah, and AI again is going to be a talking
Speaker 2: point because while there's some kind of move forward on
Speaker 2: the relationship, in the background, used to have US technology
Speaker 2: export curves on chips to China that have directly impacted
Speaker 2: the AI supply chain. So a big week ahead.
Speaker 3: I'm sure it feels pretty busy where you are. Meanwhile,
Speaker 3: coming up, look Iphonemaker on Hi public arm of Fox
Speaker 3: gone growing concerns, sales may drop in the current quarter.
Speaker 3: We'll have more on its tep it out look. That's
Speaker 3: next for the look. And you're looking at some particular movers.
Speaker 2: Yeah. Fiska, the ev maker, down eighteen point two percent
Speaker 2: over the last couple of days, twenty four percent in
Speaker 2: this session, delayed its ten Q It has got all
Speaker 2: kind of material weakness and accounting issues, revenues missing estimates,
Speaker 2: and basically it's behind schedule on delivering its contract manufactured
Speaker 2: evs a name we continue to track. This is Bloom
Speaker 2: by Technology. Okay, time for talking tech and first up
Speaker 2: see Southeast Asia's biggest internet company is reeling from profit loss.
Speaker 2: In its third quarter, the single war based company posted
Speaker 2: a net loss of one hundred and forty nine million dollars,
Speaker 2: compared with a profit of three hundred and twenty two
Speaker 2: million dollars the previous quarter. The e commerce growth in
Speaker 2: the region has been pressured by macro conditions and intense
Speaker 2: competition in the sector, and Snap is reportedly teaming up
Speaker 2: with Amazon to let its users shop for products directly
Speaker 2: from ads on the Snapchat app. Shares arising after The
Speaker 2: Information reported that the deals being launched for US customers.
Speaker 2: This comes after last week's news of a similar deal
Speaker 2: with Meta for shopping on Facebook and Instagram. Plus Huawei
Speaker 2: and Jiaomia leading the resurgence in China's smartphone market. Phone
Speaker 2: sales are up eleven percent in the first four weeks
Speaker 2: of last month compared to the same period a year ago,
Speaker 2: according to Counterpoint Research. The domestic brands picked up the slack,
Speaker 2: while Apple's latest set of phones had an unusually muted
Speaker 2: debut in China so far.
Speaker 3: Carol, and let's stick on that muted demand for some
Speaker 3: of Apple's iPhones and what that means for its key manufacturer, Honheim.
Speaker 3: It's actually been revising its outlook after profits they'd beat expectations,
Speaker 3: but revenue still under pressure. Remember this is the public
Speaker 3: arm of Fox Cone and it's been warning that sales
Speaker 3: may four. This demand for the iPhone remains come in flux.
Speaker 3: Frankly to say that we're joined by Mandinkxing Bloomberg Intelligence
Speaker 3: senior technology analysts. And perhaps not that surprising given that
Speaker 3: we know that there's sort of a cultural backlash somewhat
Speaker 3: against Apple use of the phones in government as well.
Speaker 3: But how much is it starting to be reflected in
Speaker 3: the supply chain?
Speaker 7: Well, so think of you know, how these companies are
Speaker 7: connected TSMC and Fox Cone and if you see weakness,
Speaker 7: you know, with TSMC calling out PCs and smartphones continuing
Speaker 7: to be weak, it's not a surprise that, you know,
Speaker 7: Fox can't did the same. End at the end of
Speaker 7: the day, the consumer electronics market, we don't know if
Speaker 7: it is bottom. Everyone keeps talking about it. With PCs,
Speaker 7: we saw a couple of data points this quarter that
Speaker 7: suggested a bottom, but we don't know that yet. And
Speaker 7: I think this is a confirmation that consumer maybe week,
Speaker 7: you know, in the first half of next year as well.
Speaker 2: A lot of this man deep is like reading the
Speaker 2: tea leaves of third party data and suppliers.
Speaker 1: Right.
Speaker 2: Go back to Apple's earnings and Tim Cook talked about
Speaker 2: when he visited the country, they claim to have the
Speaker 2: top four smartphone handsets in a market that they saw
Speaker 2: as contracting, and you kind of draw the conclusion. What
Speaker 2: does that mean you're taking market share? What do we
Speaker 2: wait for to know what's really happening with Apple on
Speaker 2: the data side.
