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Speaker 1: From Mahard where Innovation, money and power collie in Silicon Valley, NBN.

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Speaker 2: This is Bloomberg Technology with Caroline Hyde and Ed lud Love.

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Speaker 3: I'm Caroline Heider, Bloomberg's World headquarters in New York and

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Speaker 3: now Med Ludlow in San Francisco.

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Speaker 4: This is Bloomberg Technology.

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Speaker 5: Coming up the FTC.

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Speaker 3: It gears up to sue Amazon this month after a

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Speaker 3: four year antitrust investigation into the company.

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Speaker 5: Will bring you all the details.

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Speaker 6: Plus after years in development, Microsoft's highly anticipated Starfield hits

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Speaker 6: the marketplace to some rave reviews. We discussed with the

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Speaker 6: heads of Bethesda Game Studios and Microsoft Gaming.

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Speaker 3: And the US is seeking more details into Huawei's made

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Speaker 3: in China chip as they start to wonder about the

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Speaker 3: effectiveness of US curbs on the carries vast technology sector.

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Speaker 3: But let's dig into these markets first and foremost, as

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Speaker 3: we look at what is again a macro picture ed overall,

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Speaker 3: we are seeing ism services, the data, the macro picture

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Speaker 3: of health here in the United States, whereas it is lackluster.

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Speaker 5: Over in Europe and over in China. And what does that.

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Speaker 3: Mean, Well, we actually see rates rise here in the US.

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Speaker 3: We see the dollar rise in particular up two tents

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Speaker 3: of percent.

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Speaker 5: And as we.

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Speaker 3: Start to see a question of whether the Fed has

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Speaker 3: to go further in terms of interest rate hikes to

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Speaker 3: cool down the inflationary pressure here in the US, that

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Speaker 3: of course means further sell off in the Nasdaq. We're

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Speaker 3: off by more than one point one percent. The two

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Speaker 3: year yield as we see crescendoing up some six basis points.

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Speaker 3: We're above that five percent level, so notable in the

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Speaker 3: minds of many at this moment. We're also looking what's

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Speaker 3: happening in the Bloomberg Dollar Index, as I said, up

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Speaker 3: two tens percent.

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Speaker 5: What does that mean for the rest of the risk

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Speaker 5: assets out there?

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Speaker 3: Well, we know that Japan, China they start to talk

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Speaker 3: up really trying to fight back on preserving their own currencies.

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Speaker 3: What does it mean for crypto where we're seeing actually,

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Speaker 3: of course continue pressure from the US dollar visa v bitcoin.

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Speaker 3: We're now twenty five thousand, five seventy eight. Is this

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Speaker 3: more risk a version that's playing in? Is it a

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Speaker 3: strong dollar? But we're off by five ten percent. But

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Speaker 3: dig into some of the micro that's dragging down the Nasdaq.

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Speaker 6: Yeah, Karray, these are the biggest points movers to the

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Speaker 6: downside on the Nasdaq one hundred. Clearly that hot ism

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Speaker 6: print is impacting equities at the single name level, but

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Speaker 6: there's news flow as well. Overnight the Wall Street Journal

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Speaker 6: reporting that China Central government is telling specific agencies some

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Speaker 6: agencies as the language they use to get their people

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Speaker 6: to move away from using foreign handsets to domestic handsets,

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Speaker 6: with particular focus on Apple's iPhone. We will discuss that

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Speaker 6: later in the show, along with what's happening with Huawei,

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Speaker 6: Tesla and Nvidia also big drags on the index at

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Speaker 6: the innex level the Nasdaq one hundred. Two other big

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Speaker 6: names that we're watching at the megacap level. Well, the

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Speaker 6: first is Microsoft. As you heard later in the show,

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Speaker 6: we will speak to Microsoft's gaming chief and the head

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Speaker 6: of the prefers to Studio Starfield available today. So many

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Speaker 6: of you have reached out to Karen and I with

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Speaker 6: your thoughts on the title.

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Speaker 4: We'll dig into that.

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Speaker 6: But we also had the Gatekeeper's list out of the EU,

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Speaker 6: which has some relevance to all of these megacat names.

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Speaker 6: Then Amazon down one percent, as you know, Caroline. According

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Speaker 6: to our sources, the FTC will finally act later this

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Speaker 6: month with that suit.

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Speaker 3: Yeah, as soon as September. That's, of course what's currently

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Speaker 3: being reported by our own people on the ground. And

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Speaker 3: we know that the company has been trying to well

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Speaker 3: win the ear of regulators, but it's failed thus far

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Speaker 3: to really offer what has been a substantive reason as

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Speaker 3: to why it's marketplace in particular hasn't been deemed well

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Speaker 3: overall some sort of competitive.

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Speaker 5: Threat at the moment.

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Speaker 3: So we're going to be digging into all of these

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Speaker 3: lack of concessions.

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Speaker 5: Thus far, it seems Blooms, Lea, Ninel and Lea.

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Speaker 3: What is it that Amazon really has failed to show

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Speaker 3: to the FTC.

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Speaker 7: Yeah, the FTC has been looking at Amazon now for

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Speaker 7: four years and it has a lot of concerns about

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Speaker 7: the way that it has organized its marketplace. In order

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Speaker 7: to get the prime badge, which you know is the

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Speaker 7: one that most people buy, It's the one that when

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Speaker 7: you go into the website and click on the buybox,

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Speaker 7: that's the one right there. In order to get that,

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Speaker 7: you have to use Amazon's logistics service, and the FTC

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Speaker 7: is concerned that that unfairly ties access to the marketplace

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Speaker 7: to using these other services that Amazon buys now. Amazon

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Speaker 7: has tried to assuage some of the concerns about that,

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Speaker 7: such as by opening up this new program called Prime

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Speaker 7: Prime Sellers so that you could do your own logistics

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Speaker 7: by using like ups or FedEx.

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Speaker 2: But that doesn't seem to.

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Speaker 7: Have resolved any concerns by the FTC.

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Speaker 6: Leah, we know that in mid August, representatives from Amazon

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Speaker 6: met with the three commissioners of the FTC. We talked

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Speaker 6: so much about it with you on this program, but

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Speaker 6: what we didn't really learn was are there any concessions

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Speaker 6: or anything. Carol talked about that that Amazon tried to

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Speaker 6: do to avert this from happening or is it always

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Speaker 6: just going to happen?

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Speaker 7: Yeah, what we've heard about that meeting. It took place

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Speaker 7: in mid August. They had a video chat with all

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Speaker 7: of them commissioners and sort of laid out what they

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Speaker 7: think are their defenses to these things.

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Speaker 5: There were no settlement talks.

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Speaker 7: At that meeting, so the FTC wasn't particularly interested in

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Speaker 7: hearing about a settlement. Which Amazon had offered a settlement

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Speaker 7: to resolve these sort of concerns in both Europe and

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Speaker 7: the UK, but here in the US the FTC was

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Speaker 7: not particularly interested, so that was sort.

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Speaker 8: Of the last step before.

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Speaker 7: A suit is filed, and we're hearing that it will

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Speaker 7: probably come sometime later.

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Speaker 3: This month, and just give us the context.

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Speaker 5: Remind us if you've.

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Speaker 3: Forgotten, of course, Lena Khan, many you expected this was

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Speaker 3: likely to come. It's the big beefy world visa VI Amazon,

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Speaker 3: And actually they've taken steps to sue already in May

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Speaker 3: and then in June.

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Speaker 7: Yeah, so this will actually be the fourth lawsuit that

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Speaker 7: the FTC has filed against Amazon this year. They filed

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Speaker 7: two earlier over the privacy related to Amazon's devices. Those

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Speaker 7: were the ring doorbell and the echo speaker. Amazon to

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Speaker 7: pay thirty million dollars and fines related to that. They

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Speaker 7: filed a second suit that remains pending. Amazon can tests

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Speaker 7: that one over consumer protection allegations related to Prime. The

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Speaker 7: FTC says that Amazon has deliberately made it too difficult

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Speaker 7: for consumers to cancel their Prime subscriptions. Amazon, as I said,

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Speaker 7: is contesting that, and that lawsuit is ongoing. But this

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Speaker 7: will be sort of like the big one, you know.

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Speaker 7: Lena Khan was well known before she became FTC chair

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Speaker 7: for this paper she wrote about Amazon. Someone was joking

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Speaker 7: to me the other day that like this lawsuit is

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Speaker 7: going to be like inscribed on her tombstone when she dies.

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Speaker 7: So you know, the FTC has been like looking forward

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Speaker 7: to this for at least the past two years, and

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Speaker 7: it's going to be one of the biggest moves that

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Speaker 7: they make during the administration.

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Speaker 6: All right, Blombos Leah Eylan on the antitrust beat at

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Speaker 6: a DC, thank you sticking with these kind of geopolitical tensions.

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Speaker 6: The US is working to establish a full detail of

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Speaker 6: Huawei's advances in chit technology, news of which is Chinese

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Speaker 6: nationalizard and ignited speculation about the effectiveness of Washington's curbs

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Speaker 6: on the country's vast technology sector. For more, let's bring

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Speaker 6: in Bloomberg's and Marie Orden amh DC A calling for

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Speaker 6: what they see as a warranted investigation into Huawei and

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Speaker 6: the seven nanometer processor.

