Speaker 1: From the heart of where innovation, money and power collive
Speaker 1: in Silicon Vallet and beyond. This is Bloomberg Technology with
Speaker 1: Emily Jay. I'm Emily changing Chan Francisco in this sis
Speaker 1: Bloomberg Technology coming up in the next hour. Apple announces
Speaker 1: a rare sales promotion for the iPhone in China. But
Speaker 1: is the discount a bad sign? We'll discuss plus. On
Speaker 1: the latest episode of Keeping Up with TikTok, Meta introduces
Speaker 1: a new revenue sharing feature to help creators make more
Speaker 1: money from videos set to music. What it all means
Speaker 1: for Facebooks and Instagram's efforts to outrun TikTok and the
Speaker 1: flight of tech workers may well be leaving a hole
Speaker 1: in San Francisco. Kanda City recover or the Silicon Valley
Speaker 1: need to start rethinking reinventing itself as a tech huck.
Speaker 1: We'll talk about that later this hour. All of that
Speaker 1: in a moment, But first, I want to get a
Speaker 1: look at Walmart. I want to bring in our Bloombook
Speaker 1: consumer team leader John Edwards. John, what's I take on
Speaker 1: these results? Uh? Well, yeah, it's it's uh, you know,
Speaker 1: obviously to some extent of a surprise, given that Walmart
Speaker 1: had expressed confidence uh previously in how it would handle uh,
Speaker 1: you know, bringing its inventories down. You know, it was
Speaker 1: something of a contrast with Target, which had uh, you know,
Speaker 1: moved aggressively to start, you know, cutting prices more quickly
Speaker 1: to really you know, slash those inventories which have had
Speaker 1: built up at a lot of retailers. Walmart had said
Speaker 1: that it would sort of let them ease down over
Speaker 1: the next couple of quarters. But I think what they're
Speaker 1: seeing is that consumers are even more hit by the
Speaker 1: high inflation than they had expected at Walmart, and so uh,
Speaker 1: you know, they are also having to move more aggressively
Speaker 1: than they had hoped and thus cut prices uh deeper
Speaker 1: than they had hoped to and um and thus you know,
Speaker 1: cut into margins. This from Walmart CEO Doug McMillan. He
Speaker 1: says the increasing levels of food and fuel inflation are
Speaker 1: affecting how customers spend. We're now anticipating more pressure on
Speaker 1: general merchandise in the back half. I mean, this isn't
Speaker 1: going to assuage any fears about a recession, is it.
Speaker 1: I mean, isn't this going to have potentially a big
Speaker 1: impact on markets across the board. Yeah, No, I think
Speaker 1: people are going to be pretty concerned by this because
Speaker 1: you know, again, Walmart you know, had been you know
Speaker 1: out there, uh you know, speaking you know, pretty uh
Speaker 1: brashly about you know, how it was going to be
Speaker 1: able to handle this, uh, this situation without taking any
Speaker 1: drastic steps and uh but you know what, as as
Speaker 1: McMillan was saying there, what they're seeing is that, um,
Speaker 1: you know, the shift in in consumer behavior, which you know,
Speaker 1: um is part of what led to the inventory build
Speaker 1: up in the first place, as people started, uh going
Speaker 1: out more and shifting away from the sort of spending
Speaker 1: on the house and home that they've been doing in
Speaker 1: the past. Now a further shift is happening as people realize,
Speaker 1: you know, these uh you know, food prices and fuel
Speaker 1: prices are really hurting them, and so they're shifting away
Speaker 1: from big ticket items, continuing to spend on food and
Speaker 1: things that they have to that they have to buy.
Speaker 1: But you know, the margins are are lower on this. Yes, indeed,
Speaker 1: Well the pressure is on. John. I really appreciate you
Speaker 1: sharing some extra context there. I'm gonna let you get
Speaker 1: back to covering those Walmart results. John Edwards, whose leads
Speaker 1: are US consumer tech team at Bloomberg. Thank you, um.
Speaker 1: Walmart's results not going to help quell any anxiety among
Speaker 1: tech investors as we await more earnings this week, We're
Speaker 1: expecting results from Apple, Alphabet, Amazon, Meta, all of which
Speaker 1: could give more of an indication about just how large
Speaker 1: or rest looms. Meantime, the market turmoil has sealed, the
Speaker 1: I p O window almost completely shut. At this rate,
Speaker 1: two will be one of the quietest years for public
Speaker 1: offerings in recent memory. For more on this, I want
Speaker 1: to bring in Phil has Like, founder and chief strategy
Speaker 1: officer at Equities and Securities. So, Phil, I assume this
Speaker 1: walmartin news not going to help. The I p O
Speaker 1: window just gonna stay even tight more tightly shut, right.
