1 00:00:02,920 --> 00:00:06,200 Speaker 1: From the heart of where innovation, money and power COLLI 2 00:00:07,040 --> 00:00:11,600 Speaker 1: in Silicon Valley and beyond. This is Bloomberg Technology with 3 00:00:11,640 --> 00:00:27,680 Speaker 1: Emily j I'm Emily check in San Francisco and this 4 00:00:27,680 --> 00:00:30,200 Speaker 1: is Bloomberg Technology. Coming up in the next hour. White 5 00:00:30,200 --> 00:00:33,199 Speaker 1: House officials in early discussions about President Biden taking a 6 00:00:33,240 --> 00:00:37,720 Speaker 1: trip to Europe, has Russia's assault on Ukraine only escalates. 7 00:00:38,000 --> 00:00:40,360 Speaker 1: The US now calling on China to put pressure on 8 00:00:40,400 --> 00:00:43,440 Speaker 1: Putin to end the war. This is an Instagram goes 9 00:00:43,560 --> 00:00:47,080 Speaker 1: dark across Russia. The Russian government has now cut off 10 00:00:47,280 --> 00:00:51,000 Speaker 1: access to Instagram, Facebook, and Twitter. Will examine how the 11 00:00:51,120 --> 00:00:56,960 Speaker 1: digital Iron curtain is impacting everyday Russians and China dealing 12 00:00:56,960 --> 00:00:59,200 Speaker 1: with a crisis of its own. Hong Kong facing the 13 00:00:59,240 --> 00:01:03,200 Speaker 1: worst COVID outbreak since the pandemic began, China the worst 14 00:01:03,360 --> 00:01:08,280 Speaker 1: since Wuhan. Why the technology behind the vaccine most widely 15 00:01:08,400 --> 00:01:20,959 Speaker 1: used in China maybe failing. Russia's promised ban on Instagram 16 00:01:21,000 --> 00:01:23,399 Speaker 1: has now kicked into full effect, with a social media 17 00:01:23,480 --> 00:01:27,560 Speaker 1: platform inaccessible for the vast majority of the country's population. 18 00:01:27,600 --> 00:01:30,080 Speaker 1: I want to bring in Bloomberg's Kurt Wagner now for 19 00:01:30,160 --> 00:01:33,200 Speaker 1: more on this. Kurt, you know, what does this exactly 20 00:01:33,240 --> 00:01:36,000 Speaker 1: mean for everyday Russians given that Facebook and Twitter have 21 00:01:36,120 --> 00:01:39,680 Speaker 1: already been cut off. Yeah, I mean, I feel like 22 00:01:39,680 --> 00:01:43,800 Speaker 1: we're moving towards a relatively dangerous spot here right where 23 00:01:43,840 --> 00:01:48,440 Speaker 1: suddenly Facebook, Instagram, Twitter, these are services that were really 24 00:01:48,440 --> 00:01:51,240 Speaker 1: connected tissues between the Russian people and obviously the rest 25 00:01:51,320 --> 00:01:53,320 Speaker 1: of the world in a crisis like this. It's it's 26 00:01:53,320 --> 00:01:55,560 Speaker 1: where a lot of people could get information and news 27 00:01:55,640 --> 00:01:59,320 Speaker 1: that wasn't directly kind of approved by Russian state back media. 28 00:01:59,720 --> 00:02:02,280 Speaker 1: And so you know, you look at what's happening now 29 00:02:02,320 --> 00:02:04,440 Speaker 1: and you wonder, are we ever going to get back 30 00:02:04,480 --> 00:02:08,320 Speaker 1: to this? Right? Is this maybe the beginning of Russia 31 00:02:08,400 --> 00:02:10,079 Speaker 1: is kind of looking a little bit more like China, 32 00:02:10,560 --> 00:02:12,800 Speaker 1: um with a with a closed version of the Internet. 33 00:02:12,840 --> 00:02:16,440 Speaker 1: And I don't know what happens after this, but obviously 34 00:02:16,480 --> 00:02:19,239 Speaker 1: it's a it's a pretty significant deal. Um, Russia is 35 00:02:19,240 --> 00:02:21,239 Speaker 1: a lot smaller than China from a from a total 36 00:02:21,240 --> 00:02:23,400 Speaker 1: population and user perspective, but it's a really big deal 37 00:02:23,480 --> 00:02:26,160 Speaker 1: just symbolically what this means and what this might look 38 00:02:26,200 --> 00:02:30,720 Speaker 1: like moving forward. Absolutely, China blocking Facebook and Twitter are 39 00:02:30,800 --> 00:02:32,960 Speaker 1: around the Beijing Olympics in two thousand and eight, and 40 00:02:33,000 --> 00:02:35,919 Speaker 1: never unblocking, and so you wonder if that's what's going 41 00:02:36,000 --> 00:02:39,640 Speaker 1: to happen here. I'm curious in Russia, how widespread are 42 00:02:39,639 --> 00:02:42,680 Speaker 1: the use of VPNs and other means to get around 43 00:02:42,680 --> 00:02:45,800 Speaker 1: the firewall? Is that common? Well, it's the kind of 44 00:02:45,800 --> 00:02:49,480 Speaker 1: thing that companies are trying to make accessible, right. I 45 00:02:49,480 --> 00:02:52,680 Speaker 1: think we saw last week that Twitter, for example, created 46 00:02:52,760 --> 00:02:56,160 Speaker 1: a version of its website for the tour browser, UM 47 00:02:56,160 --> 00:02:58,360 Speaker 1: so that if anyone wanted to kind of get around 48 00:02:58,520 --> 00:03:01,400 Speaker 1: this this band, they might be able to. They might 49 00:03:01,400 --> 00:03:03,720 Speaker 1: be able to kind of use the quote unquote dark 50 00:03:03,760 --> 00:03:07,160 Speaker 1: web to access these services. But Emily, that's not the 51 00:03:07,200 --> 00:03:09,560 Speaker 1: kind of thing that's necessarily accessible to the vast majority 52 00:03:09,560 --> 00:03:11,760 Speaker 1: of people, right. That's for people who are pretty tech savvy. 53 00:03:11,840 --> 00:03:14,560 Speaker 1: That's for people who are really going above and beyond 54 00:03:14,600 --> 00:03:16,520 Speaker 1: to try and figure out how to still keep these 55 00:03:16,520 --> 00:03:19,440 Speaker 1: services in their life. The vast majority of people, you know, 56 00:03:19,600 --> 00:03:21,680 Speaker 1: unless they can simply get it on their phone, it 57 00:03:21,720 --> 00:03:23,400 Speaker 1: means they're not going to have access to it. And 58 00:03:23,440 --> 00:03:27,200 Speaker 1: so I think that this is something that to your point, like, 59 00:03:27,440 --> 00:03:29,919 Speaker 1: are we seeing the beginning of of of a major 60 00:03:30,040 --> 00:03:32,440 Speaker 1: change here that might not be rolled back? And I 61 00:03:32,440 --> 00:03:35,280 Speaker 1: think the answer might be yes. We're also saying some 62 00:03:35,360 --> 00:03:39,880 Speaker 1: major changes from the platforms themselves. Facebook, for example, relaxing 63 00:03:39,920 --> 00:03:44,160 Speaker 1: the rules to allow Ukrainians to talk about violence in 64 00:03:44,200 --> 00:03:47,080 Speaker 1: the context of Russia's war on Ukraine. And that's really 65 00:03:47,320 --> 00:03:50,840 Speaker 1: what I seem to trigger the Russian government. Instagram was 66 00:03:50,880 --> 00:03:53,440 Speaker 1: a place a lot of people had turned to to 67 00:03:53,640 --> 00:03:58,080 Speaker 1: protest the war in Russia. Where will these Russian citizens 68 00:03:58,120 --> 00:04:02,760 Speaker 1: go to next? What social media let's are available to them? Well, 69 00:04:02,800 --> 00:04:06,440 Speaker 1: the one service that continually keeps getting brought up is telegram. Now, 70 00:04:06,480 --> 00:04:08,480 Speaker 1: I don't know if that's the kind of place where 71 00:04:08,720 --> 00:04:11,400 Speaker 1: people will be able to organize in the same way 72 00:04:11,480 --> 00:04:14,320 Speaker 1: or to promote things publicly in the same way. Um, 73 00:04:14,360 --> 00:04:16,120 Speaker 1: you know, it is a is a private messaging app 74 00:04:16,160 --> 00:04:19,000 Speaker 1: obviously similar to what's app Telegram. There are there are groups, 75 00:04:19,040 --> 00:04:21,039 Speaker 1: there are ways to broadcast that way, but it just 76 00:04:21,080 --> 00:04:23,400 Speaker 1: it has a different vibe Emily, as you know. And 77 00:04:23,440 --> 00:04:25,640 Speaker 1: so I think, you know, you talked about what the 78 00:04:25,640 --> 00:04:28,360 Speaker 1: platforms are doing. I mean the Instagram thing in particular, 79 00:04:28,800 --> 00:04:32,440 Speaker 1: um was announced by Russian regulators after Facebook came out 80 00:04:32,440 --> 00:04:35,920 Speaker 1: and said, hey, Ukrainians are able to call for violence 81 00:04:35,960 --> 00:04:38,560 Speaker 1: against Russian soldiers, and they said, you know this is 82 00:04:38,640 --> 00:04:42,200 Speaker 1: this is a company basically allowing you know, people to 83 00:04:42,240 --> 00:04:44,839 Speaker 1: attack our citizens. That's what the Russian regulators are saying. 