WEBVTT - Bridgit Mendler’s Startup Raises $30M to Improve Earth-Space Communication 0:00:02.759 --> 0:00:10.159 Bloomberg Audio Studios, podcasts, radio news from the heart of 0:00:10.200 --> 0:00:16.200 where innovation, money and power collide in Silicon Valley and beyond. 0:00:16.360 --> 0:00:20.599 This is Bloomberg Technology with Caroline Hyde. 0:00:20.200 --> 0:00:21.680 And Ed Ludlow. 0:00:35.600 --> 0:00:37.919 Live from New York and San Francisco. This is Bloomberg 0:00:37.960 --> 0:00:41.200 Technology Coming up. Tesla is first up for the MAGS 0:00:41.240 --> 0:00:44.879 seven Tech earnings. Can Elon Musk inject some excitement back 0:00:44.920 --> 0:00:45.640 into the company. 0:00:46.479 --> 0:00:50.200 Plus Verizon sinks as it loses more mobile phone subscribers 0:00:50.240 --> 0:00:54.400 than expected in the face of competition and cuts across government. 0:00:54.320 --> 0:00:59.760 And data center drama. Amazon confirms strong AWS demand. That's 0:00:59.800 --> 0:01:03.360 as analysts call out concerns in cloud computing leases. But 0:01:03.440 --> 0:01:05.480 first we check in on these markets, and we've got 0:01:05.480 --> 0:01:08.000 a bounce back after yesterday's sell off. We almost make 0:01:08.120 --> 0:01:10.520 up for it today up two point four percent. Let's 0:01:10.560 --> 0:01:13.080 call it on the Nasdaq one hundred. Look, there's still 0:01:13.160 --> 0:01:15.880 anxiety as we head into earnings, and many people are 0:01:15.880 --> 0:01:18.120 buying out options to protect any downside moves in some 0:01:18.200 --> 0:01:20.560 of these MAGS seven names. But we are managing to 0:01:20.640 --> 0:01:23.440 shake off some of yesterday's sell off, and indeed we're 0:01:23.440 --> 0:01:25.640 still worrying about the future of j Powell, but for 0:01:25.720 --> 0:01:28.560 now tentative buying. I'm looking at Bitcoin on the up 0:01:28.560 --> 0:01:31.440 and up ninety thousand now many feeling that this is 0:01:31.440 --> 0:01:33.560 becoming to trade more like gold than it has been 0:01:33.600 --> 0:01:36.479 tech stocks. That decoupling pushes the way from maybe ninety 0:01:36.480 --> 0:01:38.600 two to ninety four thousand to be hit in terms 0:01:38.640 --> 0:01:39.959 of a price point end. But what are you digging 0:01:40.040 --> 0:01:41.959 in on the micro Tesla? 0:01:42.120 --> 0:01:43.880 And it's one of the many names that are up 0:01:43.920 --> 0:01:46.200 in the session, but over the course of twenty twenty 0:01:46.200 --> 0:01:49.200 five so far is down more than forty percent year 0:01:49.200 --> 0:01:51.680 to date. It is the worst performing of the mag 0:01:51.760 --> 0:01:55.720 seven so far this year by far, almost double the decline. 0:01:55.720 --> 0:01:57.080 And what you see in some of the other names, 0:01:57.120 --> 0:02:00.200 including in video for example, earnings are after the well. 0:02:00.680 --> 0:02:03.320 And as much as people will talk about fundamentals and 0:02:03.360 --> 0:02:04.920 the fact that in the first three months of this 0:02:05.000 --> 0:02:07.920 year deliveries were at their lowest level for almost three years, 0:02:08.120 --> 0:02:10.960 it is solely about Elon Musk right, his relationship with 0:02:11.000 --> 0:02:14.800 the administration. How focused is Elon Musk on Tesla relative 0:02:14.800 --> 0:02:17.360 to all the other companies involved in and his duties 0:02:17.360 --> 0:02:18.000 in government care. 0:02:18.480 --> 0:02:20.519 Such a good point, and now let's just dig into 0:02:20.520 --> 0:02:22.919 Tesla a little bit more the broader implications on tech 0:02:23.320 --> 0:02:26.120 on tech more for livery megs Zha Day is with us. 0:02:26.280 --> 0:02:29.560 You've put out some great pieces just looking ahead to earnings. 