Speaker 7: I mean, look with Apple, clearly you know the iPhone
Speaker 7: fifteen isn't going to be a big upgrade cycle, That's
Speaker 7: what it seems like. And everyone is talking about what
Speaker 7: they can do at the chip level to really drive that,
Speaker 7: you know, gen AI kind of adoption at the edge level.
Speaker 7: But look for fox Con, it's more about what else
Speaker 7: can they diversify with? And there is demand for AI servers.
Speaker 7: In fact, in video when they are making these Genei servers,
Speaker 7: they're having TSMC make the chip and fox Con is
Speaker 7: the assembler. So clearly there is demand when it comes
Speaker 7: to AI servers. I think it's just the consumer side
Speaker 7: is continues to be weak, and these companies, all of
Speaker 7: them TSMC, fox Con, have a pretty sizeable consumer explosure.
Speaker 7: In fact, I would say it's almost sixty percent of
Speaker 7: their business, whereas AI servers is still less than five
Speaker 7: percent of their overall footprint.
Speaker 2: All right, man, deep seeking it to Bloomberg Intelligence, Thank.
Speaker 3: You shares a grinder absolutely popping. Today. Let's talk about
Speaker 3: the social the dating app as it raises its soliet guidance,
Speaker 3: a third quarter revenue that's higher than thirty nine percent
Speaker 3: year every year. But now I'm on the CEO of
Speaker 3: Kind George Harrison. George is great to have you on
Speaker 3: the show, and just this growth is managing to be
Speaker 3: what's driving it at the moment. Is it all about subscriptions.
Speaker 8: It's almost all coming from subscriptions and add on products.
Speaker 8: We did have a great quarter growth, third nine percent
Speaker 8: year of a year, and a lot of it had
Speaker 8: to do with us launching a weekly pricing option. Users
Speaker 8: have been asking for a lower priced tier that they
Speaker 8: could use to entry point into the product on a
Speaker 8: paying basis, and we launched that you know, earlier this year,
Speaker 8: and the results of that have been really really positive,
Speaker 8: So really happy about that. Now Grinder is really under monetized.
Speaker 8: Our conversion to paying customers is much lower than our
Speaker 8: peer set, partly because we've never really focused on that.
Speaker 8: It was all about offering a lot of free features
Speaker 8: versus paying features. And now as we transition to offering
Speaker 8: more paying features, I think we're seeing really positive results
Speaker 8: and there's a lot more room to continue with that
Speaker 8: because obviously, where like half the pair penetration that somewhere
Speaker 8: up years are so.
Speaker 3: Let's talk about thirteen and a half million average monthly users.
Speaker 3: Then if you're managing to continue to grow, do you
Speaker 3: spend do you invest? Is it more about marketing? Is
Speaker 3: it about branding? Is about more actually the underlying product
Speaker 3: and perhaps into weaving AI within it.
Speaker 8: Yeah, almost all of our investments are around people to
Speaker 8: build technology and product because we have a ton of
Speaker 8: opportunity to create new features that yous want. For example,
Speaker 8: right now we're working on teleport, which is going to
Speaker 8: let users show themselves in different market from the one
Speaker 8: they're in today, something that you have been asking for
Speaker 8: for a long time. We spend virtually no money on marketing.
Speaker 8: It's like less than one percent of our revenue this year,
Speaker 8: and we'll expect that number to go up a little
Speaker 8: bit as we focus on our brand to tell our
Speaker 8: story a little better, but it's going to be pretty minor.
Speaker 8: We don't do a pair acquisition. We're really fortunate that
Speaker 8: it's the product and the fact that people already know
Speaker 8: about us that drives that use a growth are My
Speaker 8: growth is also really strong and has been for a
Speaker 8: long time now, but it's all driven by word of
Speaker 8: mouth and by top of funnel user products that we build,
Speaker 8: like albums for exams that went live last year. We
Speaker 8: added video to albums this year, and you know, users
Speaker 8: have loved that. Over a billion albums shared in less
Speaker 8: than a year, which is really fantastic.
Speaker 2: So, George, forty percent top line growth, twenty percent paying
Speaker 2: user growth, and then eight percent active user growth. What
Speaker 2: should that tell us about who's using the platform and
Speaker 2: how they're using it?