84 00:04:45,279 --> 00:04:48,120 Speaker 1: And and again, um, I think that it just has 85 00:04:48,560 --> 00:04:51,960 Speaker 1: kind of snowballed here the relationship between Meta and Russia 86 00:04:52,360 --> 00:04:55,599 Speaker 1: and the Russian leaders, and I just don't really know 87 00:04:55,600 --> 00:04:58,000 Speaker 1: where we go from here. What does this mean for 88 00:04:58,200 --> 00:05:02,160 Speaker 1: Meta and Twitter? You know, two companies that obviously their 89 00:05:02,200 --> 00:05:07,360 Speaker 1: growth depends on new users and new ad revenue. So, uh, 90 00:05:07,520 --> 00:05:09,600 Speaker 1: Meta said something interesting at the end of last week. 91 00:05:09,640 --> 00:05:11,000 Speaker 1: Not a lot of people saw it because it was 92 00:05:11,040 --> 00:05:14,479 Speaker 1: at one of those private banking conferences, but their CFO 93 00:05:14,600 --> 00:05:18,080 Speaker 1: said that the ad revenue that they get either from 94 00:05:18,200 --> 00:05:22,680 Speaker 1: Russian businesses or that's targeted at Russian users is one 95 00:05:22,720 --> 00:05:26,120 Speaker 1: point five percent of their total advertising revenues. So while 96 00:05:26,200 --> 00:05:30,159 Speaker 1: obviously that's not nothing, it's not insignificant, it's also not 97 00:05:30,240 --> 00:05:33,160 Speaker 1: a massive business for for Meta. And I bring that 98 00:05:33,279 --> 00:05:36,080 Speaker 1: up because when you look into the future and you say, well, 99 00:05:36,240 --> 00:05:37,960 Speaker 1: is this the kind of thing where Meta is going 100 00:05:38,040 --> 00:05:40,839 Speaker 1: to bend over backwards to try and get back into Russia, 101 00:05:41,520 --> 00:05:43,120 Speaker 1: I don't know if they're going to be willing to 102 00:05:43,120 --> 00:05:45,400 Speaker 1: do that for such a small portion of their business right, 103 00:05:45,400 --> 00:05:48,840 Speaker 1: they don't have the financial incentives necessarily to make concessions 104 00:05:49,000 --> 00:05:50,400 Speaker 1: in the way that they might know other parts of 105 00:05:50,400 --> 00:05:52,720 Speaker 1: the world, and so um that to me is one 106 00:05:52,760 --> 00:05:54,960 Speaker 1: of the many reasons why I find this this kind 107 00:05:54,960 --> 00:05:57,880 Speaker 1: of you know, digital iron curtain you were talking about interesting, 108 00:05:58,200 --> 00:06:00,400 Speaker 1: because I don't know if there's enough people in Russia 109 00:06:00,600 --> 00:06:02,680 Speaker 1: for these companies to feel like they can compromise on 110 00:06:02,760 --> 00:06:05,600 Speaker 1: some of the other parts of their policy that they've 111 00:06:05,680 --> 00:06:09,839 Speaker 1: so far stood stood firm uh in a in support 112 00:06:09,880 --> 00:06:14,359 Speaker 1: of Meantime, Mark Zuckerberg making a surprise appearance at south 113 00:06:14,400 --> 00:06:19,719 Speaker 1: By Southwest later this week, my guests. Obviously all of 114 00:06:19,760 --> 00:06:21,520 Speaker 1: these topics are going to be on the agenda, but 115 00:06:21,600 --> 00:06:24,440 Speaker 1: of course the metaverse and his vision for the future. 116 00:06:24,520 --> 00:06:27,040 Speaker 1: What do you make of Zuckerberg, who really hasn't been 117 00:06:27,040 --> 00:06:30,880 Speaker 1: doing a lot of press getting out front. Yeah, I 118 00:06:30,920 --> 00:06:33,440 Speaker 1: think I heard this was his first time at south 119 00:06:33,480 --> 00:06:36,159 Speaker 1: Buy since something like two thousand ten or or something 120 00:06:36,200 --> 00:06:38,160 Speaker 1: like that. Has certainly been a very long time since 121 00:06:38,200 --> 00:06:40,760 Speaker 1: he had appeared at this particular conference, and and really 122 00:06:40,760 --> 00:06:42,520 Speaker 1: a conference like this. Now he's doing it with sort 123 00:06:42,520 --> 00:06:46,000 Speaker 1: of a familiar interviewer, uh, not someone who's you know, 124 00:06:46,360 --> 00:06:49,320 Speaker 1: necessarily in the news industry, who's gonna sit there and 125 00:06:49,360 --> 00:06:51,440 Speaker 1: grill him about all of the stuff that we were 126 00:06:51,480 --> 00:06:54,359 Speaker 1: just talking about. So I do wonder how substantive the 127 00:06:54,360 --> 00:06:57,200 Speaker 1: interview will be in terms of news about policy and 128 00:06:57,520 --> 00:07:00,160 Speaker 1: world happenings. But for him, it's a way to talk 129 00:07:00,200 --> 00:07:02,000 Speaker 1: about the metaverse, right, to get out in front of 130 00:07:02,000 --> 00:07:04,920 Speaker 1: a crowd that has always been very interested in the 131 00:07:04,960 --> 00:07:08,119 Speaker 1: new upcoming technology, and to pitch kind of his vision 132 00:07:08,200 --> 00:07:10,240 Speaker 1: for for what he once met at to build. So 133 00:07:10,520 --> 00:07:12,120 Speaker 1: I don't know if we're going to be fulfilled as 134 00:07:12,280 --> 00:07:14,920 Speaker 1: as you know a hard eating news journalists from this interview, 135 00:07:15,160 --> 00:07:17,160 Speaker 1: but I think for him it's a chance to again 136 00:07:17,560 --> 00:07:20,320 Speaker 1: reached people who care about the future of tech with 137 00:07:20,440 --> 00:07:22,840 Speaker 1: his vision for the future of tech. All right, Well, 138 00:07:22,880 --> 00:07:25,360 Speaker 1: hopefully we'll get some probing questions there and maybe some 139 00:07:25,440 --> 00:07:29,040 Speaker 1: reaction to what my next guest has to say. Kurt Wagner, 140 00:07:29,120 --> 00:07:33,280 Speaker 1: who covers Meta and Twitter for us, thank you sticking 141 00:07:33,280 --> 00:07:35,920 Speaker 1: with Meta and its biggest bet on the future, the metaverse. 142 00:07:36,160 --> 00:07:40,560 Speaker 1: I spoke with former Nintendo America President and CEO Reggie 143 00:07:40,560 --> 00:07:43,400 Speaker 1: fis m A at the south By Southwest Festival in 144 00:07:43,440 --> 00:07:45,840 Speaker 1: Austin over the weekend, and I asked him what he 145 00:07:46,000 --> 00:07:50,400 Speaker 1: thought about Mike's Mark Zuckerberg's vision for the evolution of 146 00:07:50,480 --> 00:07:53,400 Speaker 1: virtual reality. Take a listen to what he had to say. 147 00:07:53,960 --> 00:07:56,760 Speaker 1: I'm not a buyer of that idea. I don't think 148 00:07:56,800 --> 00:08:02,360 Speaker 1: that their current definition is going to be successful. Why 149 00:08:02,560 --> 00:08:05,520 Speaker 1: why do I say that? I say that because, first, 150 00:08:06,200 --> 00:08:08,440 Speaker 1: you know, and I don't know if anyone from Facebook 151 00:08:08,480 --> 00:08:12,880 Speaker 1: is here, but you you have to admit that Facebook 152 00:08:13,320 --> 00:08:17,840 Speaker 1: itself is not an innovative company. Wow, they're not. I 153 00:08:17,840 --> 00:08:22,680 Speaker 1: mean you you look at I mean you you look you. 154 00:08:23,960 --> 00:08:32,400 Speaker 1: They have either acquired really interesting things like oculus, like Instagram, 155 00:08:32,520 --> 00:08:35,680 Speaker 1: or they've been a fast follower of other people's ideas. 