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Speaker 4: Will we get one.

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Speaker 2: Well, we heard from.

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Speaker 9: Jake Salvin yesterday and he really didn't want to make

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Speaker 9: a prediction. All we saw at of Huawei interesting and

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Speaker 9: a coincidence if you will, or potentially on purpose. When

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Speaker 9: Gina Ramando, the individual in charge of the Commerce Department

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Speaker 9: which is enacting those export controls and would likely be

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Speaker 9: the ones to be leading that investigation when she was

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Speaker 9: leaving China. But when we heard from Jake Selva and

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Speaker 9: the President's national security advisors that they need more information,

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Speaker 9: they certainly want to.

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Speaker 5: Look into this.

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Speaker 9: But today and they might get some political pressure because

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Speaker 9: today we heard from Representative Michael McCall, he's the Republican

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Speaker 9: chairman of the House Foreign Relations Committee.

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Speaker 8: And he was asked about this.

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Speaker 9: He was asked if China's chopped chip maker SMIC warned

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Speaker 9: in an investigation.

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Speaker 5: He said he certainly thinks it does.

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Speaker 9: And he says it sure looks like they did in

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Speaker 9: terms of violating sanctions. So this is not just going

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Speaker 9: to be political pressure on the White House from Congress

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Speaker 9: on the Republicans side of Democratic side, it does look

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Speaker 9: like they want to see how Huawei was able to

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Speaker 9: come up with this phone, given the fact that SMIC

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Speaker 9: is on the entity's list, Whawei itself is on the

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Speaker 9: entity's list, and given the fact that you have US

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Speaker 9: technology present within SMIC components, if they were to want

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Speaker 9: to give it to Huawei, they would need to get

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Speaker 9: release and call Washington and get and get that review

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Speaker 9: before they were should be allowed to do so.

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Speaker 5: According to the current rule and law.

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Speaker 3: Smoothyard Highens. That's basically, well the tactics have been thus far.

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Speaker 3: Do you think that ultimately gets cooled into question because

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Speaker 3: Jake Sullivan seems to be sticking to that particular calls.

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Speaker 5: Yeah, it was interesting.

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Speaker 9: What Jake Sullivan wanted to say yesterday is that they

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Speaker 9: still maintain that there is a lot of business between

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Speaker 9: or seemed like he was trying to say business between

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Speaker 9: Washington and Beijing on the commercial side. But these export controls,

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Speaker 9: these sanctions, these investigations, if they have one, is really

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Speaker 9: has to do with.

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Speaker 5: National security concerns.

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Speaker 9: That was the message from Gina Ramundo when she was

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Speaker 9: in China, and that seemed to be the message yesday

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Speaker 9: from the podium in the West Wing.

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Speaker 3: I'm Mary Holden, brilliant, Thank you very much for bringing

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Speaker 3: us the inside track from Washington. Meanwhile, look, let's just

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Speaker 3: talk a little bit more about what's happening in China.

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Speaker 5: Because the government agencies.

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Speaker 3: Have in fact band staff from using iPhones, Apple iPhones

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Speaker 3: and other foreign random devices at work. That's all as

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Speaker 3: we understand to the Wall Street Journal, China is Apple's

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Speaker 3: largest international market. Remember, and iPhones are common in both

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Speaker 3: government and in the private sector, so we'll see how

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Speaker 3: that continues to unfold.

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Speaker 6: Time for some talking tech first up Right to Repair

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Speaker 6: supporters are increasingly bullish about their chances of advancing legislation

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Speaker 6: in states nationwide after Apple unexpectedly got behind a California

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Speaker 6: bill that cleared a key herd all last week. Final

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Speaker 6: approval of the proposal will make the Golden State the

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Speaker 6: latest to pass a law requiring the electronics companies loos

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Speaker 6: in control over the parts and technical know how necessary

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Speaker 6: to fix their products. Microsoft and Apple face fresh investigations

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Speaker 6: from EU regulators as part of the block's landmark Digital

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Speaker 6: markets clamp down. Those companies are among a list of

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Speaker 6: twenty two services for under the EU's Digital Markets Act,

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Speaker 6: which gives them six months to fall in line with

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Speaker 6: the new rules or challenge.

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Speaker 4: Them in an EU court.

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Speaker 6: Plus, Saudi Telecom is taking a nearly ten percent stake

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Speaker 6: in Spain's Telefonica for roughly two point twenty five billion,

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Speaker 6: as the struggling the Did based carrier prepares to lay

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Speaker 6: out a new strategy for future growth. The acquisition is

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Speaker 6: bound to draw scrutiny from the Spanish government, which views

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Speaker 6: Telefonica as a company of strategic importance operating in this

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Speaker 6: structure that is critical to the nation's defense and security.

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Speaker 3: Caroline, Meanwhile, I mean so many other stories to be

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Speaker 3: digging into today. One of them is, of course, after

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Speaker 3: their reverse stock split one to forty we work back

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Speaker 3: at three dollars forty three, but under pressure once again,

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Speaker 3: we're down by three percent. And this, as we understand,

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Speaker 3: the CEO is putting out really a letter talking about

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Speaker 3: how they're looking to renegotiate nearly all of their leases

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Speaker 3: with landlords and they plan to exit what they call

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Speaker 3: unfit and underperforming locations.

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Speaker 5: Really, David totally here, Ed is sort.

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Speaker 3: Of at a race against time, really, isn't it. Ultimately

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Speaker 3: a lot of businesses haven't been returning to the office.

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Speaker 3: We now get the feel that it's back to school

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Speaker 3: Septembers upon us. But ultimately they are running low on

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Speaker 3: the money and they need to be renegotiating now. Of course,

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Speaker 3: they've already warned that whether or not this business can

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Speaker 3: be a going concern.

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Speaker 4: Yeah, so that happened last month.

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Speaker 6: But the reality is there are people in the tech

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Speaker 6: industry that still use we work, you know, small startup

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Speaker 6: shared spaces and are. Part of what Tolly said is

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Speaker 6: that if we're going to close locations down just like

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Speaker 6: they've done in the past, as part of this process,

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Speaker 6: they're going to have to go and tell everyone that's

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Speaker 6: currently working in them.

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Speaker 3: Yeah, off for alternative arrangements, additional support to minimize any

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Speaker 3: disruption or indeed inconvenience, but inconvenient it is if you

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Speaker 3: are in someone who enjoys going into the office in

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Speaker 3: some of these key locations. But we keep a close

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Speaker 3: eye on what is now at three dollars forty three

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Speaker 3: stock and has continued to be under pressure from New

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Speaker 3: York and San Francisco.

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Speaker 5: This is Bloomberg Technology.

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Speaker 6: Let's go global and take a look at India's economic transformation.

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Speaker 6: With multinational giants like Apple and Samsum looking to diversify

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Speaker 6: their manufacturing away from China, Here's the question, is India

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Speaker 6: prepared to take China's path and emerge as the next

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Speaker 6: global factory to become the next economic powerhouse. Here's Bloomberg's Minarkadoshi.

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Speaker 10: India is the world's second largest phone market, over two

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Speaker 10: hundred million sold last year.

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Speaker 2: A decade ago, most of them were important.

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Speaker 10: Now the country is a net exporter with Samsung and.

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Speaker 2: Apple leading the charch.

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Speaker 10: Crimnisterner in the movie wants to repeat this phone success

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Speaker 10: across electronic goods, electric vehicles, green energy, chemicals, textiles.

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Speaker 2: The neartome goal is to reverse the.

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Speaker 10: Declining share of manufacturing in GDP, targeting one trillion dollars

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Speaker 10: in goods exports and most importantly, creating jobs for the

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Speaker 10: largest working age population.

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Speaker 2: In the world.

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Speaker 10: But standing in the way of this manufacturing nvision are

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Speaker 10: some old challenges, land acquisition problems, high logistics costs, and

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Speaker 10: some new ones as well automation lack of skilled labor

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Speaker 10: take phones, for instance. The government has implemented a mix

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Speaker 10: of high import tariffs on finished phones and production incentives

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Speaker 10: to boost local manufacture, but supply chain in digitization is.

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Speaker 2: A long way off.

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Speaker 10: According to one report, Indian factories add eighteen percent in

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Speaker 10: value to the electronic devices they assemble for export, compared

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Speaker 10: with thirty eight percent in China and twenty four percent

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Speaker 10: in Vietnam. Manufacturing in Vietnam is also cheaper by at

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Speaker 10: least a tells the mag in India campaign will benefit

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Speaker 10: from record investments in infrastructure and logistics. There's also the

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Speaker 10: lure of a potentially large domestic market. And now there's

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Speaker 10: the China plus one wave as large global corporations seek

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Speaker 10: to mitigate geopolitical risks, and they are slow in China

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Speaker 10: economy by diversifying their supply chains.

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Speaker 2: Since the liberal i of.

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Speaker 10: Its economy in the nineties, India has come to be

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Speaker 10: known as the back office to the world. After becoming

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Speaker 10: a developed economy, the government also needs it to become

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Speaker 10: the factory to the world.