Speaker 8: Yeah, so, I mean, I think it's telling you that
Speaker 8: as we launch more features that people want to pay for,
Speaker 8: a larger percentage of people will convert to becoming pain customers.
Speaker 8: And we have a lot more to do on that
Speaker 8: over the next couple of years. And then we also
Speaker 8: know that younger people come back to the platform. Right,
Speaker 8: Unlike a lot of other social products that have been
Speaker 8: replaced by one platform by the next, etc. Right, TikTok
Speaker 8: replacing Instagram and so forth, that hasn't really happened in
Speaker 8: our space. The users have been coming back to Grinder
Speaker 8: as they've kind of become eighteen plus, in part because
Speaker 8: they know that that's where everybody else in that community is.
Speaker 8: And so the community aspect of brind It really helps
Speaker 8: with that, and that something that we want to continue
Speaker 8: to lean in on now. At the same time, we
Speaker 8: do see a lot of opportunity with what i'd call
Speaker 8: older users. Now that's not that much older. We're talking
Speaker 8: about thirty to forty year olds. That cohort of gay
Speaker 8: men in particular wants to start thinking about dating, and
Speaker 8: so there's a lot of opportunity to enable dating products
Speaker 8: for them, which we already have a lot of dating
Speaker 8: relationships that develop on Grinder. About one and four gay
Speaker 8: relationship with the US originates on Grinder, but we think
Speaker 8: we have a much better user set for them to
Speaker 8: date better and to meet people a lot better, and
Speaker 8: AI is a big part of that. Cal And mentioned
Speaker 8: that a minute ago matching is a really huge opportunity
Speaker 8: for aim baously because big data is so valuable in
Speaker 8: that regard, and that's something we will invest money and
Speaker 8: effort into as well.
Speaker 3: So it's quickly. You stole some headlines with your return
Speaker 3: to office policies and the fact that really cut down
Speaker 3: on some of the people that you employ. How has
Speaker 3: that affected the business briefly.
Speaker 1: It's going to have no impact on this year.
Speaker 8: Obviously, we raise guidance now twice and so business is
Speaker 8: doing really well and able to build all the things
Speaker 8: we need to build, and we're not at any way
Speaker 8: concern about that for next year as well. I think
Speaker 8: what it does, you know, allow us to opportunity to do,
Speaker 8: is to attract people who really want to go after
Speaker 8: audacious goals, who want to go solve in possible things
Speaker 8: and you know, deliver really great results for both our shareholders.
Speaker 1: And our users.
Speaker 8: Grinder is this amazing place where you both can have
Speaker 8: a really great business and also do really awesome things
Speaker 8: for the user base. And we'll continue to.
Speaker 2: Do that, all right, Grind. The CEO, George Harrison, thank
Speaker 2: you so much for your time.
Speaker 3: Welcome back to Bluemertnalogy.
Speaker 2: I'm Caline Hid in New York and Amed Ludlow in
Speaker 2: San Francisco. Carra quit check in on the markets. The
Speaker 2: story really one of eco data, right. We got that
Speaker 2: inflation print sowing cooling inflation broadly. You look at the
Speaker 2: n AS that one hundred almost two percentage point, and
Speaker 2: you were talking, Cara about the kind of shorter end
Speaker 2: of the curve US tenure yield. Also seeing the you'll
Speaker 2: pull back down some seventeen basis points. Why do we
Speaker 2: cover rates well, the impact equity markets as you see
Speaker 2: behind me, But it's kind of interesting how the conversation
Speaker 2: might change into private markets as well. Right when interest
Speaker 2: rates started to take off in the back half of
Speaker 2: twenty twenty one, what happened global VC funding came down.
Speaker 2: So even though the conversation now is about whether or
Speaker 2: not we're at peak rate, it's going to impact public
Speaker 2: and private markets going forward, which is something we love
Speaker 2: to discuss on the show.