Speaker 1: I think that's absolutely right. This is kind of just
Speaker 1: another month of more kind of hits to the ip
Speaker 1: O market and its prospects. You know, Walmart maybe think
Speaker 1: like a different company compared to technology companies where it's
Speaker 1: selling milk and staples, but that's still going to feed
Speaker 1: through to other companies as well. I think the real
Speaker 1: eye is going to be on some of these tech stocks,
Speaker 1: and as they report later to the week, I'm sure,
Speaker 1: a lot of bankers and companies that were hoping to
Speaker 1: tap the markets are waiting with dated breath. So are
Speaker 1: is the I p O windows shut across the board
Speaker 1: for all kinds of companies? Or for example, with this
Speaker 1: walmartin news, does it more effect companies that are focused
Speaker 1: on e commerce or you know, is this something happening
Speaker 1: more broadly? Yeah, I think that's totally right. You know,
Speaker 1: we we define so many different companies of being in technology,
Speaker 1: So I think any company that's related to consumer spending,
Speaker 1: maybe it's coming up with solutions for aviation or or
Speaker 1: or groceries are going to be severely impacted. But on
Speaker 1: the other hand, you've got a lot of companies that
Speaker 1: are actually selling direct to enterprises, right, You've got traditional
Speaker 1: software companies, they'll feel less impact from the Walmart news
Speaker 1: that they're going to keep a really close eye on
Speaker 1: some of the bigger tech names as they report. Um. However,
Speaker 1: you know, it's it's kind of a perfect storm where
Speaker 1: we've got still continuing uncertainty about inflation, you've got really
Speaker 1: tough earnings updates and guidance given from companies like Walmart
Speaker 1: and even Snap last week. Uh, and you've also got
Speaker 1: a historically really slow part of the year for I
Speaker 1: p O s as well, So that kind of all
Speaker 1: comes together and you're probably not seeing anything go out
Speaker 1: the door until key four KKR told the information that
Speaker 1: I p O s are a year away. How far
Speaker 1: away do you think they are? I think that's about right.
Speaker 1: I think you've got companies that are preparing everything if
Speaker 1: if the economy does turn around a little bit more quickly.
Speaker 1: You've got UH finance teams at each of these pre
Speaker 1: I p O companies. You know, we speak to them
Speaker 1: a lot, and and they're gearing up to be ready
Speaker 1: when that window kind of comes available. Maybe there's an
Speaker 1: opportunity to que for for the strongest, most marquee names,
Speaker 1: the companies that everyone's super familiar with UM. But other
Speaker 1: than that, I tend to agree it's probably not going
Speaker 1: to be until the closed IPO window. Is creating some
Speaker 1: tension between employees and employers. You've got all of these
Speaker 1: employees working at these startups who thought maybe they were
Speaker 1: going to get an exit and soon that's not happening.
Speaker 1: What are you seeing happening below the surface. Sure, so
Speaker 1: it equities and we have a really good lens and
Speaker 1: to kind of the feelings and the sentiment of employees
Speaker 1: that hold these shares, and a lot of the conversations
Speaker 1: that those employees had with their employer last year was
Speaker 1: that everything's great, We're raising a lot of money, We're
Speaker 1: gonna be able to go public soon and get liquidity,
Speaker 1: and that's certainly not the case. And it's actually being
Speaker 1: kind of exacerbated by the fact that there's been some
Speaker 1: recent news coming out from some companies where insiders, mainly
Speaker 1: executives or founders, actually took a lot of chips off
Speaker 1: the table in two thousand twenty one and better times,
Speaker 1: but didn't make that available to employees. And to me,
Speaker 1: that's kind of serving is a bit of few on
Speaker 1: the fire for what I imagine will be uh probably
Speaker 1: an uprising is a bit extreme, but I think a
Speaker 1: big movement from employees to ask their employers for more
Speaker 1: opportunities for liquidity since it's so important, you know, in
Speaker 1: the spurring economy. Right there's the company Data Robot. The
Speaker 1: CEO just reportedly resigned there in part due to share
Speaker 1: sales that executives were allowed to do that longtime lower
Speaker 1: level employees were not allowed to do. What are the
Speaker 1: ripple effects to see that you see happening here. I mean,
Speaker 1: do you think employees will start walking out looking for
Speaker 1: other jobs or do they not? There are there not
Speaker 1: a lot of choices right now because the market is
Speaker 1: so tight and you've got tech hiring freezes and layoffs
Speaker 1: happening across the board. Well, if you ask any recruiter
Speaker 1: at a you know, a venture back company, if it's
Speaker 1: become easy or too higher engineers, it has not been.
Speaker 1: So I think that the job market for those types
Speaker 1: of folks is still really, really hot, and so I
Speaker 1: think there will be some voting with their feet. The
Speaker 1: data robot situation in particular was really bad in the
Speaker 1: sense that these were executives that only joined the company
Speaker 1: two years ago or so, you know at equities, and
Speaker 1: we see founders that take chips off the table after
Speaker 1: they've put their blood, sweat and tears and built the
Speaker 1: business for the last eight, nine, time eleven years. And
Speaker 1: I think that's actually pretty well received by employees and
Speaker 1: it seems very justified. Um, but when you see some
Speaker 1: senior executive haven't been around very long, that's what really
Speaker 1: frustrates people. So I think, uh, founders and CEOs really
Speaker 1: have a choice. You can be reactive and uh, you know,
Speaker 1: hope that employees stick around, or you can be proactive
Speaker 1: and start talking about liquidity um because it is a
Speaker 1: valve that companies can use to retain their best, uh,
Speaker 1: their best employees without having to dig into more money
Speaker 1: out of their you know, their balance sheets that are
Speaker 1: obviously getting hurt right now in the current economy. So
Speaker 1: I think it's kind of a win win for everyone.