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Speaker 6: That was Bloomberg's Monarkadoshi right. Top story Microsoft shot for

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Speaker 6: the sky was Starfield. It's ambitious new space role playing

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Speaker 6: video game and so far looks like a pretty decent

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Speaker 6: bet The highly anticipated title arrives after seven years in development.

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Speaker 6: It's the first time Bethesda has entered a new universe

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Speaker 6: in twenty five years. Starfield available today to everyone through

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Speaker 6: Xbox Game Pass. Delighted to bring in some of the

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Speaker 6: giants behind the game, Phil Spencer, CEO of Microsoft Gaming,

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Speaker 6: and Todd Howard, executive director of Bethesda Games Studios and

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Speaker 6: the executive producer on the title. Todd, I'm going to

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Speaker 6: start with you. I asked our audience, what would you

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Speaker 6: ask Todd? Big question from many, why did you not

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Speaker 6: optimize this game for PC.

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Speaker 2: We did.

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Speaker 11: It's running great. It is a next gen PC game.

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Speaker 11: We really do push the technology, so you may need

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Speaker 11: to upgrade your PC for this game. But it's got

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Speaker 11: a lot of great stuff going on in it, and

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Speaker 11: the fans are responding awesome.

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Speaker 6: Karen and I have been reviewing the gameplay. We've also

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Speaker 6: been reviewing some of the discussion online. Phil, Good to

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Speaker 6: see you Xbox game Pass. Okay, it's available to anyone

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Speaker 6: that subscribes, so how can you guarantee from a sort

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Speaker 6: of sales perspective that you kind of hit the heights

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Speaker 6: that Skyrim has. If it's available to anyone through game Pass,

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Speaker 6: how do you ensure people actually play it?

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Speaker 12: Well, we can see people playing, which is great on

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Speaker 12: the platform. You might know, the game has been in

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Speaker 12: preview for the last week and it's already our most

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Speaker 12: played next Gen exclusive game on Xbox, so we're seeing

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Speaker 12: huge success. It's our biggest wish listed game on Steam

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Speaker 12: across Xbox and Bethesda Game Studio's history. And now, as

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Speaker 12: you said, tens of millions of Game Path subscribers and

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Speaker 12: the Standard Edition retail customers all get to play today.

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Speaker 12: So incredible day New franchise launching.

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Speaker 4: It's a lot of.

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Speaker 3: Fun and I'm sure you want to dwell on the

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Speaker 3: here that now, Phil, But You've been asked and I'm

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Speaker 3: going to ask it again. You mentioned exclusive, so does

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Speaker 3: that mean being able to scroll six will be How

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Speaker 3: do you mark as to whether this is the right track, Phil?

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Speaker 12: Yeah, we look at it on a case by case basis.

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Speaker 12: With the games that we build, we want to make

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Speaker 12: sure our games are available in so many different places

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Speaker 12: on our Xbox consoles, on.

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Speaker 4: PC, also via cloud.

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Speaker 12: These games can come to almost any web enabled device.

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Speaker 12: We're looking at. You know, millions and millions of players

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Speaker 12: who will have had access to Starfield and other Xbox

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Speaker 12: Game Studios games. It's really about giving players choice around

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Speaker 12: how they want to play and they build their library

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Speaker 12: of games.

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Speaker 3: What then, todd about timing? What then about other names,

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Speaker 3: other games Calder for example, Wilder'sgate that have done significant well,

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Speaker 3: how do you think about ultimately making sure everyone's addicted

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Speaker 3: to your current offering right here right now?

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Speaker 11: You know, I think if you look at video games now,

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Speaker 11: it is so competitive. I think this year twenty twenty

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Speaker 11: three could be the greatest year ever in video games.

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Speaker 11: I don't know, but to have Starfield be out there

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Speaker 11: and the response that we've gotten has just been incredible

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Speaker 11: for everybody here at the studio. And the other thing is, yes,

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Speaker 11: it's about launch, it's about today, but our games they

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Speaker 11: are played for years. You know, we're twelve years after

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Speaker 11: Skyrim still one of our most played games. So we

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Speaker 11: like to build these worlds that people can really really

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Speaker 11: get lost in the fan feedback and what it means

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Speaker 11: to everybody, It really is incredible for all of us here.

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Speaker 6: Todd, I want to go to another one of the

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Speaker 6: audience questions, and it's very specific, but so many people

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Speaker 6: asked it, why are there no vehicles on planets? Space

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Speaker 6: is one thing, but what about terra firma.

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Speaker 11: It's a great question. Actually it's something we consider. You know,

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Speaker 11: we're going to do our space, we're going new planets.

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Speaker 11: Once you do vehicles, it does change the gameplay. So

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Speaker 11: by focusing once you land in your ship that you're

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Speaker 11: on foot, it lets us really for the players, make

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Speaker 11: it an experience where we know how fast they're seeing things.

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Speaker 2: In one sense.

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Speaker 11: You do have a vehicle, which is obviously have your spaceship.

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Speaker 11: You can go around in space, but then on the

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Speaker 11: surface you do have a jetpack which you can upgrade,

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Speaker 11: which is super fun new experience for us. And obviously

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Speaker 11: planets have different levels of gravity which make that unique

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Speaker 11: for many planets.

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Speaker 6: Phil this is so closely tied to Xbox, and I

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Speaker 6: find it interesting. I have to ask you about the

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Speaker 6: latest offer from Microsoft and Activision to the uk CMA.

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Speaker 6: Do you think that that structure will be accepted with

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Speaker 6: the UKCMA.

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Speaker 12: You know, we're working cooperatively with the regulators as we've

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Speaker 12: had through this whole process. As you're well aware, it's

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Speaker 12: been a long process. We remain confident in the work

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Speaker 12: that we're doing with the CMA and the European Commission

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Speaker 12: and here with the FTC and the UA, that we

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Speaker 12: will close this acquisition.

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Speaker 5: Another rather specific question for you, Todd.

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Speaker 3: What's been your favorite means and operation, like what you'll

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Speaker 3: build out there? What's been your favorite build or indeed

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Speaker 3: favorite well means of traveling through space.

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Speaker 11: Favorite means of traveling through space? Well, you know, when

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Speaker 11: I'm doing my ship, I like to focus on shields

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Speaker 11: and defense because you never know where it's going to

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Speaker 11: happen when you jump into a new system in the game,

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Speaker 11: as far as character builds, it's one of the things

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Speaker 11: we love to do, which is.

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Speaker 5: There's so much you can do in the game.

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Speaker 11: It's almost like five or six games at once, and

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Speaker 11: we usually tell people just get comfortable, do what you

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Speaker 11: want to do. If you want to zen out and

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Speaker 11: scan planets and explore them, great, If you want to

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Speaker 11: join the pirates, great, if you want to do this

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Speaker 11: epic main quest. It's really whatever you want to do,

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Speaker 11: whatever you're comfortable with, and really for us it is

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Speaker 11: we do these worlds, but it's about the players making

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Speaker 11: it their own.

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Speaker 6: Todd This game took seven years to make. Generative AI

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Speaker 6: now allows studios like you to expedite the creation process quickly.

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Speaker 8: Well, it seems we want to do that every time.

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Speaker 11: We want to do it faster, and there are areas

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Speaker 11: where we can go faster, but these are complex projects.

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Speaker 11: They're big technological innovation going on. There's so much design.

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Speaker 11: This game has over three million words in it, so

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Speaker 11: we do like to make really big games. Those will

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Speaker 11: take some time, and as you mentioned before, the competition

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Speaker 11: our industry is quite high. The bar is high, and

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Speaker 11: we want to get there for all of our fans.

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Speaker 3: Every time it's great having some time with you, Todd

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Speaker 3: Howard and indeed Phil Spencer. We thank you both, Phil Spencer,

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Speaker 3: We'll see you, Maxloft Game and Todd Howard, executive director

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Speaker 3: of Bethesda Game Studios and of course the executive producer

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Speaker 3: of Starfield. From New York and San Francisco. There's a

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Speaker 3: Blue Meg Technology. Wellcome back to Blue Meg Technology. I'm

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Speaker 3: Caroline Hid in New York.

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Speaker 6: And I'm ed Lovelow in San Francisco. Quick check in

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Speaker 6: on the market. Then as that one hundred at the

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Speaker 6: index level, Carro and you know, we've really started to

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Speaker 6: kind of accelerate other clients down one point two percent.

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Speaker 6: You talked at the top of the show about the

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Speaker 6: hot print fort ism data that seems to have weighed

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Speaker 6: on sentiment. But some megacap names also under pressure a

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Speaker 6: lot in the newsfod that.

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Speaker 4: We've covered off.

443
00:22:16,600 --> 00:22:18,639
Speaker 6: There's one specific name that I wanted to bring you,

444
00:22:18,680 --> 00:22:23,240
Speaker 6: which is by DO, China's search giant, the Google of China.