0:02:29.919 --> 0:02:33.760 This is a company that trades on vibes more often 0:02:33.760 --> 0:02:37.240 than fundamentals. Can Elon Musk inject the vibes back in here? 0:02:37.240 --> 0:02:39.639 I mean that's sort of the main focus right now. 0:02:39.680 --> 0:02:41.720 And this is not really a new thing for Tesla, 0:02:41.800 --> 0:02:44.800 right like, it always is really important how Elon Musk 0:02:44.880 --> 0:02:47.919 feels and kind of how confident or not his sounds 0:02:47.919 --> 0:02:50.600 on the call, But I feel like this time it's 0:02:50.720 --> 0:02:54.520 ever more so. And that's because there's like the company 0:02:54.600 --> 0:02:57.239 right now is sort of in an information air pocket 0:02:57.280 --> 0:03:00.800 sort of speak people more or less understand the results 0:03:00.800 --> 0:03:03.840 are not going to be kind of really strong. There 0:03:03.880 --> 0:03:09.080 are not huge expectations around margins, around sales, around profit. 0:03:09.280 --> 0:03:12.720 Everything's more or less expected to be disappointing. We also 0:03:12.880 --> 0:03:15.280 have a big focus on Robotaxi, but we also know 0:03:15.400 --> 0:03:18.360 that the Robotaxi launch is going to be in Austin 0:03:18.480 --> 0:03:21.040 in June. So right now, what can you know on 0:03:21.200 --> 0:03:23.919 mask bring to the table. It really is about whether 0:03:24.240 --> 0:03:26.520 his focus is going to be moving away from doors 0:03:27.480 --> 0:03:31.639 and what else he can talk about about the cheaper car. Yeah, 0:03:31.720 --> 0:03:33.360 it's really about the vibes right now. 0:03:34.280 --> 0:03:36.400 Lindberg's act today out of New York City, Thank you 0:03:36.520 --> 0:03:39.880 very much. Meanwhile, Amazon Web Services is putting some of 0:03:39.880 --> 0:03:43.040 its data center leases on pause. That's according to a 0:03:43.080 --> 0:03:47.360 Wells Fargo and List note, citing industry sources. Amazon's head 0:03:47.360 --> 0:03:51.760 of Data Centers pushing back, writing quote, this is routine 0:03:51.800 --> 0:03:56.080 capacity management and there haven't been any recent fundamental changes 0:03:56.440 --> 0:03:59.680 in our expansion plans. Fortunately for our customers, they're able 0:03:59.680 --> 0:04:03.360 to focus on their business and leave these details to us. 0:04:03.440 --> 0:04:06.280 We called it data center drama at the top. Mnigrafeo 0:04:06.680 --> 0:04:07.840 is here with the full of picture. 0:04:07.880 --> 0:04:08.240 What do we know? 0:04:08.400 --> 0:04:09.320 M right ed. 0:04:09.360 --> 0:04:09.440 So. 0:04:09.600 --> 0:04:12.280 Miller was responding to a note that Wells Fargo had 0:04:12.280 --> 0:04:15.000 put out yesterday that they had spoken to analysts over 0:04:15.040 --> 0:04:18.320 the weekend who said our industry sources over the weekend 0:04:18.360 --> 0:04:21.280 who said that AWS had paused a portion of its 0:04:21.360 --> 0:04:25.160 data center leasing discussions on the co location side, particularly 0:04:25.160 --> 0:04:28.200 in international markets. Well said that it wasn't clear of 0:04:28.240 --> 0:04:31.039 the magnitude of the pause, but it's following a similar 0:04:31.080 --> 0:04:33.760 trend that we've already seen from Microsoft that these two 0:04:33.839 --> 0:04:37.520 companies are pulling back on spending on those data centers. 0:04:37.760 --> 0:04:39.600 And the reason why investors care about. 0:04:39.360 --> 0:04:41.680 This is because they want to watch to get a. 0:04:41.839 --> 0:04:45.080 Kind of read on consumer demand how these companies are 0:04:45.120 --> 0:04:48.080 thinking about demand for cloud and AI. You can get 0:04:48.080 --> 0:04:50.679 a read on that if these companies are spending more 0:04:50.800 --> 0:04:54.440 on data centers now. Wells Fargo also said that it's 0:04:54.520 --> 0:04:58.279 not clear whether AWS slowing some leases is an area 0:04:58.360 --> 0:05:00.960 of concern or just the natural ebbs and flows of 0:05:01.040 --> 0:05:04.560 hyper scale activity. And we did see Miller pull up, 0:05:04.839 --> 0:05:07.280 I guess pushing back on those comments today, saying that 0:05:07.320 --> 0:05:10.800 the demand here is still strong. The shares dropped yesterday 0:05:10.920 --> 0:05:14.320 in Amazon, but they are rebounding and actually outperforming the 0:05:14.400 --> 0:05:17.279 