1 00:00:00,120 --> 00:00:07,160 Speaker 1: Bloomberg Audio Studios, Podcasts, radio News. 2 00:00:08,680 --> 00:00:13,960 Speaker 2: From Mahard where Innovation, Money and power Collie in Silicon Valley, NBN. 3 00:00:14,280 --> 00:00:17,759 Speaker 3: This is Bloomberg Technology with Caroline Hyde. 4 00:00:17,400 --> 00:00:34,560 Speaker 4: And Ed Ludlow, live from Bloomberg's World headquarters in New York. 5 00:00:34,640 --> 00:00:36,519 Speaker 5: This is Bloomberg Technology. Coming up this. 6 00:00:36,520 --> 00:00:40,560 Speaker 4: Hour, Apple's AI delay, a Bloomberg exclusive on Apple Intelligence 7 00:00:40,840 --> 00:00:45,680 Speaker 4: rolling out later. Post iOS update plus from Cryptocritic to 8 00:00:45,760 --> 00:00:49,519 Speaker 4: bitcoin backer. Trump vows changes at the SEC and if 9 00:00:49,560 --> 00:00:54,240 Speaker 4: re elected, to make bitcoin great again. And Deadpool's domination 10 00:00:54,360 --> 00:00:58,720 Speaker 4: the Disney film shatters box office records on opening weekend. 11 00:00:58,840 --> 00:01:02,080 Speaker 4: This is a really big important week for megancap earnings. 12 00:01:02,120 --> 00:01:04,399 Speaker 4: Take a look at the Nasdaq one hundred. We're up 13 00:01:04,440 --> 00:01:07,000 Speaker 4: meaningfully in the session, but we're coming off the back 14 00:01:07,040 --> 00:01:08,280 Speaker 4: of three straight. 15 00:01:07,959 --> 00:01:09,680 Speaker 5: Weeks of weekly declines. 16 00:01:09,920 --> 00:01:12,040 Speaker 4: We were talking over the weekend about the NAZAK one 17 00:01:12,120 --> 00:01:15,440 Speaker 4: hundred being in correction territory. You have ten trillion dollars 18 00:01:15,520 --> 00:01:19,640 Speaker 4: or so of marketcap reporting across Microsoft, Apple, Meta, and 19 00:01:19,760 --> 00:01:22,360 Speaker 4: of course Amazon. We will get into that. Apple is 20 00:01:22,360 --> 00:01:25,240 Speaker 4: a name that we're watching really closely. It kind of 21 00:01:25,280 --> 00:01:28,520 Speaker 4: opened lower and it's been chopping, trading choppy, and now 22 00:01:28,520 --> 00:01:32,880 Speaker 4: it's modestly lower, basically flat. A Bloomberg exclusive, Apple's AI 23 00:01:33,000 --> 00:01:36,400 Speaker 4: features have been delayed, and we'll miss the initial release 24 00:01:36,680 --> 00:01:40,360 Speaker 4: of iOS eighteen in September. According to Bloomberg's reporting, the 25 00:01:40,400 --> 00:01:44,080 Speaker 4: company plans to release Apple Intelligence by October, but will 26 00:01:44,120 --> 00:01:47,800 Speaker 4: make it available to software developers for early testing as 27 00:01:47,800 --> 00:01:51,840 Speaker 4: soon as this week, an atypical strategy for the tech giant. 28 00:01:52,000 --> 00:01:55,720 Speaker 4: I want to welcome back Bloomberg's Mark German explain the 29 00:01:55,760 --> 00:01:57,720 Speaker 4: reporting here because the detail is important. 30 00:01:57,720 --> 00:02:00,559 Speaker 1: Mark, thank you so much for her. I mean great 31 00:02:00,600 --> 00:02:04,440 Speaker 1: to be back Apple Intelligence. This is Apple's big initiative 32 00:02:04,440 --> 00:02:07,200 Speaker 1: for the upcoming year. This is Apple showing the market, 33 00:02:07,320 --> 00:02:12,000 Speaker 1: showing consumers that it too has generative artificial intelligence features. 34 00:02:12,200 --> 00:02:14,639 Speaker 1: They announced these in June. The intention was to bring 35 00:02:14,680 --> 00:02:17,920 Speaker 1: them to market with iOS eighteen and iPad os eighteen, 36 00:02:18,200 --> 00:02:21,280 Speaker 1: which will launch sometime in September. But now I'm told 37 00:02:21,320 --> 00:02:24,160 Speaker 1: those are being pushed back to iOS eighteen point one 38 00:02:24,200 --> 00:02:27,120 Speaker 1: and iPad os eighteen point one. Now this is not 39 00:02:27,200 --> 00:02:29,919 Speaker 1: a big delay, but this means that they likely won't 40 00:02:30,000 --> 00:02:33,239 Speaker 1: come pre installed with the iPhone sixteen when those devices 41 00:02:33,280 --> 00:02:35,880 Speaker 1: go on sale in September, and it also means the 42 00:02:35,880 --> 00:02:38,800 Speaker 1: features will come via software update by October, so it's 43 00:02:38,840 --> 00:02:41,680 Speaker 1: about a few week delay. It's not a huge deal, 44 00:02:41,960 --> 00:02:44,200 Speaker 1: but it shows that the company is still racing to 45 00:02:44,520 --> 00:02:47,920 Speaker 1: iron things out and fix bugs before this very important 46 00:02:47,919 --> 00:02:48,560 Speaker 1: public launch. 47 00:02:48,680 --> 00:02:51,200 Speaker 4: I'm going to get into the stock story with my 48 00:02:51,280 --> 00:02:54,320 Speaker 4: next guess, but I think it's worth recounting the basics 49 00:02:54,320 --> 00:02:58,120 Speaker 4: of Apple Intelligence. So I've got iPhone fifteen Pro, which 50 00:02:58,160 --> 00:03:00,320 Speaker 4: I think in the end will qualify me to be 51 00:03:00,320 --> 00:03:04,399 Speaker 4: able to get Apple Intelligence. But just explain the rollout 52 00:03:04,520 --> 00:03:06,839 Speaker 4: broadly across what kind of device you need to have, 53 00:03:07,120 --> 00:03:08,520 Speaker 4: and then like what it's going to do. 54 00:03:09,639 --> 00:03:13,320 Speaker 1: Yeah, So, first of all, Apple Intelligence requires devices if 55 00:03:13,320 --> 00:03:16,640 Speaker 1: you're on the Mac with Apple Silicon or if you 56 00:03:16,680 --> 00:03:19,560 Speaker 1: have an iPad or iPhone devices with a gigabytes of RAM. 57 00:03:19,800 --> 00:03:22,600 Speaker 1: So for the iPad, that means any iPad with an 58 00:03:22,720 --> 00:03:23,320 Speaker 1: M one chip. 59 00:03:23,360 --> 00:03:24,960 Speaker 3: Orneur and Apple start. 60 00:03:25,280 --> 00:03:27,880 Speaker 1: Including M one chips with the iPad Pro and then 61 00:03:27,960 --> 00:03:31,480 Speaker 1: later the iPad Air beginning in twenty twenty one. Now 62 00:03:31,480 --> 00:03:33,600 Speaker 1: the iPhone is where things get a little bit more interesting. 63 00:03:33,919 --> 00:03:37,400 Speaker 1: Today there's only two iPhone models that will support Apple Intelligence, 64 00:03:37,640 --> 00:03:40,839 Speaker 1: the iPhone fifteen Pro and the iPhone fifteen Promas that's 65 00:03:40,880 --> 00:03:43,000 Speaker 1: because those are the only two iPhones on sale right 66 00:03:43,040 --> 00:03:45,760 Speaker 1: now that include a gigabytes of RAM. Now that gets 67 00:03:45,800 --> 00:03:48,960 Speaker 1: interesting because there's going to be soon four more models 68 00:03:49,280 --> 00:03:51,360 Speaker 1: that have a gigabytes of RAM. Those are all the 69 00:03:51,360 --> 00:03:54,600 Speaker 1: iPhone sixteen's, the regular one, the Plus, the Pro, and 70 00:03:54,640 --> 00:03:58,000 Speaker 1: the Promax launching in September, so pretty soon a bunch 71 00:03:58,040 --> 00:04:01,400 Speaker 1: of more iPhones will include Apple Intelligence. That's so interesting 72 00:04:01,440 --> 00:04:04,360 Speaker 1: because that is probably going to spur people to upgrade 73 00:04:04,360 --> 00:04:05,960 Speaker 1: their iPhone give it. It's not going to come to 74 00:04:06,000 --> 00:04:06,760 Speaker 1: older models. 75 00:04:07,040 --> 00:04:07,200 Speaker 3: Now. 76 00:04:07,200 --> 00:04:10,440 Speaker 1: Apple Intelligence includes a bunch of AI features. It's basically 77 00:04:10,520 --> 00:04:12,600 Speaker 1: a cash all term for a lot of new AI 78 00:04:12,640 --> 00:04:16,480 Speaker 1: features coming to the Apple devices. That includes being able 79 00:04:16,520 --> 00:04:20,719 Speaker 1: to create images, integrate with chat, GPT, a new version 80 00:04:20,760 --> 00:04:24,520 Speaker 1: of Siri, the ability to have writing tools so you 81 00:04:24,560 --> 00:04:26,760 Speaker 1: can write something in an email and it will be 82 00:04:26,800 --> 00:04:30,039 Speaker 1: able to summarize it for you, shorten it, make it 83 00:04:30,080 --> 00:04:35,480 Speaker 1: more conversational, be able to summarize incoming text messages, transcribe 84 00:04:35,520 --> 00:04:38,279 Speaker 1: a voice memo or a phone call and then create 85 00:04:38,279 --> 00:04:40,839 Speaker 1: a summary for you. So just a bunch of different 86 00:04:40,839 --> 00:04:45,440 Speaker 1: AI features across the board. These aren't anything extraordinarily innovative 87 00:04:45,560 --> 00:04:47,640 Speaker 1: or brand new. Not a lot that we haven't seen 88 00:04:47,640 --> 00:04:51,039 Speaker 1: for other platforms before. But the deep integration and the 89 00:04:51,080 --> 00:04:53,560 Speaker 1: ease of use and the interface that you're going to 90 00:04:53,560 --> 00:04:56,560 Speaker 1: see on the Apple devices really takes it up a 91 00:04:56,600 --> 00:04:58,080 Speaker 1: notch against rivals. 92 00:04:58,320 --> 00:05:03,279 Speaker 4: Apple Repoles fiscal thed quarder earnings Thursday after the market close. 93 00:05:03,360 --> 00:05:04,720 Speaker 4: I heard a rumor that you and I are going 94 00:05:04,760 --> 00:05:06,359 Speaker 4: to be seeming up on the top Live blog. That 95 00:05:06,440 --> 00:05:09,240 Speaker 4: might be news to you. Give me the Mark Germans 96 00:05:09,279 --> 00:05:11,440 Speaker 4: what to watch list for this Apple print. 