445
00:22:23,280 --> 00:22:25,919
Speaker 6: There's a really interesting tech Watch column. This is by

446
00:22:26,000 --> 00:22:28,240
Speaker 6: DO over the last seven days, but we're down in

447
00:22:28,280 --> 00:22:31,560
Speaker 6: the last two sessions. The theory is that there could

448
00:22:31,600 --> 00:22:34,159
Speaker 6: be some room to run on this stock because not

449
00:22:34,240 --> 00:22:36,480
Speaker 6: only did it sort of get the regulatory approvals from

450
00:22:36,560 --> 00:22:40,040
Speaker 6: China to deploy its generative AI tool to the public,

451
00:22:40,440 --> 00:22:43,040
Speaker 6: but ernie bot has hit a million downloads. And what

452
00:22:43,119 --> 00:22:44,800
Speaker 6: our colleagues in Bloomberg mus have done is look at

453
00:22:44,840 --> 00:22:47,919
Speaker 6: all the technical indicators, look at the options market, and say,

454
00:22:48,240 --> 00:22:49,960
Speaker 6: there's a lot of hype around AI, but this is

455
00:22:50,000 --> 00:22:50,560
Speaker 6: one name.

456
00:22:50,440 --> 00:22:51,639
Speaker 4: That we might want to watch for.

457
00:22:51,680 --> 00:22:53,560
Speaker 6: So I wanted to squeeze that in while we had

458
00:22:53,560 --> 00:22:53,960
Speaker 6: a minute.

459
00:22:54,000 --> 00:22:55,600
Speaker 3: It's good because I'm going to be digging into the

460
00:22:55,600 --> 00:22:57,320
Speaker 3: world of AI a little bit more with.

461
00:22:57,280 --> 00:22:59,280
Speaker 5: A VC air Street Capital.

462
00:22:59,600 --> 00:23:01,439
Speaker 3: Of course, Nathan Binet is going to be joining us,

463
00:23:01,440 --> 00:23:03,920
Speaker 3: and he's been all focused on by Do. But let's

464
00:23:03,960 --> 00:23:06,560
Speaker 3: go from bay Do to Binance. Right now the world

465
00:23:06,560 --> 00:23:10,600
Speaker 3: of crypto. Two finance executives ed overseeing regions including Eastern

466
00:23:10,600 --> 00:23:12,919
Speaker 3: Europe and Russia. Well they've left, and actually it's just

467
00:23:13,000 --> 00:23:16,040
Speaker 3: adding the drip drip drip of continued roll revolving doors.

468
00:23:16,040 --> 00:23:18,160
Speaker 5: At the moment, the senior managers just aparting.

469
00:23:18,520 --> 00:23:21,080
Speaker 3: This comes as we know that regulators in the US

470
00:23:21,119 --> 00:23:23,280
Speaker 3: and elsewhere are cracking down in the company.

471
00:23:23,280 --> 00:23:24,800
Speaker 5: But EMOTIONALI Bessek joins US.

472
00:23:24,880 --> 00:23:29,040
Speaker 3: More So, is this in any way idiosyncratic to Eastern

473
00:23:29,040 --> 00:23:30,200
Speaker 3: Europe and Russia or is this.

474
00:23:30,160 --> 00:23:30,800
Speaker 5: A broader theme.

475
00:23:31,119 --> 00:23:32,640
Speaker 8: There's definitely a broader theme here.

476
00:23:32,680 --> 00:23:35,000
Speaker 13: We know that there are a number of very senior

477
00:23:35,040 --> 00:23:37,960
Speaker 13: executives here. Remember the Wall Street Journal had also reported

478
00:23:37,960 --> 00:23:40,639
Speaker 13: that Helen High, who ran the global feat business, is

479
00:23:40,680 --> 00:23:42,160
Speaker 13: among those who have departed.

480
00:23:42,200 --> 00:23:44,080
Speaker 8: Then we also have the person.

481
00:23:44,040 --> 00:23:46,160
Speaker 13: Who as a global head of product who had left

482
00:23:46,359 --> 00:23:48,760
Speaker 13: very recently as well. We also have the person who

483
00:23:48,840 --> 00:23:51,520
Speaker 13: ran the finance business in the Asia Pacific region. So

484
00:23:51,720 --> 00:23:54,399
Speaker 13: certainly across regions you are seeing different members of the

485
00:23:54,400 --> 00:23:58,960
Speaker 13: Binance senior leadership teams start to exit. Now, remember crypto

486
00:23:59,080 --> 00:24:00,920
Speaker 13: tends to be a business where people come and go

487
00:24:01,280 --> 00:24:04,280
Speaker 13: a lot. However, you're only as good as your business here.

488
00:24:04,320 --> 00:24:06,879
Speaker 13: I know that this is a technology business, but it

489
00:24:06,960 --> 00:24:09,199
Speaker 13: is the people who are expanding in those areas, and

490
00:24:09,280 --> 00:24:15,119
Speaker 13: finance has always been kind of the central pivotal international

491
00:24:15,480 --> 00:24:18,800
Speaker 13: player when it comes to the crypto community, as well

492
00:24:18,840 --> 00:24:21,320
Speaker 13: as being such a large exchange across the world. So

493
00:24:21,400 --> 00:24:24,359
Speaker 13: to your point on is it just Eastern Europe, the

494
00:24:24,400 --> 00:24:27,120
Speaker 13: fact that we've seen such senior executives had to Global

495
00:24:27,119 --> 00:24:31,639
Speaker 13: Product Asia as well, as Eastern Europe definitely indicates that

496
00:24:31,680 --> 00:24:33,679
Speaker 13: you are seeing issues in different.

497
00:24:33,440 --> 00:24:36,480
Speaker 3: Areas Czy though, yes, putting a bit of a kind

498
00:24:36,480 --> 00:24:38,840
Speaker 3: of we silver lining to it all saying look, they're

499
00:24:38,840 --> 00:24:40,960
Speaker 3: going on to new ventures, some people will great talent

500
00:24:41,000 --> 00:24:43,000
Speaker 3: are coming from outside of buy Now and for what.

501
00:24:42,920 --> 00:24:45,280
Speaker 13: It's worth, having this conversation with you and now is

502
00:24:45,600 --> 00:24:48,240
Speaker 13: making me giggle. We'll hear that because you are seeing

503
00:24:48,240 --> 00:24:51,200
Speaker 13: this at other companies. You are seeing places like Goldman

504
00:24:51,320 --> 00:24:54,399
Speaker 13: say the same exact thing. And so as far as

505
00:24:54,440 --> 00:24:59,399
Speaker 13: talent leaving going other places and having a relationship to

506
00:24:59,440 --> 00:25:03,040
Speaker 13: the extent can prove that relationship is playing out. That's

507
00:25:03,080 --> 00:25:06,760
Speaker 13: the benefit of having your first job or such a

508
00:25:06,800 --> 00:25:09,320
Speaker 13: high level position at such a key exchange as you

509
00:25:09,320 --> 00:25:12,080
Speaker 13: build new crypto products. But again, the only benefit from

510
00:25:12,080 --> 00:25:14,040
Speaker 13: the company comes if that relationship or.

511
00:25:14,080 --> 00:25:16,600
Speaker 4: To continue shannata. We're going to go pretty deep on

512
00:25:16,600 --> 00:25:17,879
Speaker 4: another name in just a minute.

513
00:25:17,920 --> 00:25:22,840
Speaker 6: But Binance, like many others, is just as embattled, particularly

514
00:25:23,720 --> 00:25:26,000
Speaker 6: with the SEC scrutiny, and this is a thing that

515
00:25:26,080 --> 00:25:28,760
Speaker 6: CZ has to still deal with of course.

516
00:25:28,840 --> 00:25:32,439
Speaker 13: Yeah, remember that is of course a very big problem

517
00:25:32,440 --> 00:25:34,280
Speaker 13: here when you come to the lawsuits that they're facing

518
00:25:34,280 --> 00:25:37,119
Speaker 13: as well as the regulatory scrutiny, particularly here in the

519
00:25:37,200 --> 00:25:40,400
Speaker 13: United States. I would also say it's not just the

520
00:25:40,640 --> 00:25:43,359
Speaker 13: SEC that it's facing. Remember we're not too many months

521
00:25:43,400 --> 00:25:48,240
Speaker 13: away from when their own stable coin product had faced

522
00:25:48,240 --> 00:25:51,400
Speaker 13: scrutiny here via the issuer that it worked with.

523
00:25:51,280 --> 00:25:53,360
Speaker 8: Through the New York Department of Financial Services.

524
00:25:53,359 --> 00:25:55,720
Speaker 13: And these are all pretty critical pieces of the puzzle

525
00:25:55,760 --> 00:25:59,239
Speaker 13: when you think about what the crypto industry relies on

526
00:26:00,000 --> 00:26:01,920
Speaker 13: and what they trade at the end of the day.

527
00:26:02,080 --> 00:26:04,880
Speaker 8: So it is kind of coming from all sides, isn't it.

528
00:26:04,920 --> 00:26:08,720
Speaker 13: But again, these are now years long issues that Binance

529
00:26:08,760 --> 00:26:12,719
Speaker 13: has been facing, and so these executives leaving is not

530
00:26:12,800 --> 00:26:15,159
Speaker 13: just about regulation anymore's about business.