156 00:08:36,640 --> 00:08:41,079 Speaker 1: That's Facebook. So I inherently they are not an innovative 157 00:08:41,080 --> 00:08:45,160 Speaker 1: company other than the very original social platform that was 158 00:08:45,240 --> 00:08:48,200 Speaker 1: created many years ago. So what do you think Mark 159 00:08:48,280 --> 00:08:52,839 Speaker 1: Huckerberg is getting wrong here? Well, I I believe that 160 00:08:53,040 --> 00:08:57,720 Speaker 1: in order to be innovative, you really need to be 161 00:08:57,840 --> 00:09:01,800 Speaker 1: thinking about the consumer or first, and I don't think 162 00:09:01,840 --> 00:09:07,480 Speaker 1: they do. I think you need to be looking at first. Uh. Well, 163 00:09:07,520 --> 00:09:11,120 Speaker 1: I think they think about advertising revenue first, because that's 164 00:09:11,120 --> 00:09:15,839 Speaker 1: of their revenue. I mean, that's that's the fact, um, 165 00:09:15,920 --> 00:09:18,160 Speaker 1: But you have to think about your consumer. You have 166 00:09:18,200 --> 00:09:20,760 Speaker 1: to think about your customer. You need to think about 167 00:09:20,840 --> 00:09:24,000 Speaker 1: bringing new and different ideas into the marketplace. You need 168 00:09:24,040 --> 00:09:27,120 Speaker 1: to reward that within your culture. You know, these are 169 00:09:27,120 --> 00:09:30,560 Speaker 1: the things that drive innovation. Uh. You need to have 170 00:09:30,600 --> 00:09:34,319 Speaker 1: a culture of innovation. Anything that you do within an 171 00:09:34,360 --> 00:09:39,360 Speaker 1: innovative company, whether you're in accounting, whether you're in UH 172 00:09:39,480 --> 00:09:42,000 Speaker 1: product development, whether you're in marketing, you need to be 173 00:09:42,080 --> 00:09:46,600 Speaker 1: challenging yourself to be doing things differently versus doing the 174 00:09:46,640 --> 00:09:49,920 Speaker 1: same old, same old, or copying someone else's idea. So 175 00:09:50,360 --> 00:09:55,000 Speaker 1: you know, that's why I look at the vision that's 176 00:09:55,040 --> 00:09:58,040 Speaker 1: been to date articulated and I'm not a believer. The 177 00:09:58,080 --> 00:10:00,480 Speaker 1: other thing I would say about Face Look is they 178 00:10:00,480 --> 00:10:05,480 Speaker 1: don't have a great history with physical products, all right, Portal, 179 00:10:05,920 --> 00:10:12,280 Speaker 1: you know, not a big idea. UMIs they bought Oculus 180 00:10:12,480 --> 00:10:14,280 Speaker 1: and you know they've been working on it for a 181 00:10:14,360 --> 00:10:18,120 Speaker 1: number of years. Last number I saw was that in 182 00:10:18,320 --> 00:10:22,640 Speaker 1: total and not just Oculus, in total, about twenty million 183 00:10:22,760 --> 00:10:26,400 Speaker 1: VR devices have been sold. Million. You know, when I 184 00:10:26,400 --> 00:10:29,880 Speaker 1: was running Nintendo, that was a good year one year 185 00:10:30,160 --> 00:10:34,400 Speaker 1: in terms of hardware. Hoping we're gonna hear Mark Zuckerberg 186 00:10:34,440 --> 00:10:36,679 Speaker 1: respond to that conversation when he speaks at south By 187 00:10:36,760 --> 00:10:40,280 Speaker 1: Southwest Now. My convo with Reggie Feza May later turned 188 00:10:40,320 --> 00:10:43,440 Speaker 1: to game Stop Fisa. May joined the game Stop board 189 00:10:43,440 --> 00:10:47,439 Speaker 1: in April, just months before the state of Its roller 190 00:10:47,600 --> 00:10:50,439 Speaker 1: coaster started its roller coaster meme Stop Gride that saw 191 00:10:50,480 --> 00:10:52,319 Speaker 1: the stock go from just a few dollars a share 192 00:10:52,400 --> 00:10:55,920 Speaker 1: to over five hundred Peasay left the board after less 193 00:10:55,920 --> 00:10:58,679 Speaker 1: than a years, saying he was unhappy with the strategy 194 00:10:58,720 --> 00:11:02,199 Speaker 1: of Chairman of the board Ryan Cohen. Take a listen. 195 00:11:03,679 --> 00:11:05,960 Speaker 1: I asked to be part of the team to develop 196 00:11:06,000 --> 00:11:09,679 Speaker 1: a strategy. I knew the business. I knew it as 197 00:11:09,720 --> 00:11:12,800 Speaker 1: a consumer, I knew it as a vendor. I had 198 00:11:12,840 --> 00:11:16,080 Speaker 1: pretty strong opinions on how the business needed to be 199 00:11:16,559 --> 00:11:23,679 Speaker 1: uh pivoted. But I was rebuffed. Right. The perspective was, Reggie, 200 00:11:23,760 --> 00:11:27,560 Speaker 1: we want to keep the team small, um, and so 201 00:11:27,640 --> 00:11:30,240 Speaker 1: it's going to be you know, myself and a few 202 00:11:30,240 --> 00:11:32,960 Speaker 1: of the people that I brought on board, who you know, 203 00:11:33,040 --> 00:11:36,360 Speaker 1: by the way, don't know this business, uh don't understand 204 00:11:36,360 --> 00:11:41,000 Speaker 1: the players, etcetera, etcetera. I took that as code as 205 00:11:41,840 --> 00:11:44,840 Speaker 1: you know, thank you, but we really don't want any 206 00:11:44,880 --> 00:11:49,560 Speaker 1: other ideas and and for me that was that was 207 00:11:49,600 --> 00:11:52,320 Speaker 1: not acceptable. So what do you think of the strategy? Well, 208 00:11:52,320 --> 00:11:55,360 Speaker 1: there there isn't There has not been an articulated strategy. 209 00:11:55,520 --> 00:11:57,800 Speaker 1: I mean, if you could go on the GameStop website 210 00:11:57,840 --> 00:12:01,240 Speaker 1: try and find a strategy, there is no artculated strategy. 211 00:12:01,679 --> 00:12:04,600 Speaker 1: Leadership says, well, we don't want to articulate our strategy 212 00:12:04,679 --> 00:12:08,560 Speaker 1: because we don't want anyone to steal our strategy. You know. 213 00:12:08,880 --> 00:12:16,520 Speaker 1: So I come from the business perspective that you need 214 00:12:16,559 --> 00:12:20,800 Speaker 1: to articulate your strategy to all of your key constituents. 215 00:12:21,320 --> 00:12:25,559 Speaker 1: You need to communicate to your business partners, your vendors, 216 00:12:25,960 --> 00:12:32,360 Speaker 1: your employees, your shareholders. You need to communicate your strategy. 217 00:12:32,760 --> 00:12:37,360 Speaker 1: M Former Nintendo American President and CEO, Reggie Fisa May 218 00:12:37,480 --> 00:12:42,360 Speaker 1: there at south By Southwest in Austin. Coming up Disney 219 00:12:42,360 --> 00:12:46,120 Speaker 1: SEO about Japeck breaking his silence on the controversial Florida 220 00:12:46,200 --> 00:12:50,720 Speaker 1: school bill. We'll discuss how it's impacting employees across Disney, 221 00:12:50,760 --> 00:12:54,760 Speaker 1: Pixar and more and what it means for Chapec ahead 222 00:12:55,160 --> 00:13:14,959 Speaker 1: Mrs Bloomberg, just two years into his role as Disney CEO, 223 00:13:15,080 --> 00:13:19,320 Speaker 1: Bob Kpeck under scrutiny following his response to a controversial 224 00:13:19,679 --> 00:13:22,160 Speaker 1: Florida school bill. For more, I want to bring in Bloombergs, 225 00:13:22,200 --> 00:13:24,720 Speaker 1: Chris Paul Mary who covers Disney for so, Chris at 226 00:13:24,760 --> 00:13:27,520 Speaker 1: the stage, what is this Florida school bill and why 227 00:13:27,720 --> 00:13:32,160 Speaker 1: is it so uh controversial? What Bob Japeck didn't and 228 00:13:32,280 --> 00:13:35,800 Speaker 1: now does have to say about it? Well. The bill, 229 00:13:36,160 --> 00:13:39,080 Speaker 1: which was passed by both houses in Florida, would prohibit 230 00:13:39,480 --> 00:13:44,760 Speaker 1: schools from discussing sexual orientation or gender identity in kindergarten 231 00:13:44,760 --> 00:13:48,680 Speaker 1: through third grade. This was designed for parents to be 232 00:13:48,720 --> 00:13:51,480 Speaker 1: able to control the discussion of these issues with their 233 00:13:51,600 --> 00:13:54,840 Speaker 1: younger kids. A lot of people in the gay community 234 00:13:54,840 --> 00:13:58,000 Speaker 1: obviously don't like it. It's been called don't say gay. Uh. 235 00:13:58,120 --> 00:14:02,079 Speaker 1: They feel like like this this is really stifling uh 236 00:14:02,320 --> 00:14:05,760 Speaker 1: kids who may be just trying to discover where where 237 00:14:05,800 --> 00:14:09,560 Speaker 1: they're going in life. And so um Spick is trying 238 00:14:09,600 --> 00:14:12,880 Speaker 1: to wrote more broadly, sort of keep Disney out of 239 00:14:12,920 --> 00:14:16,600 Speaker 1: these political topics. He tried to sort of like work 240 00:14:16,679 --> 00:14:18,680 Speaker 1: behind the scenes on this issue, would not take a 241 00:14:18,720 --> 00:14:22,480 Speaker 1: public stance, uh, and set that what he wanted to 242 00:14:22,520 --> 00:14:26,400 Speaker 1: do going forward. The rank and file of Disney revolted 243 00:14:26,520 --> 00:14:33,000 Speaker 1: essentially openly on social media, employees saying they disagree with 244 00:14:33,040 --> 00:14:38,120 Speaker 1: this policy. A letter from Pixar employees animators union set 245 00:14:38,120 --> 00:14:43,680 Speaker 1: out statements uh. And so Chapig reversed position a couple 246 00:14:43,720 --> 00:14:46,400 Speaker 1: of days later on Wednesday last week, saying, you know, 247 00:14:46,520 --> 00:14:50,040 Speaker 1: we we are openly opposed to this bill. Uh and 248 00:14:50,120 --> 00:14:51,880 Speaker 1: then a couple of days later even to look it 249 00:14:51,960 --> 00:14:56,840 Speaker 1: further and publicly apologize to all those employees. A lot 250 00:14:56,880 --> 00:14:59,960 Speaker 1: of employees were not happy. And you also had leadership 251 00:15:00,120 --> 00:15:04,320 Speaker 1: within Disney, for example at Pixar releasing their own statements. 