Speaker 1: All Right, Well, it's good to hear about some win
Speaker 1: wins in a situation where it sounds like there's a
Speaker 1: lot of lose losing happening. Equities and Securities Founder and
Speaker 1: CHI strategy officer Phil has always good to have your
Speaker 1: context here on the show. Thanks coming up, iPhones for
Speaker 1: sale but only in China. We will explain why next
Speaker 1: this is Bloomberg. Well, in an unusual move, Apple is
Speaker 1: offering a discount for a slew of products, but only
Speaker 1: in China. iPhones, Apple watches, and air pods will be
Speaker 1: on sale in China for four days as the company
Speaker 1: prepares to roll out the next generation of Apple devices.
Speaker 1: The discounts come as China's economy struggles under the weight
Speaker 1: of multiple COVID lockdowns are Markerman, of course covers all
Speaker 1: things Apple. So this is fairly rare, isn't it, Mark
Speaker 1: This is incredibly rare, right, I mean, right now, in
Speaker 1: the United States, Apples gearing up for a tax holiday. Right,
Speaker 1: so in a handful of states you'll be able to
Speaker 1: buy select Apple products without paying tax. You have Singles
Speaker 1: Day in China, which is a popular shopping day. You
Speaker 1: have Cyber Monday and Black Friday in the US. Right,
Speaker 1: you have education discounts, but a one off, rare shopping
Speaker 1: holiday for a few days in China. This is not
Speaker 1: something I've ever seen before. Now here's something to point out.
Speaker 1: On Thursday, that's Apple earnings day. On Friday is when
Speaker 1: this sale kicks off. As you mentioned, there have been
Speaker 1: economic issues, there have been sales slowdowns, there have been
Speaker 1: economic concerns across China over the last several months. Perhaps
Speaker 1: this might be timed in response the day after earnings
Speaker 1: because maybe the China results, and of course this is
Speaker 1: just speculation aren't going to be as hot as maybe
Speaker 1: some people have expected. And this is a quick and
Speaker 1: easy way to prepare investors, right in analysts to show
Speaker 1: we have a quick solution here, and we think a
Speaker 1: sale nearly hundred dollars in savings on some items right
Speaker 1: on the high end iPhones in particular, those four days
Speaker 1: could boost sales immediately into the fourth quarter. Tell obviously
Speaker 1: looking ahead to earnings in the next two days, we'll
Speaker 1: learn more. There are you saying this is potentially a
Speaker 1: bad sign? I mean potentially a bad sign, right, I
Speaker 1: mean if things are all perfect in terms of sales
Speaker 1: right now in China, I don't know if Apple would
Speaker 1: be doing a random sale like this, right. Their sales
Speaker 1: are usually tied to a specific holiday or a specific event.
Speaker 1: There's none going on in China at the end of
Speaker 1: this week that I could particularly think of. So there's
Speaker 1: a reason that you really want to drum up excitement
Speaker 1: in sales over this, over these products right now, with
Speaker 1: these discounts. I don't really see this as a reason
Speaker 1: to clear inventory, right. I don't think that's necessary. The
Speaker 1: new iPhones aren't going to go on sale for about
Speaker 1: three months now, so they still need write a quarter
Speaker 1: of a year worth of inventory. Many of the products
Speaker 1: that are going on sale for this four day special,
Speaker 1: those products are going to remain on sale even after
Speaker 1: the iPhone fourteen and the other new products come out right,
Speaker 1: the Apple Watches that they're handling with this discount, the
Speaker 1: iPhone se, the iPhone thirteen, the third generation air pods,
Speaker 1: those are all going to be on sale until next
Speaker 1: year anyways. So I don't think this is clearly clearing inventory.
Speaker 1: They clearly want to drop up sales somehow, someway with
Speaker 1: this interesting. All right, we'll keep watching. Of course, We're
Speaker 1: gonna be like watching your coverage of earnings later this week,
Speaker 1: and then we'll be watching to see how this sales
Speaker 1: promotion rolls out. Mark German, thank you well, just call
Speaker 1: the latest episode of Keeping Up with TikTok. Meta is
Speaker 1: now introducing music revenue sharing on Facebook, which will help
Speaker 1: creators make money from videos that use licensed music. It
Speaker 1: might also help Facebook compete with TikTok, or will it.
Speaker 1: Last week, Facebook also changed its timeline algorithm to look
Speaker 1: more like TikTok. Liz Pearl is a former head of
Speaker 1: Team Community in Instagram and now consults with big tech
Speaker 1: companies about the creator economy. Kirk Wagner cover social media
Speaker 1: for US and Kurt I just realized when I read
Speaker 1: that pun that it ties into Kylie Jenner, who just
Speaker 1: tweeted or posted on Instagram saying, stop making Instagram look
Speaker 1: like TikTok. That's right. I actually thought you did that
Speaker 1: on her because he was talking about that was incredible,
Speaker 1: totally unplanned. That's right. Kylie Jenner, obviously huge on Instagram,
Speaker 1: UM said stop trying to make Instagram look like TikTok.
Speaker 1: We just want to see, you know, our friends and
Speaker 1: family on this sap. This is not what this is for.