Speaker 3: It satinly Is and that intersection. But actually what we
Speaker 3: also love to discuss is the fact that technology hits
Speaker 3: every single industry group, and not always in the most
Speaker 3: positive manner, in particular when it comes to cyber attacks. Look,
Speaker 3: just days after the Industrial and Commercial Bank of China
Speaker 3: got hit with that ransomware attack, members of the management
Speaker 3: we understand from dropped on a plane over the weekend
Speaker 3: to reassure market participants. Right here in the United States,
Speaker 3: the officials spoke with hundreds of MEMBO firms of the
Speaker 3: Securities Industry and Financial Markets Association, according to sources, but
Speaker 3: it's still unclear when the stricken systems will actually start
Speaker 3: functioning again. Of course there's a big impact on the
Speaker 3: all important.
Speaker 2: Bond market ed a stick with cyber and data security
Speaker 2: and bringing Rebrix ceob posting at Rebriks just put out
Speaker 2: its latest data security report, and I guess the best
Speaker 2: phase to start is from a technology perspective. What was
Speaker 2: the conclusion? What is the threats that data holders data
Speaker 2: users around the world face right now?
Speaker 9: It's a cyber mayhem out there. What our research report
Speaker 9: found was one in three people lost their personal information
Speaker 9: and they don't even know about it. Personal informations such
Speaker 9: as social security number and other contact information. And what
Speaker 9: is also interesting is that two out of the three
Speaker 9: organizations have data growing so fast that they can't even
Speaker 9: keep up with the data security. Ninety eight percent of
Speaker 9: the IT leaders are saying that they can't secure the
Speaker 9: data because the data growth is so much. Just look
Speaker 9: at what happened at MGM. MGM had one hundred million
Speaker 9: dollar cost because a lot of their customers grid card information,
Speaker 9: contact information was actually stolen.
Speaker 2: I think the staggering figure that jumps out of may
Speaker 2: is that one in two or fifty percent of all
Speaker 2: companies that have had some kind of loss of data
Speaker 2: from a cyber ins Then where is the threat coming
Speaker 2: from you know, traditionally we'd say, oh, well it's coming
Speaker 2: from Russia or China. Is that still the case.
Speaker 9: It's a combination of many things. You could have bore
Speaker 9: teenagers trying to monetize. You could have national estate actors,
Speaker 9: industrial espionage. I mean, the cyber landscape is much more complex,
Speaker 9: much more active. Is because the digital economy is becoming
Speaker 9: such a big part of the overall economy, and cyber
Speaker 9: is a massive threat to our economy.
Speaker 3: Precisely, total volume of data and an organization that they
Speaker 3: need to secure is sort of rising, you say, seven
Speaker 3: x over the next five years. What on earth is
Speaker 3: a cso to do in this current environment? Just spend
Speaker 3: more and more, get more and more, sort of focus
Speaker 3: on cyber on on bringing in more protections. How on
Speaker 3: earth can they battle this? Just absolute explosion of data.
Speaker 1: We have to reframe the cyber discussion.
Speaker 9: Cyber discussion so far has been about prevention of attacks,
Speaker 9: and that's what cybersecurity industry is doing the last twenty
Speaker 9: thirty years. We have to reframe the discussion from prevention
Speaker 9: to resilience. You have to do prevention, but that's not enough.
Speaker 9: The resilience says that you can continue to operate the
Speaker 9: business even in presence of cyber attacks and breaches. You
Speaker 9: protect your customer's information, your IP, your core business data
Speaker 9: even when the breaches.
Speaker 1: An attack happen. That's the future cyber resilience.
Speaker 3: The future, many would say, is also how you deploy
Speaker 3: genet AIAI more broadly into becoming not only the attacker
Speaker 3: but the protector. Here you're backed by Microsoft, of course,
Speaker 3: which is pending an awful lot of its future on
Speaker 3: artificial intelligence. How are you weaving it in am brubrick.
Speaker 9: Cyber attacks have gone beyond human cons You have to
Speaker 9: fight fire with fire, and as attackers are leveraging AI
Speaker 9: to generate more codes to actually attack you, you have
Speaker 9: to apply AI to understand what the heck is really
Speaker 9: going on. Because the data lives in on premises, data
Speaker 9: lives in cloud, data lives in SaaS applications, and there
Speaker 9: are so much volume, variability and velocity of data generation
Speaker 9: and usage that you have to apply AI to understand
Speaker 9: a bad actor touching your data in the cloud, or
Speaker 9: bad actor touching your data into SAS, and how to
Speaker 9: connect all these dots to really deliver cyber resilience end to.