252 00:15:04,440 --> 00:15:08,160 Speaker 1: You've got Bob Iger, the former CEO of Disney, also 253 00:15:08,240 --> 00:15:11,640 Speaker 1: speaking out about this. What do you make of the 254 00:15:11,760 --> 00:15:16,720 Speaker 1: pushback from other executives, Well, this is this is part 255 00:15:16,720 --> 00:15:18,760 Speaker 1: of a sort of a broader issue that Check has 256 00:15:18,800 --> 00:15:21,720 Speaker 1: found where he doesn't have the same support from the 257 00:15:21,760 --> 00:15:25,920 Speaker 1: creative community at the company that his predecessor Bob Iger did, 258 00:15:26,560 --> 00:15:29,360 Speaker 1: uh and um. And so you know, he's made some 259 00:15:29,480 --> 00:15:32,400 Speaker 1: decisions that are very unpopular. For example, he's relocating a 260 00:15:32,400 --> 00:15:36,280 Speaker 1: lot of employees to Florida's uh you know that work 261 00:15:36,320 --> 00:15:39,320 Speaker 1: in team park design in that from California. They're not 262 00:15:39,360 --> 00:15:42,760 Speaker 1: happy about being told they have to move and uh, 263 00:15:42,800 --> 00:15:47,000 Speaker 1: and so we had a weird situations. Now we're Florida. 264 00:15:47,040 --> 00:15:50,640 Speaker 1: Governor de Santis just slam Disney last week saying, you know, 265 00:15:50,680 --> 00:15:53,240 Speaker 1: they don't care about human rights in China, and then 266 00:15:53,640 --> 00:15:56,960 Speaker 1: Governor Gavin Newsom Ary California is saying, oh, why are 267 00:15:56,960 --> 00:16:00,400 Speaker 1: you moving your people to California? So as has shade 268 00:16:00,400 --> 00:16:03,960 Speaker 1: they predicted away by taking these political stands, he's opening 269 00:16:03,960 --> 00:16:07,960 Speaker 1: the company up to firing fired people attacking him from 270 00:16:08,000 --> 00:16:12,720 Speaker 1: both sides. This, of course, as Disney Shares themselves have 271 00:16:12,760 --> 00:16:15,560 Speaker 1: been struggling. Chris Paul Mary, who covers Disney for US, 272 00:16:15,600 --> 00:16:19,760 Speaker 1: will continue to follow here. Meantime, struggling carmaker electric car 273 00:16:19,760 --> 00:16:22,640 Speaker 1: maker Rivian has hired a new CEO from Magna, one 274 00:16:22,640 --> 00:16:26,160 Speaker 1: of the world's biggest automotive suppliers. Frank Klin will take 275 00:16:26,160 --> 00:16:29,920 Speaker 1: the roll on June one, Rivan announced Monday, confirming in 276 00:16:30,000 --> 00:16:34,400 Speaker 1: earlier Bloomberg scoop kind led Magna's carmaking unit before that 277 00:16:34,680 --> 00:16:38,880 Speaker 1: at Mercedes parent company at Dymler years. Rivian stock has 278 00:16:38,920 --> 00:16:42,200 Speaker 1: been crushed in recent days after the company's forecast building 279 00:16:42,320 --> 00:16:44,880 Speaker 1: just twenty five thousand e v s this year, about 280 00:16:44,920 --> 00:16:47,320 Speaker 1: half what it's factory in Illinois is capable of due 281 00:16:47,360 --> 00:16:50,400 Speaker 1: to a shortage of parts and trouble with production. Rivian's 282 00:16:50,440 --> 00:17:02,640 Speaker 1: former CEO, Rod Corpus resigned and the last year welcome 283 00:17:02,680 --> 00:17:04,920 Speaker 1: back to Bloomberg Technology on Emily Chang in San Francisco. 284 00:17:05,040 --> 00:17:08,000 Speaker 1: The Chinese city of shen Jen, home to seventeen and 285 00:17:08,000 --> 00:17:11,199 Speaker 1: a half million people, is locked down as COVID cases 286 00:17:11,240 --> 00:17:15,520 Speaker 1: have doubled to roughly thirty four hundred. This as China 287 00:17:15,520 --> 00:17:20,160 Speaker 1: faces its biggest COVID outbreaks since Wuhan in early fox 288 00:17:20,240 --> 00:17:23,920 Speaker 1: con Apple's biggest suppliers now halting operations in shen Jen, 289 00:17:24,000 --> 00:17:27,400 Speaker 1: and this could have massive global implications. Are Mark Room 290 00:17:27,400 --> 00:17:29,680 Speaker 1: and joining us now with more Mark give us a 291 00:17:29,760 --> 00:17:33,439 Speaker 1: status update on what's happening at fox kN and what 292 00:17:33,560 --> 00:17:37,160 Speaker 1: the impacts of this more broadly will be. So as 293 00:17:37,160 --> 00:17:40,320 Speaker 1: of now, the office the main headquarters for fox kN 294 00:17:40,320 --> 00:17:44,600 Speaker 1: and shen Jen, as well as their iPhone factory UH 295 00:17:44,800 --> 00:17:47,200 Speaker 1: within shen Jen, those are both closed right now now. 296 00:17:47,240 --> 00:17:49,919 Speaker 1: Fox Kon isn't saying when they're going to be reopening. 297 00:17:50,160 --> 00:17:53,600 Speaker 1: It isn't definite for now, but the order for closures 298 00:17:53,600 --> 00:17:57,199 Speaker 1: for factories in other places is in effect in that 299 00:17:57,359 --> 00:18:00,800 Speaker 1: area until March twenty, so it's possible it'll open around 300 00:18:00,800 --> 00:18:03,119 Speaker 1: then or after them. But we know the fluidity of 301 00:18:03,160 --> 00:18:05,240 Speaker 1: COVID and how these things can go on for longer, 302 00:18:05,320 --> 00:18:08,080 Speaker 1: and that's the real fear here right As of now, 303 00:18:08,200 --> 00:18:11,399 Speaker 1: a week of one iPhone factory being shut down is 304 00:18:11,440 --> 00:18:13,199 Speaker 1: not going to have much of an impact. This is 305 00:18:13,200 --> 00:18:15,680 Speaker 1: a slow season for Apple, right They did just release 306 00:18:15,760 --> 00:18:18,399 Speaker 1: new products, but they really need the factories running at 307 00:18:18,400 --> 00:18:20,879 Speaker 1: full steam for the fall and late in the summer 308 00:18:20,920 --> 00:18:24,200 Speaker 1: for the iPhone fourteen, new iPads in the fall augmented 309 00:18:24,200 --> 00:18:26,840 Speaker 1: reality headsets early next year, that's when it would be 310 00:18:26,920 --> 00:18:28,920 Speaker 1: danger territory. But right now I think they're going to 311 00:18:29,000 --> 00:18:33,280 Speaker 1: be okay, given that their main iPhone plants called iPhone City, 312 00:18:33,720 --> 00:18:36,080 Speaker 1: is in another region of China, you know, many many 313 00:18:36,119 --> 00:18:38,480 Speaker 1: miles away from here, But we don't know what is 314 00:18:38,520 --> 00:18:41,840 Speaker 1: going to do and expand it exactly. The pandemic is 315 00:18:42,520 --> 00:18:45,800 Speaker 1: China is hitting a new peak in COVID cases. This 316 00:18:45,880 --> 00:18:49,000 Speaker 1: is not just happening in shen Jen. What is Apple 317 00:18:49,040 --> 00:18:53,040 Speaker 1: doing or what can Apple do to mitigate this? Given 318 00:18:53,080 --> 00:18:56,040 Speaker 1: that there are already global supply chain issues that have 319 00:18:56,200 --> 00:18:59,639 Speaker 1: now been reverberating for two years Yeah, it's very much 320 00:18:59,640 --> 00:19:02,880 Speaker 1: whack bowld. Right. Fox Con has many factories across China 321 00:19:02,880 --> 00:19:06,440 Speaker 1: where they produced the iPhone and other Apple products, right, So, 322 00:19:06,520 --> 00:19:09,920 Speaker 1: as you know, limitations go up in some factories, right, 323 00:19:09,960 --> 00:19:12,920 Speaker 1: they'll have to reallocate that to other factories, and as 324 00:19:12,920 --> 00:19:15,320 Speaker 1: other factories reopened and they'll have to move production back. 325 00:19:15,359 --> 00:19:17,359 Speaker 1: So I'm sure that's what they're you know, on the 326 00:19:17,400 --> 00:19:20,200 Speaker 1: scene in China figuring out right now, right, I think 327 00:19:20,200 --> 00:19:22,720 Speaker 1: they want to see how bad this becomes. Obviously, we're 328 00:19:22,720 --> 00:19:25,640 Speaker 1: in a very different place today than we were basically 329 00:19:25,720 --> 00:19:29,800 Speaker 1: exactly two years ago now with vaccines and masking and 330 00:19:29,840 --> 00:19:33,080 Speaker 1: people used to these protocols. So my hope, right, not 331 00:19:33,200 --> 00:19:35,720 Speaker 1: only for you know, Apple and China, but for globally, 332 00:19:35,760 --> 00:19:38,600 Speaker 1: that this gets resolved, you know, pretty quickly. In fox 333 00:19:38,680 --> 00:19:41,159 