nabscack right now, but still down very much year to 0:05:17.360 --> 0:05:18.839 date ed as. 0:05:18.680 --> 0:05:20.880 We can see, off by twenty one percent. Emily Graffeo 0:05:20.960 --> 0:05:23.440 with all things Amazon, we thank you. Look, let's get 0:05:23.440 --> 0:05:26.719 you a broader a wider impact of TARIS onto the 0:05:26.760 --> 0:05:29.720 tech sector and what we think about AI demand. Martin 0:05:29.839 --> 0:05:32.799 Orton's with us in Power, Chief investment strategist. Look, let's 0:05:32.839 --> 0:05:35.880 take your case for the moment as to the bounce 0:05:35.920 --> 0:05:38.680 back on the day Marta, are people really putting any 0:05:38.720 --> 0:05:40.800 new money to work or is this more protecting on 0:05:40.839 --> 0:05:42.120 the downside. 0:05:42.440 --> 0:05:44.960 Well, it is kind of interesting because there has been 0:05:45.440 --> 0:05:49.359 reports that while we initially saw that big by the 0:05:49.400 --> 0:05:52.280 dip movement come back and play in the wake of 0:05:52.400 --> 0:05:54.880 the Liberation Day, in the wake of April second, we 0:05:55.000 --> 0:05:57.559 have seen a little bit more of a cautious tone 0:05:57.680 --> 0:06:00.640 more recently, and that relates to hedging activity and the like. 0:06:01.200 --> 0:06:03.560 I think when we're taking a look at the environment 0:06:03.640 --> 0:06:07.680 today and we're thinking about how this terriff environment compares 0:06:07.680 --> 0:06:11.480 to other periods of uncertainty like COVID, this has something 0:06:11.520 --> 0:06:13.520 that at least seems to have a little bit more 0:06:13.600 --> 0:06:17.159 legs to it, a little bit more kind of prolonged uncertainty, 0:06:17.240 --> 0:06:19.880 and I think that can at least shake some of 0:06:19.920 --> 0:06:23.480 the weak buyers off that decision tree in the sense 0:06:23.520 --> 0:06:26.160 that they're not necessarily going to move necessarily as quickly 0:06:26.480 --> 0:06:30.080 as they had into this market. But on the positive side, 0:06:30.120 --> 0:06:32.919 I think we are seeing valuations improve and so that 0:06:32.920 --> 0:06:35.800 would suggest to me that while you know, we could 0:06:35.839 --> 0:06:38.520 see uncertainty persists for a while, at least there's a 0:06:38.520 --> 0:06:41.160 bit more margin of safety baked into prices. 0:06:41.640 --> 0:06:44.039 We were showing at the top of the program Tesla's 0:06:44.120 --> 0:06:47.479 year to date performance, Amazon's year to date performance. It 0:06:47.560 --> 0:06:50.640 sounds like you're a bit more comfortable with where things 0:06:50.640 --> 0:06:53.359 sit from evaluation perspective, at least, even if the leaders 0:06:53.400 --> 0:06:56.400 of those companies can't quantify for us or tell us 0:06:56.520 --> 0:06:57.479 what's going to happen next. 0:06:57.480 --> 0:06:59.480 With Tariff's where you're bringing. 0:06:59.320 --> 0:07:02.960 Up that juxtas position where we're looking to earnings and 0:07:03.080 --> 0:07:06.200 to management to give us certainty, but they might not 0:07:06.400 --> 0:07:08.560 have it at these early days when we're looking at 0:07:08.560 --> 0:07:11.600 this terrafor and yet at the same time prices are 0:07:11.600 --> 0:07:13.960 pulling back and giving us that margin of safety. So 0:07:14.240 --> 0:07:15.720 you know, if we're looking at the start of the 0:07:15.800 --> 0:07:19.119 year December twenty twenty four, those valuations for the market 0:07:19.160 --> 0:07:23.320 at large and technology in particular the mag seven were very, 0:07:23.480 --> 0:07:25.520 very stretched. In fact, if you're looking at it on 0:07:25.560 --> 0:07:28.680 a historical basis, they're in the ninth or tenth decile 0:07:28.840 --> 0:07:31.440 of their own histories. And yet as we roll forward 0:07:31.440 --> 0:07:33.400 to today and we look at the impact from deep 0:07:33.480 --> 0:07:35.800 seek and the cell off we saw in January February, 0:07:36.040 --> 0:07:39.240 and then the continued volatility from tariffs, we're looking at 0:07:39.360 --> 0:07:42.600 valuations that are a lot more approachable, not necessarily cheap, 0:07:42.880 --> 0:07:45.160 but more in line with historical levels. So for an 0:07:45.200 --> 0:07:50.240 investor who has been conservatively positioned, has been on the sidelines, 0:07:50.600 --> 0:07:53.240 now may be a time to edge in with the 0:07:53.400 --> 0:07:56.680 understanding that this uncertainty could persist for quite some time. 0:07:57.440 --> 0:08:00.680 That has been some certainty. Voice five leaders over at 0:08:00.680 --> 0:08:03.880 AWS trying to push back on this narrative that maybe 0:08:03.960 --> 0:08:08.480 they're curtailing their leases for data centers, but still it 0:08:08.600 --> 0:08:11.560 just builds into this worry about whether AI demand, AI 0:08:11.680 --> 0:08:14.160 use is really there to the extent we thought, Marta, 0:08:14.360 --> 0:08:17.040 give us your read on data centers on the AI 0:08:17.120 --> 0:08:17.600 trade here. 0:08:18.320 --> 0:08:22.440 Well, it's interesting because even before we enter this macroeconomic 0:08:22.640 --> 0:08:26.640 uncertainty period, we have uncertainty around AI. We saw the 0:08:26.640 --> 0:08:28.640 big spend, we saw the big numbers, we saw the 0:08:28.800 --> 0:08:32.720 enthusiasm from the mag seven, from tech leaders, and yet 0:08:32.760 --> 0:08:36.200 we were still looking for that return on investment and 0:08:36.240 --> 0:08:39.160 that continues today. So it's as though the narrative hasn't 0:08:39.160 --> 0:08:42.199 really shifted. We're still looking for those sparks, those hopes, 0:08:42.440 --> 0:08:44.160 and I think we're going to have investors on the 0:08:44.240 --> 0:08:46.440 edge of their seats as they're looking at earnings this 0:08:46.600 --> 0:08:49.480 quarter to see if there's any sort of revelation there. 0:08:49.520 --> 0:08:52.280 But so far there hasn't been a whole lot of 0:08:52.320 --> 0:08:55.120 new information. Maybe some green shoots when we look at 0:08:55.120 --> 0:08:57.439 how some of these companies had been able to monetize 0:08:57.440 --> 0:09:00.640 on the margin, but still those color apps and massive 0:09:00.720 --> 0:09:03.640 use case across the economy, it continues to remain a 0:09:03.679 --> 0:09:06.040 little bit further out. So I think this is, you know, 0:09:06.120 --> 0:09:08.320 yet one more uncertainty that we're going to have to 0:09:08.360 --> 0:09:10.920 deal with in this quarter in the coming months. 0:09:11.760 --> 0:09:14.599 We so, I keep hearing from leaders in the semiconductor 0:09:14.640 --> 0:09:18.360 industry that they are highly confident capital expenditures will rise 0:09:18.360 --> 0:09:20.280 again this year, and they'll rise by more than they 0:09:20.360 --> 0:09:22.319 did last year, and next year they will rise by 0:09:22.320 --> 0:09:22.880 more than they. 0:09:22.760 --> 0:09:23.920 Do in twenty twenty five. 0:09:24.600 --> 0:09:26.480 But what happens if we get to the key earning 0:09:26.520 --> 0:09:29.000 states this week, next week, and the week after and 0:09:29.040 --> 0:09:31.640 there's no guidance issued at all, they just say we 0:09:31.720 --> 0:09:34.680 can't give you the information. What would that do for 0:09:34.800 --> 0:09:36.640 the technology investors' confidence? 0:09:37.280 --> 0:09:39.199 Well, you know, it's kind of an interesting question. I 0:09:39.200 --> 0:09:41.600 think it's a very relevant one because we've already seen 0:09:41.640 --> 0:09:44.760 that in earnings a bit so far, this season. Early 0:09:44.800 --> 0:09:47.280 in this season, we've seen different companies say, hey, we're 0:09:47.280 --> 0:09:49.160 going to give you a few different scenarios, or we 0:09:49.240 --> 0:09:51.760 can't reconfirm our guidance, or we just don't have a 0:09:51.800 --> 0:09:55.040 great great deal of clarity on how the coming months 0:09:55.040 --> 0:09:57.240 will unfold. And so I think that is a possibility 0:09:57.240 --> 0:10:00.200 that we have to plan for as investors that while 0:10:00.200 --> 0:10:02.800 we're looking