Speaker 1: You might remember a few years ago, I believe it
Speaker 1: was her she tweeted about Snap and the redesign at
Speaker 1: Snap set the stock down vomiting. That's right, and so
Speaker 1: she has good timing. I think Facebook's earnings are in
Speaker 1: two days, UM, so you know she's getting her voice
Speaker 1: out early. So, Liz, is are all of these efforts
Speaker 1: by Meta to make Facebook and Instagram more like TikTok?
Speaker 1: Is this the right direction or should they be working
Speaker 1: to differentiate Instagram and Facebook from TikTok? Well? I would
Speaker 1: say that TikTok is the best place for views and
Speaker 1: the worst place to build a sustained recurring audience, right,
Speaker 1: And Instagram's identity for so long was as the place
Speaker 1: for building a dedicated audience. It wasn't as susceptible to
Speaker 1: virility or outside forces in general. Right, you can't even
Speaker 1: share links on the platform. So if Reels really does
Speaker 1: go all in for like a TikTok for you page,
Speaker 1: like feed for you is what we call the TikTok
Speaker 1: feed um, which essentially devalues followers. I think that's a
Speaker 1: pretty big departure from the identity wise, and I'm really
Speaker 1: curious to see how that plays out. So I wonder, Kurt,
Speaker 1: you know, on that note, it should Instagram be leaning
Speaker 1: into more of the things that make Instagram great rather
Speaker 1: than just some say copy TikTok. Right. Well, on the
Speaker 1: one hand, that's a way to kind of keep your
Speaker 1: place in this world, right, if everyone's rushing towards the
Speaker 1: same spot, uh, you know, they're kind of giving that up.
Speaker 1: On the other hand, clearly what they're seeing behind the
Speaker 1: scenes is motivating this, right, And so if your Instagram
Speaker 1: and Liz would know this you know better than I would.
Speaker 1: But if your Instagram and you're seeing people maybe leave
Speaker 1: or spend more time somewhere else, the reality is Facebook
Speaker 1: is always just chasing that attention, right, And so that's
Speaker 1: what's going to happen, but you're right, maybe the long
Speaker 1: term keeping that foothold kind of with friends and family
Speaker 1: would be would be a smarter play given that you
Speaker 1: worked at Instagram for so many years, Liz, is that
Speaker 1: what's happening internally? Are they watching TikTok and just thinking
Speaker 1: about how to keep up? Well, I can't speak to
Speaker 1: what's happening internally there right now, but it reminds me
Speaker 1: a bit of Stories Launched to be honest, which I was,
Speaker 1: which I was there for. I mean, um, you know, people,
Speaker 1: there's a lot of dialogue around that, people thinking it
Speaker 1: wasn't going to be successful, and actually there was a
Speaker 1: huge market for people who are not who that format
Speaker 1: was perfect for. But we're not necessarily using Snapchat, and
Speaker 1: I do think we think of TikTok is pretty ubiquitous,
Speaker 1: but there is a market for people who love that
Speaker 1: format and both creating a consuming content in that format
Speaker 1: who might not necessarily got on TikTok, So there is
Speaker 1: an opportunity area there. Of course, what is the value
Speaker 1: proposition to creators at this point? You know, if if
Speaker 1: you're a creator, where do you decide to invest your
Speaker 1: time given the options right now? Really depends on what
Speaker 1: your goal is and what type of content you want
Speaker 1: to create. But I do think for younger people in general,
Speaker 1: like I, I do believe in adapting to what young
Speaker 1: people want. And you know, mobile video tools, really good
Speaker 1: mobile video editing tools. I think it's very TikTok's very
Speaker 1: underrated for for for the how good they're mobile, easy
Speaker 1: and good their mobile video editing tools, or when they
Speaker 1: launched just forced us all like every platform, that sort
Speaker 1: of up their game there, and that's a net good, right,
Speaker 1: giving Giving young people the tools that they want and
Speaker 1: already are using to be able to communicate across more
Speaker 1: platforms a good thing. I think competition is a really
Speaker 1: good thing among social platforms. It might be an unpopular opinion,
Speaker 1: but it's great for TikTok. I had some competition and Kent.
Speaker 1: There's obviously a competition for eyeballs and attention, but there's
Speaker 1: competition for creators. You know, talk to us about how
Speaker 1: that competition is playing out. I mean, part of what
Speaker 1: has made TikTok so successful is the music, which is
Speaker 1: what these new changes that meta are geared towards, right,
Speaker 1: and because that drives culture, right, those are the those
Speaker 1: are the types of songs that people want to see
Speaker 1: to pair that with your video. But also, I mean,
Speaker 1: let's be real, this will also comes down to business, right,
Speaker 1: if you're a creator, where can you not only get
Speaker 1: the most views, but where you can you monetize those views?
Speaker 1: And that's why YouTube has historically been such a great
Speaker 1: place for creators, better than Facebook for video, because it's
Speaker 1: easier to make money there. Right, we saw Vine, Vine
Speaker 1: was great. Vine was TikTok. Before it was TikTok, there
Speaker 1: wasn't a great way for any creators to make money
Speaker 1: on Vine, and they went to other places, right, And
Speaker 1: so I really think it's going to come down to
Speaker 1: which platform can give people a chance to make a
Speaker 1: living off. There's a whole graveyard of these social media
Speaker 1: platforms there are. Because I wonder what you make of
Speaker 1: Kylie Jenner's comments, I mean, Kurt brought up I mean
Speaker 1: the Kylie curse Snap. Some people think Snap has never
Speaker 1: been the same since what Kylie Jenner said about Snap.