Speaker 2: End people were almost at the end of twenty twenty three,
Speaker 2: believe it or not. Started the year at CES where
Speaker 2: everyone said the private sector isn't doing enough toward off
Speaker 2: cyber threats. Then in April we went to OURSA and
Speaker 2: everyone said the private sector is not doing enough the
Speaker 2: word of cyber threats. By the end of twenty twenty three,
Speaker 2: will anyone have done anything's word of cyber threats?
Speaker 1: See that everybody's trying hard.
Speaker 9: The challenges that we are stuck in this old model
Speaker 9: of preventing attack trying to stop attack. We need to
Speaker 9: reframe the discussion saying prevention is important, but just relying
Speaker 9: on prevention is failure to plan. We need to have
Speaker 9: a strategic cyber defense initiative which assumes that attacks are
Speaker 9: inevitable and how do you continue to operate the business
Speaker 9: in presence of attacks, Have a strategy about resilience, have
Speaker 9: a strategy about recovery, because again, the digital trust is
Speaker 9: important for a function economy. And if you don't have
Speaker 9: digital trust, if the systems are down for days and days,
Speaker 9: just in case of MGM, people's ability to transact and
Speaker 9: have confidence in the system will be very low.
Speaker 3: PEO will I want to ask more about your company
Speaker 3: because quite clearly you've got a lot of problems to
Speaker 3: be solving for other businesses. Tell us a little bit
Speaker 3: about well, the exuberance around twenty twenty three wasn't just
Speaker 3: about people needing to invest in cyber It is also
Speaker 3: about will we get more public offerings? And your name
Speaker 3: came up time and time again. How is that trajector
Speaker 3: going for Rubric?
Speaker 9: Our business is very strong because of the fundamental realization
Speaker 9: that businesses have to have a plan of cyber recovery,
Speaker 9: cyber resilience, and that's what we are delivering in the marketplace.
Speaker 1: Obviously, given the interest.
Speaker 9: Rate environment, given the broader macro economy, the market is
Speaker 9: in a little.
Speaker 1: Bit of a situation and we are watching the market.
Speaker 9: We are preparing ourselves when the market is right, when
Speaker 9: we are ready, will enter the public.
Speaker 2: Market, and that happening within twenty twenty three. I talked
Speaker 2: about how little of it is left is on the cards.
Speaker 9: I don't know to be the honest answered, because I
Speaker 9: will leave the market prediction to the market experts. But
Speaker 9: again I have a view that Rubric will be a
Speaker 9: public company and we want to build a long term company.
Speaker 3: See people seen great to have some time with you
Speaker 3: of Rubric, Thank you. Meanwhile, coming up, let's talk about
Speaker 3: women's health. The Tech Startups Circle gets back in from
Speaker 3: Shalla Sambugs. NEWBC firm Quan Carlos Riviera is going to
Speaker 3: be joining us next. This is Bluebot Technology tie now
Speaker 3: for VC roundup and first up by Dance co founder
Speaker 3: Zangyu Ming. Five month old VC firm Cool of Adventure
Speaker 3: has leased space in one of Hong Kong's most recognizable
Speaker 3: skyscrapers and in ruts of Chinese financial houses have flocked
Speaker 3: to Hong Kong as IT tries to promote itself as
Speaker 3: an Asian financial hub, emerging from the barony as a COVID. Meanwhile,
Speaker 3: General Catalyst being capital nearly actually three other dozen VC
Speaker 3: firms has signed a set of voluntary commitments with feedback
Speaker 3: from the Biden administration for how the startups they back
Speaker 3: should develop AI responsibly and includes pledges to forecast AI
Speaker 3: risks and benefits and audit and test to ensure product safety,
Speaker 3: among many other things. Through these standards, though aren't binding
Speaker 3: and collective, global it wants to change how pensions access
Speaker 3: the innovation economy is a new investment fund and it's
Speaker 3: coned co owned by the California Pensions is launching with
Speaker 3: more than a billion dollars in committed assets under management
Speaker 3: and a goal of raudening the plan's exposure too bench Capital.
Speaker 2: It let's still we're bench Capital. In one of her
Speaker 2: first investments since leaving Meta, Cheryl Samberg is backing the
Speaker 2: health tech startup Circle through her new Bench Capital Fund SBVP.