Speaker 1: Con is able to work through it at a faster 334 00:19:41,240 --> 00:19:43,560 Speaker 1: pace than they were able to two years ago. If 335 00:19:43,600 --> 00:19:46,359 Speaker 1: you remember, however, even at the height of the COVID pandemic, 336 00:19:46,400 --> 00:19:49,240 Speaker 1: Apple really in fox Con, they were able to figure 337 00:19:49,280 --> 00:19:51,480 Speaker 1: it out. In the middle of everything, Apple was still 338 00:19:51,480 --> 00:19:55,639 Speaker 1: able to ship the iPhone twelve in November of right, 339 00:19:55,880 --> 00:19:58,360 Speaker 1: that was a two month delay for their flagship product 340 00:19:58,480 --> 00:20:01,600 Speaker 1: in the middle of COVID pre vaccines right at the 341 00:20:01,680 --> 00:20:03,399 Speaker 1: at the height of things, right, So if they were 342 00:20:03,440 --> 00:20:06,000 Speaker 1: able to figure out then with only two month delays, 343 00:20:06,240 --> 00:20:08,680 Speaker 1: I'm quite optimistic they'll be able to figure it out 344 00:20:08,960 --> 00:20:12,320 Speaker 1: with you know, more vaccines and masking regulations and such 345 00:20:12,600 --> 00:20:15,880 Speaker 1: at a slower period for the company. All Right, Mark 346 00:20:15,920 --> 00:20:18,240 Speaker 1: German will continue to watch a reporting on this. Thank you. 347 00:20:18,560 --> 00:20:20,520 Speaker 1: I want to stay on the topic of COVID and 348 00:20:20,560 --> 00:20:23,480 Speaker 1: the resurgence we're seeing across China and in Hong Kong 349 00:20:23,520 --> 00:20:26,760 Speaker 1: and bringing Ali Erman. She's a genomics analyst with our 350 00:20:27,040 --> 00:20:30,280 Speaker 1: invest You know, Ali, we are seeing the spike in 351 00:20:30,359 --> 00:20:33,679 Speaker 1: Hong Kong and China as the World Health Organized Station 352 00:20:33,720 --> 00:20:37,040 Speaker 1: has been considering declaring an end to the pandemic. Does 353 00:20:37,040 --> 00:20:39,679 Speaker 1: this signal to you that it could get worse or 354 00:20:39,720 --> 00:20:44,119 Speaker 1: maybe a lot worse before it gets better. Thanks Emily 355 00:20:44,160 --> 00:20:46,639 Speaker 1: for having me. It's nice to see you again, you know. 356 00:20:46,960 --> 00:20:50,280 Speaker 1: I I think obviously we've had these spikes before. We've 357 00:20:50,320 --> 00:20:54,479 Speaker 1: seen you know, multiple mutations arising from COVID nineteen, and 358 00:20:54,480 --> 00:20:57,440 Speaker 1: this continues to be an ongoing issue that we're monitoring 359 00:20:57,520 --> 00:20:59,960 Speaker 1: here at ARK. One of the things that we're thinking 360 00:21:00,000 --> 00:21:03,560 Speaker 1: about is disruptive technologies that are in our portfolios that 361 00:21:03,600 --> 00:21:07,680 Speaker 1: could potentially help the crisis. So you know, one such 362 00:21:07,720 --> 00:21:12,240 Speaker 1: technology is Crisper, which is essentially working to look at 363 00:21:12,880 --> 00:21:17,080 Speaker 1: different cases and potentially being a diagnostic tool, but it's 364 00:21:17,160 --> 00:21:20,960 Speaker 1: also used as a therapeutic tool as well. Now, China 365 00:21:21,000 --> 00:21:25,720 Speaker 1: has had a zero COVID policy, shutting down versus vaccinating 366 00:21:26,040 --> 00:21:30,440 Speaker 1: on a broad scale. They've been using the Cino vaccine 367 00:21:30,480 --> 00:21:33,280 Speaker 1: when they do vaccinate, but that's a vaccine that doesn't 368 00:21:33,400 --> 00:21:36,560 Speaker 1: use m R and A technology and appears to be 369 00:21:36,680 --> 00:21:40,800 Speaker 1: not as effective. Are we seeing that vaccine and that 370 00:21:40,920 --> 00:21:46,240 Speaker 1: technology breaking down. It's possible that are We've been very 371 00:21:46,320 --> 00:21:49,040 Speaker 1: focused on the m R and E technology and so 372 00:21:49,080 --> 00:21:52,560 Speaker 1: we know that we've seen pretty great um results from 373 00:21:52,600 --> 00:21:55,800 Speaker 1: it from the US UM and also from Israel where 374 00:21:55,800 --> 00:21:58,840 Speaker 1: we've gotten this substantial amount of data. And so you know, 375 00:21:58,880 --> 00:22:01,679 Speaker 1: this m R and A technol oology is a novel technology. 376 00:22:01,720 --> 00:22:04,720 Speaker 1: It hasn't been used prior to the COVID nineteen pandemic. 377 00:22:05,119 --> 00:22:07,600 Speaker 1: Um you know, we're following very closely what the companies 378 00:22:07,600 --> 00:22:10,840 Speaker 1: are doing and how they're utilizing that technology, including you 379 00:22:10,880 --> 00:22:14,520 Speaker 1: know Maderna, but also our tourist Therapeutics UM and several 380 00:22:14,520 --> 00:22:17,320 Speaker 1: other companies that really are focusing. You know, of course 381 00:22:17,359 --> 00:22:20,000 Speaker 1: we can talk about Visor and the partnerships that they've 382 00:22:20,160 --> 00:22:22,640 Speaker 1: started there, but also just the the amount of sheer 383 00:22:22,680 --> 00:22:24,040 Speaker 1: data that we're going to get from m R and 384 00:22:24,080 --> 00:22:26,919 Speaker 1: A and be able to compare that to the adenovirus 385 00:22:27,040 --> 00:22:30,520 Speaker 1: vaccines as well. How is the pace of innovation in 386 00:22:30,880 --> 00:22:35,000 Speaker 1: m R and A and biotechnology accelerated during the pandemic 387 00:22:35,080 --> 00:22:38,679 Speaker 1: given the role we've seen it play in vaccinations along 388 00:22:38,680 --> 00:22:43,560 Speaker 1: with Crisper as you mentioned. Yeah, so the piece of innovations, 389 00:22:43,680 --> 00:22:47,879 Speaker 1: Emily is really interesting because we're seeing that. You know, 390 00:22:47,920 --> 00:22:51,080 Speaker 1: I think Crisper is is an excellent example as you mentioned, right, 391 00:22:51,119 --> 00:22:54,920 Speaker 1: So we're seeing these amazing examples. So prior to Crisper, 392 00:22:54,960 --> 00:22:58,000 Speaker 1: you know, zinc finger nucleus is another gene editing form. 393 00:22:58,040 --> 00:23:01,840 Speaker 1: Also talents we're going to exist and essentially those took 394 00:23:01,840 --> 00:23:04,879 Speaker 1: a really long time to move from discovery to the 395 00:23:04,920 --> 00:23:07,960 Speaker 1: first human dose. So that happened for same fingers in 396 00:23:08,040 --> 00:23:11,960 Speaker 1: roughly eight years, whereas Cristopher took less than half that time. 397 00:23:12,200 --> 00:23:15,840 Speaker 1: They were at three years. They also can target many 398 00:23:15,880 --> 00:23:19,000 Speaker 1: more unknown diseases, and so what we're seeing is there's 399 00:23:19,000 --> 00:23:22,760 Speaker 1: a proliferation in terms of the piece of innovation. An 400 00:23:22,840 --> 00:23:26,000 Speaker 1: example for that could be Crisper Therapeutics. They're working on 401 00:23:26,119 --> 00:23:30,679 Speaker 1: creating potentially functional cures for diseases like sickle cell and 402 00:23:30,720 --> 00:23:34,679 Speaker 1: beta thallasmia. They've treated about seventy patients along with their 403 00:23:34,720 --> 00:23:39,080 Speaker 1: partner Vertex, both companies within our genomic strategy, and we're 404 00:23:39,119 --> 00:23:41,960 Speaker 1: seeing the data looks like it could potentially really be 405 00:23:42,080 --> 00:23:45,480 Speaker 1: a functional cure. And so the piece of innovation, but 406 00:23:45,560 --> 00:23:49,920 Speaker 1: also what's happening within innovation is really exciting right now. Meantime, 407 00:23:49,960 --> 00:23:54,200 Speaker 1: there's a controversy evolving in the gene editing world, which 408 00:23:54,280 --> 00:23:57,560 Speaker 1: I know that you are following closely, where Nobel Prize 409 00:23:57,560 --> 00:24:01,200 Speaker 1: winner Jennifer Downa, who's made impoor and discoveries in m 410 00:24:01,280 --> 00:24:04,480 Speaker 1: R and A technology and been recognized for her work 411 00:24:04,680 --> 00:24:09,280 Speaker 1: on crisper um, has lost a patent dispute surrounding the 412 00:24:09,359 --> 00:24:12,240 Speaker 1: discovery of her and her team around a specific part 413 00:24:12,400 --> 00:24:16,840 Speaker 1: of Crisper technology. What does this mean and how significant 414 00:24:16,920 --> 00:24:20,280 Speaker 1: is this? That's right, Emily. You know, first of all, 415 00:24:20,320 --> 00:24:23,159 Speaker 1: I think it's great we're talking about this because it 416 00:24:23,280 --> 00:24:27,280 Speaker 1: demonstrates a commitment from the scientists across the board. UM. 417 00:24:27,280 --> 00:24:29,520 Speaker 1: It's also quite a complicated topic, so I think it's 418 00:24:29,560 --> 00:24:32,200 Speaker 1: great to delve in a little bit here. So first 419 00:24:32,240 --> 00:24:34,399 Speaker 1: of all, what is Crisper. Maybe we can back up 420 00:24:34,440 --> 00:24:37,080 Speaker 1: a little bit on that. So Christopher is a precise 421 00:24:37,160 --> 00:24:40,200 Speaker 1: tool that is used for gene editing. UM. We believe 422 00:24:40,240 --> 00:24:42,560 Speaker 1: in it, We've been investing in it for years. We 423 00:24:42,600 --> 00:24:46,679 Speaker 1: think it's an incredibly innovative tool, UM, and it's revolutionizing 424 00:24:46,720 --> 00:24:50,399 Speaker 1: the way we think about treatments but also potential cures. 