Speaker 1: But what do you think about this idea that at
Speaker 1: least one celebrity power user doesn't want Instagram to look
Speaker 1: more like TikTok and maybe once Instagram to be Instagram.
Speaker 1: I mean, I think anybody who's business, which hers largely
Speaker 1: is an Instagram a way that it wasn't even it
Speaker 1: wasn't even the same on TikTok is predicated on having
Speaker 1: this audience that you developed and having followers be really
Speaker 1: really key in that main feed is going to be
Speaker 1: resistant to this and it resistant to change in general. Right,
Speaker 1: those older generations we are this is this is a
Speaker 1: play that's really catering. Um, it seems like it's catering
Speaker 1: for an audience that is that prefers a different format
Speaker 1: something that I think we're talking about music rights and
Speaker 1: sound like something that also also another very underrated thing
Speaker 1: about TikTok when it launched actually as musically Right, which
Speaker 1: was the first incarnation of TikTok that was really popular
Speaker 1: with tweens, was how central sound was to the platform,
Speaker 1: right like music lip sinking the very first foundational communities
Speaker 1: and that platform where dancers, and there was like there's
Speaker 1: no surprise there that was the case. Their biggest stars
Speaker 1: came out of dancing. And when video became important on
Speaker 1: Facebook and Instagram, sound sound as a feature, right not
Speaker 1: not not the center of their video tools. So I
Speaker 1: think that's been a defining difference between TikTok and these
Speaker 1: other platforms, and it's going to be interesting to see
Speaker 1: phase I hopefully this, you know, the music rights platform
Speaker 1: will will be expanded to real soon and close that
Speaker 1: gap a little quickly. Kurt, what is Facebook said in
Speaker 1: response to the accusations that it's copying rather than developing
Speaker 1: its own. It's not shy. It's not shy about this.
Speaker 1: I spoke to them when they did the news feed
Speaker 1: changes last week, and you know, I said, like, you know,
Speaker 1: people are gonna identify that you're Copper and TikTok, you know,
Speaker 1: and they were kind of like, there, these are good ideas, right,
Speaker 1: same thing they said when stories came out, they said
Speaker 1: simply this is this is a good idea. Right. So
Speaker 1: maybe it's not just who can do it, but who
Speaker 1: can do it best. We shall see, Okay, Kurt Wagner
Speaker 1: for Bloomberg. Thank you Liz Pearl, former head of Team
Speaker 1: Community at Instagram. Really interesting to have your insider perspective today.
Speaker 1: Thank you for joining us. Welcome back to Bloomer Technology
Speaker 1: and Emily Changing in San Francisco. Well, I want to
Speaker 1: turn out to the booming digital health landscape with summer Health,
Speaker 1: a pediatric telehealth startup that's aiming to make responses to
Speaker 1: very common medical questions more accessible through a telehealth platform.
Speaker 1: The idea seems to be resonating with investors. The startup
Speaker 1: just raised a seed round led by Sequoia and Lux Capital.
Speaker 1: Ellen da Silva, CEO and co founder of summer Health,
Speaker 1: joins us now. So Ellen talked to us about the
Speaker 1: idea here the driving premise of summer Health. Yeah, thanks
Speaker 1: for having me, Emily. The idea of mind summer Health
Speaker 1: is a very simple one. We believe that all Americans
Speaker 1: should have a phone number they can text and get
Speaker 1: an answer um staffed by a doctor within fifteen minutes
Speaker 1: for any of their medical needs. This started out of
Speaker 1: my own needs as a mother. So we're very excited
Speaker 1: to launch summer Health today. And you're focusing on pediatric care.
Speaker 1: Why is that? I mean, the idea that I could
Speaker 1: just reach my pediatration in minutes is totally novel and
Speaker 1: kind of amazing, But it also seems like a moon shot. Yeah,
Speaker 1: I mean it sounds like you, as a mother, may
Speaker 1: have also experienced this. UM. We're starting a pediatrics for
Speaker 1: many reasons. Two of the primary reasons are that parents
Speaker 1: are thirsty to get more medical attention for their children. UM.
Speaker 1: There is no shortage of parenting questions that come up
Speaker 1: around health and wellness that parents wish they could ask
Speaker 1: a pediatrician, But because pediatricians offices tend to be overworked
Speaker 1: and sometimes unfortunately understaffed, they have nowhere to turn. The
Speaker 1: second reason is we want to give more access and
Speaker 1: resources to pediatricians who want to work more. UM. We
Speaker 1: have learned through starting Summer Health that one in five
Speaker 1: medical professionals is planning to leave the industry in the
Speaker 1: next two years according to the American Medical Association, and
Speaker 1: anecdotally in pediatrics it's far worse. And so we know
Speaker 1: that pediatricians are looking for alternate ways to practice medicine.