531
00:26:16,119 --> 00:26:17,240
Speaker 4: Away from Binance.

532
00:26:17,320 --> 00:26:19,400
Speaker 6: Shnali, It's that time of the week where I ask

533
00:26:19,520 --> 00:26:23,320
Speaker 6: you what is the latest on the Bitcoin sport ETF.

534
00:26:23,040 --> 00:26:28,560
Speaker 13: Saga, And you know, we are weeks away from the

535
00:26:28,600 --> 00:26:32,280
Speaker 13: next set of answers from the SEC on whether they're

536
00:26:32,320 --> 00:26:36,640
Speaker 13: going to approve or punt or deny more ETFs. And

537
00:26:36,960 --> 00:26:39,359
Speaker 13: given that we are just days away from when they've

538
00:26:39,400 --> 00:26:41,920
Speaker 13: punted yet again on a host of ETFs tied to

539
00:26:42,119 --> 00:26:43,160
Speaker 13: major providers.

540
00:26:43,400 --> 00:26:45,520
Speaker 8: You know, just a day ago we were speaking to.

541
00:26:46,720 --> 00:26:50,760
Speaker 13: Executive at Valkyrie, which has a penny application, who said

542
00:26:50,800 --> 00:26:53,240
Speaker 13: that people believes that there's a fifty percent chance that

543
00:26:53,320 --> 00:26:56,800
Speaker 13: after October they finally get an answer either way, and

544
00:26:57,160 --> 00:27:00,360
Speaker 13: there is a grand hope that there will be approval.

545
00:27:00,760 --> 00:27:04,480
Speaker 13: But it is pretty fascinating to see the Grayscale Bitcoin Trust,

546
00:27:04,520 --> 00:27:07,280
Speaker 13: for example, how it's trading. It's still at a twenty

547
00:27:07,320 --> 00:27:10,480
Speaker 13: percent discount to its net asset value. Remember that gap

548
00:27:10,520 --> 00:27:14,960
Speaker 13: had closed after the initial decision last week from the

549
00:27:15,160 --> 00:27:18,159
Speaker 13: district judge regarding their law suit against the SEC.

550
00:27:19,040 --> 00:27:20,880
Speaker 8: As far as Grayscale goes, they're.

551
00:27:20,680 --> 00:27:23,120
Speaker 13: Asking the SEC for answers as well. They are only

552
00:27:23,160 --> 00:27:25,480
Speaker 13: a couple days into that forty five day waiting period.

553
00:27:25,720 --> 00:27:28,199
Speaker 13: But that forty five day waiting period, the longer it

554
00:27:28,240 --> 00:27:30,560
Speaker 13: goes on, the more frustrating it is for everybody who

555
00:27:30,640 --> 00:27:33,199
Speaker 13: has an application that is sitting on the sidelines, that

556
00:27:33,280 --> 00:27:34,680
Speaker 13: is waiting for an answer in October.

557
00:27:34,880 --> 00:27:37,600
Speaker 6: Yeah, and it is an important question because the market

558
00:27:37,640 --> 00:27:39,320
Speaker 6: is trying to play it. And if there's anyone that

559
00:27:39,440 --> 00:27:43,400
Speaker 6: understands the moving timeline, it's Bloomberg Snali Bassek, thank.

560
00:27:43,200 --> 00:27:44,679
Speaker 4: You very much. Okay.

561
00:27:45,160 --> 00:27:47,960
Speaker 6: As the AI height brings founders and a fresh influx

562
00:27:48,000 --> 00:27:51,480
Speaker 6: of VC dollars to San Francisco. One industry has been

563
00:27:51,600 --> 00:27:55,040
Speaker 6: left ruing what might have been crypto. That's the view

564
00:27:55,080 --> 00:27:57,480
Speaker 6: of Ripple Labs co founder Chris Last and I sat

565
00:27:57,520 --> 00:27:59,840
Speaker 6: down with him yesterday here in San Francisco, a c

566
00:28:00,440 --> 00:28:03,439
Speaker 6: the larcens now trying to help fixed the outlines how

567
00:28:03,480 --> 00:28:06,320
Speaker 6: he feels the federal government and US regulators have cost

568
00:28:06,359 --> 00:28:10,640
Speaker 6: San Francisco the title is the blockchain capital of the world.

569
00:28:10,760 --> 00:28:11,360
Speaker 4: Have listened.

570
00:28:12,359 --> 00:28:18,560
Speaker 14: That's really unfortunate because I think unfortunately this administration made

571
00:28:18,560 --> 00:28:19,880
Speaker 14: a really bad call.

572
00:28:19,960 --> 00:28:22,240
Speaker 4: At the city level or the federal or the federal level.

573
00:28:22,280 --> 00:28:25,520
Speaker 14: They pretty much killed San Francisco from being what it was,

574
00:28:25,960 --> 00:28:29,840
Speaker 14: the blockchain capital of the world. We owned it, and

575
00:28:29,960 --> 00:28:33,520
Speaker 14: we don't anymore because the Biden administration, for whatever reason,

576
00:28:33,600 --> 00:28:37,040
Speaker 14: decided they want to push this industry offshore. And so

577
00:28:37,880 --> 00:28:42,280
Speaker 14: it's London, Singapore, Dubai that really are the global capitals

578
00:28:42,280 --> 00:28:45,880
Speaker 14: of blockchain. That's unfortunate. Maybe our vacancy rate would behalf

579
00:28:45,920 --> 00:28:48,120
Speaker 14: of what it is here in San Francisco. It's thirty percent.

580
00:28:48,640 --> 00:28:50,640
Speaker 14: It might have been fifteen percent if we still were

581
00:28:50,720 --> 00:28:52,280
Speaker 14: the global blockchain capital the world.

582
00:28:52,320 --> 00:28:53,640
Speaker 4: So that was a missed opportunity.

583
00:28:53,720 --> 00:28:55,400
Speaker 14: It's really unfortunate it hurt the city.

584
00:28:55,720 --> 00:29:00,640
Speaker 6: The latest with Rippled Labs action at the federal level

585
00:29:00,720 --> 00:29:05,000
Speaker 6: is that you have objected to the SEC's request to

586
00:29:05,120 --> 00:29:08,880
Speaker 6: appeal the original court ruling, which was a positive for

587
00:29:08,960 --> 00:29:12,080
Speaker 6: Ripple in the sense that it found the cryptocurrency xop

588
00:29:12,760 --> 00:29:16,400
Speaker 6: was not a security when it was sold to the public.

589
00:29:16,680 --> 00:29:19,200
Speaker 6: Could you just explain what the latest is with that

590
00:29:19,560 --> 00:29:20,360
Speaker 6: legal dispute.

591
00:29:20,560 --> 00:29:22,880
Speaker 14: Well, I think the bottom line is the SEC lost

592
00:29:22,960 --> 00:29:26,440
Speaker 14: on everything that was important to them and important in

593
00:29:26,760 --> 00:29:31,320
Speaker 14: regulation of the industry. The case still continues. There's appeal

594
00:29:31,480 --> 00:29:36,080
Speaker 14: processes that everybody has the right to do. But we

595
00:29:36,200 --> 00:29:39,480
Speaker 14: think that this is really groundbreaking. This is the law

596
00:29:39,520 --> 00:29:42,520
Speaker 14: of the land, and it's actually quite good news.

597
00:29:42,560 --> 00:29:42,880
Speaker 4: I think.

598
00:29:42,960 --> 00:29:46,280
Speaker 14: For again, I think the US screwed up here on

599
00:29:46,320 --> 00:29:49,920
Speaker 14: crypto and blockchain policy. This is the beginning now through

600
00:29:49,960 --> 00:29:52,960
Speaker 14: the court's unfortunately, instead of the regulators to get that

601
00:29:53,040 --> 00:29:53,800
Speaker 14: clarity and get.

602
00:29:53,680 --> 00:29:54,240
Speaker 4: Us back in the work.

603
00:29:54,520 --> 00:29:57,200
Speaker 6: There's kind of both happening in parallel. There's your situation

604
00:29:57,280 --> 00:30:02,440
Speaker 6: with the SEC. Think about the application pending for bitcoins

605
00:30:02,480 --> 00:30:05,800
Speaker 6: for ETF. You know, Gary Gensler and the SEC have

606
00:30:05,960 --> 00:30:08,440
Speaker 6: both decisions to make applications and fights that.

607
00:30:08,360 --> 00:30:10,480
Speaker 4: They are are on not willing to pick.

608
00:30:10,800 --> 00:30:13,480
Speaker 6: How has that reflected on Gary Gensler to your mind

609
00:30:13,720 --> 00:30:14,720
Speaker 6: as the lead of that.

610
00:30:14,800 --> 00:30:17,040
Speaker 14: Well you bring up, yeah, you bring up a great point.

611
00:30:17,080 --> 00:30:20,800
Speaker 14: You saw in the latest challenge on the ETF the

612
00:30:20,800 --> 00:30:24,360
Speaker 14: Bitcoin ETF. Again SEC lost, but not only that, the

613
00:30:24,480 --> 00:30:28,040
Speaker 14: judge really admonished the SEC. I really called them out

614
00:30:28,080 --> 00:30:30,080
Speaker 14: in a way that you don't really see very often.