Speaker 2: Circle uses AI to analyze biomedical and genomics data with
Speaker 2: the goal of improving women's health and women's health care.
Speaker 2: Circle CEO Juan Colos Verrero joins us now here in
Speaker 2: San Francisco. Thank you for Homie, thank you for being here.
Speaker 2: So on Cheryl Sandberg's backing, there's the cash injection, but
Speaker 2: what does a kind of longtime tech executive like that
Speaker 2: bring you beyond just the money.
Speaker 10: Well, we are very proud and honor of having Sherry
Speaker 10: Lanton as an investor. Like the rest of the investors
Speaker 10: in Circle, we are communted to improve War one health
Speaker 10: and we are committed to do using data, and they
Speaker 10: are sharing that vision and that commitment because it's huge
Speaker 10: possibilities and room for improvements in a woman health. Because
Speaker 10: it's massively underserve. Historically, they have been out of medical
Speaker 10: studies until thirty years ago. There are roughly around seven
Speaker 10: hundred disease that they take four and a half years
Speaker 10: to be diagnosed properly versus men, and they were all
Speaker 10: investment in and woman health is below two percent x
Speaker 10: uxclude oncology. So you can imagine that there is room
Speaker 10: of opportunities to improve woman health and using data we
Speaker 10: can do that.
Speaker 1: So we are very successful.
Speaker 10: Now. We are working with US Fertility that is the
Speaker 10: largest clinic in the US very far. We are also
Speaker 10: in Mexico, Argentina and Colombia and Europe with several things.
Speaker 10: Is one of the biggest laptesting companies in genetics. So
Speaker 10: having the support of people ACTUALI and Home is just
Speaker 10: going to hold us to scale, make the company bigger
Speaker 10: and have a beginn.
Speaker 2: Impact on how does the technology work.
Speaker 10: So I think the main difference between us and everyone
Speaker 10: else is scale and the resolution we have. We want
Speaker 10: to enable personalize and precision medicine on woman and basically
Speaker 10: what it means is that every woman is different and
Speaker 10: what it works for some woman doesn't work for others.
Speaker 10: We provide the tools on the data to a healthcare system.
Speaker 10: To understand those difference to provide the best solution for
Speaker 10: each of those women's is basically what a FDA called
Speaker 10: we are word later real evidence. So you need to
Speaker 10: understand this collegal data in order that you can provide
Speaker 10: the best recommendation of the best solution for a new
Speaker 10: patient walking into the clinic or for a new drug development.
Speaker 10: So yeah, if we go ahead.
Speaker 3: Well, I'm interested in that data and that data collection.
Speaker 3: It says on your website you strive to meet hyper
Speaker 3: compliance standards to ensure that privacy striving doesn't always mean hitting.
Speaker 3: How are you ensuring that this privacy to data remains
Speaker 3: I'm sure type of mind.
Speaker 10: So this is a very important question and I'm sexually
Speaker 10: you're asking. So we are building these biomedica and genomics
Speaker 10: graph that basically connects billions of data points from medical reports,
Speaker 10: biological data, and genemics data to enable that precise and
Speaker 10: precision medicine coming from multiple and different hospitals around the world.
Speaker 10: And we're doing it using our II platform that anonymised
Speaker 10: and remove all the PI information that it's in those
Speaker 10: medical records to make sure that it's never possible to
Speaker 10: go back and take it all the personal information and
Speaker 10: also to understand it and merged, putting all together to
Speaker 10: build that graph that can provide those unique insights to
Speaker 10: improve a woman health. So you're using II. We are
Speaker 10: spending a lot of time to make sure that it's
Speaker 10: completely anonymized, secure, and it only builded to be the
Speaker 10: good things that we can and we want to provide
Speaker 10: for woman health.
Speaker 3: Cheryl of course very passionate and shortom too about equality
Speaker 3: here and underserved community of women. But she's also a
Speaker 3: true business person, both of them, and I'm interested in
Speaker 3: where the money therefore comes into your business. You're partnering
Speaker 3: with clinics, are they paying you?
Speaker 1: Where?
Speaker 3: Where does the money flow back to you as a
Speaker 3: technology provider.