Speaker 1: We believe that Summer Health is a great way for
Speaker 1: them to do so why is that a providers are
Speaker 1: leaving and that it's worse among pediatricians. COVID was tough
Speaker 1: for everyone, most notably physicians. Physicians have been overworked, understaffed,
Speaker 1: put through the ringer because of COVID. They also have
Speaker 1: not necessarily benefited from the ability to work from home,
Speaker 1: the way a lot of other professionals have been able
Speaker 1: to do, and so many of them are now turning
Speaker 1: to professions that would allow them to work from home.
Speaker 1: And in fact, Summer Health you don't even necessarily need
Speaker 1: to be face to face with a doctor. Your provider
Speaker 1: can be at her child soccer game. Um in particular
Speaker 1: with pediatrics, pediatricians tend to be disproportionately women, who as
Speaker 1: we know, have been affected by COVID and lack of
Speaker 1: child care resources. Of them are part time and so
Speaker 1: look to fill the rest of their time with other
Speaker 1: pediatric work, and we believe that Summer Health is the
Speaker 1: best platform for them to do so. Interesting, all right,
Speaker 1: Ellen to Silva, CEO and co founder of Summer Health.
Speaker 1: Really interesting what you are starting, and we'll continue to
Speaker 1: follow Meantime, Google has confirmed it fired a software engineer
Speaker 1: who worked on the company's AI team over his public
Speaker 1: contention that he had conversations with a bot that had
Speaker 1: become sentient. Yes, he argued that computers have feelings. Google
Speaker 1: says Blake LeMoyne's comments were wholly unfounded and that he
Speaker 1: had shared confidential company information to third parties. Lemoine predicted
Speaker 1: his own termination in an interview with me last month.
Speaker 1: I don't think we need to be spending all of
Speaker 1: our time figuring out whether I'm right about it being
Speaker 1: a person. We need to start figuring out why Google
Speaker 1: doesn't care about AI ethics in any kind of meaningful way.
Speaker 1: Why does it keep firing AI ethicists each time we
Speaker 1: bring up issues. You can watch that full interview at
Speaker 1: Bloomberg dot com. It's also on YouTube. Coming up, with
Speaker 1: the crypto winter taking hold after a massive crypto sell
Speaker 1: off prompted by the Celsius tobacco, We're gonna take a
Speaker 1: look at the future of crypto security with Ledger. Next.
Speaker 1: This is Bloomberg Time now for our crypto report. With
Speaker 1: Bitcoin sinking back into the nineteen thousand to twenty two
Speaker 1: thousand dollar trading range and analysts expecting more swings ahead
Speaker 1: of another federate HiPE. Question, everyone is wondering has bitcoin
Speaker 1: found its floor yet? Our own crypto Contributortionale Bossi has
Speaker 1: been investigating that very question for Snelling. What are we thinking?
Speaker 1: So it's interesting, family. You did see last week bitcoin
Speaker 1: flip up past twenty three thousand, and it has come
Speaker 1: back down. It hasn't had several days here of muted
Speaker 1: price pressure, and to your point, it has some catalysts
Speaker 1: ahead that could make the ride ahead a little bit rocky.
Speaker 1: But again, that dollar range has everyone wondering, is the
Speaker 1: leverage completely out of the system. See if you take
Speaker 1: a look there, Yes, we've had that pressure on pricing,
Speaker 1: but over the last seven days you are still seeing
Speaker 1: bitcoin trading higher than it was seven days ago. I
Speaker 1: also want to show you a quick chart of ethereum
Speaker 1: because even though you're seeing a bigger decline over twenty
Speaker 1: four hours, and ethereum than you are seeing in Bitcoin
Speaker 1: also up over the last seven days, as there is
Speaker 1: some excitement about ethereum and around bitcoin. For ethereum, of course,
Speaker 1: there's that merge date on the table now. And does
Speaker 1: that excitement hold and does it push the prices back
Speaker 1: up even in the face of all these uncertainties of
Speaker 1: the big question. And one more time, is that leverage
Speaker 1: out of the system? Indeed? All right, well, we're gonna
Speaker 1: explore this a little bit more. Our next guest has
Speaker 1: his own read on this, and that is Ian Rodgers,
Speaker 1: chief experience officer at Ledger, a platform that provides hardware
Speaker 1: wallets for securing crypto assets. We're gonna get into crypto
Speaker 1: security in a moment, but first I just want to
Speaker 1: get your read on the winter uh Ian as it were.
Speaker 1: I mean, do you think bitcoin has hit the floor?
Speaker 1: Is it only up from here or what we saw
Speaker 1: over the last couple of weeks just ahead? Fake You know,
Speaker 1: I don't think any of us know exactly what happens
Speaker 1: in the short term. I mean, for us, it's a
Speaker 1: it's a really long term bet on digital assets overall.
Speaker 1: I think, you know, from our perspective, you have this
Speaker 1: new human invention um and it's definitely going to have
Speaker 1: a massive effect on humanity. So how what's the what's
Speaker 1: the arc of that one of the ups and downs?
Speaker 1: You know, very difficult to say, but you know, for me,
Speaker 1: having lived through, you know, the the dot com bubble,
Speaker 1: you know this is this is like asking, you know,
Speaker 1: what was it going on at that moment in time
Speaker 1: when you know the market had crashed, but you know,
Speaker 1: the Internet was was inevitably and unquestionably you know, going
Speaker 1: to have a massive impact of humanity. Now, you can
Speaker 1: talk about bitcoin all day to that end, but what
Speaker 1: about everything else? What about the n f T landscape,
Speaker 1: what about Web three? Overall? How are you preparing for
Speaker 1: what the industry might look like coming out of this
Speaker 1: crypto winter. Well, just today at Ledger we launched Ledger Market.