for earning season to provide us that clarity 0:10:02.840 --> 0:10:05.880 on how tariffs are impacting businesses, we simply might not 0:10:06.040 --> 0:10:08.520 have it. Liberation Day was only a few weeks ago. 0:10:08.840 --> 0:10:11.160 The scale of the tariffs are changing in real time, 0:10:11.480 --> 0:10:13.680 so it's a very hard time for companies to truly 0:10:13.760 --> 0:10:16.319 understand how they're going to position and how they might 0:10:16.360 --> 0:10:18.839 respond to this environment. So I think what a lot 0:10:18.840 --> 0:10:21.199 of companies would do. I would imagine, especially some of 0:10:21.240 --> 0:10:24.200 these companies with a longer term orientation when it comes 0:10:24.240 --> 0:10:26.199 to AI, is they're going to say, hey, we see 0:10:26.200 --> 0:10:30.559 this long term, massive opportunity that is in front of us. 0:10:30.720 --> 0:10:32.880 We know there's going to be kind of the management 0:10:32.960 --> 0:10:35.480 of it as we deal with macroeconomic uncertainty in the 0:10:35.480 --> 0:10:37.600 here and now, but we're not going to lose sight 0:10:37.960 --> 0:10:40.360 of our long term goal of you know, what we 0:10:40.400 --> 0:10:43.360 can do with AI and making it this world dominant technology. 0:10:43.600 --> 0:10:45.080 So I think there's going to be some kind of 0:10:45.080 --> 0:10:47.600 time horizon management that we see with these earnings. But 0:10:47.679 --> 0:10:51.079 as investors, we might be weathering more volatility without greater 0:10:51.160 --> 0:10:54.360 information in the here and now, just the tech sector. 0:10:54.920 --> 0:10:59.040 Whether this uncertainty around Powell better or worse than other industries. 0:11:00.000 --> 0:11:02.080 You know, that's a great question, you know when I 0:11:02.120 --> 0:11:05.520 think about that, that can you know, that added dynamic 0:11:05.960 --> 0:11:07.600 to the environment that we're in. 0:11:08.120 --> 0:11:08.960 I think that's. 0:11:08.760 --> 0:11:14.400 Something that will affect sectors broadly and affect asset classes broadly. 0:11:14.480 --> 0:11:18.720 If we have some sort of prolonged, deepening uncertainty over 0:11:18.800 --> 0:11:22.080 the power to replace you know, a FED chairman and 0:11:22.200 --> 0:11:24.960 maybe more politicize the FED. I don't think there's a 0:11:25.000 --> 0:11:28.280 whole lot of places to hide there. Maybe that's something 0:11:28.400 --> 0:11:31.080 you know, some of the enthusiasm around gold, maybe there's 0:11:31.240 --> 0:11:33.760 some enthusiasm around cash. But when we think about the 0:11:33.800 --> 0:11:37.520 equity sectors, that seems to be kind of a something 0:11:37.559 --> 0:11:41.440 that kind of blankets the equity sectors broadly in terms 0:11:41.480 --> 0:11:42.080 of impact. 0:11:42.320 --> 0:11:44.360 Oh, Martha, there's been excitement around bitcoin. 0:11:44.840 --> 0:11:45.400 Have you been. 0:11:45.920 --> 0:11:50.280 Asking or indeed in discussing with any of your clients 0:11:50.400 --> 0:11:52.160 about more exposure into crypto. 0:11:52.880 --> 0:11:55.240 You know, it's so interesting. I had a question yesterday 0:11:55.320 --> 0:11:59.360 about crypto and bitcoin. I think there's a real enthusiasm 0:11:59.360 --> 0:12:01.480 for that trade. Were speaking about the numbers a bit 0:12:01.559 --> 0:12:06.000 earlier here that decoupling from technology moving a bit more 0:12:06.080 --> 0:12:11.320 toward gold. Personally speaking, I find bitcoin a difficult asset 0:12:11.360 --> 0:12:14.680 class to necessarily predict its future movements. One of the 0:12:14.720 --> 0:12:19.040 troubles with cryptocurrency broadly is knowing what that fair value prices, 0:12:19.640 --> 0:12:24.040 which can help kind of determine overvaluation, undervaluation future movements. 