97 00:05:12,360 --> 00:05:14,680 Speaker 1: Yeah, this is an interesting one because you're really going 98 00:05:14,760 --> 00:05:18,040 Speaker 1: to want to pay attention to the guidance that Apple 99 00:05:18,080 --> 00:05:20,160 Speaker 1: CFO Luca Maistry and Tim Cook. 100 00:05:20,000 --> 00:05:20,720 Speaker 3: Give on this call. 101 00:05:20,760 --> 00:05:22,560 Speaker 1: They're not going to give you numbers, but they're going 102 00:05:22,640 --> 00:05:25,800 Speaker 1: to imply probably how the iPhone is going to do. 103 00:05:25,880 --> 00:05:28,279 Speaker 1: So that's really going to be the most important part there, 104 00:05:28,400 --> 00:05:30,240 Speaker 1: because there was not a lot of new hardware launch 105 00:05:30,360 --> 00:05:32,760 Speaker 1: during the quarter that we really care about other than 106 00:05:32,760 --> 00:05:35,359 Speaker 1: the new iPads. So all eyes are going to be 107 00:05:35,560 --> 00:05:36,800 Speaker 1: on that four looking. 108 00:05:36,480 --> 00:05:39,640 Speaker 4: Commentary Bloomberg's Mark German, it is incredible to have you 109 00:05:39,720 --> 00:05:41,400 Speaker 4: back here on Bloomberg Technology. 110 00:05:41,440 --> 00:05:41,760 Speaker 5: Thank you. 111 00:05:42,040 --> 00:05:44,320 Speaker 4: Let's stick with the Apple story and bringing Maxim Group 112 00:05:44,360 --> 00:05:47,560 Speaker 4: Managing Director tom Forte hold on the stock one hundred 113 00:05:47,560 --> 00:05:51,000 Speaker 4: and ninety five dollars price target. What we didn't necessarily 114 00:05:51,000 --> 00:05:54,080 Speaker 4: talk about in Mark's reporting is why it's important. A 115 00:05:54,080 --> 00:05:56,880 Speaker 4: lot of the run up in the stock over whatever 116 00:05:56,880 --> 00:05:59,640 Speaker 4: time period you might choose, is optimism that this is 117 00:05:59,720 --> 00:06:03,960 Speaker 4: come a real tangible effort on artificial intelligence. So your 118 00:06:03,960 --> 00:06:07,680 Speaker 4: response to that reporting, it's a matter of weeks in 119 00:06:08,120 --> 00:06:11,160 Speaker 4: the rollout of Apple Intelligence, but it seems significant. 120 00:06:11,360 --> 00:06:13,880 Speaker 6: Sure, So when I think about my hold rating on Apple, 121 00:06:14,560 --> 00:06:18,359 Speaker 6: the question becomes how much are investors potentially ahead of 122 00:06:18,400 --> 00:06:21,880 Speaker 6: themselves when thinking about the upgrade cycle for AI. I 123 00:06:21,880 --> 00:06:25,200 Speaker 6: certainly think they'll be an upgrade cycle for AI. In 124 00:06:25,279 --> 00:06:28,520 Speaker 6: our numbers, we're looking for essentially half the lift they 125 00:06:28,520 --> 00:06:31,279 Speaker 6: got from five G. And the reason we think it'll 126 00:06:31,320 --> 00:06:33,440 Speaker 6: be half the lift not as much of a lift, 127 00:06:33,720 --> 00:06:38,080 Speaker 6: is they have pressure from a regulatory standpoint in Europe, 128 00:06:38,080 --> 00:06:40,160 Speaker 6: which is about twenty five percent of their sales, and 129 00:06:40,200 --> 00:06:42,400 Speaker 6: in China, which is about twenty percent in their sales, 130 00:06:43,000 --> 00:06:44,880 Speaker 6: and now we're seeing that they're going to have a 131 00:06:44,920 --> 00:06:48,880 Speaker 6: slower rollout of Apple Intelligence. So I think clearly there'll 132 00:06:48,880 --> 00:06:50,719 Speaker 6: be an upgrade cycle. I just don't think it'll be 133 00:06:50,800 --> 00:06:53,720 Speaker 6: as significant as what's already reflected in the shares. 134 00:06:54,120 --> 00:06:56,400 Speaker 4: One of the things we've been thinking about bobout technology 135 00:06:56,480 --> 00:06:59,400 Speaker 4: is basically, for every dollar put into AI, how many 136 00:06:59,440 --> 00:07:01,279 Speaker 4: dollars are comeing out for each of these companies. In 137 00:07:01,320 --> 00:07:04,479 Speaker 4: the case of like the cloud players, it's a bit 138 00:07:04,600 --> 00:07:08,080 Speaker 4: more easy to do the math AI infrastructure investment top 139 00:07:08,120 --> 00:07:11,120 Speaker 4: line growth. But in Apple's case it seems like Apple 140 00:07:11,160 --> 00:07:15,800 Speaker 4: intelligence that they hope it spurs upgrade cycles, right because 141 00:07:15,800 --> 00:07:18,120 Speaker 4: you need the hardware that's compatible with it. As as 142 00:07:18,200 --> 00:07:21,560 Speaker 4: Mark outlined, what's your model for how a dollar in 143 00:07:21,680 --> 00:07:24,240 Speaker 4: translate to however many dollars out for Apple? 144 00:07:24,560 --> 00:07:28,240 Speaker 6: This is a good example where artificial intelligence can result 145 00:07:28,280 --> 00:07:30,960 Speaker 6: in sales. I think the challenge you've seen in enterprise 146 00:07:31,040 --> 00:07:35,680 Speaker 6: software is heavy level of investment spend for artificial intelligence 147 00:07:35,960 --> 00:07:38,560 Speaker 6: and not a near term twelve to eighteen month impact. 148 00:07:38,920 --> 00:07:40,720 Speaker 6: The size of the price for Apple here is about 149 00:07:40,720 --> 00:07:43,280 Speaker 6: fifty billion dollars. So if you look at the incremental 150 00:07:43,320 --> 00:07:45,680 Speaker 6: revenue they generated from iPhone, which is about half their 151 00:07:45,720 --> 00:07:49,680 Speaker 6: sales on five G, they added fifty billion a year 152 00:07:49,720 --> 00:07:53,040 Speaker 6: in annual revenue on the five G upgrade cycle. So 153 00:07:53,080 --> 00:07:55,640 Speaker 6: to the extent that AI spurs something similar. You could 154 00:07:55,640 --> 00:07:58,440 Speaker 6: be looking at an incremental fifty billion of revenue for Apple. 155 00:07:58,720 --> 00:08:01,760 Speaker 6: Translating that to EPs, we're looking at card mid to 156 00:08:01,880 --> 00:08:05,200 Speaker 6: high single digit EPs growth from flat growth. 157 00:08:05,240 --> 00:08:07,480 Speaker 4: We're talking the Tom Forte of Mattim Group, who has 158 00:08:07,520 --> 00:08:09,120 Speaker 4: a hold on the stock one hundred and ninety five 159 00:08:09,120 --> 00:08:12,960 Speaker 4: dollars price target earnings. Mark set out what he thinks 160 00:08:12,960 --> 00:08:16,120 Speaker 4: we should be looking for. A lesson learned in recent 161 00:08:16,200 --> 00:08:19,520 Speaker 4: quarters is maybe don't put too much emphasis on the 162 00:08:19,560 --> 00:08:23,240 Speaker 4: third party data, particularly maybe around China, because the third 163 00:08:23,320 --> 00:08:26,720 Speaker 4: party data tells us that the iPhone is slipping in 164 00:08:26,800 --> 00:08:30,520 Speaker 4: China to domestic handset makers, and yet the last earnings 165 00:08:30,720 --> 00:08:33,160 Speaker 4: on the call in particular, they said, no, we think 166 00:08:33,200 --> 00:08:36,880 Speaker 4: we've got growth back there those slightly in congruous or 167 00:08:36,880 --> 00:08:42,560 Speaker 4: competing data points. With that context in mind, what are 168 00:08:42,559 --> 00:08:45,160 Speaker 4: you bracing for for Luka Maistreet to say or otherwise? 169 00:08:45,240 --> 00:08:47,400 Speaker 6: Yeah, so similar, Mark said, I'm going to try to 170 00:08:47,440 --> 00:08:50,920 Speaker 6: reverse engineer essentially what the outlook is for iPhone sales 171 00:08:51,080 --> 00:08:53,720 Speaker 6: in the September recorder. So the expectation will be that 172 00:08:53,760 --> 00:08:56,080 Speaker 6: they'll have a new iPhone sixteen that I'll come up 173 00:08:56,120 --> 00:08:59,120 Speaker 6: in the September recorder. Yes, the software will lag into 174 00:08:59,160 --> 00:09:02,560 Speaker 6: the December recorder. But to the extent that that is 175 00:09:02,600 --> 00:09:04,880 Speaker 6: the commentary I'm looking for. And if you looked at 176 00:09:04,880 --> 00:09:08,240 Speaker 6: the June quarter, the same exercise suggested that iPhone sales 177 00:09:08,280 --> 00:09:11,360 Speaker 6: would be negative in the June quarter. So did we 178 00:09:11,360 --> 00:09:14,679 Speaker 6: see a transition from negative to positive on the upgrade 179 00:09:14,679 --> 00:09:15,440 Speaker 6: cycle for AI? 180 00:09:15,920 --> 00:09:18,840 Speaker 5: Where's the biggest surprise going to be? In the Apple print? 181 00:09:19,120 --> 00:09:22,000 Speaker 6: The biggest surprise is going to be I think that 182 00:09:22,080 --> 00:09:26,280 Speaker 6: the incremental lift to iPhone sales from AI will not 183 00:09:26,360 --> 00:09:29,360 Speaker 6: be as significant as currently reflected in the stock stocks 184 00:09:29,360 --> 00:09:32,240 Speaker 6: trading it north of a thirty times pe the tech 185 00:09:32,320 --> 00:09:33,319 Speaker 6: big tech peers. 186 00:09:33,040 --> 00:09:34,920 Speaker 3: Are more like twenty seven and a half. 187 00:09:35,160 --> 00:09:37,319 Speaker 6: And I think right now investors are just expecting too 188 00:09:37,360 --> 00:09:40,040 Speaker 6: much of a boost for Apple from AI. 189 00:09:40,440 --> 00:09:43,040 Speaker 4: A story we discussed less and we've actually gone away 190 00:09:43,080 --> 00:09:46,360 Speaker 4: from with Amazon as well as ecosystem. You're a device user, 191 00:09:46,400 --> 00:09:49,080 Speaker 4: but you now use services. Do you think Apple moves 192 00:09:49,080 --> 00:09:50,679 Speaker 4: back to that story with AI? 193 00:09:50,920 --> 00:09:52,400 Speaker 3: That is a great story for Apple. 194 00:09:52,720 --> 00:09:56,320 Speaker 6: So to the extent that incremental iPhone sales result in 195 00:09:56,320 --> 00:10:00,800 Speaker 6: incremental services revenue that could enable the company. 196 00:10:00,640 --> 00:10:02,600 Speaker 3: To perhaps support a higher multiple. 197 00:10:02,920 --> 00:10:05,760 Speaker 6: So ecosystem is very important to Apple and to the 198 00:10:05,800 --> 00:10:09,040 Speaker 6: extent that they can leverage AI to get consumers more 199 00:10:09,080 --> 00:10:12,320 Speaker 6: excited about their ecosystem. Here to advance our purchases on 200 00:10:12,400 --> 00:10:15,199 Speaker 6: higher margin services that could be wonderful for the stack. 