615
00:30:30,280 --> 00:30:34,160
Speaker 14: I think it's just more proof that Gary Ginsler's decision

616
00:30:34,640 --> 00:30:38,080
Speaker 14: of sort of engaging this regulation by enforcement rather than

617
00:30:38,120 --> 00:30:41,440
Speaker 14: getting clear laws. He knows they're not clear. He just

618
00:30:41,680 --> 00:30:45,040
Speaker 14: likes that lack of clarity so that he can go

619
00:30:45,080 --> 00:30:47,160
Speaker 14: after anybody and make up the rules as he goes

620
00:30:47,200 --> 00:30:50,240
Speaker 14: along through bullying. And that's not the American way. This

621
00:30:50,280 --> 00:30:53,480
Speaker 14: should be a congress. We should have clear rules from

622
00:30:53,520 --> 00:30:57,600
Speaker 14: the legislatures, not through the sort of unelected, power hungry

623
00:30:58,040 --> 00:31:01,400
Speaker 14: and really misplaced decision maker that you see in Gary Gensler.

624
00:31:01,920 --> 00:31:04,560
Speaker 6: Well, Cara, I mean you heard it strong words against

625
00:31:04,640 --> 00:31:09,640
Speaker 6: the chair of the lead US regulator, But he's basically

626
00:31:09,640 --> 00:31:12,040
Speaker 6: making an appeal, which is we want the federal government

627
00:31:12,080 --> 00:31:15,200
Speaker 6: to write laws, not keep going to court over and

628
00:31:15,240 --> 00:31:17,680
Speaker 6: over again with the same agency.

629
00:31:17,760 --> 00:31:18,800
Speaker 5: And yet they haven't.

630
00:31:19,080 --> 00:31:20,880
Speaker 3: And it's interesting we're getting more and more clamor that

631
00:31:20,920 --> 00:31:24,480
Speaker 3: perhaps this isn't a partisan issue, perhaps this becomes bipartisan

632
00:31:24,520 --> 00:31:27,720
Speaker 3: in some way. But Ed, what's interesting is just Dwell

633
00:31:27,760 --> 00:31:30,840
Speaker 3: on the San Francisco element here, because this is what

634
00:31:30,880 --> 00:31:34,040
Speaker 3: really took my attention. How he feels that what the

635
00:31:34,080 --> 00:31:37,480
Speaker 3: sort of sucking sound of crypto and blockchain has hurt

636
00:31:37,520 --> 00:31:39,600
Speaker 3: the city and indeed the district yet more.

637
00:31:40,400 --> 00:31:40,600
Speaker 4: Yeah.

638
00:31:40,600 --> 00:31:43,440
Speaker 6: So the economic data point that he cited was commercial

639
00:31:43,440 --> 00:31:47,000
Speaker 6: real estate or office vacancy, which last quarter was at

640
00:31:47,000 --> 00:31:50,120
Speaker 6: thirty two percent CBRO data, and he said it would

641
00:31:50,160 --> 00:31:53,920
Speaker 6: be fifteen percent probably had this become such an unhappy

642
00:31:53,960 --> 00:31:58,360
Speaker 6: place for blockchain companies in particular, And he's saying to newfounders,

643
00:31:58,440 --> 00:32:01,640
Speaker 6: don't come here the city's to fix. You have better

644
00:32:01,720 --> 00:32:04,360
Speaker 6: lot going to Singapore or Dubai because they have proactive

645
00:32:04,400 --> 00:32:07,720
Speaker 6: regulation that supports the founding and building of companies in

646
00:32:07,720 --> 00:32:08,200
Speaker 6: that space.

647
00:32:08,440 --> 00:32:10,920
Speaker 3: But I feel that that must be something that well

648
00:32:10,920 --> 00:32:14,360
Speaker 3: reflects on the US more broadly. What is it just

649
00:32:14,400 --> 00:32:17,280
Speaker 3: because it's an added wound into San Francisco at a

650
00:32:17,280 --> 00:32:19,640
Speaker 3: time where they're still trying to bring workers back to

651
00:32:19,680 --> 00:32:21,760
Speaker 3: the city trailers still trying to ensure that their rualer

652
00:32:21,800 --> 00:32:23,680
Speaker 3: state is full in some way, not just in crypto,

653
00:32:23,800 --> 00:32:26,479
Speaker 3: but in software, in anything but AI.

654
00:32:26,520 --> 00:32:30,120
Speaker 6: Basically, his answer was very quick and simple. The federal

655
00:32:30,160 --> 00:32:32,880
Speaker 6: government were the main sort of driver of people out,

656
00:32:33,160 --> 00:32:35,960
Speaker 6: but there's no champion in San Francisco right now trying

657
00:32:36,000 --> 00:32:36,920
Speaker 6: to bring them back in.

658
00:32:37,240 --> 00:32:38,760
Speaker 4: And that's why we have a vacuum.

659
00:32:39,400 --> 00:32:42,360
Speaker 3: Really interesting take on particular niche on that focus on

660
00:32:42,360 --> 00:32:44,920
Speaker 3: that city. But coming up, let's go even more broad

661
00:32:44,960 --> 00:32:47,560
Speaker 3: and we're interested to talk about what's happening in Europe

662
00:32:47,560 --> 00:32:50,800
Speaker 3: and cultivating the startup scene there as well. Big new

663
00:32:50,880 --> 00:32:53,040
Speaker 3: rays coming from air Street Capital. It's a venture firm

664
00:32:53,120 --> 00:32:55,640
Speaker 3: backed by Spotify CEO Daniel Eck. We're going to be

665
00:32:55,720 --> 00:32:59,040
Speaker 3: joined by Nathan Banish, he's general partner in air Street Capital.

666
00:32:59,080 --> 00:33:01,640
Speaker 3: That's next. I mean, while before we go to private

667
00:33:01,720 --> 00:33:03,280
Speaker 3: let's go to the public markets. We just want to

668
00:33:03,440 --> 00:33:04,840
Speaker 3: shine a light in the fact that we are at

669
00:33:05,000 --> 00:33:07,560
Speaker 3: basically session lows the SMP off by more than percentage point,

670
00:33:07,680 --> 00:33:09,760
Speaker 3: looking in the nasdak off by one point four percent.

671
00:33:10,000 --> 00:33:12,360
Speaker 3: This is a question of macro data. Is the US

672
00:33:12,400 --> 00:33:14,480
Speaker 3: economy too strong? Does a fence still have to hike

673
00:33:14,680 --> 00:33:17,520
Speaker 3: the rates, go and stay above that five percent level

674
00:33:17,520 --> 00:33:19,600
Speaker 3: of the two year from New York and San Francisco.

675
00:33:19,960 --> 00:33:35,400
Speaker 15: This is Blueberg Technology.

676
00:33:37,400 --> 00:33:39,600
Speaker 5: It is at time our VC round up starting with

677
00:33:39,680 --> 00:33:40,800
Speaker 5: five hundred global Look.

678
00:33:40,840 --> 00:33:43,240
Speaker 3: It's one of the most active early stage venture investors

679
00:33:43,400 --> 00:33:45,840
Speaker 3: over in Southeast Asia. It's an early backer of GRAB

680
00:33:45,920 --> 00:33:47,560
Speaker 3: and they just raise one hundred and forty three million

681
00:33:47,600 --> 00:33:50,120
Speaker 3: dollars to ramp up investments in the region. Firm now

682
00:33:50,120 --> 00:33:52,080
Speaker 3: has more than two point four billion dollars in assets

683
00:33:52,080 --> 00:33:55,360
Speaker 3: and the management. Meanwhile, the Blank Chech company started by

684
00:33:55,360 --> 00:33:57,560
Speaker 3: former IndyCar driver, that's Michael Andretti.

685
00:33:57,920 --> 00:34:00,240
Speaker 5: Here he's imagine with AI startup. It's about it Ai.

686
00:34:00,640 --> 00:34:02,960
Speaker 5: According to sources, the merger values about are at.

687
00:34:02,840 --> 00:34:06,960
Speaker 3: About two hundred million dollars plus Jared Kushner's Affinity Partners.

688
00:34:07,080 --> 00:34:09,600
Speaker 3: It's acquiring one hundred and fifty million dollar minority stake

689
00:34:09,800 --> 00:34:12,760
Speaker 3: in an Israeli car company. This marks the first investment

690
00:34:12,760 --> 00:34:14,960
Speaker 3: in Israel for the Miami based private equity firm, which

691
00:34:15,000 --> 00:34:18,200
Speaker 3: is backed by Saudi Arabia's Soften Wealth Fund, A really

692
00:34:18,200 --> 00:34:18,640
Speaker 3: global one.

693
00:34:18,680 --> 00:34:18,879
Speaker 5: Ad.