0:12:24.120 --> 0:12:28.000 And while there's certainly utility and enthusiasm around it, predicting 0:12:28.040 --> 0:12:30.040 its behavior is a bit. 0:12:29.880 --> 0:12:31.000 More difficult now. 0:12:31.040 --> 0:12:37.160 Maybe conversations around Powell and to social posts give bitcoin 0:12:37.200 --> 0:12:39.560 a little bit more of a shiny look when we're 0:12:39.559 --> 0:12:43.000 thinking about volatility on monetary policy. But I do think 0:12:43.040 --> 0:12:46.080 that's one of the asset classes that has that unpredictable 0:12:46.080 --> 0:12:49.120 flavor that makes it a little bit more difficult to handicap. 0:12:50.320 --> 0:12:53.640 What bitcoin and some areas of the technology industry have 0:12:53.720 --> 0:12:57.439 in common, for example, the manufacturing of chips or electronics, 0:12:58.000 --> 0:13:00.839 is that the administration have policies for it, right, they 0:13:00.880 --> 0:13:04.640 have people that Trump is brought in to be zas 0:13:04.720 --> 0:13:07.400 I'm thinking about David Sachs. If you're an investor and 0:13:07.440 --> 0:13:09.920 you're thinking which areas or corners of the tech market 0:13:09.920 --> 0:13:11.720 should I go to, why don't you just go to 0:13:11.760 --> 0:13:14.160 the ones that the president keeps talking about. 0:13:14.440 --> 0:13:15.600 I mean, that's a great point. 0:13:15.600 --> 0:13:18.080 If we're thinking about twenty twenty five and what has 0:13:18.240 --> 0:13:22.920 driven market action in twenty twenty five, It's been fiscal policy, 0:13:23.040 --> 0:13:25.800 It's been what's happening in the Trump administration and what's 0:13:25.840 --> 0:13:28.240 in favor with the Trump administration and what's out of 0:13:28.240 --> 0:13:31.400 favor with the Trump administration. So the extent that that 0:13:31.760 --> 0:13:36.520 is that marginal push for how asset classes behave, then 0:13:36.559 --> 0:13:39.920 I think there's there's good reason to have enthusiasm around 0:13:39.960 --> 0:13:42.840 something like technology, which has you know, especially from an 0:13:42.840 --> 0:13:45.880 AI perspective, a lot of Trump administration enthusiasm is to 0:13:45.960 --> 0:13:48.599 building out the US as as a superpower there and 0:13:48.640 --> 0:13:51.560 then to your point, around crypto and making that a 0:13:51.600 --> 0:13:56.040 more fairly or friendly regulated area. But you know the 0:13:56.120 --> 0:13:58.600 question is is that already in the price is that 0:13:58.760 --> 0:14:01.160 enthusiasm already den at least as it comes to. 0:14:01.160 --> 0:14:06.599 Cryptel, Martin Norton, Bempare great conversation, Thank you very much, joining. 0:14:06.360 --> 0:14:16.400 Us time now for talking tech and first up. 0:14:16.600 --> 0:14:19.880 Boeing It's agreed to sell off its digital flight navigation 0:14:20.000 --> 0:14:22.400 unit to Toma Bravo in a ten point six billion 0:14:22.400 --> 0:14:24.560 dollar cash deal. It's the latest move by the company 0:14:24.600 --> 0:14:26.760 to lower its fifty eight billion dollar debt load. 0:14:26.920 --> 0:14:27.600 Now the deal. 0:14:27.400 --> 0:14:31.200 Involves the Japesson business and its subsidiaries. I will allow 0:14:31.240 --> 0:14:34.760 Boeing to continue capturing data for maintenance and repairs. Plus 0:14:34.880 --> 0:14:38.520 an increasing rivalry between China's jd dot Com and mat One. 0:14:38.600 --> 0:14:41.240 Look at sent Chez tumbling in Hong Kong, training falling 0:14:41.240 --> 0:14:43.400 by as much as eight percent. This is his investors 0:14:43.480 --> 0:14:46.040 begin to worry about a hit in profitability for the competition. 0:14:46.440 --> 0:14:48.720 Now both stocks have fallen more than twenty five percent 0:14:48.760 --> 0:14:52.080 from their highs in March, underperforming the Hangsang Tech Index 0:14:52.760 --> 0:14:57.960 and more Chinese tech companies rashally eyeing potential usipos. Beijing 0:14:58.080 --> 0:15:00.680 Smart Walnut could seek to raise a one hundred million 0:15:00.720 --> 0:15:04.280 dollars alongside other firms and similar goals like Shenzhen Cloudsky 0:15:04.360 --> 0:15:07.040 and Zongie Group. That's according to sources, all of this 0:15:07.160 --> 0:15:10.480 is actually despite the US market turmoil and rising geopolitical 0:15:10.560 --> 0:15:12.160 tensions between Washington and Beijing. 