201 00:10:15,360 --> 00:10:18,720 Speaker 4: Tom Forte, Maxim Group Managing Director, great to have you 202 00:10:18,760 --> 00:10:28,760 Speaker 4: back on. It's a big week for big tech with 203 00:10:28,840 --> 00:10:32,440 Speaker 4: four of the magnificent seven megacaps posting their quarterly earnings. 204 00:10:32,480 --> 00:10:33,800 Speaker 5: What a calendar that is. 205 00:10:34,000 --> 00:10:36,200 Speaker 4: You might think your attentions are over in Paris with 206 00:10:36,240 --> 00:10:38,640 Speaker 4: the Olympics, but in the world of technology, you are 207 00:10:38,640 --> 00:10:42,640 Speaker 4: glued to Bloomberg Technology right through the course of the week. 208 00:10:42,720 --> 00:10:45,000 Speaker 4: And it's not just the megacaps, some of the chip 209 00:10:45,080 --> 00:10:47,319 Speaker 4: names as well. Let's get the outlook with Brad Erickson, 210 00:10:47,640 --> 00:10:52,000 Speaker 4: Capital Markets Research analysts at RBC. I think in order 211 00:10:52,040 --> 00:10:53,880 Speaker 4: to look forward, I look back at last week in 212 00:10:53,960 --> 00:10:57,720 Speaker 4: alphabet and the lessons learned, the questions that investors posed, 213 00:10:58,080 --> 00:10:59,640 Speaker 4: and we've already talked about it in the show, but 214 00:10:59,800 --> 00:11:02,000 Speaker 4: I think it's a question about for every dollar you 215 00:11:02,040 --> 00:11:05,560 Speaker 4: put into AI infrastructure investment, how many dollars are you 216 00:11:05,600 --> 00:11:07,839 Speaker 4: getting out in the near term for AI? 217 00:11:08,040 --> 00:11:09,520 Speaker 5: Is that how you'd approach this. 218 00:11:09,440 --> 00:11:12,560 Speaker 7: Week Yeah, I think that's going to be a key topic. 219 00:11:13,480 --> 00:11:15,360 Speaker 7: You know, we're not going to get a ton like 220 00:11:15,400 --> 00:11:18,320 Speaker 7: out of Meta or Amazon, for example, in terms of 221 00:11:18,360 --> 00:11:21,640 Speaker 7: what they're spending this year. People are already generally kind 222 00:11:21,640 --> 00:11:23,960 Speaker 7: of understand that. I think we're going to be looking 223 00:11:24,000 --> 00:11:27,480 Speaker 7: at the marginal dollars, like you said, And I think 224 00:11:27,480 --> 00:11:29,920 Speaker 7: what's interesting is I think a quarter or two ago, 225 00:11:30,040 --> 00:11:33,600 Speaker 7: people were very focused on specifically what AI was driving. 226 00:11:33,640 --> 00:11:35,560 Speaker 7: But I think what we're learning more and more is 227 00:11:35,559 --> 00:11:38,640 Speaker 7: that AI is really sort of integrating into these models 228 00:11:38,640 --> 00:11:41,520 Speaker 7: and so you can't unpack it, which is okay because 229 00:11:41,520 --> 00:11:45,000 Speaker 7: then we actually can evaluate the dollar growth in these 230 00:11:45,000 --> 00:11:49,040 Speaker 7: companies and what is sort of justifying those CAPEX investments. 231 00:11:49,840 --> 00:11:52,200 Speaker 5: There are things that they're sort of idiosyncratic. 232 00:11:52,280 --> 00:11:55,760 Speaker 4: You know Meta's case, we kind of forget into massive 233 00:11:56,200 --> 00:12:00,480 Speaker 4: portfolio of social media companies. But they last quarter told 234 00:12:00,559 --> 00:12:03,800 Speaker 4: us about their plans for infrastructure, which wins out the 235 00:12:04,440 --> 00:12:07,160 Speaker 4: forward looking AI story or the backward looking history of 236 00:12:07,200 --> 00:12:07,760 Speaker 4: that company. 237 00:12:08,280 --> 00:12:08,480 Speaker 8: Oh. 238 00:12:08,880 --> 00:12:11,280 Speaker 7: I think people are definitely going to be looking forward right, 239 00:12:11,600 --> 00:12:13,720 Speaker 7: the story will be the same. We'll look at the 240 00:12:13,760 --> 00:12:16,760 Speaker 7: revenue trends and evaluate kind of what they're saying about 241 00:12:16,800 --> 00:12:19,800 Speaker 7: the ad market and their products in particular, and then 242 00:12:19,840 --> 00:12:21,800 Speaker 7: the focus on the call is going to shift to 243 00:12:21,840 --> 00:12:25,880 Speaker 7: Mark talking about his vision for AI and trying to 244 00:12:25,920 --> 00:12:29,600 Speaker 7: give people some comfort. I think this quarter in again, 245 00:12:29,720 --> 00:12:33,400 Speaker 7: why are they making such big investments where maybe we're 246 00:12:33,480 --> 00:12:35,360 Speaker 7: going to see you know, maybe a little bit of 247 00:12:35,960 --> 00:12:38,600 Speaker 7: sort of call it delayed gratification in terms of when 248 00:12:38,640 --> 00:12:41,320 Speaker 7: we see those investments payoff. Right, he used the word 249 00:12:41,400 --> 00:12:45,480 Speaker 7: last quarter, multi year investment cycle. That's a scary term 250 00:12:45,600 --> 00:12:47,640 Speaker 7: for people. So we'll see what kind of performance he 251 00:12:47,679 --> 00:12:49,520 Speaker 7: puts up on the call later for this week. 252 00:12:50,200 --> 00:12:53,400 Speaker 4: For me, Brad, this is a week where being a 253 00:12:53,440 --> 00:12:56,520 Speaker 4: CEO or a CFO you kind of got to earn 254 00:12:56,559 --> 00:12:59,080 Speaker 4: that paypacket, Do you know what I mean? That it 255 00:12:59,160 --> 00:13:01,040 Speaker 4: comes down to community at the end of the day. 256 00:13:01,080 --> 00:13:04,120 Speaker 4: I found last quarter fascinating. How much kind of faith 257 00:13:04,200 --> 00:13:06,959 Speaker 4: or credence do you put into the words spoken by 258 00:13:07,000 --> 00:13:07,880 Speaker 4: the people at the top. 259 00:13:08,559 --> 00:13:12,880 Speaker 7: Yeah, you know, I think they're a little bit different cases. Right, 260 00:13:12,920 --> 00:13:15,440 Speaker 7: we cover Meta and Amazon, so maybe I'll stick stick 261 00:13:15,520 --> 00:13:19,840 Speaker 7: with my commentary there in terms of Mark Zuckerberg and Meta. 262 00:13:19,880 --> 00:13:22,400 Speaker 7: You know, I think one of the adages we've heard 263 00:13:22,480 --> 00:13:25,520 Speaker 7: lately is you want to buy Mark when he's feeling 264 00:13:25,679 --> 00:13:28,280 Speaker 7: maybe a little bit more confident, and sell him when 265 00:13:28,280 --> 00:13:32,240 Speaker 7: he's when he's feeling or so yeah, sorry, buy him 266 00:13:32,280 --> 00:13:35,120 Speaker 7: when he's feeling a little little bit less confident, sell 267 00:13:35,200 --> 00:13:38,480 Speaker 7: him when he's a little bit more confident. Last quarter, 268 00:13:38,559 --> 00:13:41,440 Speaker 7: I think they're delivering such high growth. They were twenty 269 00:13:41,440 --> 00:13:45,680 Speaker 7: seven percent growth last quarter, twenty two percent this quarter. 270 00:13:46,520 --> 00:13:48,480 Speaker 7: You know, I think that that felt a little bit tough, 271 00:13:48,520 --> 00:13:52,320 Speaker 7: and obviously the stocks sold off. Historically, I think you've 272 00:13:52,320 --> 00:13:54,240 Speaker 7: seen that flip to the other side, So we'll see 273 00:13:54,240 --> 00:13:55,880 Speaker 7: what kind of tone we get out of him here. 274 00:13:56,160 --> 00:13:59,720 Speaker 7: But if he's basically talking to maybe more moderating growth 275 00:13:59,800 --> 00:14:03,280 Speaker 7: rate and feeling a little bit better about those investments, 276 00:14:03,320 --> 00:14:06,760 Speaker 7: that can be a positive sigence on Amazon's it's I 277 00:14:06,760 --> 00:14:10,040 Speaker 7: think much simpler. You know, we expect the Indijas to 278 00:14:10,040 --> 00:14:13,040 Speaker 7: come out with a very confident tone around AI. They're 279 00:14:13,080 --> 00:14:14,800 Speaker 7: not going to get into the game of sort of 280 00:14:15,320 --> 00:14:18,840 Speaker 7: promoting themselves or even speaking to how much AI is 281 00:14:18,880 --> 00:14:22,040 Speaker 7: exactly contributing. But I do expect their commentary to remain 282 00:14:22,600 --> 00:14:24,600 Speaker 7: very polish on AI in general. 283 00:14:24,680 --> 00:14:25,840 Speaker 5: So that's an interesting point. 284 00:14:25,840 --> 00:14:28,680 Speaker 4: What they said last quarter is that for aws revenue 285 00:14:28,760 --> 00:14:32,360 Speaker 4: run rate one hundred billion, but specifically for generative AI 286 00:14:33,080 --> 00:14:36,200 Speaker 4: revenue run rate in the billions, multi billions of dollars. 287 00:14:36,520 --> 00:14:37,840 Speaker 5: That seemed like enough. 288 00:14:38,800 --> 00:14:41,920 Speaker 4: So if you don't expect them to kind of over 289 00:14:41,960 --> 00:14:44,440 Speaker 4: exaggerate or expand on that, what do they need to 290 00:14:44,480 --> 00:14:47,080 Speaker 4: say this quarter to keep investors convinced? 291 00:14:47,520 --> 00:14:50,440 Speaker 7: Yeah, I think you know, previously they I think they 292 00:14:50,480 --> 00:14:54,760 Speaker 7: had been a little bit behind, certainly on even on 293 00:14:54,960 --> 00:14:59,080 Speaker 7: just the acquisition of GPUs necessary to train up their 294 00:14:59,080 --> 00:15:02,040 Speaker 7: models and their platfor so I think maybe give them 295 00:15:02,080 --> 00:15:06,000 Speaker 7: a little bit more color on progress forward progress and 296 00:15:06,040 --> 00:15:09,560 Speaker 7: aggression there will be super helpful. The other thing, too, 297 00:15:09,680 --> 00:15:12,240 Speaker 7: is that, you know, one of the things they emphasize 298 00:15:12,280 --> 00:15:16,120 Speaker 7: is when they say things like multi billion dollar run 299 00:15:16,200 --> 00:15:18,800 Speaker 7: rates for AID, they're really talking about broader AI, which 300 00:15:18,880 --> 00:15:23,080 Speaker 7: they've been working on for years, very much pre dating 301 00:15:23,400 --> 00:15:26,680 Speaker 7: the onset of generative AI last year. So again it's 302 00:15:26,720 --> 00:15:29,480 Speaker 7: a little bit hard to unpack, but that would be 303 00:15:29,520 --> 00:15:31,640 Speaker 7: the general forward commentary, I would say. 304 00:15:31,880 --> 00:15:34,960 Speaker 4: Brad Eggs and Internet analyst obviously Capital Markets. Great to 305 00:15:34,960 --> 00:15:36,840 Speaker 4: have you on the show. Thank you all right. Coming 306 00:15:36,880 --> 00:15:40,880 Speaker 4: up on BlueBag technology, France faces an Internet disruption. More 307 00:15:40,920 --> 00:15:44,560 Speaker 4: on the latest infrastructure attack as the Paris Olympics gets 308 00:15:44,640 --> 00:15:47,600 Speaker 4: Underwegh also taking a quick look at shares on Semi 309 00:15:47,680 --> 00:15:49,640 Speaker 4: up eleven and a half twelve percent, one of the 310 00:15:49,720 --> 00:15:53,040 Speaker 4: best performers in major enc's s and P five hundred 311 00:15:54,000 --> 00:15:58,560 Speaker 4: strong earnings basically second quarter adjusted earnings per share beat estimates. 