Speaker 1: That was five and a half hours ago, and we've
Speaker 1: done three million dollars in business UM in the last
Speaker 1: five and a half hours. UM. So I think, you know, again,
Speaker 1: we're going through this once in a humanity digitization of
Speaker 1: everything UM. And I think if you, if you fast
Speaker 1: forward fifteen and twenty years from now, you know, your
Speaker 1: passport is a digital document that is issued to your
Speaker 1: digital wallet. And the way that you, you know, prove
Speaker 1: you are who you say you are, is you prove
Speaker 1: that you are the owner of the wallet containing that document.
Speaker 1: I mean, that's the scale of what we're talking about here.
Speaker 1: I think it's very difficult to pick winners and losers,
Speaker 1: just like in the late nineties or two thousand two two,
Speaker 1: it was very difficult to pick winners and losers, but
Speaker 1: you could bet on the Internet long term. And from
Speaker 1: my perspective, if you can bet on digital assets, UM,
Speaker 1: security and self custody as as things that are there there,
Speaker 1: these are these are long term and if you have
Speaker 1: a portfolio UM that's focused on those things, it's likely
Speaker 1: to return over time. You're talking about self custody and
Speaker 1: storing at your own crypto here, what has this moment
Speaker 1: in the industry taught people about ownership of crypto assets
Speaker 1: themselves and the difficulties in doing so, especially as you
Speaker 1: see so many exchanges really show you that they own
Speaker 1: the crypto that you think you own. It's a great
Speaker 1: question because I think, unfortunately people are you know, keep
Speaker 1: equating the bankruptcy of you know, Celsius and Voyage or
Speaker 1: with um, you know, with crypto overall, which is like
Speaker 1: equating you know, Bernie made off with the stock uh,
Speaker 1: you know, with with the stock industry overall. I mean,
Speaker 1: it's it doesn't make any sense, you know. I think
Speaker 1: what unfortunately it's done the hard way is it's taught
Speaker 1: people what people in the crypto industry have known for
Speaker 1: a long time, not your keys, not your coins. And
Speaker 1: that is one of the great inventions here is that
Speaker 1: you can actually hold onto your own assets so that
Speaker 1: a run on the bank is impossible. But unfortunately, if
Speaker 1: you just kind of go, you know, into a system
Speaker 1: where you know, you give somebody else your money and
Speaker 1: you ask them to manage it for you, well, you know,
Speaker 1: I'll all kinds of things can happen from that moment.
Speaker 1: And you're a former Apple Music executive, you worked at Beats,
Speaker 1: and I'm so curious what the relationship is between what
Speaker 1: you see as the potential relationship between music and crypto.
Speaker 1: Are there any lessons that you learned in your former
Speaker 1: life that you're applying to crypto security? But definitely, you know,
Speaker 1: I left college in go On toward the Best Boys,
Speaker 1: and then I was at at Beat. I worked with
Speaker 1: UM the great talented team at lbm H the last
Speaker 1: five years. And even though my background is computer science,
Speaker 1: if I had learned nothing about marketing with those geniuses,
Speaker 1: then you know, I'd be pretty stupid. So I think
Speaker 1: one is just how do we, you know, take a
Speaker 1: brand like this and bring it into culture and and
Speaker 1: that's that's one of the things, UM, that we're trying
Speaker 1: to do. But with respect the music specifically, I mean
Speaker 1: music is already you know, ninety nine digital, and I
Speaker 1: think that the Internet brought us this revolution of information,
Speaker 1: and what we're going through now is a revolution of value.
Speaker 1: So given that that music is on some level information,
Speaker 1: it's kind of already been set free and digitized. UM,
Speaker 1: you know, but to the degree that as you can see,
Speaker 1: I'm I'm a record collector. You know, those are that
Speaker 1: those are collectibles, and those will have you know, kind
Speaker 1: of different levels of utility. I think what happens over
Speaker 1: the next year is you get these these applications that
Speaker 1: in some ways resemble my Space. You know, my Space
Speaker 1: was early, it was messy, old, people didn't understand it
Speaker 1: at first. Um, but people will use it as a
Speaker 1: way to showcase their digital belongings, and then those digital
Speaker 1: belongings will get them access to other parts of the world.