0:15:12.320 --> 0:15:12.400 Ed. 0:15:13.160 --> 0:15:15.359 Yeah, let's stick with this story and bring in Bloomberg's 0:15:15.360 --> 0:15:17.400 Henry Ren out London. The thing about this, right that 0:15:17.440 --> 0:15:20.800 we understand them resources is these are US listings under 0:15:20.800 --> 0:15:24.840 consideration by Chinese technology companies, not firm commitments. They might 0:15:24.880 --> 0:15:27.600 not have to happen, but we do have some size 0:15:27.640 --> 0:15:30.240 and scope on what they try to raise. And it's 0:15:30.240 --> 0:15:33.239 interesting that some of them are our data center infrastructure 0:15:33.280 --> 0:15:33.720 names as well. 0:15:33.760 --> 0:15:34.080 Henry. 0:15:35.360 --> 0:15:35.600 Yeah. 0:15:35.640 --> 0:15:40.760 Indeed, so we're seeing, actually, despite all those trade tensions, 0:15:40.760 --> 0:15:44.000 we're seeing more Chinese companies actually more willing to list 0:15:44.040 --> 0:15:48.600 in the US in recent months. That's arguably after the 0:15:48.680 --> 0:15:53.440 recent Deep Seats tech breakthrough in China and arising investors 0:15:53.440 --> 0:15:55.640 sentiment toward those Chinese tech companies. 0:15:56.080 --> 0:15:57.880 And it's not necessarily just tech. 0:15:58.160 --> 0:16:01.880 We mentioned the smart oneut which is a firm that's 0:16:01.920 --> 0:16:07.560 specializing in coaching young kids of doing computer programming, and 0:16:07.640 --> 0:16:11.680 not just about infrastructure tech companies, software companies as well, 0:16:11.760 --> 0:16:15.400 and we've also just last week saw Charji, which is 0:16:16.040 --> 0:16:20.160 a famous tea chain China also pursued US listing and 0:16:20.360 --> 0:16:23.280 this deal is actually bigger, with four hundred million US 0:16:23.360 --> 0:16:26.720 dollars being raised in an IPO price at the upper 0:16:27.200 --> 0:16:29.360 bound of the price range in the last week, so 0:16:29.560 --> 0:16:31.960 we can see that there actually has been a revival 0:16:32.080 --> 0:16:36.000 investor interest into Chinese names after the Deep Seek's breakthrough. 0:16:36.400 --> 0:16:38.600 How does the Chinese government feel about that, the tapping 0:16:38.640 --> 0:16:40.600 of liquidity in the United States. 0:16:41.320 --> 0:16:44.320 Yeah, I think that's an important goal of Chinese companies 0:16:44.320 --> 0:16:48.400 despite all those trade tensions between US and China, protecting 0:16:48.480 --> 0:16:51.880 those private companies is one of the key goals of 0:16:51.920 --> 0:16:56.360 the government. That's actually a bit different from the things 0:16:56.360 --> 0:16:58.560 that we've been seeing over the past two years during 0:16:58.600 --> 0:17:02.640 the tech crackdown phase of the regulation crackdown. 0:17:02.440 --> 0:17:05.240 And so expecting more to come. 0:17:05.320 --> 0:17:08.680 Actually, but one thing that we need to monitor closely 0:17:08.800 --> 0:17:11.480 is whether the US sanctions on those Chinese firms is 0:17:11.520 --> 0:17:12.000 on the rise. 0:17:13.160 --> 0:17:15.159 Henry Caroy brought us the moves over nine in Hong 0:17:15.240 --> 0:17:17.879 Kong on JD in May twe what's the story in 0:17:17.920 --> 0:17:19.320 the competition between those two. 0:17:20.560 --> 0:17:23.760 Yeah, that's actually a very interesting one because this has 0:17:23.840 --> 0:17:24.880 been a story that we've been. 0:17:24.800 --> 0:17:26.639 Tracked for the past few months. 0:17:26.680 --> 0:17:30.360 But the tension, the excalation between the competition of those 0:17:30.400 --> 0:17:33.240 two Chinese tech companies is really on the rise in 0:17:33.280 --> 0:17:35.960 the past few days, because there have been some several 0:17:36.000 --> 0:17:39.320 things over the weekend, including JD saying that it's planning 0:17:39.400 --> 0:17:43.280 to hire about one hundred thousand more delivery men in China. 