425 00:24:50,440 --> 00:24:53,560 Speaker 1: Just a little bit of background here. It's essentially from 426 00:24:53,600 --> 00:24:56,480 Speaker 1: a family of DNA sequences and it was found to 427 00:24:56,520 --> 00:25:00,639 Speaker 1: affect the genomes of bacteria, and it's now potentially and 428 00:25:00,800 --> 00:25:04,480 Speaker 1: in trials, be used for correcting genes in humans. So 429 00:25:04,640 --> 00:25:07,800 Speaker 1: about the patent dispute, as you mentioned, so really quick 430 00:25:07,800 --> 00:25:10,040 Speaker 1: background here. You you know, you covered some of this 431 00:25:10,160 --> 00:25:13,040 Speaker 1: really helpful. In two thousand and twelve, Jennifer Down and 432 00:25:13,080 --> 00:25:15,919 Speaker 1: Emmanuel Scharpontier they wrote a paper and it detailed the 433 00:25:15,960 --> 00:25:18,639 Speaker 1: Crispers system, but they didn't show that it worked in 434 00:25:18,680 --> 00:25:22,520 Speaker 1: eukaryotic cells. And essentially, Emily, a U karyotic cell is 435 00:25:22,560 --> 00:25:25,600 Speaker 1: a cell that has a nucleus, so that could be 436 00:25:26,200 --> 00:25:28,880 Speaker 1: a plant and it's also certainly a human. Fang Zang 437 00:25:29,000 --> 00:25:32,040 Speaker 1: at Harvard Road was the first one to do this. Um. 438 00:25:32,119 --> 00:25:35,600 Speaker 1: So there's essentially two sides, Jennifer down and Emmanuel Charpontier 439 00:25:35,600 --> 00:25:39,080 Speaker 1: on one side that houses that i P from CBC, 440 00:25:39,400 --> 00:25:42,639 Speaker 1: which is the University of Vienna. Also you see Berkeley 441 00:25:42,720 --> 00:25:45,520 Speaker 1: for both of them. Other side Fang Sang Harvard and 442 00:25:45,560 --> 00:25:49,240 Speaker 1: the Broad. So in as you mentioned, Emmanuel Charpontier and 443 00:25:49,320 --> 00:25:52,760 Speaker 1: Jennifer Downa actually won the Nobel Prize in Chemistry for 444 00:25:52,800 --> 00:25:56,840 Speaker 1: their discovery of crisper cast nine. But as you mentioned, 445 00:25:56,880 --> 00:25:59,320 Speaker 1: this past week we saw that the U s PTO 446 00:25:59,400 --> 00:26:01,880 Speaker 1: or U s PAT and Trademark Office did not um 447 00:26:01,920 --> 00:26:05,040 Speaker 1: follow suit. So, um, what does this mean Getting to 448 00:26:05,080 --> 00:26:08,640 Speaker 1: the point here, Um, this doesn't stop any ongoing trials 449 00:26:08,880 --> 00:26:12,080 Speaker 1: um so, all clinical trials will continue. It doesn't affect 450 00:26:12,119 --> 00:26:15,320 Speaker 1: i P outside of the US. The most likely outcome 451 00:26:15,359 --> 00:26:17,920 Speaker 1: that ARC ces is through some form of cross licensing 452 00:26:17,960 --> 00:26:20,119 Speaker 1: among the companies and in terms of sort of the 453 00:26:20,160 --> 00:26:24,240 Speaker 1: specifics for companies, so Editas, Verve and Beam get their 454 00:26:24,280 --> 00:26:27,440 Speaker 1: i P through Editas or the Broad Harvard and then 455 00:26:27,560 --> 00:26:31,720 Speaker 1: cris Burn and Talia through CBC. So through Emmanuel Sharponti 456 00:26:31,800 --> 00:26:35,520 Speaker 1: and Jennifer Down. Now, interesting controversy we're going to continue 457 00:26:35,520 --> 00:26:37,280 Speaker 1: to follow. Jennifer Down has been a guest on this 458 00:26:37,320 --> 00:26:41,679 Speaker 1: show several times. Ali Erman, Genomics analyst with ARC invest 459 00:26:41,840 --> 00:26:44,879 Speaker 1: thank you for sharing that background with us. Coming up, 460 00:26:45,119 --> 00:26:47,399 Speaker 1: Ripple calls it a victory. We're gonna have more on 461 00:26:47,520 --> 00:26:51,120 Speaker 1: Ripple's long legal battle with the SEC over alleged illegal 462 00:26:51,160 --> 00:26:54,040 Speaker 1: sales of its x r P token, what that means 463 00:26:54,040 --> 00:27:03,480 Speaker 1: for the broader crypto industry. Next, this is Bloomberg Time 464 00:27:03,520 --> 00:27:05,439 Speaker 1: now for our crypto report of the day, and I 465 00:27:05,440 --> 00:27:08,800 Speaker 1: want to focus on Ripple. After the SEC alleged that 466 00:27:09,160 --> 00:27:12,919 Speaker 1: the currency Exchange platform had engaged in the unlawful offer 467 00:27:13,040 --> 00:27:17,080 Speaker 1: and sales of securities it's XRP token, Ripple counter saying 468 00:27:17,119 --> 00:27:20,040 Speaker 1: they had not had reasonable fair notice from the SEC 469 00:27:20,080 --> 00:27:22,880 Speaker 1: about whether it's sales of x RP were indeed illegal, 470 00:27:22,920 --> 00:27:25,520 Speaker 1: a defense at the court upheld last week. I want 471 00:27:25,560 --> 00:27:28,320 Speaker 1: to dig into this with our crypto Contributortionale Bosticctionale talk 472 00:27:28,400 --> 00:27:30,760 Speaker 1: to us about how the markets reacted to this news. 473 00:27:30,800 --> 00:27:33,520 Speaker 1: Obviously a volatile market and a volatile market for bitcoin 474 00:27:33,680 --> 00:27:36,119 Speaker 1: as well. Yeah, even though we see Ripple down a 475 00:27:36,160 --> 00:27:39,520 Speaker 1: little bit today. It did really rise after this news 476 00:27:39,640 --> 00:27:41,720 Speaker 1: and over the seven day period. Actually, I leave you 477 00:27:41,720 --> 00:27:44,080 Speaker 1: take a look. You do see Ripple rising to the 478 00:27:44,119 --> 00:27:46,320 Speaker 1: point that it's rising almost twice as much as you 479 00:27:46,359 --> 00:27:49,679 Speaker 1: see in Bitcoin over that period and almost three times 480 00:27:49,720 --> 00:27:53,360 Speaker 1: as you're seeing in the Theoryum. So, guess, very good 481 00:27:53,359 --> 00:27:56,639 Speaker 1: news in terms of Ripple and it's SEC defense. But 482 00:27:56,840 --> 00:27:59,000 Speaker 1: there are a lot of questions remaining for the market, 483 00:27:59,080 --> 00:28:01,919 Speaker 1: not just for Ripple, but the crypto industry here at large. 484 00:28:01,960 --> 00:28:05,320 Speaker 1: And that question is, as Bloomberg Intelligence calls it a 485 00:28:05,359 --> 00:28:10,080 Speaker 1: factual one, will it cause more issuers to register with 486 00:28:10,119 --> 00:28:14,119 Speaker 1: the SEC? And what type of regulatory overhang doesn't leave 487 00:28:14,160 --> 00:28:16,280 Speaker 1: for the market even after they buy it. An executive 488 00:28:16,359 --> 00:28:19,520 Speaker 1: order that created some clarity for the market. Alright, Sonale, 489 00:28:19,520 --> 00:28:21,959 Speaker 1: stick with us. We're gonna get deeper into this conversation 490 00:28:22,040 --> 00:28:25,080 Speaker 1: with Ripple CEO himself, Brad garling House. Brad, good to 491 00:28:25,080 --> 00:28:27,119 Speaker 1: have you back here on the show. You called this 492 00:28:27,160 --> 00:28:30,159 Speaker 1: a victory in your battle against the SEC. What does 493 00:28:30,200 --> 00:28:34,359 Speaker 1: it mean for you and also the broader crypto industry. Yeah, 494 00:28:34,440 --> 00:28:36,199 Speaker 1: I do think I'll start there. Really, I think it 495 00:28:36,280 --> 00:28:38,640 Speaker 1: is a victory, not just for Ripple, the company, but 496 00:28:38,720 --> 00:28:41,800 Speaker 1: also the whole crypto industry because the SEC, I think, 497 00:28:41,840 --> 00:28:44,360 Speaker 1: has consistently tried to take a point to really take 498 00:28:44,600 --> 00:28:47,520 Speaker 1: expand their reach and their control over the crypto industry. 