694
00:34:19,560 --> 00:34:21,719
Speaker 6: Yeah, those are the VC headlines. Let's stick with the

695
00:34:21,760 --> 00:34:25,360
Speaker 6: world of venture capital. Air Street Capital, venture firm focused

696
00:34:25,400 --> 00:34:28,840
Speaker 6: on early stage AI startups, has just raised a second

697
00:34:28,920 --> 00:34:31,399
Speaker 6: fund worth one hundred and twenty one million dollars. We're

698
00:34:31,440 --> 00:34:36,320
Speaker 6: backing from Spotify's CEO, Daniel eck Let's bring in Nathan Benaish,

699
00:34:36,440 --> 00:34:40,640
Speaker 6: general partner at air Street Capital for today's VC Spotlight.

700
00:34:40,680 --> 00:34:44,480
Speaker 6: We asked this question, Naean every time. How quickly did

701
00:34:44,520 --> 00:34:46,120
Speaker 6: you raise and close that fund?

702
00:34:47,400 --> 00:34:50,879
Speaker 16: That's a privilege to be here. Thanks for having me. Yeah,

703
00:34:50,920 --> 00:34:52,759
Speaker 16: you know, it's it's definitely a great time to be

704
00:34:52,800 --> 00:34:55,040
Speaker 16: investing in this space. You know, this is just a

705
00:34:55,120 --> 00:34:55,880
Speaker 16: moment in time.

706
00:34:56,239 --> 00:34:56,440
Speaker 11: You know.

707
00:34:56,480 --> 00:34:59,120
Speaker 16: I tend to think that raising funds is basically a

708
00:34:59,239 --> 00:35:01,520
Speaker 16: job over you're entire the career, and it's just a

709
00:35:01,520 --> 00:35:03,400
Speaker 16: little snapshot in the journey. But there was a lot

710
00:35:03,440 --> 00:35:06,279
Speaker 16: of interest, and yeah, we're fortunate to end up where

711
00:35:06,280 --> 00:35:06,560
Speaker 16: we did.

712
00:35:07,440 --> 00:35:10,719
Speaker 3: You are well known across Europe, clearly backing from well

713
00:35:10,800 --> 00:35:13,600
Speaker 3: the pinoff in the public markets that is Spotify, But

714
00:35:13,719 --> 00:35:20,200
Speaker 3: I'm interested in basically the areas of opportunity. Many would say, look,

715
00:35:20,280 --> 00:35:23,000
Speaker 3: AI is kind of dominated by San Francisco right now,

716
00:35:23,040 --> 00:35:25,319
Speaker 3: but I think a mistrell over in Europe which had

717
00:35:25,360 --> 00:35:29,359
Speaker 3: a phenomenal first race. What opportunities in artificial intelligence are

718
00:35:29,360 --> 00:35:30,360
Speaker 3: you seeing from the region.

719
00:35:31,320 --> 00:35:34,680
Speaker 16: Yeah, I think the opportunities for AI are genuinely global.

720
00:35:35,080 --> 00:35:38,320
Speaker 16: What's fascinating about Europe is it has this very strong

721
00:35:38,440 --> 00:35:41,840
Speaker 16: academic and research base for many years. Many of the

722
00:35:41,840 --> 00:35:45,120
Speaker 16: major contributors to landmark AI research papers that are going

723
00:35:45,160 --> 00:35:47,880
Speaker 16: to underpin the technology that works today, you know, had

724
00:35:47,920 --> 00:35:50,239
Speaker 16: their early careers in Europe. And I'm investing both in

725
00:35:50,280 --> 00:35:53,319
Speaker 16: Europe and in North America. I've been particularly interested in

726
00:35:53,400 --> 00:35:56,480
Speaker 16: pharmaceuticals and drug discovery, where I think AI is one

727
00:35:56,480 --> 00:36:00,640
Speaker 16: of these amazing native languages to explain biology. Interested in

728
00:36:00,800 --> 00:36:05,279
Speaker 16: enterprise software and automation, and also emerging sectors like robotics

729
00:36:05,280 --> 00:36:06,680
Speaker 16: and national security and defense.

730
00:36:08,360 --> 00:36:13,520
Speaker 6: Nathan can be startups in Europe building large language models

731
00:36:14,080 --> 00:36:17,319
Speaker 6: compete with those being built here by the likes of

732
00:36:17,360 --> 00:36:18,800
Speaker 6: open Ai by Google.

733
00:36:20,440 --> 00:36:24,160
Speaker 16: Yeah. I think the foundation model space is particularly tricky.

734
00:36:24,239 --> 00:36:26,719
Speaker 16: I mean, as we all know, it's very capital intensive,

735
00:36:26,760 --> 00:36:28,600
Speaker 16: and it's probably going to be just a couple of

736
00:36:28,920 --> 00:36:32,000
Speaker 16: winners here that will form this kind of bedrock of

737
00:36:32,360 --> 00:36:37,640
Speaker 16: web services. I'm particularly not extremely drawn to these companies

738
00:36:37,680 --> 00:36:41,279
Speaker 16: because I'm not sure they make for great venture investments,

739
00:36:41,320 --> 00:36:45,080
Speaker 16: particularly for early stage funds. But it's definitely an interesting

740
00:36:45,719 --> 00:36:48,440
Speaker 16: domain to watch and never say never, but it's not

741
00:36:48,480 --> 00:36:49,400
Speaker 16: really the focus for me.

742
00:36:50,080 --> 00:36:53,200
Speaker 3: What's interesting is we came to Nathan on a story

743
00:36:53,440 --> 00:36:57,960
Speaker 3: really global, one of sort of venture backed by Saudi

744
00:36:58,000 --> 00:37:01,319
Speaker 3: Arabian money investing in Israeli style, and I'm interested as

745
00:37:01,320 --> 00:37:05,600
Speaker 3: to where the competition is form my allocation of checks.

746
00:37:05,920 --> 00:37:09,560
Speaker 3: Are you seeing Chinese money, are you seeing Middle Eastern

747
00:37:09,560 --> 00:37:12,080
Speaker 3: money coming into the startups across Europe? And are they

748
00:37:12,080 --> 00:37:15,800
Speaker 3: taking it? And are you investing alongside them?

749
00:37:16,280 --> 00:37:19,480
Speaker 16: I actually don't see that much for sure. In you

750
00:37:19,480 --> 00:37:22,920
Speaker 16: know the news we've seen, you know, AI generally become

751
00:37:23,440 --> 00:37:26,480
Speaker 16: part of the geopolitical discourse, and you know, it's one

752
00:37:26,480 --> 00:37:30,520
Speaker 16: of the kind of vectors through which you know, various

753
00:37:30,520 --> 00:37:32,480
Speaker 16: companies are going to be competitive going forward, and so

754
00:37:32,520 --> 00:37:34,520
Speaker 16: it makes sense the government should be involved, and I

755
00:37:34,560 --> 00:37:37,239
Speaker 16: think the UK government has been making some interesting moves

756
00:37:37,239 --> 00:37:39,839
Speaker 16: there as well. On the investing landscape, I don't really

757
00:37:39,880 --> 00:37:42,640
Speaker 16: see them. We tend to work with European and North

758
00:37:42,680 --> 00:37:48,239
Speaker 16: American partners for pretty much exclusively, but yeah, it hasn't

759
00:37:48,239 --> 00:37:49,560
Speaker 16: really crossed my roadmap as much.

760
00:37:49,960 --> 00:37:52,040
Speaker 3: And Nathan, what is interesting, is of course where you're

761
00:37:52,040 --> 00:37:54,520
Speaker 3: coming to us from. And indeed, well the times you

762
00:37:54,600 --> 00:37:58,120
Speaker 3: have with the UK sector in particular, and that is

763
00:37:58,160 --> 00:38:00,760
Speaker 3: one that we talk about time and time again. London

764
00:38:01,040 --> 00:38:03,919
Speaker 3: and its ability to continue to be a dominant force

765
00:38:03,960 --> 00:38:05,040
Speaker 3: in aid tech.

766
00:38:05,800 --> 00:38:08,440
Speaker 6: I think back to IVP they talked about it, Nathan,

767
00:38:08,560 --> 00:38:11,160
Speaker 6: being a London based bridge to Europe. You're going to

768
00:38:11,239 --> 00:38:14,359
Speaker 6: run your firm out of London. What's it like in

769
00:38:14,360 --> 00:38:17,000
Speaker 6: this post Brexit world? Is it a good place to

770
00:38:17,040 --> 00:38:17,560
Speaker 6: be a VC?

771
00:38:19,360 --> 00:38:19,560
Speaker 1: Yeah?

772
00:38:19,640 --> 00:38:22,360
Speaker 16: I think you know, VC's definitely gone global, particularly in

773
00:38:22,400 --> 00:38:24,319
Speaker 16: the last couple of years. I think firms that have

774
00:38:24,360 --> 00:38:27,319
Speaker 16: been reticent to write checks over Zoom, you know, are

775
00:38:27,400 --> 00:38:30,080
Speaker 16: no longer like that. I mean for me, actually, I've

776
00:38:30,120 --> 00:38:32,719
Speaker 16: invested two checks over Zoom and sold the company before

777
00:38:32,719 --> 00:38:36,399
Speaker 16: I actually met the founders in person, So this can happen.