312 00:15:59,280 --> 00:16:02,400 Speaker 4: You know, it's a name where their chips are more 313 00:16:02,440 --> 00:16:04,720 Speaker 4: related to kind of automotive industry. They have a wide 314 00:16:04,760 --> 00:16:07,360 Speaker 4: arrange use case not so much AI, but it's a 315 00:16:07,440 --> 00:16:10,960 Speaker 4: name that we track quarterly on this program. Good results. 316 00:16:11,040 --> 00:16:32,000 Speaker 4: This is Bloomberg Technology. It's time for talking tech and 317 00:16:32,040 --> 00:16:34,680 Speaker 4: first up. Shares of Ali Barber rising today, the stock 318 00:16:34,880 --> 00:16:38,080 Speaker 4: hitting its highest than two months in Asia, trading investors 319 00:16:38,280 --> 00:16:41,160 Speaker 4: cheering the e commerce giant and their plans to charge 320 00:16:41,160 --> 00:16:44,760 Speaker 4: a higher service fee from merchants. Bloomberg reported that Ali 321 00:16:44,800 --> 00:16:47,520 Speaker 4: Barber is set to raise their software service fee to 322 00:16:47,600 --> 00:16:51,760 Speaker 4: zero point six percent, which will boost its core merchant 323 00:16:51,800 --> 00:16:55,480 Speaker 4: revenue plus SHAWM plans for an EV expansion. The Chinese 324 00:16:55,480 --> 00:16:57,880 Speaker 4: tech company has purchased a one hundred and thirty one 325 00:16:57,920 --> 00:17:00,480 Speaker 4: acre plot of land in Beijing for one hundred and 326 00:17:00,520 --> 00:17:04,080 Speaker 4: sixteen million dollars in an effort to expand its electric 327 00:17:04,119 --> 00:17:07,080 Speaker 4: car production. Jarmi first entered the auto sector in March 328 00:17:07,400 --> 00:17:11,080 Speaker 4: and has already delivered thirty thousand vehicles so far, with 329 00:17:11,119 --> 00:17:14,159 Speaker 4: the company on track to reach its initial goal of 330 00:17:14,280 --> 00:17:19,119 Speaker 4: one hundred thousand cars by November. And another infrastructure attack 331 00:17:19,240 --> 00:17:22,320 Speaker 4: on France during the Olympics, this time a number of 332 00:17:22,320 --> 00:17:25,920 Speaker 4: fiber optic cables carrying Internet services across the country were 333 00:17:26,000 --> 00:17:30,280 Speaker 4: cut overnight. Orange, the Olympic telecom partner, said the connections 334 00:17:30,320 --> 00:17:33,760 Speaker 4: into Paris and thus the Olympics were not affected. Just 335 00:17:33,840 --> 00:17:37,560 Speaker 4: on Friday, coordinated fires on French trail lines had disrupted 336 00:17:37,640 --> 00:17:40,840 Speaker 4: trains ahead of the opening ceremony. For more, let's bring 337 00:17:40,840 --> 00:17:44,080 Speaker 4: in Bloomberg's benoir Bertelo out in Paris. You know, this 338 00:17:44,119 --> 00:17:47,400 Speaker 4: is a story benoir where there are many questions who, what, where, 339 00:17:47,440 --> 00:17:48,040 Speaker 4: when and why? 340 00:17:48,280 --> 00:17:49,920 Speaker 5: But what's the latest fleas. 341 00:17:50,040 --> 00:17:53,600 Speaker 9: Yeah, so clearly was a large scale attack under fiber 342 00:17:53,600 --> 00:17:58,000 Speaker 9: on networks during the night between nine am, one am 343 00:17:58,040 --> 00:18:00,960 Speaker 9: and three am toord middle of the night. There were 344 00:18:01,320 --> 00:18:06,440 Speaker 9: nine places we are told across France where long distance 345 00:18:06,520 --> 00:18:10,080 Speaker 9: fiber optic cables were cut. So really this is the 346 00:18:10,200 --> 00:18:15,240 Speaker 9: highways of the Internet powering the network and thanks to 347 00:18:15,400 --> 00:18:18,919 Speaker 9: redundancies there was no real impact, just a bit of 348 00:18:19,000 --> 00:18:23,320 Speaker 9: latency for some customers. But clearly this is the scale 349 00:18:23,520 --> 00:18:28,119 Speaker 9: of the attack that's a sort of borrowing authorities in 350 00:18:28,200 --> 00:18:31,119 Speaker 9: France for the trains that the trains are back to 351 00:18:31,200 --> 00:18:35,680 Speaker 9: normal as of today and it's been slowly going back 352 00:18:35,680 --> 00:18:38,280 Speaker 9: to normal in the weekend, so so far, not really 353 00:18:38,359 --> 00:18:42,719 Speaker 9: disruption of the Olympics. It's not been disrupting either the 354 00:18:42,720 --> 00:18:47,040 Speaker 9: train or the internet outage have been disrupting the Olympics. 355 00:18:47,080 --> 00:18:49,159 Speaker 9: But really it's the scale of these attacks and the 356 00:18:49,160 --> 00:18:52,639 Speaker 9: fact that they are targeted across France rather than on 357 00:18:52,760 --> 00:18:57,920 Speaker 9: Paris that is sort of interesting and surprising authorities. 358 00:18:58,000 --> 00:19:01,720 Speaker 4: Then the out and in question I suppose is is 359 00:19:01,760 --> 00:19:06,399 Speaker 4: there a link between the rail nodes that were a 360 00:19:06,480 --> 00:19:10,640 Speaker 4: victim of ars and attacks last week and the cutting 361 00:19:10,680 --> 00:19:13,680 Speaker 4: of fiber optic cables overnight. Is there any evidence that 362 00:19:13,680 --> 00:19:16,439 Speaker 4: that is part of a wider and coordinated attack. 363 00:19:16,960 --> 00:19:20,440 Speaker 9: So there is no evidence that we know of so far. 364 00:19:20,960 --> 00:19:25,520 Speaker 9: There are two separate investigations that have been started by 365 00:19:25,560 --> 00:19:31,120 Speaker 9: the Parious Prosecutors Office. Clearly, it's what's similar is that 366 00:19:31,160 --> 00:19:34,159 Speaker 9: there are there is a good level of intelligence on 367 00:19:34,280 --> 00:19:37,800 Speaker 9: where exactly to act, especially on the train attacks like 368 00:19:37,920 --> 00:19:43,040 Speaker 9: these really were important nodes in the network, but there's 369 00:19:43,080 --> 00:19:46,280 Speaker 9: no proof of or no indication so far of who 370 00:19:46,320 --> 00:19:49,720 Speaker 9: could have done this. The Interior Minister this morning said 371 00:19:49,720 --> 00:19:52,720 Speaker 9: they were advancing on this, but clearly there is no 372 00:19:52,760 --> 00:19:55,719 Speaker 9: information of who could have done it and if there 373 00:19:55,760 --> 00:19:57,480 Speaker 9: is a link between the two attacks. 374 00:19:58,400 --> 00:20:01,760 Speaker 4: Away from the news head lines, it was a weekend 375 00:20:01,840 --> 00:20:05,879 Speaker 4: where I everyone watching the preyram was glued to their television. 376 00:20:06,000 --> 00:20:10,159 Speaker 4: I really enjoyed the rugby seven's Congratulations to France on 377 00:20:10,280 --> 00:20:14,120 Speaker 4: incredible performance. What's it like in Paris now Benoir. What's 378 00:20:14,160 --> 00:20:16,840 Speaker 4: the experience of being in the host city and host nation. 379 00:20:17,840 --> 00:20:22,040 Speaker 9: It's a great atmosphere in Paris, Kelly. Lots of Parisians 380 00:20:22,080 --> 00:20:24,840 Speaker 9: have feed the city, but it's a lot of people 381 00:20:24,880 --> 00:20:28,720 Speaker 9: from across France that are coming to see to see 382 00:20:28,720 --> 00:20:32,240 Speaker 9: the events and many tourists. Of course, the weather it 383 00:20:32,280 --> 00:20:35,199 Speaker 9: is much better now, so that's that's great. Great location 384 00:20:35,840 --> 00:20:38,800 Speaker 9: across the city that they've chosen to put the events 385 00:20:38,840 --> 00:20:41,800 Speaker 9: location really in the middle of the city and it 386 00:20:41,920 --> 00:20:45,840 Speaker 9: turns out to be great. So so far, transports in 387 00:20:45,880 --> 00:20:50,640 Speaker 9: Paris are fine, there was no security incident, thanksfully so far, 388 00:20:51,040 --> 00:20:53,440 Speaker 9: so I would say good for those visiting in. 389 00:20:53,400 --> 00:20:56,760 Speaker 4: Paris, Bloomberg's Ben wir buttlo thank you so much. Great 390 00:20:56,760 --> 00:21:06,840 Speaker 4: to have you on the ground in Paris, Welcome back 391 00:21:06,880 --> 00:21:09,760 Speaker 4: to Bloomberg Technology, Ed Lovelow in New York City, and 392 00:21:09,800 --> 00:21:11,160 Speaker 4: a very quick check in on the markets. 393 00:21:11,200 --> 00:21:14,080 Speaker 5: I mean, we know the story this week. It's a story. 