Speaker 10: So first, we are talking about half of the population. Okay,
Speaker 10: so any business that they started getting half of the
Speaker 10: population should be a very good business stared by the fall.
Speaker 10: And second, as I said, we are working with those
Speaker 10: clinics and those fertility companies and fertility labs and genetic
Speaker 10: labs to improve their products in order that they can
Speaker 10: provide better care, to improve their outputs outcomes. In this
Speaker 10: case is starting on fertility. There is room for improvement
Speaker 10: even so, it's a great technology. Doctors are doing great,
Speaker 10: but there is a room for improvement. So our business
Speaker 10: model at homes working with those clinics and helping them
Speaker 10: to provide better tools and better solutions to all their patients.
Speaker 1: And it's going really well.
Speaker 10: Our revenue is growing. As I said, we are not
Speaker 10: just growing quickly and fast in the US, but also
Speaker 10: in South America and in Europe. And the business is
Speaker 10: doing very well.
Speaker 2: And call us what is it that Circle has done?
Speaker 2: Is it your own competence in machine learning AI? Or
Speaker 2: do you go to technology partners and take the work
Speaker 2: that others have done in AI to build out the
Speaker 2: underpendings of the platform.
Speaker 10: We build our own technology. Okay, So in order to
Speaker 10: build a scale and the resolution that you need to
Speaker 10: provide percise medicines to billions of womens, and you need
Speaker 10: to understand in our body we have thirty seven trillion
Speaker 10: different cells. So the scale that we need and the
Speaker 10: amount of data, it's very important. There are a lot
Speaker 10: of companies that they can have billions of patients into
Speaker 10: their data, but they don't have the resolution in order
Speaker 10: to understand what is working or not working across all
Speaker 10: of those different womans. This is similar to if you
Speaker 10: want to drive between San Francisco on New York, you
Speaker 10: want to use maps that has all the data and
Speaker 10: all the resolution to make sure that you are taking
Speaker 10: the right direction all the time you don't get lost.
Speaker 10: But also it has the scale because you want to
Speaker 10: go to all the different cities in the United States.
Speaker 10: To do that at that scale with our human integration
Speaker 10: and only using machines and in the secure way, like
Speaker 10: Caroline was suggesting, you need to have advanced machine learning
Speaker 10: technology that we have development houses.
Speaker 3: All that unstructured data that you're making sense of. You
Speaker 3: call it what I think medicine three point zero. We
Speaker 3: thank you. Circle CEO Juan Carlos Rivero. There Formula one's
Speaker 3: owners that Liberty Media, while they've have to apologize to
Speaker 3: the city of Las Vegas for apparently the disruption caused
Speaker 3: by the Grand Prix schedules for this weekend so all.
Speaker 3: According to ESPN, some residents have been well frustrated by
Speaker 3: the impact of the event, with limited access to the
Speaker 3: strip and hotels during the week Liberty CEO says the
Speaker 3: racing event will bring in around one point seven billion
Speaker 3: revenue to the city well, I'm not sure how much
Speaker 3: apologizing he really needs to do, because I'm not sure
Speaker 3: how much they have to apologize to Monaco or anywhere
Speaker 3: else that they bring what is now like a well
Speaker 3: loved sport.
Speaker 2: Yeah, so everyone has become huge in America in twenty
Speaker 2: twenty three, largely because of Netflix. But what's crazy about this?
Speaker 2: Everyone's talking about it on social media. It's a three
Speaker 2: point eight mile track for a race that hasn't even
Speaker 2: taken place yet. So the weekend Thursday's practice, Friday qualifying,
Speaker 2: Saturday race and onwards. Everyone's pretty up in arms.
Speaker 3: There's going to be fanfair, you can bet it. And
Speaker 3: I guess maybe if you've booked your trip to Las
Speaker 3: Vegas and didn't quite plan that, then maybe a bit
Speaker 3: frustrated not getting easily about But I'm pretty sure there's
Speaker 3: going to be some good vibes only on the weekend.
Speaker 2: Need for speed okay, streaming YouTube will soon require video
Speaker 2: makers to disclose when they've uploaded manipulated synthetic content that
Speaker 2: looks realistic, and that includes video which uses a tools.