0:17:43.800 --> 0:17:47.959 JD's funder, Richard Liu, appeared in a press story that 0:17:48.040 --> 0:17:52.760 he's delivering meal orders to clients by himself. JD signed 0:17:53.720 --> 0:17:57.000 a deal with Starbucks in China to delivery to deliver 0:17:57.040 --> 0:17:58.320 coffee for the coffee chain. 0:17:58.800 --> 0:18:01.080 And at the end and these two. 0:18:00.840 --> 0:18:06.560 Companies JD and may twey came, they were involved in 0:18:06.640 --> 0:18:09.720 a heated exchange on Chinese social media, with JD saying 0:18:09.760 --> 0:18:13.040 that may twe is forbidding its own own drivers of 0:18:13.119 --> 0:18:16.160 delivering JD's orders, while made One is saying that it's 0:18:16.200 --> 0:18:19.320 actually not the case. So lots of developments recently and 0:18:19.720 --> 0:18:23.360 competition is definitely on the rice in China's food delivery arena. 0:18:24.119 --> 0:18:26.719 Bloomberg's Henry Renn, thank you very much. Now coming out, 0:18:26.880 --> 0:18:30.800 Verizon sees mobile phone subscribers full in the first quarter. 0:18:30.840 --> 0:18:34.320 We'll discuss why Telecoms Giant is pointing to moves by 0:18:34.359 --> 0:18:36.920 the Trump administration as the reason snacks. 0:18:36.960 --> 0:18:44.560 This is Bloomberg Technology. 0:18:51.640 --> 0:18:54.760 Verizon shares flat after the company reported a larger than 0:18:54.800 --> 0:18:57.920 expected decline in mobile phone subscribers in the first quart 0:18:57.920 --> 0:18:59.920 of Verizon is the first of the big three US 0:19:00.040 --> 0:19:02.879 telecon companies to report first quarter results. Let's get the 0:19:02.960 --> 0:19:04.760 details with Bloomberg's Kelsey Griffiths. 0:19:04.760 --> 0:19:05.159 What do we know. 0:19:05.600 --> 0:19:08.960 Yeah, so Verizon reported their first quarter earnings today and 0:19:09.240 --> 0:19:11.360 they lost a lot of subscribers. It was more than 0:19:11.600 --> 0:19:14.560 a Wall Street analysts we're expecting, and they're attributing that 0:19:14.600 --> 0:19:17.159 to a couple of factors. One of them is just 0:19:17.200 --> 0:19:21.520 a drop in seasonal promotions and that very tight competition 0:19:21.520 --> 0:19:24.400 we're seen in the mobile market. However, there is also 0:19:24.440 --> 0:19:26.879 another factor, which is a lot of downsizing in the 0:19:26.880 --> 0:19:30.560 federal government, and that's something that Verizon CEO Hans Vesberg 0:19:30.720 --> 0:19:33.080 actually cited on a call with analysts today. 0:19:33.600 --> 0:19:36.440 Broad Bands still going strong though, Kelsey Griffiths, we thank 0:19:36.440 --> 0:19:39.200 you very much for the latest in terms of earnings. 0:19:39.320 --> 0:19:41.560 Let's go to another tech giant, which has earnings later 0:19:41.600 --> 0:19:43.320 in the week, but right now, Alphabet is back in 0:19:43.320 --> 0:19:45.640 court today fighting to stop the government's push to break 0:19:45.720 --> 0:19:48.200 up Google. It follows last year's ruling that the company 0:19:48.200 --> 0:19:51.600 has a monopoly oversearch. Bloombox Sarah Forden joins us for 0:19:51.640 --> 0:19:55.199 more really interesting details coming out when it regards to 0:19:55.240 --> 0:19:57.920 the Generative AI, the Gemini offering, and the payments being 0:19:57.960 --> 0:19:59.400 made to Samsung for example. 0:20:00.400 --> 0:20:03.399 Yes, so the government is actually not only concerned about 0:20:03.440 --> 0:20:06.920 Google's monopoly of research, but they're also alleging that the 0:20:06.960 --> 0:20:11.880 AI capacity has helped it to enshrine its monopoly of research. 0:20:11.960 --> 0:20:15.359 So we had testimony yesterday and today from a Google 0:20:15.440 --> 0:20:19.520 executive talking about how they paid Samsung inordinate amounts of 0:20:19.560 --> 0:20:24.920 money to pre install their Gemini AI product on Samsung phones. 0:20:25.680 --> 0:20:30.320 Meanwhile, the pushback is that the extreme remedies being considered 0:20:30.320 --> 0:20:32.920 are selling off of chrome or access to their data 0:20:32.960 --> 0:20:35.680 to rivals. Well, that seems to be the narrative coming 0:20:35.680 --> 0:20:38.000