Speaker 1: You know. Imagine that I buy that Louis Batan handbag,
Speaker 1: it gives me a token. With that token, I can
Speaker 1: get into Louis Baitan world, and I'm not waiting on
Speaker 1: the street and line anymore. UM. This is the kind
Speaker 1: of thing that this combination of kind of digital and
Speaker 1: physical is is going to bring to us digital and
Speaker 1: physical ownership. That is so, since we've gotten your thoughts
Speaker 1: on the crypto industry, I'm curious for your thoughts on
Speaker 1: the evolution of the music industry. Earlier in the show,
Speaker 1: we were recovering um Facebook offering new tools to creators
Speaker 1: who want to make licensed videos with licensed music in them. Obviously,
Speaker 1: TikTok has totally kind of reinvented this category of social
Speaker 1: media videos to musical tracks. You know, what do you
Speaker 1: what do you see as the evolution of music combined
Speaker 1: with social media? Well, I mean I think what's what
Speaker 1: I've always said is whether when I was at lvm
Speaker 1: AGE it was the same as when I was in
Speaker 1: the music business in that we sold culture as a
Speaker 1: prerequisite to selling product. Right when people are buying music, Um,
Speaker 1: you know, even when they were buying compact discs, you
Speaker 1: weren't buying you know, a compact disc you were buying
Speaker 1: you know, when a when a teenager was buying an
Speaker 1: Eminem c D, they were buying you know what Eminem
Speaker 1: means to them, right, And I think it's the same
Speaker 1: when somebody buys a d R handbag. Do your means
Speaker 1: something in culture? Therefore, you know you purchased the product.
Speaker 1: So now that we've had this revolution of information with
Speaker 1: the Internet, um, you know, information is free and someone
Speaker 1: in a small town in Indiana where I grew up
Speaker 1: has the same access to culture that someone in New
Speaker 1: York or London or Paris or Tokyo does. Um. I
Speaker 1: think that's what's completely revolutionized, you know, and I think
Speaker 1: you know math, you know, largely it's moved us kind
Speaker 1: of away from these mass media sources and into kind
Speaker 1: of tribes and clicks. We all feel that, you know,
Speaker 1: coming out of out of the pandemic. But but that
Speaker 1: of course affects, you know, it affects everything, including including music.
Speaker 1: Music is it's not just sonic, it's a way of belonging.
Speaker 1: That's kind of beautiful in Rogers, appreciate you taking a
Speaker 1: swing at that with us chief experience officer at Ledger,
Speaker 1: along with our very own Shinelle boss. Thank you. The
Speaker 1: market downturn has hit the U S economy hard, but
Speaker 1: it hit San Francisco's economy particularly hard, with local giants
Speaker 1: like Apple and Google planning to slow hiring and more
Speaker 1: tech workers working from home permanently. The tech sector that
Speaker 1: supercharged the Bay Area economy is now leaving a vacuum
Speaker 1: in Silicon Valley. Bloomers, Rolling of our Geese joins us
Speaker 1: now to discuss roll. You've got a big piece out
Speaker 1: on this now. Why does it seem like San Francisco
Speaker 1: has been hit harder than other US cities? Absolutely, San
Speaker 1: Francisco has been hit really hard, and that's because so
Speaker 1: much of our economy is revolves around tech, and unlike
Speaker 1: in New York, which is very finance dominated, tech companies
Speaker 1: here have really embraced remote work policies. So that means
Speaker 1: you have fewer employees taking transit, peer employees going to restaurants,
Speaker 1: fewer employees taking um, you know, going and shopping and
Speaker 1: supporting the economy that San Francisto depends on. And meanwhile,
Speaker 1: you have a lack of international tourists and international terms
Speaker 1: has not rebounded to the levels pre pandemic. So all
Speaker 1: in all, that means that the recovery here in San
Speaker 1: Francisco is trailing down many major US cities, and you're
Speaker 1: seeing more and more companies offer more and more remote
Speaker 1: work options. So I wonder if we can't depend on
Speaker 1: tech to revive the city, and if not, what can
Speaker 1: the city do to revive itself. The city is making
Speaker 1: its biggest push yet to revital revitalize downtown and to
Speaker 1: give office workers a reason to go downtown. So they
Speaker 1: are going to emphasize let's take this vacant commercial space
Speaker 1: and have festivals and markets so that employee would think, well, yeah,
Speaker 1: maybe I will go into the office today because I
Speaker 1: can do something cool after work. Their hope is to
Speaker 1: get workers consistently going into the office three days a week.
Speaker 1: That would be a huge help to the local economy.
Speaker 1: Is there any hope that the tech scene could come
Speaker 1: back to the rescue. I think that they are really
Speaker 1: working on making the city seem safe and secure, and
Speaker 1: that's why they had these so called ambassadors around transit
Speaker 1: stations and major tourist sized cable cars to make it
Speaker 1: seem like, no, you can come to the office. It's
Speaker 1: it'll be fun. And if they can get tech workers
Speaker 1: and other people to mostly tech workers, to come three
Speaker 1: days a week, that would be a huge benefit to
Speaker 1: the city. You know, it wasn't long ago that I
Speaker 1: saw a raccoon walking down the sidewalk in the middle
Speaker 1: of San Francisco at eleven a M. Romy eleven a m.
Speaker 1: There was a raccoon on the That's what this has
Speaker 1: come to, all right, Um, well, great piece by you today.
Speaker 1: You can catch it at bloomberg dot com on how
Speaker 1: San Francisco is dealing with this Bloomber's roomy Mark Varghese,
Speaker 1: thank you for joining us. That does it for this
Speaker 1: edition of Bloomberg Technology. This week we are all over earnings.
Speaker 1: Join us tomorrow. We've been breaking down alphabet results along
Speaker 1: with Microsoft. You don't want to miss that, and of
Speaker 1: course check out our podcast as always, wherever you get
Speaker 1: your podcast time. Emily Chang in the beautiful city of
Speaker 1: San Francisco is Bloomberg