778
00:38:36,440 --> 00:38:39,080
Speaker 16: I'm completely happy with that. I tend to use London

779
00:38:39,120 --> 00:38:41,040
Speaker 16: as the base and then I'm very happy to travel

780
00:38:41,080 --> 00:38:44,360
Speaker 16: wherever I need to in Europe in North America. But

781
00:38:44,520 --> 00:38:46,080
Speaker 16: as you say, you know, Europe is a is a

782
00:38:46,080 --> 00:38:48,520
Speaker 16: hardbed for talent and you know, a deep mind kind

783
00:38:48,560 --> 00:38:50,759
Speaker 16: of winning the power balance with Google to be like

784
00:38:50,840 --> 00:38:53,560
Speaker 16: the de facto AI lab for the company and being

785
00:38:53,600 --> 00:38:55,360
Speaker 16: based in London, I think is a big win. And

786
00:38:56,160 --> 00:38:58,560
Speaker 16: with open EI joining the fray Ananthropic as well, I

787
00:38:58,560 --> 00:39:00,400
Speaker 16: think it's a it's a great and to be in

788
00:39:00,440 --> 00:39:00,840
Speaker 16: the space.

789
00:39:01,880 --> 00:39:04,919
Speaker 6: We've tracked all the data this year from pitch book

790
00:39:05,000 --> 00:39:07,600
Speaker 6: or see the insights wherever about the flow of VC

791
00:39:07,800 --> 00:39:11,840
Speaker 6: dollars to San Francisco in the context of AI and mL.

792
00:39:12,280 --> 00:39:15,440
Speaker 6: I just wondered if you could explain any bright spots

793
00:39:15,440 --> 00:39:17,440
Speaker 6: that you see, even if it's at a city level

794
00:39:17,800 --> 00:39:19,560
Speaker 6: where there is a lot of talent, there's a lot

795
00:39:19,600 --> 00:39:22,840
Speaker 6: of dollars flowing to very specific areas in Europe.

796
00:39:24,560 --> 00:39:27,879
Speaker 16: Yeah, I think it's a very distributed kind of game,

797
00:39:27,960 --> 00:39:30,080
Speaker 16: and as you know, like seed is very local in

798
00:39:30,080 --> 00:39:31,560
Speaker 16: a way, so you do have to be present in

799
00:39:31,600 --> 00:39:34,360
Speaker 16: different ecosystems, which is you know why we try and

800
00:39:34,400 --> 00:39:37,200
Speaker 16: make key contributions into the space through state of a report,

801
00:39:37,320 --> 00:39:41,040
Speaker 16: through running best practice meetups and kind of trying to

802
00:39:41,080 --> 00:39:44,560
Speaker 16: lift the lift sort of all boats. Basically by showing

803
00:39:44,600 --> 00:39:47,160
Speaker 16: best practices. We invest in everything from you know, a

804
00:39:47,239 --> 00:39:50,320
Speaker 16: spin out in Studdeguard to you know, companies in Zurich

805
00:39:50,440 --> 00:39:55,080
Speaker 16: or Paris or Stockholm, and so I think if you

806
00:39:55,160 --> 00:39:58,439
Speaker 16: kind of own the megaphone online where basically the forum

807
00:39:58,480 --> 00:40:01,360
Speaker 16: for machine learners to debate is based Twitter or x

808
00:40:01,440 --> 00:40:04,799
Speaker 16: dot com, then that's a great place to start to

809
00:40:04,840 --> 00:40:08,359
Speaker 16: meet people. And so I think when I'm in New York,

810
00:40:08,360 --> 00:40:10,200
Speaker 16: people think I live there. When I'm in London, people

811
00:40:10,200 --> 00:40:13,319
Speaker 16: think I live there. I just go wherever the opportunities are.

812
00:40:13,640 --> 00:40:16,600
Speaker 3: And Nathan, you of course have PhD in cancer biology

813
00:40:16,760 --> 00:40:19,640
Speaker 3: from the University of Cambridge. Where is the opportunity in

814
00:40:19,719 --> 00:40:21,640
Speaker 3: the biotech meets AI space.

815
00:40:22,880 --> 00:40:27,440
Speaker 16: I think it's a radical transformation for how drugs are developed, designed, marketed,

816
00:40:27,760 --> 00:40:31,560
Speaker 16: how patients are selected for trials, and how we monitor

817
00:40:31,719 --> 00:40:35,000
Speaker 16: successive trials as patients are going through them. And I

818
00:40:35,080 --> 00:40:37,239
Speaker 16: think every one of those steps in the process that

819
00:40:37,280 --> 00:40:41,160
Speaker 16: I described can be really be rethought using better data capture,

820
00:40:41,239 --> 00:40:44,319
Speaker 16: better machine learning, trying to remove a lot of the

821
00:40:44,360 --> 00:40:48,200
Speaker 16: biases and irreproducibility issues that you see because a lot

822
00:40:48,239 --> 00:40:51,160
Speaker 16: of this process has still been very artisanal. Many of

823
00:40:51,160 --> 00:40:53,960
Speaker 16: the drug discovery companies that are publicly traded today and

824
00:40:54,000 --> 00:40:57,040
Speaker 16: suffering are based on science side of the lab that

825
00:40:57,040 --> 00:40:59,839
Speaker 16: is sometimes not particularly reproducible because it's all done by

826
00:41:00,640 --> 00:41:03,759
Speaker 16: you know, human people pipetting things in a lab. And

827
00:41:03,800 --> 00:41:06,880
Speaker 16: so I think once you move to this industrialization of

828
00:41:06,920 --> 00:41:10,240
Speaker 16: biology where you use automation and you use machine learning,

829
00:41:10,320 --> 00:41:12,719
Speaker 16: then you start to create companies that I think are

830
00:41:12,760 --> 00:41:15,239
Speaker 16: far more resilient because they have many more shots on

831
00:41:15,280 --> 00:41:18,440
Speaker 16: gold than a single drug, and so they look like

832
00:41:18,560 --> 00:41:21,239
Speaker 16: multi portfolio companies. And we see this with Xcentia and

833
00:41:21,239 --> 00:41:23,520
Speaker 16: with Recursion, you know, two companies that were privileged to

834
00:41:23,520 --> 00:41:26,120
Speaker 16: be a part of And it's a really exciting generation

835
00:41:26,200 --> 00:41:29,440
Speaker 16: of technology talent machine learners that are coming into biology.

836
00:41:29,520 --> 00:41:32,239
Speaker 16: Is the kind of new domain to build value is

837
00:41:32,280 --> 00:41:35,320
Speaker 16: far more exciting than kind of optimizing flicks on the internet.

838
00:41:36,560 --> 00:41:40,280
Speaker 3: Here's too exciting and optimism to finish the conversation, Nathan VENETI,

839
00:41:40,400 --> 00:41:41,880
Speaker 3: we thank you for your time, General partner over an

840
00:41:41,920 --> 00:41:42,440
Speaker 3: air street.

841
00:41:42,440 --> 00:41:44,880
Speaker 5: Capital on the rais.

842
00:41:45,840 --> 00:41:48,880
Speaker 6: Time for going viral and burning Man is still the

843
00:41:48,960 --> 00:41:51,640
Speaker 6: talk of the internet. Off The annual Nevada Festival turned

844
00:41:51,800 --> 00:41:54,960
Speaker 6: into a multi day mudfest. Bloomberg Technologies. Ellen Hughitt has

845
00:41:55,040 --> 00:41:58,239
Speaker 6: first and experience and writes about how Wi Fi is

846
00:41:58,280 --> 00:42:00,160
Speaker 6: commodity in today's tech day.

847
00:42:00,160 --> 00:42:01,360
Speaker 4: Ellen, what was it like?

848
00:42:02,600 --> 00:42:04,600
Speaker 17: Well, it's funny as a reporter to be in the

849
00:42:04,600 --> 00:42:07,479
Speaker 17: middle of what we later found out was a news event.

850
00:42:07,560 --> 00:42:10,719
Speaker 17: But you know, it sounded dramatic if you were reading

851
00:42:10,719 --> 00:42:12,120
Speaker 17: about it on the news, and certainly there were some

852
00:42:12,120 --> 00:42:15,160
Speaker 17: people for whom this was very inconvenient and a little scary.

853
00:42:15,200 --> 00:42:17,680
Speaker 1: But I think it really wasn't as bad as it sounds,

854
00:42:18,800 --> 00:42:20,719
Speaker 1: and it kind of brought people together, you know, talk

855
00:42:20,760 --> 00:42:24,480
Speaker 1: about a reason for everyone to band together, share resources,

856
00:42:24,920 --> 00:42:27,279
Speaker 1: try to find ways to have a laugh, even though

857
00:42:27,280 --> 00:42:29,800
Speaker 1: we were all a little wet and cold and very muddy.

858
00:42:30,800 --> 00:42:33,160
Speaker 5: Wet and cold and money sounds like lastomary to me.

859
00:42:33,760 --> 00:42:36,480
Speaker 3: We thank you, Ellen Hewittt getting back safely from New

860
00:42:36,520 --> 00:42:37,680
Speaker 3: York from San Francisco.

861
00:42:37,840 --> 00:42:40,640
Speaker 5: That's it for this edition of Bloomberg Technology. Check out

862
00:42:40,640 --> 00:42:41,239
Speaker 5: the podcast