394 00:21:13,840 --> 00:21:17,240 Speaker 4: About four of the biggest technology names reporting earnings and 395 00:21:17,280 --> 00:21:20,040 Speaker 4: then as that one hundred is basically flat in the session, 396 00:21:20,080 --> 00:21:22,800 Speaker 4: but the context is that it's coming off three straight 397 00:21:22,840 --> 00:21:25,320 Speaker 4: weeks of weekly declines. There was a lot of talk 398 00:21:25,359 --> 00:21:28,159 Speaker 4: about how close we are to a technical correction, so 399 00:21:28,240 --> 00:21:30,520 Speaker 4: there is a lot at stake depending on how those 400 00:21:30,600 --> 00:21:34,720 Speaker 4: earnings reports go in the moment. One asset class that's 401 00:21:34,720 --> 00:21:38,879 Speaker 4: superin focus is crypto. Bitcoin around or just below sixty 402 00:21:38,920 --> 00:21:43,280 Speaker 4: eight thousand US dollars per token and other names miners 403 00:21:44,440 --> 00:21:48,120 Speaker 4: or crypto adjacent names had been kind of interestingly high. 404 00:21:48,200 --> 00:21:50,520 Speaker 5: Now lower. Why will bitcoin. 405 00:21:50,160 --> 00:21:53,240 Speaker 4: Touch the highest level since mid June, after Republican candidate 406 00:21:53,400 --> 00:21:58,160 Speaker 4: Donald Trump expanded his pro crypto agenda at Bitcoin twenty 407 00:21:58,200 --> 00:21:59,480 Speaker 4: twenty four over the weekend. 408 00:22:00,240 --> 00:22:03,280 Speaker 5: Is speaking at the conference this afternoon. 409 00:22:03,320 --> 00:22:06,400 Speaker 10: I'm laying out my plan to ensure that the United 410 00:22:06,440 --> 00:22:09,959 Speaker 10: States will be the crypto capital of the planet and 411 00:22:10,040 --> 00:22:14,199 Speaker 10: the bitcoin superpower of the world, and we'll get it done. 412 00:22:14,480 --> 00:22:17,359 Speaker 4: Let's break it all down with Bloomberg intelligence analyst James Seffert, 413 00:22:17,440 --> 00:22:18,840 Speaker 4: who was at the conference. 414 00:22:18,880 --> 00:22:20,080 Speaker 5: You're looking fresh. 415 00:22:20,040 --> 00:22:22,160 Speaker 4: After what I imagined with some late nights and wild 416 00:22:22,160 --> 00:22:24,440 Speaker 4: afternoons over in Nashville. 417 00:22:24,800 --> 00:22:27,480 Speaker 5: I mean, we'll get to Trump. Just what was it like? 418 00:22:27,760 --> 00:22:28,600 Speaker 5: How is your weekend? 419 00:22:28,880 --> 00:22:31,159 Speaker 8: Yeah, I mean it was. There was a lot of 420 00:22:31,200 --> 00:22:33,520 Speaker 8: excitement in the air. I was. I've been to the 421 00:22:33,560 --> 00:22:36,439 Speaker 8: conference the last few years, and I will say this 422 00:22:36,520 --> 00:22:39,560 Speaker 8: feels it makes sense. Right. We have the Bitcoin ETFs 423 00:22:39,560 --> 00:22:40,640 Speaker 8: now that launched in January. 424 00:22:40,640 --> 00:22:41,320 Speaker 5: There's a lot. 425 00:22:41,160 --> 00:22:44,440 Speaker 8: More big banks and big institutional players that if they're 426 00:22:44,440 --> 00:22:47,159 Speaker 8: not fully involved in bitcoin, they're at least interested. I 427 00:22:47,160 --> 00:22:50,200 Speaker 8: mean the likes of I interviewed Robbie Mitchnick from Blackrock 428 00:22:50,359 --> 00:22:52,920 Speaker 8: on stage. We had Yon van Neck, the CEO of 429 00:22:53,000 --> 00:22:56,960 Speaker 8: van Ck, State Street was there, Fidelity was there, you 430 00:22:57,040 --> 00:22:59,399 Speaker 8: name it. There's a lot of institutional, big time players 431 00:22:59,400 --> 00:23:02,000 Speaker 8: from the cheerful financial world that are now dipping their 432 00:23:02,080 --> 00:23:04,960 Speaker 8: toe or not fully jumped into the water on the 433 00:23:04,960 --> 00:23:05,840 Speaker 8: bitcoin side of things. 434 00:23:05,840 --> 00:23:07,800 Speaker 1: So I will say it's become more. 435 00:23:07,800 --> 00:23:10,240 Speaker 5: Mature, but it was still a lot of excitement. 436 00:23:10,320 --> 00:23:11,920 Speaker 8: There was a lot of fun and people were amped 437 00:23:11,960 --> 00:23:13,679 Speaker 8: up to have Trump and a lot of There was 438 00:23:13,880 --> 00:23:17,240 Speaker 8: over ten other congressmen and women at the conference too, 439 00:23:17,280 --> 00:23:20,439 Speaker 8: so it was almost a little political party in a 440 00:23:20,440 --> 00:23:20,920 Speaker 8: way too. 441 00:23:21,359 --> 00:23:25,480 Speaker 4: So the headline is that Trump has promised to make 442 00:23:25,520 --> 00:23:29,119 Speaker 4: bitcoin great again, which is good for headlines as. 443 00:23:28,800 --> 00:23:29,560 Speaker 5: Sound bites go. 444 00:23:29,880 --> 00:23:33,200 Speaker 4: But also talked about SEC chair Gary Gensler and saying 445 00:23:33,200 --> 00:23:36,399 Speaker 4: that he would basically replace him if he's reelected with 446 00:23:36,520 --> 00:23:40,159 Speaker 4: somebody that loves crypto. How did that go down with 447 00:23:40,320 --> 00:23:43,440 Speaker 4: the industry, investors, the community around bitcoin. 448 00:23:44,320 --> 00:23:47,520 Speaker 8: Yeah. He gave a rare long, rambling speech as Trump 449 00:23:47,600 --> 00:23:50,520 Speaker 8: often does, right, and the one thing that got the 450 00:23:50,560 --> 00:23:53,480 Speaker 8: crowd the loudest by far was him saying on day one, 451 00:23:53,520 --> 00:23:55,800 Speaker 8: I'm going to fire Gary Gensler. And let's be clear, 452 00:23:55,800 --> 00:23:58,280 Speaker 8: I'm pretty sure he doesn't technically have the ability to 453 00:23:58,280 --> 00:24:00,000 Speaker 8: do that, though it's pretty standard when a new president 454 00:24:00,040 --> 00:24:01,800 Speaker 8: and comes in they kind of turn it over and 455 00:24:01,840 --> 00:24:03,919 Speaker 8: get the people they want at the heads of agencies. 456 00:24:04,119 --> 00:24:04,920 Speaker 1: But it doesn't matter. 457 00:24:04,960 --> 00:24:07,240 Speaker 8: It's a talking point and it's something that people love. 458 00:24:07,320 --> 00:24:10,399 Speaker 8: You also talked about stopping Elizabeth Warren and her quote 459 00:24:10,440 --> 00:24:13,119 Speaker 8: boons a whole bunch of other things out there that 460 00:24:13,400 --> 00:24:16,960 Speaker 8: the bitcoiner crowd wanted to hear. I guess actions speak 461 00:24:17,000 --> 00:24:20,080 Speaker 8: one of the words we'll see, but they definitely liked it. 462 00:24:20,080 --> 00:24:24,159 Speaker 8: It was certainly a little bit different from his typical 463 00:24:24,440 --> 00:24:28,960 Speaker 8: trumb speech audience, but he hit the points he wanted 464 00:24:28,960 --> 00:24:29,240 Speaker 8: to hit. 465 00:24:29,760 --> 00:24:30,960 Speaker 1: Bitcoiners seemed to love it. 466 00:24:32,119 --> 00:24:32,399 Speaker 3: Yeah. 467 00:24:32,560 --> 00:24:35,600 Speaker 4: James for Bloomberg Intelligence, who was there at Bitcoin twenty 468 00:24:35,640 --> 00:24:38,159 Speaker 4: twenty four, Thank you. Let's keep a conversation going as 469 00:24:38,200 --> 00:24:40,879 Speaker 4: the US election looms. Bloomberg's out to day with a 470 00:24:40,920 --> 00:24:44,960 Speaker 4: big take on Trump's own journey with crypto, going from 471 00:24:45,119 --> 00:24:50,119 Speaker 4: skeptic to bitcoin cheerleader. I'm delighted to bring in Kristen Smith, 472 00:24:50,240 --> 00:24:54,240 Speaker 4: CEO of the Blockchain Association and DC based Trade Association. 473 00:24:54,680 --> 00:24:58,440 Speaker 4: You represent around one hundred of the industry's leading companies 474 00:24:58,440 --> 00:25:01,399 Speaker 4: and you're quoted in that big take. But for me, 475 00:25:01,520 --> 00:25:05,200 Speaker 4: that's the story. It wasn't so long ago that former 476 00:25:05,280 --> 00:25:10,000 Speaker 4: President Trump was talking about that the criminality associated with 477 00:25:10,640 --> 00:25:14,080 Speaker 4: crypto and blockchain, his doubts about it, to now being 478 00:25:14,440 --> 00:25:17,680 Speaker 4: all out. Has that changed the tide for your industry? 479 00:25:18,080 --> 00:25:21,400 Speaker 11: Well, nobody ever goes from being pro crypto to anti crypto. 480 00:25:21,560 --> 00:25:23,800 Speaker 11: It's only the other way around. And I think that's 481 00:25:23,800 --> 00:25:25,960 Speaker 11: what we saw with Donald Trump, and it's what we're 482 00:25:26,000 --> 00:25:29,520 Speaker 11: seeing with folks on both sides of the aisle, both 483 00:25:29,560 --> 00:25:31,639 Speaker 11: who are in Congress today and who are running for 484 00:25:31,680 --> 00:25:32,680 Speaker 11: Congress right now. 485 00:25:33,000 --> 00:25:33,560 Speaker 3: And I think the. 486 00:25:33,520 --> 00:25:36,280 Speaker 11: Reason for that is that when you don't know a 487 00:25:36,280 --> 00:25:39,359 Speaker 11: whole lot about crypto, you often have misconceptions about what 488 00:25:39,480 --> 00:25:41,960 Speaker 11: is used for or how it works. But as you 489 00:25:42,240 --> 00:25:45,200 Speaker 11: gain that knowledge and you begin to understand the power 490 00:25:45,200 --> 00:25:49,480 Speaker 11: of decentralized technology, you realize what tens of millions of 491 00:25:49,520 --> 00:25:52,439 Speaker 11: Americans know is that this is something that could be 492 00:25:52,520 --> 00:25:56,600 Speaker 11: the foundation for a new financial services system or an 493 00:25:56,680 --> 00:26:01,040 Speaker 11: alternative to the big tech ecosystem in a way that 494 00:26:01,280 --> 00:26:04,480 Speaker 11: is better for users and consumers. And so there's a 495 00:26:04,480 --> 00:26:07,840 Speaker 11: real reason that people like this. And what we've seen 496 00:26:08,119 --> 00:26:11,560 Speaker 11: as a result of this is it's translating into the elections. 497 00:26:11,880 --> 00:26:15,439 Speaker 11: The crypto voter is real and the crypto advocate is strong. 498 00:26:15,600 --> 00:26:17,320 Speaker 11: And I think that this is something we're going to 499 00:26:17,320 --> 00:26:19,720 Speaker 11: continue to see talked about heading into the elections. 500 00:26:19,720 --> 00:26:22,040 Speaker 4: As far Kristin we mentioned it, but I want to 501 00:26:22,160 --> 00:26:25,840 Speaker 4: actually play the SoundBite. This is former President Trump talking 502 00:26:25,880 --> 00:26:28,560 Speaker 4: about the SEC and Gary Againstler. 