499 00:28:47,600 --> 00:28:49,760 Speaker 1: We've seen that not just as Ripple, but in other cases. 500 00:28:50,280 --> 00:28:52,800 Speaker 1: And to to have the executive order, as Jali was 501 00:28:52,880 --> 00:28:54,960 Speaker 1: talking about, the executive came out and really said to 502 00:28:55,200 --> 00:28:58,400 Speaker 1: all agencies, Hey, we need to be coordinated. If we 503 00:28:58,440 --> 00:29:01,160 Speaker 1: want the United States to be competitive in this key 504 00:29:01,240 --> 00:29:04,840 Speaker 1: technology platform, we need to not have one group behaving 505 00:29:04,920 --> 00:29:06,800 Speaker 1: one way and another group behaving in other ways. We're 506 00:29:06,800 --> 00:29:09,520 Speaker 1: really pleased by not just the court's decision, but also 507 00:29:09,560 --> 00:29:11,800 Speaker 1: in the executive order that came out last week. What 508 00:29:11,880 --> 00:29:14,200 Speaker 1: do you make of the very prominent role that crypto 509 00:29:14,360 --> 00:29:17,200 Speaker 1: is playing in the war on Ukraine and also concerns 510 00:29:17,240 --> 00:29:20,760 Speaker 1: about how crypto currency could be used, for example, as 511 00:29:20,800 --> 00:29:25,400 Speaker 1: a tool to circumvent sanctions by Russians. You know, I 512 00:29:26,240 --> 00:29:28,520 Speaker 1: think this is a bit of a red herring, meaning 513 00:29:28,600 --> 00:29:30,960 Speaker 1: that there's a lot of attention around as like what 514 00:29:31,000 --> 00:29:34,720 Speaker 1: does this mean? But the practice, the practicality of using 515 00:29:34,760 --> 00:29:38,800 Speaker 1: it to circumvent sanctions, I think is is really difficult. Uh, 516 00:29:39,160 --> 00:29:41,760 Speaker 1: And the reality is that if you just take the 517 00:29:41,800 --> 00:29:46,080 Speaker 1: basic math, before the invasion of Ukraine, there's about fifty 518 00:29:46,120 --> 00:29:51,200 Speaker 1: billion dollars a day of Russian ruble cross border FX trades. 519 00:29:51,800 --> 00:29:54,200 Speaker 1: There's just not enough liquidity in the crypto market to 520 00:29:54,240 --> 00:29:57,200 Speaker 1: really put much of a dent in that. Moreover, you know, 521 00:29:57,240 --> 00:30:00,280 Speaker 1: the point at which sanctions are applied is at the 522 00:30:00,400 --> 00:30:04,160 Speaker 1: end points, so through you know, exchanges, a bit stamp 523 00:30:04,360 --> 00:30:06,880 Speaker 1: or a binance, and you know, I think you've seen 524 00:30:06,920 --> 00:30:09,640 Speaker 1: globally that the major exchange around the world say hey, 525 00:30:09,640 --> 00:30:12,040 Speaker 1: we're going to we're going to acknowledge and force and 526 00:30:12,080 --> 00:30:15,320 Speaker 1: respect those sanctions. And so I think the idea that 527 00:30:15,400 --> 00:30:18,200 Speaker 1: crypt has been used at any scale to circumvent sections 528 00:30:18,280 --> 00:30:21,480 Speaker 1: is uh not not a really it's not. It doesn't 529 00:30:21,480 --> 00:30:23,720 Speaker 1: really understand how some of the stuff works. On one hand, 530 00:30:23,760 --> 00:30:26,840 Speaker 1: you do have plenty of exchanges that seem to be 531 00:30:26,880 --> 00:30:29,960 Speaker 1: working with a Biden administration to kind of figure out 532 00:30:30,000 --> 00:30:31,920 Speaker 1: what's going on into the surface in the market. But 533 00:30:32,000 --> 00:30:33,880 Speaker 1: on the other hand, when it comes to the SEC, 534 00:30:34,400 --> 00:30:36,680 Speaker 1: it seems like they've been at the crosshairs of a 535 00:30:36,760 --> 00:30:39,440 Speaker 1: number of different firms. Do you think the SEC is 536 00:30:39,480 --> 00:30:42,880 Speaker 1: taking a tougher stance than the administration at large, and 537 00:30:42,920 --> 00:30:44,720 Speaker 1: do you think that will hinder at all some of 538 00:30:44,760 --> 00:30:48,200 Speaker 1: the progress that some firms are making. Look, I think 539 00:30:48,200 --> 00:30:51,520 Speaker 1: there's no question that the United States Secured Exchange Commission 540 00:30:51,640 --> 00:30:54,920 Speaker 1: has reduced the competitiveness of this critical industry in the 541 00:30:55,000 --> 00:30:57,600 Speaker 1: United States. I think they've been out of step not 542 00:30:57,680 --> 00:30:59,640 Speaker 1: just with other parts of the U S government, but 543 00:30:59,680 --> 00:31:02,360 Speaker 1: they've been other out of step with other major economies 544 00:31:02,360 --> 00:31:05,320 Speaker 1: around the world. The only country in the world that 545 00:31:05,400 --> 00:31:08,760 Speaker 1: considers x RP the digital asset that Ripple uses in 546 00:31:08,760 --> 00:31:11,640 Speaker 1: our technology stack. The only country in the world that 547 00:31:11,760 --> 00:31:14,680 Speaker 1: thinks x RP could be a security is the United States. 548 00:31:15,200 --> 00:31:18,640 Speaker 1: We work successfully in the u K in Switzerland and Japan, 549 00:31:18,720 --> 00:31:21,600 Speaker 1: and the UAE in Singapore, all of these countries to 550 00:31:21,680 --> 00:31:24,600 Speaker 1: acknowledge x rps of currency because that's how it's used. 551 00:31:25,040 --> 00:31:27,240 Speaker 1: So I think the way the US. If we want 552 00:31:27,400 --> 00:31:29,800 Speaker 1: the US to be a leader in this new, growing, 553 00:31:29,840 --> 00:31:34,120 Speaker 1: critical innovative industry like the Internet twenty years ago, we 554 00:31:34,200 --> 00:31:37,000 Speaker 1: need that regulatory clarity. And the SEC is really just 555 00:31:37,040 --> 00:31:41,040 Speaker 1: coming out and saying we're gonna file lawsuits enforcement. They're 556 00:31:41,040 --> 00:31:43,600 Speaker 1: not going to provide clear rules so that people know 557 00:31:43,640 --> 00:31:47,360 Speaker 1: how to operate as other countries have done all right, 558 00:31:47,480 --> 00:31:50,640 Speaker 1: Brad Garlinghouse, CEO of Ripple Brad, always good to have 559 00:31:50,680 --> 00:31:53,120 Speaker 1: you with us in our Shonali Bostic. Things will continue 560 00:31:53,160 --> 00:31:57,800 Speaker 1: to follow your situation with the SEC. CNN is preferring 561 00:31:57,840 --> 00:32:00,920 Speaker 1: to launch its most ambitious effort, Yeah, a new streaming 562 00:32:00,920 --> 00:32:04,000 Speaker 1: service CNN plus wild consumers buy in when there's a 563 00:32:04,040 --> 00:32:07,400 Speaker 1: sea of other streaming options. Here's what Andrew Moore see 564 00:32:07,440 --> 00:32:10,240 Speaker 1: in an executive vice president who's leading the streaming effort, 565 00:32:10,480 --> 00:32:13,960 Speaker 1: had to say, I think at our heart, we have 566 00:32:14,080 --> 00:32:18,320 Speaker 1: always been about the news, and I think every news organization, 567 00:32:18,960 --> 00:32:22,280 Speaker 1: um you know, in the United States tends to do 568 00:32:22,320 --> 00:32:25,160 Speaker 1: a bit of a rethink every political cycle. That's natural 569 00:32:25,520 --> 00:32:28,640 Speaker 1: because politics become such an important coverage area for everybody. 570 00:32:28,760 --> 00:32:31,920 Speaker 1: So I don't think that's unusual for any news organization 571 00:32:32,000 --> 00:32:35,239 Speaker 1: to think about, okay, what's next, And especially now, by 572 00:32:35,280 --> 00:32:38,000 Speaker 1: the way, at a time when the entire industry is 573 00:32:38,040 --> 00:32:39,960 Speaker 1: moving quickly at a time and the entire industry is 574 00:32:40,000 --> 00:32:43,280 Speaker 1: being disruptive, I think it's logical. There's been a lot 575 00:32:43,280 --> 00:32:48,320 Speaker 1: of controversy surrounding Jeff Sucker's abrupt departure not long after 576 00:32:48,800 --> 00:32:53,600 Speaker 1: Chris Cuomo's exit tied in part to Chris interviewing his brother, 577 00:32:53,680 --> 00:32:57,400 Speaker 1: the Governor of New York on air. You've seen all 578 00:32:57,400 --> 00:33:06,360 Speaker 1: the criticism. What's your view on what happened? That's a 579 00:33:06,360 --> 00:33:11,400 Speaker 1: good question, Emily, UM, what is my view? Look when 580 00:33:12,040 --> 00:33:17,720 Speaker 1: when I heard about Jeff's resignation, UM, I was shocked. 