Speaker 2: Bloomberg's Davy Alba joins us with more what is it
Speaker 2: that YouTube's requiring here? And who is it that they're
Speaker 2: requiring it up daily?
Speaker 4: Yeah, thanks for having me so.
Speaker 11: YouTube said in its blog post announcing this new policy
Speaker 11: that in the next year, creators who use YouTube's video
Speaker 11: platform need to check these new options on the creator side.
Speaker 4: And disclose when they have used.
Speaker 11: Synthetic or manipulated content in their videos, and that would
Speaker 11: automatically create a label within the video description that indicates
Speaker 11: to readers that there is some synthetic content in there,
Speaker 11: and that would apply for any AI generated video content,
Speaker 11: including YouTube's own AI making tools.
Speaker 3: Yeah. I mean, it's notable that actually they've been wanting
Speaker 3: to law some of their key creators to use their
Speaker 3: own tools to bring generator AI to life. But this
Speaker 3: is particularly important when it comes to more setsitive types
Speaker 3: of content, right, particularly when we're thinking of elections approaching
Speaker 3: or when you're thinking of healthcare. Is there more areas
Speaker 3: where the flagging is going to be more unique, more obvious.
Speaker 1: Yeah?
Speaker 11: Absolutely, you mentioned two key areas.
Speaker 4: Those are two that YouTube is actually looking at.
Speaker 11: Elections, ongoing conflicts, and public health crises. There will be
Speaker 11: a flag that is not just in the video description,
Speaker 11: but on the video player itself. And YouTube is saying
Speaker 11: that for these sensitive topics, there's a higher bar you
Speaker 11: have to you know, disclose these things to viewers. And
Speaker 11: as part of the requirements that it is now putting
Speaker 11: onto these creators, if creators actually don't disclose these things consistently,
Speaker 11: they may be subject to penalties on YouTube, including removal
Speaker 11: of the content on the platform or being demonetized so
Speaker 11: unable to make revenue from advertis on YouTube.
Speaker 3: I mean, maybe all of this feels like a bit
Speaker 3: of a no brain and particularly after Meta had just
Speaker 3: been announcing they're doing the same, particularly when it comes
Speaker 3: to ads that might well have well generated content within them.
Speaker 3: What is difficult about this for YouTube? Why has it
Speaker 3: taken them well a week later versus Meta for example.
Speaker 1: Yeah.
Speaker 11: Well, Google has actually announced a policy that would apply
Speaker 11: to political ads on all of its platforms, including Google Search,
Speaker 11: you know, YouTube and elsewhere that would flag users people
Speaker 11: who are viewing the content if there are AI generated
Speaker 11: content in that. This is different because it applies to
Speaker 11: just content that is created on YouTube and not particularly
Speaker 11: for advertising.
Speaker 1: But you know, Google is in.
Speaker 11: A very special position here because they both create eight
Speaker 11: generative AI tools that really anyone can use, and they
Speaker 11: have the platforms such as YouTube to distribute this kind
Speaker 11: of content far and wide. And so, you know, all
Speaker 11: year Google has been talking about the enormous responsibility that
Speaker 11: comes with AI and you know, putting AI into the
Speaker 11: hands of people, and this is one demonstration of them trying.
Speaker 4: To you know, sort of walk the walk and say
Speaker 4: that you know, we are doing the right thing.
Speaker 11: We are adding these disclosures letting people know when generative
Speaker 11: AI is in use on our platforms.
Speaker 3: All about the responsibility when you're building the tech. Two.
Speaker 3: Bloomberg's Davy Albert, thank you so much for joining us
Speaker 3: on all Things YouTube. Meanwhile, that does it for this
Speaker 3: edition of Bloomberg Technology and for another jam packed show
Speaker 3: across earnings and indeed technological development.
Speaker 2: And yeah, and thanks to everyone out there that's listening
Speaker 2: to the podcast recapping the show. We're on Apples, Spotify,
Speaker 2: iHeart and of course of the Bloomberg platforms. Coming up
Speaker 2: on Bloomberg Television a live exclusive conversation with conversation with
Speaker 2: Ken Griffin of Citadel that coming up in the next program.
Speaker 2: It is one that you do not want to miss.
Speaker 2: From here in San Francisco going out in New York City.
Speaker 2: This is Bloomberg Technology,