503 00:26:29,440 --> 00:26:33,400 Speaker 10: On day one, I will fire Gary Gainst, who will 504 00:26:33,440 --> 00:26:37,520 Speaker 10: appoint a new SEC chairman who believes America should build 505 00:26:37,560 --> 00:26:38,440 Speaker 10: the future, not. 506 00:26:38,560 --> 00:26:39,760 Speaker 3: Block the future. 507 00:26:40,000 --> 00:26:41,840 Speaker 5: Caban taking office, I will. 508 00:26:41,640 --> 00:26:46,800 Speaker 10: Immediately appoint a Bitcoin and Crypto Presidential Advisory Council. 509 00:26:48,320 --> 00:26:51,960 Speaker 4: What is the Blockchain Association and the groups that you 510 00:26:52,040 --> 00:26:54,680 Speaker 4: represent reaction to that statement. 511 00:26:55,760 --> 00:26:59,160 Speaker 11: I think people are incredibly excited by that that statement. 512 00:26:59,280 --> 00:27:01,760 Speaker 11: You know, we have had both at the Blockchain Association 513 00:27:01,880 --> 00:27:05,200 Speaker 11: and within our member companies a lot of outreach over 514 00:27:05,200 --> 00:27:07,840 Speaker 11: the past couple of years to the SEC to try 515 00:27:07,880 --> 00:27:11,520 Speaker 11: to have a reasonable conversation about how to bring regulation 516 00:27:11,600 --> 00:27:14,240 Speaker 11: to this space. And as a result, Gensler has just 517 00:27:14,320 --> 00:27:17,720 Speaker 11: come back with enforcement action after enforcement action, and it's 518 00:27:17,800 --> 00:27:21,359 Speaker 11: costing the industry hundreds of millions, if not over a 519 00:27:21,359 --> 00:27:25,080 Speaker 11: billion dollars in legal fees just to deal with challenges 520 00:27:25,119 --> 00:27:28,800 Speaker 11: from the SEC. Right now, this is absolutely ridiculous. Isn't 521 00:27:28,800 --> 00:27:32,200 Speaker 11: how things should be done, And people are angry, and 522 00:27:32,320 --> 00:27:34,800 Speaker 11: so I think people are very excited that Trump has 523 00:27:34,840 --> 00:27:37,600 Speaker 11: come out this strong. I think what's interesting is we're 524 00:27:37,600 --> 00:27:40,920 Speaker 11: also hearing a lot of conversations on the democratic side 525 00:27:40,920 --> 00:27:44,600 Speaker 11: of the isle we have. We had Billy Fourteen members 526 00:27:44,640 --> 00:27:48,440 Speaker 11: of Congress wrote a letter to the DNC urging them 527 00:27:48,480 --> 00:27:51,640 Speaker 11: to include something pro crypto in the platform. And there's 528 00:27:51,720 --> 00:27:56,439 Speaker 11: a lot of outreach to the new nominee or presumptive nominee. 529 00:27:56,440 --> 00:27:58,920 Speaker 11: I guess I should say on the Democratic side, Harris, 530 00:27:59,240 --> 00:28:02,480 Speaker 11: to see if can come out and do something pro 531 00:28:02,560 --> 00:28:05,800 Speaker 11: crypto as well. So this isn't a partisan issue, but 532 00:28:06,119 --> 00:28:08,520 Speaker 11: I would say Trump had a very strong showing over 533 00:28:08,560 --> 00:28:12,080 Speaker 11: the weekend, and people were incredibly encouraged by the acknowledgment 534 00:28:12,240 --> 00:28:15,639 Speaker 11: of the difficult time that we've had over the past 535 00:28:15,720 --> 00:28:17,639 Speaker 11: three and a half years with Gary Gensler. 536 00:28:17,640 --> 00:28:20,320 Speaker 4: Christ On, the vice president. That had been reported she'd 537 00:28:20,400 --> 00:28:24,200 Speaker 4: also considered appeering out or speaking at Bitcoin twenty twenty 538 00:28:24,200 --> 00:28:27,360 Speaker 4: four and then did not do so. Has the Blockchain 539 00:28:27,400 --> 00:28:31,320 Speaker 4: Association had any conversation or engagement with her campaign team 540 00:28:31,359 --> 00:28:32,840 Speaker 4: and would you hope to do so? 541 00:28:34,320 --> 00:28:35,679 Speaker 5: We absolutely hope to do so. 542 00:28:35,720 --> 00:28:38,960 Speaker 11: We have outreached both to her government team and her 543 00:28:38,960 --> 00:28:41,920 Speaker 11: campaign team right now, and I know she's had conversations 544 00:28:41,960 --> 00:28:46,040 Speaker 11: with some of the leaders within the industry already, and 545 00:28:46,120 --> 00:28:48,160 Speaker 11: so I think there's a lot of hope. I think 546 00:28:48,360 --> 00:28:51,160 Speaker 11: what's really interesting is typically when Donald Trump comes out 547 00:28:51,200 --> 00:28:54,400 Speaker 11: in support of a policy, the Democratic Party runs the 548 00:28:54,440 --> 00:28:57,040 Speaker 11: other way. But what we're seeing here is a competition 549 00:28:57,280 --> 00:29:01,920 Speaker 11: for which party can gain that value crypto voter. There's 550 00:29:01,960 --> 00:29:03,640 Speaker 11: a poll from a couple months ago, but I think 551 00:29:03,680 --> 00:29:06,680 Speaker 11: it's still relevant that one in five voters in swing 552 00:29:06,760 --> 00:29:10,400 Speaker 11: states considers cryptocurrency an important issue heading into the election 553 00:29:10,480 --> 00:29:13,360 Speaker 11: this fall. And I think that both sides are seeing 554 00:29:13,440 --> 00:29:16,959 Speaker 11: those numbers and that there's a realization that there's no 555 00:29:17,200 --> 00:29:20,640 Speaker 11: upside to being anti crypto, that really both parties need 556 00:29:20,640 --> 00:29:23,560 Speaker 11: to be thoughtful about how to approach this so that 557 00:29:23,600 --> 00:29:25,479 Speaker 11: we can get the right policy in place, so that 558 00:29:25,840 --> 00:29:29,200 Speaker 11: those voters will will go to the polls, but more importantly, 559 00:29:29,480 --> 00:29:31,480 Speaker 11: that we'll be able to keep the industry and the 560 00:29:31,520 --> 00:29:33,600 Speaker 11: community thriving here in the United States. 561 00:29:33,640 --> 00:29:37,120 Speaker 4: Christin Smith, CEO of the Blockchain Association, thank you. Another 562 00:29:37,120 --> 00:29:41,040 Speaker 4: story we're tracking. The US Justice Department says TikTok collective 563 00:29:41,160 --> 00:29:45,880 Speaker 4: users information on sensitive topics, making it a national security threat, 564 00:29:45,920 --> 00:29:48,840 Speaker 4: which justifies a law to ban the app in the US. 565 00:29:48,960 --> 00:29:52,880 Speaker 4: If byte Dance doesn't divest belan Thos, Mike Shephard is 566 00:29:52,960 --> 00:29:55,080 Speaker 4: back in. Mike let's just start by asking what is 567 00:29:55,160 --> 00:29:56,560 Speaker 4: new here and what is the latest. 568 00:29:57,400 --> 00:29:59,480 Speaker 2: So there are three key points that emerge in this 569 00:29:59,760 --> 00:30:03,360 Speaker 2: Justice Department filing, and that was the first detailed response 570 00:30:03,640 --> 00:30:07,120 Speaker 2: to TikTok's effort to overturn this law that was passed 571 00:30:07,120 --> 00:30:10,240 Speaker 2: in April and signed by President Joe Biden. It requires 572 00:30:10,280 --> 00:30:12,800 Speaker 2: the company to be sold by its Chinese owners by 573 00:30:12,880 --> 00:30:15,600 Speaker 2: January nineteenth. The government has been on the hook to 574 00:30:15,760 --> 00:30:18,959 Speaker 2: demonstrate further in court why that's necessary. So there were 575 00:30:18,960 --> 00:30:21,720 Speaker 2: three key points that really emerged. One, you headed right 576 00:30:21,720 --> 00:30:24,480 Speaker 2: at the top is data collection. The company collects a 577 00:30:24,520 --> 00:30:27,640 Speaker 2: lot of data on its one hundred and seventy million users. 578 00:30:27,840 --> 00:30:33,280 Speaker 2: That includes private messages, viewing habits, even users' location, and 579 00:30:33,320 --> 00:30:36,120 Speaker 2: that is information that is not adequately walled off from 580 00:30:36,200 --> 00:30:39,880 Speaker 2: China and from China's government, the government contends. Two, we 581 00:30:40,000 --> 00:30:43,240 Speaker 2: also see the government raising the flag of censorship. It 582 00:30:43,280 --> 00:30:46,520 Speaker 2: says that China could step in to exert control over 583 00:30:46,640 --> 00:30:50,760 Speaker 2: content on the platform, either censoring or promoting different kind 584 00:30:50,800 --> 00:30:54,600 Speaker 2: of content that could suit its government's interests. And then three, 585 00:30:54,840 --> 00:30:57,280 Speaker 2: we saw the government take on the whole question of 586 00:30:57,440 --> 00:31:01,959 Speaker 2: free speech rights that TikTok has been raising as it 587 00:31:02,040 --> 00:31:06,520 Speaker 2: challenges this law. We're seeing that TikTok is saying this 588 00:31:06,560 --> 00:31:09,480 Speaker 2: is unfair, but the US government responded seeing that, look, 589 00:31:09,960 --> 00:31:12,960 Speaker 2: free speech rights do not apply when the algorithm and 590 00:31:13,040 --> 00:31:17,400 Speaker 2: data are being collected and owned by a foreign power, 591 00:31:17,520 --> 00:31:20,480 Speaker 2: and that is really one of the key issues at 592 00:31:20,480 --> 00:31:21,000 Speaker 2: hand here. 593 00:31:21,240 --> 00:31:24,600 Speaker 4: I might will show the TikTok response, but very quickly 594 00:31:24,640 --> 00:31:25,640 Speaker 4: summarize it for us. 595 00:31:26,440 --> 00:31:26,680 Speaker 5: Well. 596 00:31:26,720 --> 00:31:28,840 Speaker 2: In brief, they are doubling down on their response that 597 00:31:28,960 --> 00:31:32,720 Speaker 2: this law violates free speech rights, and it also insists 598 00:31:32,800 --> 00:31:35,880 Speaker 2: that the government has yet to show adequate evidence of 599 00:31:35,920 --> 00:31:39,480 Speaker 2: this national security threat that lawmakers talked about, that the 600 00:31:39,680 --> 00:31:43,400 Speaker 2: Justice Department talked about in the briefing filed on Friday. 