581 00:33:17,760 --> 00:33:20,000 Speaker 1: We were all shocked. UM, it was a very hard 582 00:33:20,120 --> 00:33:24,920 Speaker 1: day for CNN. UM, you know, Jeff resigned, and in 583 00:33:25,080 --> 00:33:27,640 Speaker 1: his resignation, Jeff said that he resigning because he did 584 00:33:27,640 --> 00:33:31,840 Speaker 1: not disclose a relationship that he had with a colleague, 585 00:33:31,880 --> 00:33:35,040 Speaker 1: and that was his departure was very hard on the 586 00:33:35,040 --> 00:33:38,840 Speaker 1: whole organization. And UM, we've all been doing our best 587 00:33:38,880 --> 00:33:41,560 Speaker 1: to lead through, you know, a pretty difficult period with 588 00:33:41,640 --> 00:33:45,920 Speaker 1: Jeff's departure. Some of CNN's own stars have pushed back 589 00:33:46,120 --> 00:33:49,239 Speaker 1: on the way this was handled. Dana Bash said at 590 00:33:49,240 --> 00:33:52,680 Speaker 1: an internal meeting reportedly that the punishment didn't fit the crime. 591 00:33:53,120 --> 00:33:55,480 Speaker 1: Did you think the punishment fit the crime? You know, 592 00:33:55,960 --> 00:33:58,040 Speaker 1: I think the rules applied to everybody. And the fact is, 593 00:33:58,480 --> 00:34:01,640 Speaker 1: you know, the three red and white letters of CNN 594 00:34:02,040 --> 00:34:07,520 Speaker 1: matter a lot, and they're bigger than any of us. Meantime, 595 00:34:07,840 --> 00:34:11,560 Speaker 1: shareholders have given discoveries merger with HBO and CNN parent 596 00:34:11,680 --> 00:34:14,719 Speaker 1: Warner Media. The green light Discovery CEO David zas law 597 00:34:14,719 --> 00:34:18,200 Speaker 1: of naming Chris Licked, President of CNN. At the south 598 00:34:18,200 --> 00:34:21,840 Speaker 1: By Southwest Festival, I spoke with Andrew Morris more in 599 00:34:21,960 --> 00:34:25,560 Speaker 1: depth about the future of CNN plus, the network's news 600 00:34:25,560 --> 00:34:29,600 Speaker 1: streaming service, and its most ambitious effort since the networks 601 00:34:29,680 --> 00:34:33,600 Speaker 1: launch Take a listen. The beauty of a subscription service 602 00:34:33,920 --> 00:34:36,919 Speaker 1: is if you create something of value, people will pay. 603 00:34:37,120 --> 00:34:39,439 Speaker 1: You walk into a supermarket, you walk into a mall, 604 00:34:39,600 --> 00:34:42,120 Speaker 1: you walk into a shop, you go online. If there's 605 00:34:42,160 --> 00:34:45,160 Speaker 1: something of value, you'll pay. And when you think about 606 00:34:45,160 --> 00:34:47,200 Speaker 1: what CNN does, you think about the coverage that we 607 00:34:47,239 --> 00:34:49,560 Speaker 1: have in the Ukraine. You think about the depth of 608 00:34:49,640 --> 00:34:52,480 Speaker 1: knowledge that Sanjay Gupta has and the role that he's 609 00:34:52,520 --> 00:34:55,440 Speaker 1: played in this country in terms of informing you know, 610 00:34:55,600 --> 00:34:58,520 Speaker 1: informing people about COVID in the last year. We are 611 00:34:58,680 --> 00:35:03,760 Speaker 1: so infinite that we're building something of such value that 612 00:35:04,040 --> 00:35:06,000 Speaker 1: people are going to be willing to give a give 613 00:35:06,080 --> 00:35:08,279 Speaker 1: up one cup of coffee a month to pay for 614 00:35:08,480 --> 00:35:12,040 Speaker 1: this service. Just in time for your appearance here. Today, 615 00:35:12,400 --> 00:35:17,600 Speaker 1: shareholders approved the merger of Discovery and Warner Media CNN 616 00:35:17,680 --> 00:35:21,600 Speaker 1: has a new president, Chris lift has been named Um 617 00:35:21,800 --> 00:35:27,000 Speaker 1: helped conceive Morning Joe, produce The Colbert Show, revamped CBS. 618 00:35:27,160 --> 00:35:29,360 Speaker 1: Have you met with Chris Licht and what has he 619 00:35:29,440 --> 00:35:32,600 Speaker 1: told you he wants to see from CNN Plus. So 620 00:35:32,640 --> 00:35:34,279 Speaker 1: we haven't been able to talk to him yet. And 621 00:35:34,320 --> 00:35:38,560 Speaker 1: in fact, even though the Discovery shareholders have voted, we're 622 00:35:38,560 --> 00:35:40,440 Speaker 1: in a quiet period, so we actually haven't been able 623 00:35:40,480 --> 00:35:42,759 Speaker 1: to formally meet with Discovery about our business plans for 624 00:35:42,800 --> 00:35:45,160 Speaker 1: a while. But look, I've gotten to know Chris over 625 00:35:45,200 --> 00:35:47,080 Speaker 1: the years. He is what I do know of him. 626 00:35:47,400 --> 00:35:53,200 Speaker 1: He's an incredibly creative producer. He's a great journalist. He's 627 00:35:53,200 --> 00:35:56,439 Speaker 1: somebody who really knows what an organization like CNN needs 628 00:35:56,440 --> 00:35:59,520 Speaker 1: to be successful. What's the budget for CNN Plus? How 629 00:35:59,560 --> 00:36:03,440 Speaker 1: much have you spent so far? It is by orders 630 00:36:03,440 --> 00:36:07,120 Speaker 1: of magnitude, larger than anything CNN has taken on really 631 00:36:07,160 --> 00:36:09,799 Speaker 1: since the network is founded. It's a it's a very 632 00:36:09,840 --> 00:36:14,400 Speaker 1: serious undertaking and it requires significant investment. But the reason 633 00:36:14,480 --> 00:36:17,319 Speaker 1: for the significant investment is it's tied to a very 634 00:36:17,360 --> 00:36:21,600 Speaker 1: aggressive and ambitious business plan. We feel very, very confident 635 00:36:21,960 --> 00:36:23,759 Speaker 1: that we're going to be able to grow a very 636 00:36:23,800 --> 00:36:27,000 Speaker 1: substantial subscriber base pretty quickly, and so we've been able 637 00:36:27,040 --> 00:36:30,080 Speaker 1: to put together a business plan, uh and an investment 638 00:36:30,160 --> 00:36:31,879 Speaker 1: case that gets us to a place where we think 639 00:36:31,880 --> 00:36:33,799 Speaker 1: we can build a very healthy business. Given all the 640 00:36:33,840 --> 00:36:37,279 Speaker 1: numbers you've run, the research you've done. When, then, do 641 00:36:37,360 --> 00:36:41,319 Speaker 1: you expect this bet to pay off? Well, we think 642 00:36:41,680 --> 00:36:45,560 Speaker 1: it can become profitable within within a few years. Um. Again, 643 00:36:45,600 --> 00:36:49,040 Speaker 1: it's it's it all. It's the beauty of a subscription business. 644 00:36:49,040 --> 00:36:50,839 Speaker 1: And I come back to that every time. You know, 645 00:36:50,880 --> 00:36:54,839 Speaker 1: it's it's what makes it different from cable television. What's 646 00:36:54,920 --> 00:36:58,000 Speaker 1: it's what makes it different from advertising. If you build 647 00:36:58,080 --> 00:37:00,960 Speaker 1: something of value and you deliver value to the customers 648 00:37:00,960 --> 00:37:04,160 Speaker 1: and you put those customers before anything else, you can 649 00:37:04,200 --> 00:37:06,680 Speaker 1: build a business. And you have to back it up. 650 00:37:07,040 --> 00:37:08,799 Speaker 1: You have to have a great product, you have to 651 00:37:08,840 --> 00:37:11,240 Speaker 1: have great content, you have to have to have great talent. 652 00:37:11,600 --> 00:37:13,600 Speaker 1: You can't be afraid to pivot, you can't be afraid 653 00:37:13,640 --> 00:37:17,920 Speaker 1: to you know, to continue to take chances. But you know, 654 00:37:18,040 --> 00:37:23,000 Speaker 1: we feel good about what we're building. Andrew Morris, executive 655 00:37:23,080 --> 00:37:26,680 Speaker 1: vice president of CNN, speaking at the south By Southwest 656 00:37:26,719 --> 00:37:30,919 Speaker 1: Festival in Austin, Texas. C Plus launches March twenty nine. 657 00:37:31,320 --> 00:37:34,480 Speaker 1: That does it for this edition of Bloomberg Technology. Tomorrow, 658 00:37:34,520 --> 00:37:36,680 Speaker 1: we're gonna be joined by Rashima Show, Johnny founder of 659 00:37:36,719 --> 00:37:38,759 Speaker 1: Girls Who Code. He's out with a brand new book 660 00:37:38,800 --> 00:37:42,280 Speaker 1: on the future of women and work. Also Joseph Lubin 661 00:37:42,320 --> 00:37:45,640 Speaker 1: to talk about all things crypto, the CEO of Consensus 662 00:37:45,680 --> 00:37:49,000 Speaker 1: and the co founder of a THEORYU. And that's tomorrow 663 00:37:49,080 --> 00:37:52,759 Speaker 1: right here on Bloomberg Technology. And Emily Chang. This is 664 00:37:52,760 --> 00:37:53,320 Speaker 1: Bloomberg