601 00:31:43,640 --> 00:31:46,280 Speaker 2: And to be fair to TikTok's point, so much of 602 00:31:46,320 --> 00:31:49,520 Speaker 2: that filing from late Friday was redacted, so only the 603 00:31:49,640 --> 00:31:52,040 Speaker 2: judge in the case we'll see those arguments made on 604 00:31:52,120 --> 00:31:56,000 Speaker 2: national security grounds because that information remains classified. 605 00:31:56,040 --> 00:31:59,400 Speaker 4: Still Boom bags, Mike Sheppard, thank you now, coming up 606 00:32:00,160 --> 00:32:05,120 Speaker 4: rated opening weekend record has been smashed by Deadpool and Wolverine. 607 00:32:05,160 --> 00:32:09,560 Speaker 4: Details on Disney's box office domination. Next, This is Bloomberg Technology. 608 00:32:24,920 --> 00:32:28,680 Speaker 4: It's going viral. Deadpool has dominated the weekend box office, 609 00:32:28,720 --> 00:32:31,560 Speaker 4: bringing in two hundred and five million dollars, making it 610 00:32:31,800 --> 00:32:34,880 Speaker 4: the best ever opening for an R rated film. Bloomberg's 611 00:32:34,880 --> 00:32:37,000 Speaker 4: Hannah Miller joins me on set, and what's so astonishing 612 00:32:37,000 --> 00:32:39,520 Speaker 4: about that is that's just the US and Canada, you know, 613 00:32:39,640 --> 00:32:42,680 Speaker 4: so global hit. But the numbers are ahead of forecast. 614 00:32:42,720 --> 00:32:45,480 Speaker 4: Here just give me the size and scope against everything 615 00:32:45,520 --> 00:32:46,640 Speaker 4: else I could have watched this weekend. 616 00:32:46,800 --> 00:32:50,240 Speaker 12: Yeah, it's smashing records globally as well for R rated movies. 617 00:32:50,680 --> 00:32:53,400 Speaker 12: People are flocking to this film. There were very high 618 00:32:53,440 --> 00:32:57,360 Speaker 12: expectations from the get go. It has exceeded those expectations 619 00:32:57,360 --> 00:33:00,120 Speaker 12: in terms of box office performance. This is huge for 620 00:33:00,160 --> 00:33:02,640 Speaker 12: the film industry and for struggling movie theater chains. 621 00:33:02,880 --> 00:33:05,040 Speaker 5: You and I, full disclosure, have not yet seen it. 622 00:33:05,280 --> 00:33:05,680 Speaker 3: Not yet. 623 00:33:06,080 --> 00:33:09,880 Speaker 4: BlueBag Technology senior producer Jackie Lopez says the soundtrack is fire, 624 00:33:10,160 --> 00:33:14,600 Speaker 4: So that's really interesting. Deple one great, depl two. I 625 00:33:14,640 --> 00:33:17,200 Speaker 4: think we agree on that, right. We are not film critics, 626 00:33:17,480 --> 00:33:20,560 Speaker 4: but for Disney, parent of Marvel, this is important. 627 00:33:20,640 --> 00:33:22,000 Speaker 5: I think I think so too. 628 00:33:22,120 --> 00:33:25,800 Speaker 12: So we saw a huge influx of Marvel films that underperformed, 629 00:33:25,960 --> 00:33:28,440 Speaker 12: they took a little break. This one came out it's 630 00:33:28,520 --> 00:33:31,000 Speaker 12: putting Marvel and Disney back on top again. When it 631 00:33:31,000 --> 00:33:32,920 Speaker 12: comes to box office performance. 632 00:33:33,920 --> 00:33:36,160 Speaker 4: What else was it up against. That's a big question 633 00:33:36,200 --> 00:33:40,040 Speaker 4: because you have something like Twister, it'd already been. 634 00:33:39,960 --> 00:33:42,120 Speaker 12: Out, so with Twisters, we actually think it's going to 635 00:33:42,120 --> 00:33:46,760 Speaker 12: take away audiences from Twisters, especially for IMAX showings. That's 636 00:33:46,800 --> 00:33:49,080 Speaker 12: been a huge draw for Twisters. There's also going to 637 00:33:49,080 --> 00:33:52,600 Speaker 12: be Imax showings from Deadpool and Wolverine, so we think 638 00:33:52,640 --> 00:33:55,200 Speaker 12: this is going to continue to dominate, you know, inside 639 00:33:55,200 --> 00:33:58,360 Speaker 12: Out too. We saw that drop as well. This is 640 00:33:58,400 --> 00:34:00,280 Speaker 12: the film that everyone wants to see right now. 641 00:34:00,440 --> 00:34:03,320 Speaker 4: Bloomberg's Hanamella and New York on that New Entertainment beat. 642 00:34:03,680 --> 00:34:04,520 Speaker 5: What a great gig. 643 00:34:04,720 --> 00:34:08,359 Speaker 4: Another big story, Google streaming music player has long lagged 644 00:34:08,400 --> 00:34:11,360 Speaker 4: behind Spotify, Apple, and Amazon in US market share, but 645 00:34:11,440 --> 00:34:15,239 Speaker 4: now things are changing for YouTube music. Bloomberg lustin Car 646 00:34:15,280 --> 00:34:17,760 Speaker 4: has a few thoughts on that in today's Tech Daily. 647 00:34:18,400 --> 00:34:20,759 Speaker 4: The breaking headline news of which is you spend twelve 648 00:34:20,840 --> 00:34:24,440 Speaker 4: hundred dollars a year on Google subscriptions, which is wild. 649 00:34:24,920 --> 00:34:28,279 Speaker 4: But again, YouTube music's not one that I use either. 650 00:34:28,600 --> 00:34:29,480 Speaker 3: What have you found out? 651 00:34:31,200 --> 00:34:33,320 Speaker 13: You know, it's interesting I found out that I've actually 652 00:34:33,360 --> 00:34:35,960 Speaker 13: been paying for YouTube Music this whole time, included in 653 00:34:36,000 --> 00:34:39,719 Speaker 13: my YouTube Premium subscription. But like you, I've just never 654 00:34:39,760 --> 00:34:43,560 Speaker 13: really thought of YouTube as a music services. I subscribed 655 00:34:43,600 --> 00:34:46,120 Speaker 13: to Spotify. A lot of my friends use Apple Music 656 00:34:46,239 --> 00:34:49,560 Speaker 13: or Amazon service that's included in prime. And what I 657 00:34:49,600 --> 00:34:52,080 Speaker 13: found is they've sort of put together this pretty unique 658 00:34:52,120 --> 00:34:55,600 Speaker 13: service that's differentiated by video. You know, if you use 659 00:34:55,680 --> 00:34:58,520 Speaker 13: YouTube Music, you get access to music videos, live concerts, 660 00:34:58,560 --> 00:35:02,080 Speaker 13: a lot of podcasts, material that just regular people upload 661 00:35:02,600 --> 00:35:05,880 Speaker 13: to the video website, and that influences your sort of 662 00:35:05,920 --> 00:35:10,240 Speaker 13: music algorithm and the song recommendations you get. You know, 663 00:35:10,800 --> 00:35:14,560 Speaker 13: Alphabed just last week was saying how much subscription growth 664 00:35:14,600 --> 00:35:16,720 Speaker 13: they're seeing. That's one of the big drivers they're seeing 665 00:35:16,800 --> 00:35:20,080 Speaker 13: is from music. They actually earlier this year surpassed one 666 00:35:20,160 --> 00:35:24,560 Speaker 13: hundred million subscribers for YouTube Premium and YouTube Music, so 667 00:35:24,600 --> 00:35:26,720 Speaker 13: we're seeing a huge uptick. That's one of the areas 668 00:35:26,719 --> 00:35:29,880 Speaker 13: of growth in the music space where it's Apple Music 669 00:35:30,520 --> 00:35:32,440 Speaker 13: and some of the other providers are sort of lagging. 670 00:35:32,520 --> 00:35:35,120 Speaker 4: Right now, we're showing some pictures of what YouTube Music 671 00:35:35,160 --> 00:35:36,800 Speaker 4: looks like, and I actually am a bit surprised. I 672 00:35:36,840 --> 00:35:40,520 Speaker 4: knew very little about YouTube Music, it seems something very 673 00:35:40,560 --> 00:35:43,960 Speaker 4: similar or akin to Spotify. 674 00:35:44,160 --> 00:35:46,879 Speaker 13: Well, it is a little bit similar in the sense 675 00:35:46,880 --> 00:35:48,640 Speaker 13: that they do have a lot of the streaming tracks, 676 00:35:48,920 --> 00:35:50,840 Speaker 13: but again what's different is that it's connected to the 677 00:35:50,920 --> 00:35:54,239 Speaker 13: data that is sort of taken from you using the 678 00:35:54,320 --> 00:35:57,720 Speaker 13: YouTube video website. So if you're searching something for YouTube 679 00:35:58,480 --> 00:36:01,560 Speaker 13: and you come across sort of a late night talk 680 00:36:01,600 --> 00:36:03,960 Speaker 13: show with a particular artist on that Let's say Bono 681 00:36:04,040 --> 00:36:09,000 Speaker 13: is talking to ConA O'Brien, that will influence your songworkommendations 682 00:36:09,000 --> 00:36:11,400 Speaker 13: on YouTube music, and suddenly you might see more Bono 683 00:36:11,560 --> 00:36:15,280 Speaker 13: or even more ConA O'Brien podcasts. So it's this weird amalgamation. 684 00:36:15,719 --> 00:36:17,680 Speaker 13: And that is one thing that I think YouTube has 685 00:36:17,719 --> 00:36:21,480 Speaker 13: always struggled with, what is its identity. It's this massive platform, 686 00:36:21,680 --> 00:36:25,319 Speaker 13: but they've tried to carve out separate brands. They have 687 00:36:25,440 --> 00:36:28,200 Speaker 13: YouTube TV, which is for pay television, and this is 688 00:36:28,239 --> 00:36:30,839 Speaker 13: YouTube Music, which is a standalone app. But again it's 689 00:36:30,880 --> 00:36:33,320 Speaker 13: trying to take advantage of some of that scale and 690 00:36:33,840 --> 00:36:36,399 Speaker 13: sort of data that they've collected over the years from 691 00:36:36,400 --> 00:36:38,200 Speaker 13: your viewing habits on YouTube. 692 00:36:37,840 --> 00:36:41,000 Speaker 4: Proper well, so real quick viewing habits you have to 693 00:36:41,080 --> 00:36:43,680 Speaker 4: kind of accept that the consumer has different habits and 694 00:36:43,719 --> 00:36:46,280 Speaker 4: different markets around the world. Right, where is the growth 695 00:36:46,520 --> 00:36:49,880 Speaker 4: for YouTube music coming from? Not necessarily here in North America. 696 00:36:51,600 --> 00:36:54,760 Speaker 13: It's coming from a lot of emerging markets where YouTube 697 00:36:54,800 --> 00:36:57,719 Speaker 13: is gigantic, just the video website is gigantic. And I 698 00:36:57,760 --> 00:36:59,560 Speaker 13: think that's a key thing that that Google is really 699 00:36:59,600 --> 00:37:04,279 Speaker 13: leading in. Of those one hundred million subscribers for YouTube subscriptions, 700 00:37:04,320 --> 00:37:07,080 Speaker 13: they don't break down the difference between YouTube's ads free 701 00:37:07,160 --> 00:37:10,719 Speaker 13: video site that's one subscription, and the music player. The 702 00:37:10,760 --> 00:37:12,600 Speaker 13: way they've sort of grown both of them is by 703 00:37:12,680 --> 00:37:15,120 Speaker 13: merging them into this sort of all in one package 704 00:37:15,160 --> 00:37:17,279 Speaker 13: that you can get just called the YouTube Premium plan, 705 00:37:17,320 --> 00:37:20,279 Speaker 13: and that includes the music subscription. The thing is, you know, 706 00:37:20,440 --> 00:37:23,320 Speaker 13: for me, I've been I subscribe to YouTube TV, Google 707 00:37:23,360 --> 00:37:27,360 Speaker 13: Cloud Storage, YouTube Premium, but I still have not brought 708 00:37:27,400 --> 00:37:30,800 Speaker 13: myself to use the music player. I still subscribe to Spotify, 709 00:37:31,040 --> 00:37:32,919 Speaker 13: but I will say, just using it this past week, 710 00:37:33,360 --> 00:37:35,040 Speaker 13: it's pretty interesting. It's a lot different than what you 711 00:37:35,120 --> 00:37:38,200 Speaker 13: see from Apple and Spotify and Amazon, and I think 712 00:37:38,200 --> 00:37:39,560 Speaker 13: it's worth to go if you haven't tried it. 713 00:37:39,719 --> 00:37:51,520 Speaker 4: Theasting car, thank you very much. Mobile video editing app 714 00:37:51,640 --> 00:37:55,200 Speaker 4: cap cut is gaining popularity, putting pressure on long time 715 00:37:55,239 --> 00:37:59,280 Speaker 4: creative software leaders like Adobe. Capcut is owned by byte Dance, 716 00:37:59,360 --> 00:38:03,880 Speaker 4: TikTok's parent company, meaning the threat to ban TikTok would 717 00:38:03,920 --> 00:38:06,720 Speaker 4: mark the end for capcut in the US as well. 718 00:38:07,000 --> 00:38:09,440 Speaker 4: That's bringing Bloomberg's Brady Fort He's been writing about this. 719 00:38:09,960 --> 00:38:12,200 Speaker 4: You look at a sense of hower data and starting 720 00:38:12,239 --> 00:38:16,239 Speaker 4: twenty twenty pandemic it just usage of capcut is absolutely 721 00:38:16,320 --> 00:38:19,200 Speaker 4: rocketed and taking it to a new level. 722 00:38:19,440 --> 00:38:19,720 Speaker 3: Yep. 723 00:38:20,160 --> 00:38:24,080 Speaker 14: So Adobe, maker of creative software like Photoshop, Premiere, all 724 00:38:24,120 --> 00:38:26,879 Speaker 14: the others, they have long hoped to kind of get 725 00:38:26,920 --> 00:38:30,160 Speaker 14: a piece of this more casual content creative market. 726 00:38:30,560 --> 00:38:32,799 Speaker 3: Cap Cuts been able to just go crazy with that. 727 00:38:32,920 --> 00:38:34,840 Speaker 14: And why is that because they're almost the same company 728 00:38:34,840 --> 00:38:37,640 Speaker 14: as TikTok, right, And so it's here on TikTok and 729 00:38:37,640 --> 00:38:40,000 Speaker 14: you see a certain video format, you could say, hey, 730 00:38:40,080 --> 00:38:43,440 Speaker 14: let me recreate this. It is a format of editing 731 00:38:43,480 --> 00:38:46,440 Speaker 14: that is so much simpler than what existed before it, 732 00:38:46,480 --> 00:38:49,120 Speaker 14: and it's picked up like three hundred million monthly active 733 00:38:49,200 --> 00:38:51,920 Speaker 14: users in a way that's pretty wild. 734 00:38:52,400 --> 00:38:55,880 Speaker 4: So the risk is by association and same parent company 735 00:38:56,200 --> 00:38:59,000 Speaker 4: TikTok's fate, cap cuts is very closely tied to it. 736 00:38:59,440 --> 00:39:01,120 Speaker 3: Yeah, exactly right. I mean the bill. 737 00:39:01,280 --> 00:39:04,239 Speaker 14: We had a senior lawmaker confirmed to us, Yes, this 738 00:39:04,280 --> 00:39:06,520 Speaker 14: wood can you know include cap cut. 739 00:39:06,640 --> 00:39:08,720 Speaker 3: Cap cut is on my byte Dance. 740 00:39:08,800 --> 00:39:11,400 Speaker 14: They share office space with TikTok in La, So yeah, 741 00:39:11,680 --> 00:39:15,600 Speaker 14: all of the same risks apply. Will it be hard 742 00:39:15,640 --> 00:39:17,840 Speaker 14: to find someone to buy cap cut? 743 00:39:17,960 --> 00:39:20,920 Speaker 3: Would bite Dance even be open to that? That's not clear. 744 00:39:21,040 --> 00:39:23,840 Speaker 14: What is clear is we have a lot of users 745 00:39:23,880 --> 00:39:26,640 Speaker 14: that would probably be not too happy if this app. 746 00:39:26,480 --> 00:39:29,360 Speaker 4: Went poof interesting for Adobe day, I mean what they've 747 00:39:29,400 --> 00:39:32,680 Speaker 4: struggled to why. And then also, you know, for cap cut, 748 00:39:32,719 --> 00:39:34,960 Speaker 4: it would basically take their legs out from underneath them 749 00:39:35,200 --> 00:39:36,480 Speaker 4: in this battle. 750 00:39:37,080 --> 00:39:40,080 Speaker 14: Well, it's a funny thing for Adobe because you might think, oh, well, 751 00:39:40,080 --> 00:39:41,920 Speaker 14: if cap cut goes away, it's good for them, But 752 00:39:42,040 --> 00:39:45,520 Speaker 14: not really, because TikTok is also a place where, you know, 753 00:39:45,640 --> 00:39:48,760 Speaker 14: content creation is good for Adobe. The more social media 754 00:39:48,800 --> 00:39:52,400 Speaker 14: there is, the more you need creative content creation apps. 755 00:39:52,440 --> 00:39:54,960 Speaker 14: And so it's kind of a darned if you do, 756 00:39:55,040 --> 00:39:56,240 Speaker 14: darned if you don't. For Adobe. 757 00:39:56,239 --> 00:39:58,600 Speaker 3: Here, as it relates to cap cuts existence. 758 00:39:58,320 --> 00:40:01,080 Speaker 5: Capcut making any money? Is it hundred bible. 759 00:40:00,840 --> 00:40:04,160 Speaker 14: Five million a year according to Censor Tower estimates, which 760 00:40:04,200 --> 00:40:06,040 Speaker 14: is I mean, you know, that's a lot in terms 761 00:40:06,080 --> 00:40:08,640 Speaker 14: of occurring revenue at this stage in the app's life. 762 00:40:08,719 --> 00:40:12,239 Speaker 4: That is no joke Blimdke's Brady Ford bringing this new 763 00:40:12,320 --> 00:40:14,399 Speaker 4: name to us. But go into the story and look 764 00:40:14,400 --> 00:40:17,080 Speaker 4: at the chart. I mean the growth relative to the 765 00:40:17,160 --> 00:40:21,680 Speaker 4: to the peers or competition is absolutely wild. 766 00:40:22,239 --> 00:40:23,480 Speaker 5: What are you using right now? 767 00:40:23,560 --> 00:40:27,800 Speaker 4: I mean there's there's a frustration that text to video 768 00:40:28,480 --> 00:40:31,040 Speaker 4: or is in particular, is not where we kind of 769 00:40:31,040 --> 00:40:33,640 Speaker 4: want it to be. It has limitations, and that's part 770 00:40:33,640 --> 00:40:34,879 Speaker 4: of the Adobe story as well. 771 00:40:35,600 --> 00:40:35,920 Speaker 3: Yeah. 772 00:40:35,960 --> 00:40:39,400 Speaker 14: Absolutely, And I think that the whole idea that text 773 00:40:39,440 --> 00:40:42,840 Speaker 14: to videos what's gonna destroy the incumbents. 774 00:40:43,160 --> 00:40:45,160 Speaker 3: I think that's actually quite a bit further out. 775 00:40:45,280 --> 00:40:48,280 Speaker 14: Cap Cut is this interesting thing where it's somewhere in between, 776 00:40:48,280 --> 00:40:50,239 Speaker 14: where it uses a lot of AI, uses a. 777 00:40:50,239 --> 00:40:51,480 Speaker 3: Lot of templates in between. 778 00:40:51,800 --> 00:40:54,000 Speaker 14: I mean, I used to make documentaries before I became 779 00:40:54,120 --> 00:40:55,680 Speaker 14: more of a print journalist, and a lot of my 780 00:40:55,719 --> 00:40:58,480 Speaker 14: friends from that era are starting to switch. 781 00:40:58,200 --> 00:40:59,280 Speaker 3: Off of apps like Adobe. 782 00:40:59,320 --> 00:41:01,279 Speaker 14: They're starting to go of these simpler things, and I 783 00:41:01,280 --> 00:41:04,840 Speaker 14: think it's happening across the industry that the true text 784 00:41:04,920 --> 00:41:08,680 Speaker 14: to video AI. It's out there, it's coming. But what's 785 00:41:08,719 --> 00:41:11,040 Speaker 14: happening today is these simpler tools. 786 00:41:11,160 --> 00:41:12,400 Speaker 4: And you go back to the idea, if you're a 787 00:41:12,400 --> 00:41:14,560 Speaker 4: creator on TikTok, well, why would you not use something 788 00:41:14,600 --> 00:41:16,200 Speaker 4: this analogous like cap cart. 789 00:41:16,520 --> 00:41:17,879 Speaker 5: Yes, they've the stout parent as well. 790 00:41:18,120 --> 00:41:21,239 Speaker 4: Bloomberg's Brady Ford constantly unearthing things that I did not 791 00:41:21,360 --> 00:41:24,440 Speaker 4: know about. That does it for this edition of Bloomberg Technology. 792 00:41:24,480 --> 00:41:26,720 Speaker 4: Stay with us this week we will continue to break 793 00:41:26,760 --> 00:41:29,560 Speaker 4: down the biggest technology earnings and my goodness, what a 794 00:41:29,600 --> 00:41:31,960 Speaker 4: week it is in that context. 795 00:41:31,440 --> 00:41:32,920 Speaker 5: And don't forget to check out our podcast. 796 00:41:33,000 --> 00:41:34,600 Speaker 4: You can find it on the terminal as well as 797 00:41:34,640 --> 00:41:38,400 Speaker 4: online at Apple, Spotify, iHeart, and all of the Bloomberg 798 00:41:38,440 --> 00:41:39,680 Speaker 4: platforms from New York City. 799 00:41:39,719 --> 00:41:41,880 Speaker 5: This week, this is Bloomberg Technology.